Electric public utilities would need full reviews to set rates

The Utilities Commission would establish electric public utility rates through a general rate case, a full review of the utility's rates. These rules would cover North Carolina electric public utilities and the rates their customers pay. The commission could not approve or carry out automatic or preapproved rate changes covering multiple years. These rules would take effect when the bill becomes law.

The Utilities Commission could approve plans tying utility earnings to performance for no more than 12 months. The limit would apply to approved performance-based regulation plans for electric public utilities. Utilities would submit these plans as part of a full rate review. The plan limit would take effect when the bill becomes law.

The Utilities Commission would study whether financial rewards tied to performance influence utility investment decisions and support affordable bills. The study would examine North Carolina's utility performance incentives and recommend ways to support affordable bills, lower system costs, and avoid unnecessary infrastructure investments. The study would compare performance rewards with returns from infrastructure investments and examine options to raise or remove incentive limits. The bill would set aside $10,000 in one-time General Fund money for the Utilities Commission in fiscal year 2026–2027, for purposes consistent with the bill. The study duty would begin when the bill becomes law. The report would go to the Joint Legislative Energy Policy Commission by March 1, 2027. The funding section specifies July 1, 2026, as its effective date.