Florida regulators reject Duke Energy’s data center rate plan
The 5-0 vote was the first test of a new state law requiring large power users to pay their own way.
Florida utility regulators last week rejected Duke Energy Florida’s plan for billing data centers, the first test of a state law meant to keep the cost of serving large power users off everyone else’s bills.
The Public Service Commission voted 5-0 on Nov. 3 to deny the proposal, the Florida Phoenix reported. Commission staff had recommended denial in October.
At issue is SB 484, signed by Gov. Ron DeSantis this year. It requires regulators to set rates and service terms so that data centers and other large customers cover the full cost of their electricity, including grid connections and any added transmission and generation, without shifting those costs to other ratepayers.
Regulators found Duke’s plan fell short on two counts, according to the News Service of Florida. It left out some customers who would qualify as large users under the law. And Duke did not provide enough evidence that its existing rates, combined with the contract and financial protections it proposed, would make each large customer pay its full cost.
Commissioner Gabriella Passidomo Smith said the law is clear that large customers must bear their full costs, and that Duke can still serve data centers while complying with it.
Duke spokesperson Ana Gibbs said the company is focused on supporting economic growth while protecting customer costs and ensuring data centers pay their full cost of service. The company must now file a new proposal.
Food & Water Watch, an advocacy group that opposed the plan, called the vote a win for affordability. The group said Duke has disclosed inquiries from data center companies about sites needing up to 1,400 MW.
Duke is not the only utility working through the new law. Tampa Electric filed its own large-customer rate proposal in September, with a new class for data centers.
Sources: Florida Phoenix via Citrus County Chronicle, News Service of Florida via WUSF, RTO Insider, Food & Water Watch
