As Duke Energy seeks higher rates, a North Carolina task force studies the strain on the grid from technological growth
Amidst rising concerns over power bills, North Carolina's Energy Policy Task Force convened on Tuesday to address the potential strain on the state's power grid due to rapid load growth from data centers and new industries. Governor Josh Stein, who established the task force in August, joined forces with Attorney General Jeff Jackson to challenge Duke Energy's proposed rate increase. The utility company is seeking a 15% hike over the next two years, which could result in an additional $20 to $30 monthly cost for households by 2028.
Stein expressed his opposition to the rate hike, emphasizing the financial burden it would place on families already struggling to make ends meet. He praised Jackson's intervention, stating that the proposed increase is "simply too high." Jackson's office also stepped in to ensure customers aren't paying more than necessary, aiming to strike a balance between investing in energy infrastructure and safeguarding the financial well-being of North Carolinians.
The task force meeting, chaired by Environmental Secretary Reid Wilson and Rep. Kyle Hall, focused on the responses of other states to the data center boom. Experts from neighboring states shared insights on how rapid electricity demand growth is reshaping grids nationwide. Luke Wilson, executive director of the Indiana Utility Regulatory Commission, highlighted Indiana's new rules requiring large users to cover most of the costs of new generation built specifically for them. Similarly, Virginia's State Corporation Commission member, Kelsey Baggett, noted the surge in data center projects in Northern Virginia, leading to the creation of a separate electric rate class to ensure fair cost allocation.
North Carolina faces similar challenges. Duke Energy has warned that electricity demand from data centers, manufacturing, and electrification could grow faster than anticipated. Under the state's current structure, as modified by Senate Bill 266 this summer, residential customers may bear a larger share of the costs for fuel and purchased power, while large commercial customers pay less. Task force members expressed concerns that rapid growth could result in households covering more long-term infrastructure costs unless the state updates its rules.
The task force is expected to deliver recommendations in February on how North Carolina can meet rising demand while maintaining reliable, clean, and affordable electricity. The next full meeting is scheduled for January 22, 2026.
