Critical
WRAL
North Carolina regulators have rejected Duke Energy's $584 million proposal to add a 255 MW natural gas turbine at the Sherwood H. Smith Energy Complex. The project was intended to support growing electricity demand, including needs linked to Amazon's planned $10 billion data center campus in Richmond County. The North Carolina Utilities Commission stated that Duke had not sufficiently demonstrated the necessity of the project or adequately addressed how customers would be shielded from its costs.
The commission emphasized that much of the anticipated demand growth stems from future data centers, and approving the project without a complete review of Duke's forecasts could expose customers to financial risks. While the Public Staff supported the project despite its high cost, one commissioner dissented from the denial, citing grid reliability concerns. Duke Energy may reapply with additional evidence to address the commission's concerns.
Why it matters: The rejection highlights growing regulatory scrutiny of fossil fuel-based energy projects, particularly those tied to industrial clients like data centers. This could push utilities to refine demand forecasts and cost-justification approaches to secure future project approvals.