Bill could bring NC energy affordability, but at what cost to the environment?

USA Today

5 hours ago

Legislation that would give Duke Energy more flexibility in how it meets the state's growing demand for electricity is drawing the ire of clean energy advocates.
Legislators in Raleigh have passed a bill that would dramatically water down the signature environmental legislation from Gov. Roy Cooper's "green" legacy.
Senate Bill 266, which is now before Gov. Josh Stein, would eliminate an interim goal that mandates Duke Energy reach a 70% reduction in carbon emissions from 2005 levels by 2030, while keeping in place a longer-term goal of being carbon neutral by 2050. Carbon emissions from the state's energy sector are the second largest emitter of greenhouse gasses in North Carolina, after the transportation sector.
Environmentalists and clean energy advocates say the move, which mirrors some of the climate change rollbacks implemented by the Trump administration, is short-sighted and will slow down the state's transition to sources of clean energy, like wind and solar.
Supporters say the bill will save customers money by keeping utility bills from rising too quickly and offer Duke flexibility in meeting rising electricity demand from a growing population and power-hungry businesses, like data centers.
What's in the bill?
The legislation would get rid of the requirement that Duke has to reduce carbon emissions by 2030, although the utility giant has already been pushing to move that deadline back to 2035. The 2030 goal had been hashed out in a bipartisan 2021 bill negotiated by Cooper, Duke and the GOP-controlled General Assembly.
The longer-term goal of reaching carbon neutrality by 2050 would remain.
The bill also includes language that would change how Duke can set rates and recover costs from power plants, including nuclear and natural gas-fired facilities, that have yet to be constructed.
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What do supporters like about it?
Supporters say the policy change could save North Carolinians up to $15 billion in future utility costs.
It also would refocus the state's energy network on reliability and affordability, a concern recently raised by the N.C. Utilities Commission, and away from meeting haphazard carbon reduction goals and adopting power sources that might not work under certain conditions, like solar when the sun isn't shining, they state.
The bill, which drew strong GOP support and even garnered votes from a few Democrats, was championed by the N.C. Chamber and other pro-business and manufacturing interest groups.
"Our residents shouldn't be saddled with higher power bills to satisfy arbitrary targets," Senate Leader Phil Berger, R-Rockingham, said in a statement. "Senate Bill 266 ensures that North Carolina will have reliable energy at competitive prices to serve our citizens and businesses."
Duke also supported the bill, saying the proposals offers the utility affordable flexibility in meeting the state's growing power needs.
"We appreciate bipartisan efforts by policymakers to keep costs as low as possible for customers and enable the always-on energy resources our communities need," a Duke spokesperson said in a statement.
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A 'bail out'
Clean energy advocates say the bill moves the risk of Duke betting on expensive or unproven power sources, such as small modular nuclear reactors and hydrogen power, from the company's shareholders to its customers − especially residential ones.
They also say the bill would allow Duke to invest in more greenhouse gas-spewing natural gas plants instead of cleaner renewable power sources, like wind and solar.
'Lawmakers who support this bill are voting to bail out Duke shareholders, while locking us into higher prices and more dirty energy," said Dan Crawford, director of governmental relations for the N.C. League of Conservation Voters.
David Kelly, state director for Environmental Defense Fund, said the legislation punishes both the environment, by allowing more greenhouse gases to warm the planet and accelerate climate change, and the state's residential customers.
'Homegrown North Carolina clean energy is the most affordable and quickly scalable energy solution available," he said in a statement. "North Carolinians need relief. By gutting clean energy incentives, doubling down on expensive fossil fuels, and pushing extra fuel costs onto working families, this legislation promises to drive household energy bills even higher."
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What happens now?
The bill is now on the governor's desk, where he has until roughly the end of June to sign the bill, veto it, or let it become law without his signature.
While Stein, a Democrat, has historically been a strong supporter of environmental measures and steps to battle climate change, the support of several Democrats for the legislation could play a role in whether he vetoes the bill. That's because Democrats can only lose a single vote in the 120-member House to avoid a veto override by legislators, which requires three-fifths (49) of the members to support, assuming all other Democrats and Republicans vote along party lines.
A message left with the governor's office asking what Stein intended to do wasn't immediately returned.
Reporter Gareth McGrath can be reached at [e-mail] or @GarethMcGrathSN on X/Twitter. This story was produced with financial support from the Green South Foundation and the Prentice Foundation. The USA TODAY Network maintains full editorial control of the work.