The Florida Public Service Commission is currently evaluating Duke Energy’s initial proposal under Senate Bill 484, a new state law designed to shield utility customers from the escalating costs of artificial intelligence data centers. This proceeding represents the first major test of consumer protections intended to ensure that energy-intensive facilities bear their own financial burden rather than shifting expenses to regular ratepayers. The case focuses on whether Duke Energy’s plan adequately prevents cost-shifting for large load customers, a critical issue as the state sees increased investment in massive computing infrastructure.
Regulatory Scrutiny and Consumer Advocacy
Duke Energy became the first investor-owned utility to submit a proposal under SB 484, which went into effect last month. The legislation mandates that public utilities must reasonably ensure each large load customer covers its full cost of service, including connection, operations, maintenance, transmission, and generation expenses. Walt Trierweiler, the statutorily authorized consumer advocate for Florida’s utility customers, emphasized the need to establish clear guardrails during a recent hearing.
"What does prevent the cost-shifting from data centers to the current body of ratepayers? And what protects those customers from subsidizing loads that don't show up?" asked Trierweiler. "Hopefully out of all of this we will get a template for what does meet the requirements," he added.
Commissioner Concerns and Legal Arguments
The Public Service Commission heard approximately five hours of testimony from utility representatives and expert witnesses, though commissioners largely remained silent during the proceedings. While no formal vote was taken, written orders are expected after post-hearing briefs are submitted. Some commissioners expressed significant concerns about Duke's approach. Commissioner Mike La Rosa noted in an order that the petition appears "facially noncompliant" with the mandatory statutory requirements of Senate Bill 484.
Attorneys for Duke Energy defended their proposal, arguing it protects current customers while preserving regulatory authority and satisfying legislative directives. Dianne Triplett, a Duke attorney, stated that the company cannot set new rates immediately due to an existing PSC-approved rate agreement running through the end of 2027. However, consumer advocates argue this approach leaves customers in the dark about projected costs for facilities that can consume as much energy as entire cities, a story we covered in Florida Property Tax Vote Faces Legal Scrutiny in Leon County.
Implications for Florida Ratepayers
The debate highlights broader concerns among Floridians regarding the potential risks of an AI and data center boom. Bradley Marshall, attorney for the advocacy group Florida Rising, warned that if a market bubble bursts, regular customers could be left responsible for billions in infrastructure costs. Duke Energy does not currently have large load data center customers but is slated to power what could become the state’s first hyperscale facility in Fort Meade.
While Duke's plan includes minimum 20-year contract terms and mandatory fees for early termination, advocates argue it fails to set specific new rates as required by law. The outcome of this case will likely establish precedents for how Florida regulates massive electric consumers moving forward, balancing economic development with financial protection for the general public.
