Duke Energy strikes agreement with major corporations in the Carolinas

Published on May 31, 2024 by Dave Kovaleski

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Duke Energy is working with several major corporations to explore new approaches to help it better serve the energy needs of large businesses in North Carolina and South Carolina.

Specifically, Duke Energy has struck agreements with Amazon, Google, Microsoft and Nucor to develop new rate structures, known as tariffs in the utility industry, designed specifically to lower the long-term costs of investing in clean energy technologies.

The proposed Accelerating Clean Energy (ACE) tariffs would enable large customers like Amazon, Google, Microsoft, and Nucor to directly support carbon-free energy generation investments through innovative financing structures and lower costs of emerging technologies.

The ACE framework also would include a Clean Transition Tariff (CTT), which would enable Duke Energy to provide individualized portfolios of new carbon-free energy to commercial and industrial customers. ACE tariffs would facilitate on-site generation at customer facilities, participation in load flexibility programs and investments in clean energy assets.

The CTT would match clean-energy generation and customer load to accelerate overall grid decarbonization. This would be a voluntary program for larger customers seeking to advance their clean energy goals.

“In this new era of large-scale energy demand, Duke Energy is committed to working with our regulators and customers to find innovative and responsible ways to satisfy the growing need for more and cleaner energy. With the help of companies like Amazon, Google, Microsoft and Nucor, we can accelerate our service of large customer needs and the transition to cleaner energy, while reducing financial risks and supporting economic development in our communities,” Lon Huber, SVP pricing and customer solutions at Duke Energy, said.

Kevin Miller, vice president of global data centers at Amazon Web Services, said the agreement will help the company achieve its climate pledge goals.

“As the world’s largest corporate purchaser of renewable energy, Amazon is committed to enabling new sources of carbon-free energy to help power our operations and the communities where our customers live and work. With a footprint of data centers, fulfillment centers and corporate buildings across Ohio, the Carolinas and Florida, we’re excited to collaborate with Duke Energy to find new solutions that can help us achieve our Climate Pledge to be net zero carbon by 2040, and today’s agreement marks an important step in that journey,” Miller said.

Duke Energy serves 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.