Duke Energy and several stakeholders have reached an agreement intended to protect existing customers from costs associated with serving data centers and other large-load customers in North Carolina.

Duke Energy implemented customer protections in 2024 requiring large-load customers to pay the costs associated with serving them. The new agreement formalizes and expands those measures.

The settlement involves Duke Energy Carolinas and Duke Energy Progress, the company’s two North Carolina utilities, and the North Carolina Public Staff, which represents utility customers. Other parties to the agreement include Amazon, Google, Meta, Microsoft, the Carolina Industrial Group for Fair Utility Rates and the U.S. Department of Defense.

“It’s simple – data centers will pay upfront for all costs to connect to the grid,” said Kendal Bowman, Duke Energy’s North Carolina president. “We’re shielding other customers from these costs in a way that protects reliability and ensures everyone benefits from the economic growth coming to North Carolina.”

Under the agreement, large-load customers would be subject to several requirements:

• Upfront payments: Customers would make nonrefundable, upfront payments for electric grid facilities dedicated to serving them, such as substations needed to connect to the grid.

• Deposits and security guarantees: Customers would provide upfront deposits and security guarantees for grid upgrades that benefit multiple customers, including transmission lines.

• Separate rate schedule: New large-load customers, including data centers, would be required to take service under a High Load Factor rate schedule established for large loads.

Duke Energy previously required data centers and other large-load customers with demands of 100 MW or more to agree to contract terms designed to protect other customers from associated costs.

If approved by state regulators, the new agreement would apply to all large-load customers with demands of 50 MW or more and load factors of at least 80% that sign an electric service agreement (ESA) in North Carolina after June 1, 2026. ESAs signed before that date already include a similar set of customer protections.

In July, Duke Energy announced its Customer Protection Plus framework, which outlined how data center growth could generate future customer benefits and savings for existing customers. The new agreement adds provisions addressing issues raised by North Carolina regulators and customers.

The agreement is subject to approval by the North Carolina Utilities Commission, with a decision expected by mid-November.

Duke Energy Carolinas serves approximately 2.3 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad. Duke Energy Progress serves approximately 1.6 million customers in central and eastern North Carolina and the Asheville region. The two utilities are scheduled to combine into a single utility effective Jan. 1, 2027.