The Federal Energy Regulatory Commission approved new transmission tariff measures proposed by Duke Energy Carolinas on October 9, 2026. The commission voted 4-1 to accept the utility’s plan, which establishes rate treatment and financial security requirements for network upgrades driven by large loads, including data centers. The ruling applies to Duke Energy Carolinas, which serves approximately 3 million retail customers in North and South Carolina.
What it means
The approved provisions require new or transferred large loads of 100 megawatts or larger to make shortfall payments. Under the plan, these entities must pay a “committed revenue contribution” equal to 75 percent of the megawatt value in their load schedule for each applicable month and year. This payment obligation lasts for 15 years following the in-service date of the required network upgrades. Transmission customers requiring upgrades will also pay a monthly charge to cover construction costs, with Duke reimbursing them for upgrade costs plus interest once the infrastructure is operational.
FERC urged Duke and other transmission owners to implement further protections for existing customers against cost shifts from data centers and large loads. Commissioner David Rosner concurred with the approval, stating the proposal offers “meaningful, if imperfect, new protections” while noting that consumer protections remain inadequate across the country. Commissioner Lindsay See agreed, adding that the issue involves ensuring large loads pay their way and preventing stranded costs for residential and small business customers. She noted the proposal was better than the status quo, which left existing customers “wholly exposed,” but suggested the mechanism would be stronger with financial security posted at a “large load-worthy scale.”
Commissioner Judy Chang voted against the proposal, arguing that FERC should have provided guidance on how to improve it. She cited a lack of meaningful financial security requirements and adequate transparency around executed large load agreements. Chang noted that the proposal defaults to rolled-in rate treatment for large load network upgrades. The commission is currently awaiting proposals from regional transmission organizations and independent system operators due next month, responding to “show cause” orders issued in June regarding inadequate interconnection rules.
Key facts
- FERC approved Duke Energy Carolinas’ tariff measures on October 9, 2026, by a 4-1 vote.
- New large loads of 100 MW or larger must make shortfall payments.
- Committed revenue contributions equal 75% of the megawatt value in the load schedule.
- The contribution period lasts 15 years after network upgrades are in service.
- Duke Energy Carolinas serves about 3 million retail customers.
- The utility proposed revising its agreement on May 29, 2026.
- FERC issued “show cause” orders to RTOs and ISOs in June regarding cost shifts.
- Commissioner Judy Chang voted against the proposal due to insufficient financial security requirements.
Source: Federal Energy Regulatory Commission announcement