Bill > S720

This bill introduces significant consumer protection measures for public utilities in North Carolina by establishing strict guidelines for rate-setting and prohibiting the recovery of certain costs from ratepayers. Specifically, the bill prevents utilities from including expenses related to advertising, lobbying, political activities, entertainment, travel, legal costs for regulatory challenges, and other non-essential expenditures in their rate calculations. Public utilities will be required to submit detailed annual reports to the North Carolina Utilities Commission (NCUC) documenting any expenses associated with these prohibited activities, including specific information about employees and organizational groups involved in such activities. The bill mandates clear public disclosure about the funding sources of utility messaging and establishes substantial financial penalties for non-compliance, with civil penalties ranging from $50,000 to $150,000 per violation. The legislation also creates an "Energy Equity Fund" to be funded by these penalties, which can be used for disaster recovery, low-income household assistance, and transitioning to zero-emission appliances. Additionally, the bill allows the NCUC to develop alternative regulatory mechanisms and special rates, provided they protect public interests, ensure equitable customer treatment, and do not compromise electric service reliability.

https://www.ncleg.gov/BillLookUp/2025/S720