Bill > S266

This bill modifies several aspects of North Carolina's utility regulation, with a primary focus on carbon reduction, utility cost recovery, and financial mechanisms for retiring coal-fired power plants. The bill eliminates the interim date for carbon reduction by electric public utilities, changing the previous 70% reduction goal by 2030 to a goal of carbon neutrality by 2050. It allows electric utilities an alternative method to recover financing costs for baseload electric generating facilities, including a mechanism to increase base rates to reflect financing costs for construction work in progress. The bill also updates fuel cost recovery rules, allowing more flexible tracking and adjustment of fuel-related charges, and introduces performance-based regulation mechanisms that enable utilities to submit multi-year rate plans with potential earnings sharing and performance incentives. Additionally, the bill codifies a process for securitizing costs related to retiring coal-fired generating units, providing a structured approach for utilities to finance and recover expenses associated with decommissioning these facilities. The changes aim to provide utilities with more financial flexibility while maintaining regulatory oversight and supporting the state's long-term carbon reduction goals.

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https://www.ncleg.gov/BillLookUp/2025/S266