North CarolinaSB 2662025-2026 SessionSenateWALLET

AN ACT TO ESTABLISH EXEMPTIONS FROM CERTAIN FLOODPLAIN REQUIREMENTS FOR THE REPLACEMENT OR RECONSTRUCTION OF STRUCTURES DAMAGED BY HISTORIC FLOOD EVENTS.

Sponsored By: Jr. Danny Earl Britt (Republican), Warren Daniel (Republican), Timothy D. Moffitt (Republican)

Signed by Governor

AGRICULTUREAGRICULTURE DEPT

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Clean power goals and reliable grid

The law requires a 70% cut in power-plant CO2 from 2005 levels by 2030 and carbon neutrality by 2050. Offsets must be verifiable and are capped at 5%. It applies to electric utilities that served at least 150,000 North Carolina customers on January 1, 2021. The Commission must issue a Carbon Plan by December 31, 2026 and review it every two years, while keeping the grid as reliable or better. New plants must be the least‑cost way to meet the goals and in the public interest. When solar is selected, 45% must be third‑party PPAs of 80 MW AC or less with utility control, and 55% must be utility‑owned. Deadlines can be extended by up to two years for nuclear, wind, or to protect reliability.

State pledge protects storm recovery bonds

The law bars the State and its agencies from actions that reduce storm recovery securitization charges, except through the approved formula. It also blocks changes that harm the value of the property and rights that secure these bonds or weaken bondholders’ remedies. A change is only allowed if it follows the formula or if the law gives full compensation. This pledge protects the revenue stream that pays the bonds.

Fuel cost riders and yearly caps

The law defines fuel and related costs that utilities can pass through with a fuel rider on your electric bill. Yearly increases for listed purchased‑power and renewable costs are capped at 2.5% of the utility’s prior‑year North Carolina retail revenues, or 1% for smaller utilities with under 150,000 customers on 12/31/2006 for costs on or after 1/1/2008. Each quarter, a utility must file a report within 45 days; if a projected over‑ or under‑recovery is more than 10% of the last approved fuel revenue need, it must adjust the rider, usually starting about 45 days later for 12 months. If the Commission has not ruled within 180 days on an annual filing, a utility may put its requested fuel change into effect but must refund any excess with interest if later found too high.

Multi-year electric rates with guardrails

A utility can ask for performance‑based regulation in a general rate case, including decoupling, performance incentives, and a multi‑year rate plan. In a multi‑year plan, base‑rate increases in year two and year three cannot exceed 4% of the first‑year North Carolina retail revenue requirement; very large new generation plants over $500,000,000 are excluded, except standalone combustion turbines. Each year the Commission reviews weather‑normalized earnings and refunds any amount above the allowed return by more than 50 basis points, and it collects or refunds performance and decoupling amounts. When a PBR is filed, the Commission can suspend proposed base rates for up to 330 days, and utilities must give 30 days’ notice before rate changes.

Rules for plant construction costs in rates

The Commission may include construction work in progress in rates when it is in the public interest and needed for utility stability. For baseload plants, it can allow rate increases outside a general rate case to cover financing costs, but only for reasonable, prudent costs that lower overall customer costs. Recovery is limited to financing on actual, prudent costs up to the approved estimate; if a project is canceled, recovery stops and imprudent costs cannot be charged. For natural gas baseload, authorization to recover financing costs ends for construction costs incurred after December 31, 2033. During construction, utilities must file annual and then quarterly progress and cost reports; the Commission must hold hearings and decide on set timelines.

Utility bond charges and consumer safeguards

The law lets utilities use securitization to finance storm recovery and coal plant retirements and to charge all retail customers a nonbypassable bond charge. Coal plant retirement costs can include 100% of remaining book value and the utility’s cost of capital until bonds are issued. The Commission must find the bonds give measurable customer benefits, set charges with at least annual true‑ups, and decide petitions within 135 days of a complete filing. Legal rules protect the bond revenue stream and set how transfers are perfected, prioritized, and enforced; these bonds are not State debt. Many investors, including the State, local governments, banks, and insurers, may buy these bonds. Regulators may hire outside experts to review deals.

Sponsors & Cosponsors

Cosponsors

Bob Brinson
Republican • Senate
Jim Burgin
Republican • Senate
Bobby Hanig
Republican • Senate
Ralph Hise
Republican • Senate
Steve Jarvis
Republican • Senate
Norman W. Sanderson
Republican • Senate
Eddie D. Settle
Republican • Senate