HB 951, An Act to Study Emerging Energy Generation Sources, Issues, and Trends, including Advanced Small Modular (Nuclear) Reactors

- Requires the Utilities Commission (Commission) to take all reasonable steps to achieve a 70% reduction in emissions of carbon dioxide from electric public utilities from 2005 levels by the year 2030, and carbon neutrality by the year 2050.
- Authorizes the Commission to use "performance-based regulation" for the electric public utilities operating in the State, meaning an alternative ratemaking approach that includes decoupling revenue from electricity consumption, one or more performance incentive mechanisms, and a multi-year rate plan, including an earnings sharing mechanism, or such other alternative regulatory mechanisms as can be proposed by an electric public utility.
- Requires the Commission to adopt rules on various matters, including to require an electric public utility to use bond financing (securitization) of costs associated with early retirement of subcritical coal fired electric generating facilities, with such costs to be securitized at 50% of the remaining net book value of all subcritical coal fired electric generating facilities to be retired to achieve the authorized carbon reduction goals set forth in the act.
- Authorizes the Commission to allow potential modification of certain existing power purchase agreements with eligible small power producers.

The Utilities Commission shall take all reasonable steps to achieve a seventy percent (70%) reduction in emissions of carbon dioxide (CO2) emitted in the State from electric generating facilities owned or operated by electric public utilities from 2005 levels by the year 2030 and carbon neutrality by the year 2050. The commission adopted its initial plan in December 2022 and it will be updated every two years.

The Carolinas Carbon Plan at a Glance:

- A stakeholder-informed proposal – with more public input to come 
- Two paths, four portfolios – all meet 70% carbon reduction targets and carbon neutrality by 2050 
- An “all-of-the-above” strategy – to maintain reliability for our customers and communities 
- All coal retired by 2035 – enabled by diverse mix of carbon-free and dispatchable resources 
- Limited-cost impacts in next two years – and about 1.9% to 2.7% annually through 2035

North Carolina Carbon Plan

Clean Energy Plan Goals
• Reduce electric power sector greenhouse gas emissions by 70% below 2005 levels by 2030 and attain carbon neutrality by 2050.
• Foster long-term energy affordability and price stability for North Carolina’s residents and businesses by modernizing regulatory and planning processes.
• Accelerate clean energy innovation, development, and deployment to create economic opportunities for both rural and urban areas of the state.

HB 951, An Act to Study Emerging Energy Generation Sources, Issues, and Trends, including Advanced Small Modular (Nuclear) Reactors

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