I would pass an java.io.InputStream - this makes the code easier to test and doesn't bind it to the file system.
This way your code ends up like:
public void normalizeData(InputStream in)
{
...
}
And calling it:
myObject.normalizeData(new FileInputStream(myFile));
Or
myObject.normalizeData(new FileInputStream("c:/myfile.txt"));
Or in a test
myObject.normalizeData(new ByteArrayInputStream("some test data".getBytes()));