CHARLOTTE, N.C. – October 07, 2026 -- Duke Energy has reached a settlement with North Carolina regulators and major tech firms that forces data centers and other large-load customers to pay upfront for all grid connection costs, shielding existing ratepayers from the expense of the state's data center boom.
Settlement expands cost protections to a wider pool of large-load customers
The agreement, filed with North Carolina Public Staff, lowers the threshold for mandatory customer protections from 100 megawatts to 50 megawatts with an 80% load factor. It applies to any electric service agreement signed after June 1, 2026, at Duke Energy Carolinas and Duke Energy Progress, the utility's two North Carolina subsidiaries.
Amazon, Google, Meta, Microsoft and the Pentagon signed on as parties
Other signatories include the Carolina Industrial Group for Fair Utility Rates and the U.S. Department of Defense, reflecting the scale of hyperscale and federal computing demand driving the negotiations.
Kendal Bowman, Duke Energy's North Carolina president, said the structure is straightforward: data centers pay upfront for grid connections, keeping reliability intact while distributing the benefits of the state's economic growth.
New customers must pay nonrefundable upfront costs for dedicated grid facilities
Under the terms, large-load customers must make nonrefundable upfront payments for infrastructure serving only their facility, such as a dedicated substation. They must also post upfront deposits and security guarantees for shared grid upgrades, including transmission lines that benefit the broader customer base.
New data centers face a separate High Load Factor rate schedule
All new large-load customers will be required to take service under this distinct rate structure, separating their cost profile from residential and small-business ratepayers.
Agreement builds on a July customer protection framework projecting billions in benefits
Duke Energy's Customer Protection Plus framework, announced in July, outlined how data center growth could generate billions of dollars in future customer savings. The new settlement directly addresses concerns raised by North Carolina regulators and customers within that framework.
North Carolina Utilities Commission decision expected by mid-November
The agreement requires commission approval before taking effect. Duke Energy Carolinas and Duke Energy Progress, which together serve roughly 3.9 million customers, will merge into a single utility on Jan. 1, 2027.