Florida regulators advance Duke's data center plan, but warn it's on 'real shaky ground'

A Duke Energy plan aimed at meeting the fast-growing power needs of Florida data centers is advancing before state regulators, but officials and advocates are warning that ordinary customers could still end up exposed to the costs.

The case could become the first major measure of how aggressively Florida enforces a consumer protection law backed by Gov. Ron DeSantis.

What happened?

On Tuesday, the Florida Public Service Commission allowed Duke Energy to keep pursuing its proposal for how it would serve power-hungry data centers, the Tampa Bay Times reported.

But letting the matter continue was not the same as endorsing Duke's approach.

State consumer advocate Walt Trierweiler has said Duke's proposal is "unlawful" and accused the utility of seeking profit by getting around customer protections. Consumer and affordability advocates also asked regulators to reject the filing and require the company to start over.

The commission refused to throw out the case, though Commissioner Gary Clark indicated Duke may still face a steep challenge in the hearings ahead. "I think you're on real shaky ground if you ask me," Clark told Duke during the meeting, according to the Tampa Bay Times. 

Commissioner Mike La Rosa, a former Republican lawmaker, reportedly voted to dismiss the case outright, saying he had doubts the utility was actually following the rules set by the Legislature.

Why does it matter?

Florida is rapidly adding data centers, and those facilities use enormous amounts of electricity. For households already dealing with steep utility bills, the key issue is whether that surge in demand will raise costs for everyone else.

Critics argue that if utilities get too much leeway in setting up these plans, the costs of serving large corporate customers could spill onto residential bills even though state law is supposed to prevent that. In other words, ordinary customers would subsidize an energy-intensive industry.

The dispute also reflects a broader tension in Florida's approach to data centers. Gov. DeSantis signed the state's data center law in May and has publicly supported stronger consumer guardrails, even as he also helped the industry secure millions of dollars in tax breaks.

What's being done?

For now, regulators have decided only that the case will move forward.

Duke Energy will have to defend its proposal at additional hearings on Aug. 25 and 26, when regulators are expected to examine whether data centers would actually pay their own way.

According to the Tampa Bay Times, Tuesday's commission meeting was also plagued with technical issues, leaving members of the public who were trying to participate without audio. The Public Service Commission said it is "working on the issue."

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