Duke tariff tests Florida data center ratepayer protections

Top StoryDuke tariff tests Florida data center ratepayer protections

The Center Square

Florida's Public Service Commission is reviewing Duke Energy's proposed tariff for large load customers under Senate Bill 484. The law requires large energy users, such as data centers, to fully cover their service costs to avoid shifting expenses to general ratepayers. Duke's proposal includes a 20-year minimum term, financial assurances, and early termination penalties but omits a specific rate schedule for large load customers. Critics, including Florida Rising and the Office of Public Counsel, argue the proposal fails to meet the law's requirements.

This is the first regulatory test of SB 484, with all investor-owned utilities in Florida required to submit compliant tariffs by October 1, 2026. Duke's defense relies on a settlement agreement it claims limits immediate rate changes, a point contested by regulators and consumer advocates. The decision could set a precedent for tariff structures across Florida and potentially other states.

Why it matters: The ruling will establish how utilities allocate costs to large energy users like data centers. A decision against Duke Energy may compel other utilities to revise their tariffs, affecting cost distribution and market dynamics.