Raleigh -- October 16, 2026: North Carolina state leaders are responding to a landmark proposal from Duke Energy that would establish the state’s first-ever large load tariff, creating specific rules for data centers and massive industrial electricity users. While Attorney General Jeff Jackson and Governor Josh Stein characterized the agreement as an important initial step toward shielding families from higher electric bills, both cautioned that critical gaps must still be addressed before the North Carolina Utilities Commission gives final approval.
The tariff framework was submitted to state regulators following negotiations between Duke Energy, the North Carolina Public Staff, and major commercial and federal energy users, including Amazon, Google, Microsoft, Meta affiliate Andale LLC, and the U.S. Department of Defense.
“My office fought for a large load tariff for months, and now North Carolina families are one step closer to being shielded from the unfair burdens of data centers,” said Attorney General Jeff Jackson. “This is a massive step forward in making sure data centers pay their fair share – but we’re not done yet. We’re going to push for more transparency, more accountability, and more protections for ratepayers.”
Governor Josh Stein echoed that assessment, noting that while the proposal establishes a meaningful starting point, more work lies ahead to protect consumers from the cost of major new energy infrastructure.
“While this action creates a new floor for what is possible, the Utilities Commission has more work to do to ensure families aren’t left footing the bill,” said Governor Josh Stein. “The Utilities Commission must require data centers to pay the full cost of their impact and bring their own clean energy. My bipartisan Energy Policy Task Force and I will continue to push to bring cleaner, more affordable energy to North Carolinians and protect North Carolina consumers.”
Key Safeguards in Duke Energy's Proposal
Under the terms submitted to the Utilities Commission, large-scale facilities would face several operational and financial mandates:
Application Threshold: The rules apply to customers signing contracts on or after June 1, 2026, that consume 50 megawatts or more while operating at an 80% or greater average capacity, or any customer drawing 150 megawatts or more at any operating level.
Upfront Equipment Costs: Large users must pay cash up front within 60 days of signing a contract for dedicated grid infrastructure built exclusively for their sites, such as substations.
Minimum Monthly Bills: Companies must pay for at least 75% of their contracted power capacity each month, even if their actual power consumption drops below that level.
Long-Term Commitments: Contracts must span a minimum of 10 to 15 years to prevent companies from departing before the infrastructure built to serve them is paid off.
Exit Penalties: Customers must provide two to four years’ advance notice before ending an agreement, continue paying their bills during that period, and maintain financial guarantees to cover penalties if they exit early.
Peak Strain Curtailment: Facilities in their initial operational years must agree to reduce power consumption upon request during periods of severe grid strain.
Public Contract Templates: Duke Energy must submit a standardized, commission-approved contract template, ensuring terms are open to public view rather than negotiated behind closed doors.
Unresolved Issues Raised by State Regulators
Despite the newly proposed rules, Attorney General Jackson argued that the plan leaves significant liabilities on the table that could ultimately burden residential ratepayers:
Power Plant Construction Costs: Duke Energy projects that over 80% of its upcoming energy demand growth will be driven by data centers and large industrial users, requiring new generation facilities and transmission corridors. Jackson pointed out that the current proposal does not obligate large users to pay for the new generation capacity they cause.
Absence of a Dedicated Rate Class: The plan does not establish a distinct rate class for data centers, which Jackson argued is necessary to track the exact costs of serving these facilities and prevent cost-shifting to families.
Clean Energy Tariffs: Duke Energy has not yet delivered a previously promised clean energy tariff that would allow large commercial users to build or supply their own clean energy, which would relieve strain on the broader grid.
The scrutiny over the tariff comes as the Attorney General continues to challenge pending residential rate increases across Duke Energy Carolinas and Duke Energy Progress territories. The proposed large load tariff remains under formal review by the North Carolina Utilities Commission, which holds final authority over whether the agreement will be approved as filed or modified with additional consumer protections.