Big Tech’s Push for Clean Energy Tariffs Faces Delays with Duke Energy
Despite initial excitement over a collaborative effort to implement clean energy tariffs in the Carolinas, progress has stalled. Duke Energy, along with tech giants Amazon, Google, and Microsoft, is facing challenges in establishing a framework that supports clean energy without burdening other ratepayers.
Back in May 2024, Duke Energy announced an ambitious plan to work with Amazon, Google, Microsoft, and Nucor to develop a tariff structure aimed at promoting clean energy. This initiative included a clean transition tariff (CTT), originally crafted by Google and Nevada Energy, which would allow large customers to fund innovative clean energy resources. The goal was to avoid passing the costs of emerging technologies onto other customers. More about this initiative can be found in this article.
However, following the initial announcement at a White House summit, there has been little movement on this front. Duke Energy didn’t formally mention the CTT again until a proposed merger settlement in February 2026, where they agreed to consider a detailed proposal from Google. More details on this settlement are available here.
Despite the lack of a formal proposal, stakeholders, including regulators and environmental groups, supported the inclusion of a CTT in discussions about addressing data center growth. “Duke Energy’s prior efforts to voluntarily establish a CTT have languished,” noted the North Carolina Attorney General’s office.
The Clean Energy Buyers Association has even urged the commission to compel Duke to file a CTT within six months. This call aligns with the Trump administration’s ratepayer protection pledge, which emphasizes practical mechanisms for customers to support clean energy. Read more on this at this link.
This week, Duke Energy submitted its final proposal for a large load tariff. While supported by major players like Amazon and Microsoft, it does not include a CTT. Duke argued that the proposal lacked sufficient detail to ensure it wouldn’t negatively impact non-participating customers.
According to commission staff, large load customers have been actively working to implement a CTT, but challenges remain. Nick Jimenez from the Southern Environmental Law Center noted that discussions have been ongoing but have not yet resulted in a concrete proposal.
Challenges and Potential Paths Forward
The 2024 memorandum of understanding between Duke and the tech companies is now seen as inactive. After extensive discussions, parties involved could not reach a consensus on filing a joint proposal. The Southern Environmental Law Center remains hopeful that future rate cases might address these issues.
Duke’s current position is to focus on its existing green tariff program, which allows large users to procure renewable energy. Critics argue this program primarily supports projects that Duke would undertake regardless of additional incentives. More about this program can be found here.
The CTT concept remains attractive for promoting new carbon-free resources like enhanced geothermal energy. Currently, Nevada is the only state to formally adopt such a framework. Other states, like Colorado and Minnesota, are exploring similar initiatives, with companies like Xcel Energy proposing CTTs for large loads. Learn more about Colorado’s efforts here, and Xcel’s arrangement with Google here.
Original Story at www.latitudemedia.com