Dive Brief:
- North Carolina regulators have denied Duke Energy’s proposal to construct and operate a 255-MW natural gas-fueled simple cycle combustion turbine at its Smith Energy Complex in Richmond County, North Carolina, citing uncertainty around load growth and the cost of the proposal.
- The North Carolina Utilities Commission’s Sept. 18 decision cited staff testimony calling the proposed $584 million price tag “staggering” and “very expensive.” The commission also questioned the need for the project and its value to ratepayers.
- Although Duke’s modeling does currently project significant load growth, “much of the growth appears to be based upon anticipated data center customer additions,” the order said. “Any such anticipated load growth is insufficiently reliable for the Commission to act at this point.” In an email to Utility Dive, a Duke spokesperson said that the company is “disappointed” by the commission’s decision and is “reviewing the order and assessing potential next steps.”
Dive Insight:
In February, Duke executives told investors that the company’s $103-billion capital spending plan was the largest on file at any regulated U.S. utility as it sought to capitalize on the data center boom.
The Duke spokesperson said the company believes it has “demonstrated that the Smith [combustion turbine] is part of a least-cost path to maintain reliable and affordable service for customers as energy demand continues to grow across North Carolina.”
“We remain committed to working constructively with regulators and stakeholders to identify the best path forward to meet our customers’ future energy needs while maintaining reliability and keeping costs as low as possible,” they said…