North Carolina SB 1045: Utility Profit Oversight Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1045

Short Title: Utility Profit Oversight Act. (Public)
Sponsors: Senators Salvador, Garrett, and Grafstein (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1045-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE RATIFICATION BY THE GENERAL ASSEMBLY OF ANY RATES 2
PROPOSED BY AN ELECTRIC PUBLIC UTILITY THAT INCREASES THE UTILITY'S 3
AUTHORIZED RATE OF RETURN ON EQUITY. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. Article 7 of Chapter 62 of the General Statutes is amended by adding 6
a new section to read: 7
"§ 62-130.1. General Assembly ratification of rates that increase an electric public utility's 8
authorized rate of return on equity. 9
(a) Ratification Requirement. – Notwithstanding any other provisions of this Chapter, the 10
Commission shall not establish or allow to become effective any retail electric rates that increase, 11
or have the effect of increasing, an electric public utility's authorized rate of return on equity, 12
unless ratified by an act of the General Assembly that specifically approves such retail electric 13
rates. 14
(b) Suspension Order. – If an electric public utility files with the Commission retail 15
electric rates set at an amount that would have the effect of increasing the utility's authorized rate 16
of return on equity, the Commission shall issue an order to suspend the operation of such retail 17
electric rates to the extent that it would allow revenue recovery in excess of the utility's current 18
rate of return on equity authorized by the Commission. Notwithstanding the provisions of 19
G.S. 62-133.16(d), 62-134(b), and 62-135, the suspension order shall remain in effect until the 20
proposed rates are ratified by an act of the General Assembly. 21
(c) Commission Authority Preserved. – Nothing in this section shall be construed to limit 22
or abrogate the Commission's general authority to supervise and control electric public utilities 23
or relieve the Commission of its duty to prevent electric public utilities from charging unjust and 24
unreasonable rates. In respect to retail electric rates ratified by the General Assembly, the 25
Commission shall have the authority: (i) to disallow the recovery of rates found to be unjust, 26
unreasonable, discriminatory, or in violation of any other applicable provision of law; (ii) to 27
impose conditions on the approval of rates; (iii) to rescind, alter, or amend an order approving 28
the rates; or (iv) to revise or change the rates in a subsequent rate proceeding." 29
SECTION 2.(a) G.S. 62-133.16(d)(3) reads as rewritten: 30
"(3) When an electric public utility files with the Commission an application for a 31
general rate case pursuant to G.S. 62-133 and that application includes a PBR 32
application, the Commission shall institute proceedings on the application as 33
provided in this subdivision. The electric public utility shall not make any 34
changes in any rate or implement a PBR except upon 30 days' notice to the 35
Commission, and the Commission may require the electric public utility to 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1045-First Edition
provide notice of the pending PBR application to the same extent as provided 1
in G.S. 62-134(a) and G.S. 62-134(a). The Commission may suspend the 2
effect of the proposed base rates and PBR implementation pending 3
investigation in the same manner as provided in G.S. 62-134(b), provided that, 4
unless the rates are subject to ratification by the General Assembly under 5
G.S. 62-130.1, the Commission may suspend the implementation of the 6
proposed base rates for no longer than 330 days. The electric public utility's 7
application shall plainly state the changes in base rates and the time when the 8
change in rates will go into effect and shall include schedules in the same 9
manner required pursuant to G.S. 62-134(a). The Commission shall, upon 10
reasonable notice, conduct a hearing concerning the lawfulness of the 11
proposed base rates and the PBR application. After hearing, the Commission 12
shall issue an order approving, modifying, or rejecting the electric public 13
utility's PBR application. In the event that the Commission rejects a PBR 14
application, the Commission shall nevertheless establish the electric public 15
utility's base rates in accordance with G.S. 62-133 based on the PBR 16
application. If the Commission rejects the PBR application, it shall provide an 17
explanation of the deficiency and an opportunity for the electric public utility 18
to refile, or for the electric public utility and the stakeholders to collaborate to 19
cure the identified deficiency and refile." 20
SECTION 2.(b) G.S. 62-134(b) reads as rewritten: 21
"(b) Whenever there is filed with the Commission by any public utility any schedule 22
stating a new or revised rate or rates, the Commission may, either upon complaint or upon its 23
own initi