Senate Passes Bipartisan Energy Bill Mandating Reliability and Ensuring a Least-Cost Energy Future

Raleigh, N.C. — After months of negotiations, the North Carolina Senate today passed bipartisan legislation that ensures the state will use only the least-cost energy generation options for decades to come.

Sen. Paul Newton (R-Cabarrus) said, “This bill sets in stone the requirement that North Carolina’s electricity be generated using the lowest-cost option available. Whatever that option is — including nuclear, the cleanest form of energy generation known to man — energy producers must adopt it. It’s a big win for families and businesses.”

Provisions in the bill include:

• Requires the NC Utilities Commission (Utilities Commission) to follow the least cost pathway in reducing carbon emissions by 70% by the year 2030 and achieving carbon neutrality by 2050 without sacrificing reliability. The plan will be developed by the Utilities Commission with utility and stakeholder input and reviewed every two years to allow for improving and emerging technologies.
• Requires Public Utilities to use securitization at 50% to retire coal-fired power plants, resulting in lower cost to consumers.
• Provides for the Utilities Commission to develop multi-year rate plans and performance-based incentives on ratemaking. This provides the utility a better pathway to invest in what’s needed to make the clean energy transition and align more of their earnings to match energy efficient savings and other public interest goals. It also includes strong protections that limit the utility’s ability to over earn.
• Helps ensure reliable energy by maintaining the Public Utility vertical integration model with a Utilities Commission that retains robust regulatory authority and discretion.