North Carolina weighs higher electricity bills as data centers drive grid strain
Controversy looms as state leaders scrutinize Duke Energy’s proposed rate hike amid a surge in power demand from data centers and expanding industries. The discussion unfolded Tuesday at the Energy Policy Task Force meeting, where governors, attorneys general, and regulators considered how rapid load growth could push monthly bills higher for everyday families.
Gov. Josh Stein, who established the task force in August, publicly opposed Duke Energy’s plan for a 15% rate increase over the next two years. The proposed rise could add roughly $20 to $30 to a typical household bill by 2028. Stein credited Attorney General Jeff Jackson for stepping in to oppose the hike, calling the increase “simply too high” at a time when many families are already stretching budgets.
Jackson’s office has argued for careful scrutiny to ensure customer costs stay in check while still enabling necessary energy infrastructure investments. “It’s important we take a close look at Duke Energy’s proposed rate increase to ensure it is necessary,” Jackson stated. “My office is intervening to strike the right balance between upgrading our energy system and protecting North Carolinians’ wallets.”
The task force, led by Environmental Secretary Reid Wilson and Rep. Kyle Hall, examined how other states are handling the data center boom that is reshaping grids nationwide. Several experts warned that surging electricity demand is already forcing regulators to rethink who should bear the costs of new power plants and transmission lines.
Indiana’s experience highlighted the trend: Luke Wilson, executive director of the Indiana Utility Regulatory Commission, told the group that peak demand could rise as much as 60% by the 2030s due largely to data centers. Indiana has begun requiring large users to cover most of the expense of new generation built specifically to serve them, ensuring growth pays for growth.
Virginia’s regulator, Kelsey Baggett, noted a flood of data center projects seeking grid access, particularly in Northern Virginia. The surge prompted regulators there to create a separate electric rate class to ensure big tech users pay their fair share, emphasizing the need for fair cost allocation.
North Carolina faces similar pressure. Duke has warned that demand from data centers, manufacturing, and electrification could outpace earlier forecasts. Following Senate Bill 266, residential customers could shoulder a larger share of fuel and purchased power costs, while large commercial accounts would pay less. Some task force members worry that rapid growth could push long‑term infrastructure costs onto households unless the state updates its rules.
Recommendations from the task force are expected in February, focusing on meeting rising demand while maintaining reliability, cleanliness, and affordability of electricity.
The next full task force meeting is scheduled for January 22, 2026.
