(The Center Square) – North Carolina’s attorney general has asked the state utility commission to create a separate rate for large users of electricity such as data centers, an idea that was also endorsed Tuesday by the state’s governor.
“We know that data centers are becoming a large part of the conversation,” first-term Democratic Attorney General Jeff Jackson said at the Council of State meeting. “What we are asking the utilities commission to do is to create a separate rate class for data centers but also for very large energy users.”
Republican lawmakers are also moving bills with the same ideas in mind.
The Ratepayer Protection Act, known also as Senate Bill 730, passed the Senate in early May and Tuesday got a favorable committee substitute while in the House of Representatives. After lunch, it was back to the Rules Committee.
The Ratepayer and Resource Protection Act, known also as House Bill 1063, was filed in late April and remains parked in the same committee. The Senate bill is expected to come forward.
Jackson said, “It’s pretty clear that our citizens want specific protections around them because these very large folks are categorically different in that they strain the entire grid. We’re asking the utilities commission to consider a list of specific protections and the creation of a specific class for data centers.”
There are nine data centers operating in North Carolina and 15 planned data centers, according to Data Center Map, a company that provides research for the industry.
“I appreciate your request to create a new rate class for these data centers,” first-term Democratic Gov. Josh Stein. “Duke Energy said 70% of the new power demand over the next five years is coming from data centers. Many states have a separate rate class that makes them pay higher given the demands on the system. It’s time for North Carolina to follow.”
Jackson is opposing a requested rate hike by Duke Energy Carolinas that he says would cost ratepayers nearly $1.4 billion over the next two years.
“This proposed increase is too high for families, and it’s more than Duke needs to meet our growing demand for energy,” Jackson said in a statement. “We can bring that number way down, save families money, and still build everything we need to keep up with growth. That’s what I’m fighting for.”
The North Carolina Utilities Commission on Tuesday declined to comment on Jackson’s request for higher rates for large electric customers such as data centers.
The Center Square was unsuccessful prior to publication getting comment from Duke Power.
There are indications that data centers are already driving up electricity prices.
Before 2019, electricity prices in the U.S. had been flat for about a decade at about 13 cents a kilowatt hour, according to the nonprofit Environmental and Energy Study Institute.
“By the end of 2025, however, average electricity prices in the United States increased to 19 cent per kWh, about 27% more than in 2019,” the institute said. “In states with a high concentration of data centers like Virginia, electricity prices have increased by up to 267% over the last five years.”
