A revised draft (version 49) of HB 951- now titled ”Energy Solutions for North Carolina” - that emerged publicly last week would set the state on a course to meet Governor Cooper’s goal to reduce carbon emissions 70% from 2005 by 2030. At the same time, the bill would allow Duke Energy to seek approval from the N.C. Utilities Commission (NCUC) for a multi-year rate plan, with the potential for yearly rate hikes of up to 4%. Concerns about rate increases have for years prevented legislators from allowing this change by Duke Energy, a monopoly utility in North Carolina.
The revised bill's carbon emissions reduction goal is in line with Cooper’s 2018 Executive Order 80, “North Carolina’s Commitment to Address Climate Change and Transition to a Clean Energy Economy,” and the 2015 Paris Agreement on climate change. Carbon emissions can be greatly reduced in North Carolina by closing old, uneconomic coal plants that cost ratepayers more than clean energy would cost.
However, multi-year ratemaking would be a significant change in the way the NCUC reviews Duke’s applications to adjust rates. That creates the potential for Duke to make massive profits at customers’ expense. In addition, there is little help for low-income ratepayers in the bill, though they shoulder a disproportionately high burden for the cost of energy.
"While HB 951 sets respectable goals to reduce carbon emissions, it falls short on protecting low-income ratepayers and supporting communities that continue to be harmed by dirty fossil fuel power plants," said Cynthia Satterfield, director of the N.C. Sierra Club. "We call on legislators to protect customers and ensure a just transition for communities suffering pollution from burning coal."