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Duke Energy says it will begin stakeholder discussions in early 2027 about a clean transition tariff that could give large customers a way to pay for new zero-carbon power. The plan is not yet a tariff or state policy, and its design, timing and effect on household bills remain unsettled.
Duke Energy says it will begin discussions in early 2027 about a clean transition tariff for large electricity users in North Carolina, a step toward a potential way for companies such as data-center operators to pay for new zero-carbon power. The utility has not proposed final terms or committed to launching a tariff, so the announcement marks a planned negotiation rather than a new customer program.
Duke spokesperson Bill Norton told Canary Media that the company would seek stakeholder input to examine gaps in its existing programs and possible new options. Norton described the discussions as definite, but the company’s statement does not set out a design, approval process or launch date for a tariff.
Duke says any new approach should build on its Green Source Advantage programs. Those programs let large energy users contribute to renewable-energy projects that are already underway. A clean transition tariff, as proposed by advocates, would give customers a route to pay a premium for new, zero-carbon energy through the utility. The details of how that could work alongside existing offerings have not been announced.
The development follows earlier steps that did not lead to negotiations. Duke said in spring 2024 it intended to pursue a plan with major technology companies and steelmaker Nucor, but did not follow through, according to Canary Media. Earlier this year, the company said it would evaluate the idea “in good faith” without making a commitment. Its latest statement is the clearest commitment so far to a specific next step: stakeholder engagement in early 2027.
Clean Power Meets Data-Center Growth
The discussion comes as Duke projects rapidly rising electricity demand from data centers and other large customers. The utility is also seeking higher rates and planning new fossil-fuel generation, partly to meet expected demand from those facilities, according to the report. The tariff debate is therefore about who pays for the new power supply as well as how clean that supply is.
Advocates say a customer-funded clean-energy option could advance companies’ climate goals while limiting risks to other ratepayers. Large-load tariffs more broadly can require major users to pay for a minimum amount of power, reducing the chance that households are left paying for infrastructure built for a project that later scales back or leaves. Whether a clean transition tariff would provide that protection depends on its eventual terms; none have been set.
Years of Calls for a Tariff
Across most of North Carolina, Duke is the only utility able to sell electricity, because it is a vertically integrated provider, the source report says. The state’s grid is not required to be fully clean until mid-century, leaving companies seeking round-the-clock carbon-free electricity with limited options through their local power provider.
Google and other companies have advocated for a clean transition tariff for much of this decade. The proposal would use Duke as an intermediary, allowing large customers to pay for new clean generation. While the report describes the concept as having virtually no opponents, the utility’s previous statements had not produced a formal process. The planned 2027 discussions could test whether agreement is possible on program design and how it would relate to existing renewable-energy offerings.
“So much of the talk around a large load tariff is, rightly, ‘how do we protect customers from stranded-asset risk?’”
— David Neal, senior attorney at the Southern Environmental Law Center
Tariff Terms Remain Unsettled
Duke has not said what the tariff would require, how much customers might pay, what kinds of generation would qualify, or whether customers would need to commit to a minimum purchase. The utility has also not announced a schedule for decisions after the planned discussions or said whether it will seek regulatory approval for a specific proposal.
The announcement is a company statement, not a change in state policy or an approved customer offering. It remains unclear how many companies would participate, whether the eventual model would add new clean power to the grid, and how it would allocate costs and risks between participating businesses and other customers.
Stakeholder Talks Set for 2027
Duke says it will seek to engage stakeholders in early 2027 to assess gaps in current programs and consider potential features and options. The discussions are the next stated milestone; the company has not published a participant list, agenda or timetable for producing a proposal.
Readers should watch for whether Duke releases draft terms, identifies how new generation would be sourced, and explains protections against costs being passed to households. Until those points are addressed and any required approvals are secured, the clean transition tariff remains a proposal under discussion—not a service customers can sign up for.
Key Questions
Has Duke Energy approved a clean transition tariff?
No. Duke says it will begin stakeholder discussions in early 2027, but has not announced final terms or an approved tariff.
What would a clean transition tariff do?
The proposed model would let large electricity users pay through Duke for new zero-carbon energy. Its requirements, pricing and relationship to Duke’s existing Green Source Advantage programs have not been determined.
Why are technology companies seeking the tariff?
Companies including Google have sought a way to obtain round-the-clock carbon-free electricity in a state where Duke serves most areas. The proposal is also presented by advocates as a way to connect large customers’ clean-energy goals with new generation.
Could the plan protect household customers?
Advocates say requiring large users to pay for power and related infrastructure could reduce the risk that households bear costs if a data-center project does not proceed or leaves. Whether this tariff would provide that protection is unknown until its terms are developed.
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