North Carolina SB 1026: Power Bill Protection/Large Load Tariff.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1026

Short Title: Power Bill Protection/Large Load Tariff. (Public)
Sponsors: Senators Salvador and Grafstein (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1026-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REFORM NORTH CAROLINA'S APPROACH TO INTEGRATION OF 2
LARGE-LOAD ELECTRICITY CUSTOMERS THROUGH AMENDMENT OF THE 3
PUBLIC UTILITIES ACT. 4
The General Assembly of North Carolina enacts: 5
6
LARGE-LOAD ELECTRICITY CUSTOMERS 7
SECTION 1.(a) G.S. 62-3 reads as rewritten: 8
"§ 62-3. Definitions. 9
As used in this Chapter, unless the context otherwise requires, the term: 10
... 11
(16a) "Large-load customer" means a nonresidential customer for retail electric 12
service who has an actual or projected peak demand equal to or greater than 13
50 megawatts (MW). For a nonresidential customer who operates facilities 14
located at multiple sites, the aggregate demand of the nonresidential customer 15
across multiple sites shall be used for purposes of determining the 16
applicability of any threshold, requirement, or limitation in this Chapter. 17
(16a)(16b) "Local exchange company" means a person holding, on January 1, 1995, 18
a certificate to provide local exchange services or exchange access services. 19
... 20
(19a) "Panel" means a panel of three commissioners, a division of the Utilities 21
Commission authorized for the purpose of carrying out certain functions of 22
the Commission. 23
... 24
(30) "Panel" means a panel of three commissioners, a division of the Utilities 25
Commission authorized for the purpose of carrying out certain functions of 26
the Commission. 27
(31) Very large-load customer. – A large-load customer who has an actual or 28
projected peak demand equal or greater than 100 megawatts (MW)." 29
SECTION 1.(b) G.S. 62-133.5(h)(1)a. reads as rewritten: 30
"a. Local exchange company. – The same meaning as provided in 31
G.S. 62-3(16a).G.S. 62-3(16b)." 32
SECTION 2.(a) Chapter 62 of the General Statutes is amended by adding a new 33
Article to read: 34
"Article 6C. 35
"Large-Load Electricity Customers. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1026-First Edition
"§ 62-127.1. Electric service tariffs for large-load customers. 1
(a) Application. – Each electric public utility shall file for approval by the Commission 2
tariffs for the provision of electric service to large-load customers. Subject to the limitations set 3
forth in this section, the Commission may approve a tiered tariff schedule that includes different 4
rates, terms, and conditions for different classes of large-load customers based on load 5
requirements or other factors related to the cost of service. 6
(b) General Terms and Conditions. – The Commission shall require an electric public 7
utility to incorporate the following terms and conditions in any tariff applicable to large-load 8
customers: 9
(1) A minimum contract term that obligates a large-load customer to receive 10
service for a term of no less than twenty years. 11
(2) A minimum billing demand requirement that obligates a large load customer 12
to take or pay for a certain percentage of the customer's maximum contracted 13
demand following commencement of service. 14
(3) A contribution in aid of construction mechanism that requires large-load 15
customers, prior to receiving initial service, to pay the electric public utility 16
the entire cost of any transmission, distribution, or interconnection 17
improvements attributable to serving that customer. 18
(4) An authorization on behalf of the large-load customer granting the electric 19
public utility sufficient access to review any relevant commercial agreement 20
or other confidential business information for the purpose of verifying the 21
feasibility of the customer's projected load requirement prior to making the 22
infrastructure improvements necessary to serve the customer. 23
(5) A reasonable credit or financial assurance requirement sufficient to protect 24
other ratepayers against any material increase in rates that could occur as a 25
result of a large-load customer either ceasing operations or taking less than 26
the contracted demand for electric service. 27
(6) A load ramp period, not to exceed four years, during which time the large-load 28
customer increases its electricity usage in accordance with a defined schedule 29
until authorized to receive its maximum contracted demand. 30
(7) A requirement that a large-load customer give the electric public utility 31
advanced notice prior to any anticipated reduction in its demand for electric 32
service. 33
(8) An exit fee or similar mechanism that allows an electric public utility to 34
recover from a large-load customer any forgone revenue as a result of the 35
large-load customer's (i) early termination of the electric service agreement, 36
(ii) failure to maintain contracted electric load, or (iii) abandonment or 37
downsizing of facilit