Florida utility regulators are weighing whether Duke Energy’s proposal for serving large artificial intelligence data centers complies with a new state law designed to prevent existing utility customers from paying the costs of expanding infrastructure for those facilities.
The case is the first major test of Florida’s data center law, which took effect July 1. The law requires investor-owned utilities to ensure that large electricity users, including AI data centers, cover the costs of any new generation, transmission and other infrastructure needed to serve their operations rather than shifting those expenses to residential and business customers.
During a Florida Public Service Commission hearing this week, commissioners questioned whether Duke Energy’s proposed tariff fully satisfies the law’s requirements. Commissioner Gary Clark told company representatives he believed the proposal rested on “real shaky ground,” while regulators allowed the case to proceed rather than dismiss it.
The issue comes as developers propose several large AI data centers across Florida, including a planned facility in Fort Meade. Such facilities can require significant amounts of electricity, potentially leading utilities to build additional power plants, transmission lines, and other infrastructure.
Consumer advocates argue the new law clearly requires data centers to bear the full cost of the infrastructure they require. Representatives for Florida Rising and the state’s Office of Public Counsel have contended that Duke’s proposal does not provide sufficient protections for existing customers.
Duke Energy maintains that its proposal complies with the law and protects current customers. The company said its existing rate settlement prevents customer base rates from including data center-related costs through the end of 2027. Under that agreement, if revenue from a large-load customer does not cover its costs before then, Duke says its shareholders—not existing customers—would absorb the difference.
The Public Service Commission voted to allow the proposal to move forward and is expected to hold a two-day hearing in late August, when commissioners will determine whether Duke Energy’s plan meets the requirements of Florida’s new law.
Follow the St. Pete-Clearwater Sun on Facebook, Google, & X
St. Pete-Clearwater Sun: local St. Pete-Clearwater news at PIE-Sun.com
Leave a Reply