Senate Passes Bill to Reduce Energy Costs for North Carolina Families

Senate Bill 261 prioritizes energy cost-saving measures and support for reliable energy sources

Sen. Berger: ‘This bill enhances our state’s competitive edge and emphasizes the need for reliable, affordable American-produced energy’

Raleigh, N.C. — Today, the North Carolina Senate passed Senate Bill 261, prioritizing keeping costs down and supporting reliable energy sources.

The bill passed in a bipartisan vote, 31–12.

The Energy Security and Affordability Act eliminates the costly 2030 carbon reduction benchmark and implements a cost-recovery framework for ongoing construction work for certain energy facilities to help keep energy more affordable for families and businesses.

The bill is sponsored by Senate Leader Phil Berger (R-Rockingham), and Sens. Paul Newton (R-Cabarrus) and Lisa Barnes (R-Nash).

“Our state is at a critical juncture,” Sen. Berger said. “We are taking reasonable steps to save energy costs to keep North Carolina a top state for business and to be a desirable place to live. This bill enhances our state’s competitive edge and emphasizes the need for reliable, affordable American-produced energy.”

Senate Bill 261 shifts our state’s focus to long-term energy planning by eliminating the interim carbon reduction benchmark for electric public utilities that serve at least 150,000 retail customers. Removing the interim benchmark provides utilities with greater flexibility to select and construct new and affordable energy generation resources, like nuclear power.

“While laudable, the interim carbon reduction goal has become a costly short-term fix,” Sen. Newton said. “By eliminating that arbitrary benchmark, we’re sending families across the state a strong message that we’re committed to keeping their energy costs down.”

Additionally, the bill establishes an annual cost recovery mechanism for the interest expense of ongoing construction work for certain facilities, such as nuclear power plants. This allows incremental cost recovery, rather than waiting for a general rate case, thus increasing the predictability of costs for North Carolinians and lowering the overall cost of the project.

“This bill brings our attention back to the needs of hard-working North Carolinians, not the wants of some special interest groups,” Sen. Barnes said. “Taking decisive action now to bring down energy costs will make a significant impact on families for years to come.”

The bill now goes to the House of Representatives for consideration.