North Carolina SB 266: The Power Bill Reduction Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-78
SENATE BILL 266

*S266-v-7*
AN ACT TO ELIMINATE THE INTERIM DATE FOR CARBON REDUCTION BY
CERTAIN ELECTRIC PUBLIC UTILITIES, TO ALLOW AN ALTERNATIVE COST
RECOVERY MECHANISM FOR THE FINANCING COSTS OF CONSTRUCTION
WORK IN PROGRESS FOR BASELOAD ELECTRIC GENERATING FACILITIES, TO
MODIFY THE STATUTES GOVERNING COST RECOVERY FOR FUEL-RELATED
CHARGES AND PERFORMANCE-BASED RATEMAKING, AND TO CODIFY A
PROVISION AUTHORIZING SECURITIZATION OF COSTS FOR RETIREMENT OF
COAL-FIRED GENERATING UNITS.

The General Assembly of North Carolina enacts:

ELIMINATE THE INTERIM DATE FOR CARBON REDUCTION BY CERTAIN
ELECTRIC PUBLIC UTILITIES
SECTION 1. G.S. 62-110.9 reads as rewritten:
"§ 62-110.9. Requirements concerning reductions in emissions of carbon dioxide from
electric public utilities.
The Utilities Commission shall take all reasonable steps to achieve a seventy percent (70%)
reduction in emissions of carbon dioxide (CO2) emitted in the State from electric generating
facilities owned or operated by electric public utilities from 2005 levels by the year 2030 and that
result in carbon neutrality by the year 2050. For purposes of this section, (i) "electric public
utility" means any electric public utility as defined in G.S. 62-3(23) serving at least 150,000
North Carolina retail jurisdictional customers as of January 1, 2021, and (ii) "carbon neutrality"
means for every ton of CO2 emitted in the State from electric generating facilities owned or
operated by or on behalf of electric public utilities, an equivalent amount of CO2 is reduced,
removed, prevented, or offset, provided that the offsets are verifiable and do not exceed five
percent (5%) of the authorized reduction goal. In achieving the authorized carbon reduction
goals, goal, the Utilities Commission shall:
(1) Develop a plan, no later than December 31, 2022, 2026, with the electric
public utilities, including stakeholder input, for the utilities to achieve the
authorized reduction goals, goal of carbon neutrality by the year 2050, which
may, at a minimum, consider power generation, transmission and distribution,
grid modernization, storage, energy efficiency measures, demand-side
management, and the latest technological breakthroughs to achieve the least
cost path consistent with this section to achieve compliance with the
authorized carbon reduction goals goal (the "Carbon Plan"). The Carbon Plan
shall be reviewed every two years and may be adjusted as necessary in the
determination of the Commission and the electric public utilities.
(2) Comply with current law and practice with respect to the least cost planning
for generation, pursuant to G.S. 62-2(a)(3a), in achieving the authorized
carbon reduction goals goal and determining generation and resource mix for
the future. Any new generation facilities or other resources selected by the
Commission in order to achieve the authorized reduction goals goal for

Page 2 Session Law 2025-78 Senate Bill 266
electric public utilities shall be owned and recovered on a cost of service basis
by the applicable electric public utility except that:
a. Existing law shall apply with respect to energy efficiency measures
and demand-side management.
b. To the extent that new solar generation is selected by the Commission,
in adherence with least cost requirements, the solar generation selected
shall be subject to the following: (i) forty-five percent (45%) of the
total megawatts alternating current (MW AC) of any solar energy
facilities established pursuant to this section shall be supplied through
the execution of power purchase agreements with third parties
pursuant to which the electric public utility purchases solar energy,
capacity, and environmental and renewable attributes from solar
energy facilities owned and operated by third parties that are 80 MW
AC or less that commit to allow the procuring electric public utility
rights to dispatch, operate, and control the solicited solar energy
facilities in the same manner as the utility's own generating resources
and (ii) fifty-five percent (55%) of the total MW AC of any solar
energy facilities established pursuant to this section shall be supplied
from solar energy facilities that are utility-built or purchased by the
utility from third parties and owned and operated and recovered on a
cost of service basis by the soliciting electric public utility. These
ownership requirements shall be applicable to solar energy facilities
(i) paired with energy storage and (ii) procured in connection with any
voluntary customer program.
(3) Ensure any generation and resource changes maintain or improve upon the
adequacy and reliability of the existing grid.
(4) Retain discretion to determine optimal timing and generation and
resource-mix to achieve the least cost path to compliance with the authorized
carbon reduction goals, goal, including discretion in achieving the authorized
carbon reduction goals goal by the dates date spec