Gov. Roy Cooper signs compromise energy bill. Here’s what that means for you
Gov. Roy Cooper signed House Bill 951 on Wednesday, turning a compromise on North Carolina’s energy future between his office and legislative Republicans into law.
The signing marks the end of a process that began in October 2018 with Cooper’s Executive Order 80; continued in the early days of this legislative session with closed-door meetings involving House Republicans and representatives of select industries; and ultimately ended with negotiations that directly involved Cooper and Senate Pro Tempore Phil Berger.
The revised version of House Bill 951 will shape North Carolina’s energy mix for decades, coming at a pivotal time in North Carolina’s efforts to curb the worst impacts of climate change.
Here are some of the other ways House Bill 951 will impact North Carolinians:
What does this mean for my monthly utility bill?
It’s not clear yet.
During a Senate committee meeting last week, Sen. Paul Newton, a Cabarrus County Republican, said the ratepayer impact will ultimately be decided by the carbon plan process the bill requires the N.C. Utilities Commission to undergo along with Duke Energy. That plan, which will require a “stakeholder process,” requires the Utilities Commission to consider the cheapest way to reach the emissions reduction goals.
Some independent estimates, including those by the Carolina Utility Customers Association, have predicted that utility bill will rise as much as 50% under House Bill 951.
Will this change how my rates are set?
It could. Under House Bill 951, Duke has the ability to ask the Utilities Commission to set rates for a two- or three-year period instead of the current model of one year at a time.
The bill does cap rate hikes at 4% of the first year in each of the second and third years.
How much will emissions be cut?
House Bill 951 sets carbon dioxide emissions reduction targets of 70% from 2005 levels by 2030 and net zero by 2050 for Duke Energy. The bill states that the company can only offset 5% of its emissions reductions, meaning most of them will have to be true reductions.
Does this mean fewer coal plants?
Almost certainly.
The version of House Bill 951 originally passed by the House, and negotiated by Duke Energy, mandated the retirement of most of utility’s coal-fired power plants in North Carolina by 2030. That would have reduced emissions by 61% from 2005 levels, according to the bill’s earlier version.
What will replace coal?
Ultimately, that will be up to the Utilities Commission and Duke Energy.
House Bill 951 says that by the end of 2022, the Utilities Commission needs to have signed off on Duke Energy’s first carbon plan. That plan will outline how the utility plans to achieve the emissions reductions and could take into how power is generated, how it is distributed, grid upgrades and energy storage, among other factors.
Can the Utilities Commission extend Duke’s deadlines?
Yes.
If the 2030 or 2050 deadlines are approaching and Duke is pursuing a solution that the Utilities Commission decides would lead to greater emissions cuts than what is immediately available, it can push the deadline off by two years.
A longer delay is also allowed if Duke Energy is pursuing either a nuclear plant or wind farm and cannot meet the deadlines because of permitting, logistical or other factors.
This story was produced with financial support from 1Earth Fund, in partnership with Journalism Funding Partners, as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.
This story was originally published October 13, 2021 at 12:23 PM with the headline "Gov. Roy Cooper signs compromise energy bill. Here’s what that means for you."