State lawmakers today passed a newly revised version of the Duke Energy ratemaking bill, scrapping one of the most controversial proposals of the session - language that would have allowed utilities to seek up to three years of rate increases at a time.
The House and Senate both voted unanimously in favor of the latest conference report on Senate Bill 559, Storm Securitization. The newest revision of S 559 retained only a section that will allow the Utilities Commission (NCUC) to permit financing for certain storm recovery costs.
The original S 559 would have allowed Duke Energy to request up to three years of rate increases at a time and return on equity banding from the NCUC. A broad range of stakeholders opposed the ratemaking section based on environmental, justice and consumer concerns.
Rep. Pricey Harrison (D - Guilford) noted before the House vote that she would like the legislature to expand the use of securitization for closing polluting coal plants. Securitization can help utilities pay off debt on uneconomic coal plants, save ratepayers money and provide an opportunity to create a pool of transition funds for communities that host old coal plants.
S 559 next goes to Gov. Roy Cooper for consideration.
“We live in a time when clean energy technologies and creative rate-making tools are developing rapidly. North Carolinians deserve to see the benefits of both,” said N.C. Sierra Club State Director Molly Diggins. “We applaud the legislators who took a hard look at a variety of ratemaking tools this session rather than simply approving Duke Energy’s wish list. And we look forward to working with the legislature to expand the use of securitization to retire polluting coal plants.”