Duke Energy outlines framework for managing data center growth

Duke Energy (NYSE: DUK) has outlined a customer protection framework it says will generate billions of dollars in long-term bill savings for existing customers as data centers expand operations on its grid.

The Charlotte, N.C.-based utility described the framework, called Customer Protection Plus, as built on three priorities: preserving grid reliability, managing large-load growth responsibly, and producing shared value for all customers.

Under the framework, data centers and other large customers are required to sign long-term agreements that can include customer-funded connection costs, upfront financial security, termination charges, and provisions allowing temporary curtailment during grid stress events.

Duke Energy said revenues from new large-load customers that exceed the cost of serving them will generate customer benefits and support grid investments. The company conducts engineering studies before new data center customers connect to ensure existing service is not disrupted.

"Data centers will provide billions of dollars in customer benefits," said Harry Sideris, president and CEO of Duke Energy. "Duke Energy remains laser-focused on ensuring data centers not only pay their fair share but also yield savings for our existing customers."

Sasha Weintraub, executive vice president and chief customer officer, said the company is focused on what data center growth "can mean for all customers" and described the approach as a "collaborative and transparent partnership" with customers, regulators, and other stakeholders.

Duke Energy serves 8.7 million electric customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, with 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers across four states.

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