TALLAHASSEE, Fla. — A new filing with state regulators is raising concerns about transparency and the true costs of data centers.
As part of a new state law, all power companies need to file documents with the states’ Public Service Commission by October 1st, laying out a plan to show the cost of data centers won’t be passed onto customers.
In a brief filed on behalf of non-profit Florida Rising Inc, an attorney says future data centers could create a multi-billion dollar revenue gap for Duke Energy, and customers could be stranded with the costs.
While Duke Energy did not comment on the numbers specifically, the utility said their goal is to protect ratepayers and that they are the first utility to comply with the requirements of the newly signed law.
To meet the October 1st deadline, back on April 22nd, Duke Energy filed a petition to approve what is known as a large load tariff, for data centers with the Public Service Commission.
In the filing, Duke presents its large load customer policy which creates a minimum 20-year term for data centers who would like to be serviced by Duke. Until the company’s next proceeding to reset rates, the policy states that large load customers including data centers will be serviced under existing rates.
But as commissioners decide whether to approve the petition, the public gets a chance to weigh in.
In a brief filed on behalf of Florida Rising Inc. by environmental law non-profit Earth Justice, attorneys argue Duke Energy’s proposal ignores the text and spirit of the new data center cost protection law, known as SB 484.
The brief argues that the law, “requires the creation of a ‘tariff’- not a mere policy or special contract…that must actually contain the specific numeric rate or rates at which customers taking service under the charge will be charged for electric service.”
In the brief, attorney Jordan Luebkemann told state regulators, Duke’s as-filed proposal will irrefutably strand the general body of customers with an undisclosed billions of dollars of extra costs that will be incurred to serve data centers specifically.
The actual costs are redacted from the brief since the information is considered confidential by the Public Service Commission.
“Personally, I think that the public needs to know all of the information under basically every black bar in this in this brief,” said Luebkmann.
According to Luebkmann, Duke was compelled to provide the numbers to Florida Rising Inc as part of proceedings with the Public Service Commission. He says Duke’s own projections show the cost to serve its first three data center significantly exceeds the revenue Duke expects to collect from them.
“I can say publicly that it is billions of dollars of difference. I can’t tell you how many billions of dollars of different, but that difference will fall on other rate payers,” Luebkmann said.
Luebkmann pointed out that data centers use a tremendous amount of power and argues the proposal to group them with other kinds of businesses is not fair to other customers.
One state analysis found a single large data center can have the electricity equivalent of 500,000 homes. That’s about the same as all of the homes in Orange County.
Luebkmann says Duke Energy’s current rate proposal would not adequately account for the difference in energy usage.
“If this goes forward, we are talking about putting [on the same rate] a 100 square foot office, maybe that has an average demand of one-kilowatt. Compare that to a hyperscale data center that has an average demand of one-gigawatt. That is a literal million-fold difference,” said Luebkmann.
Channel 9 asked Duke if they dispute the math in Luebkemann’s brief and why the redactions were necessary. A spokesperson sent us the statement below:
“Duke Energy Florida was the first utility in Florida to present its plan to the Florida Public Service Commission in full compliance with Governor DeSantis’s newly signed Senate Bill 484, Florida’s Data Center Bill. It is important to note that we do not have a large load client in Florida currently and that we were a proud signer of President Trump’s Ratepayer Protection Pledge. Additionally, we just requested a rate cut for customers on September 3 and that cut would take effect in 2027. While Florida Rising’s own website states their goal is to “win elections,” our goal is to protect ratepayers and support responsible economic development and job creation in Florida that strengthens the reliability of the electric grid that we all depend on.”
On Wednesday, Channel 9 reached out to the Public Service Commission.
A representative said regulators will review briefs from both sides and ultimately recommend whether or not to approve Duke’s proposal.
That meeting is scheduled for November 3d.
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