Edward Smith, edward.smith@sierraclub.org
Raleigh, N.C. – The North Carolina Utilities Commission (NCUC) approved Duke Energy’s second new gas-burning power plant on Hyco Lake in Person County, despite pushback from Person County residents and Duke Energy customers. While Duke Energy customers will fund these new gas-burning power plants through increases on their monthly utility bills, the electricity generated will largely go to power-hungry large-load customers, like data centers, for multi-billion dollar tech companies.
Around 100 people spoke out in opposition to the project through online comments and two public hearings on the project. The NCUC did not require Duke to consider alternative options for power generation at the site, even though the state’s 2050 carbon neutrality goal remains the law.
Recent independent analysis concludes that North Carolina utility customers could pay an additional $23 billion by 2050 based on planned gas plants, just in fuel costs alone. Separate independent analysis concludes that the price of both new and used gas plants is quickly increasing due to a surge in demand and lack of supply, and these cost increases are outpacing inflation and likely to persist.
Earlier this month, Duke Energy released its updated long-range energy plan, which calls for burning coal longer at existing power plants and building even more new gas-burning power plants. Duke Energy is also slashing renewable energy investments, limiting potential cost-savings to customers by placing artificial caps on benefits. Last week, the NCUC heard from a variety of stakeholders about the merits of potential large load tariffs intended to protect existing customers from the multi-billion dollar costs of building new power plants, substations, transmission lines and other infrastructure to serve the needs of new data centers and other new customers who require significant electricity. What comes next is up to state utility regulators.
Statement from Steph Gans, Assistant Director at Clean Water for North Carolina:
“Local residents, expert witnesses, and even a county economic development leader identified this gas plant as being important for serving big industrial customers, like data centers. The area nearby already lives with contaminated ground water from Duke Energy’s coal ash and is still recovering from Tropical Storm Chantal. Why should regular customers pay for this?”
Statement from Olive Burress, North Carolina Beyond Coal Campaign Organizer with the Sierra Club:
“New power plants being built based on the needs of new data centers should not be subsidized via increased monthly utility bills for hard-working North Carolina families and businesses. It is absolutely critical that the NCUC supports strong safeguards for existing customers as new customers drastically increase demand for electricity.”
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