Electricity customers and utility shareholders would share fuel cost differences

The North Carolina Utilities Commission would divide differences between forecast and actual fuel and purchased electricity costs between customers and utility shareholders. The split would apply to electric public utilities covered by the fuel-cost rule. The comparison would use the most recent Commission-approved fuel forecast. Customers would cover 80% of approved overruns and receive 80% of savings. Shareholders would absorb or keep 20%. Unreasonable or imprudently incurred costs could not be charged to customers. The shareholders' 20% share would not limit the Commission's power to reject costs. The split would use costs compared with the approved forecast, rather than amounts the utility collected above or below its actual costs. Utilities would submit verified cost information at least 30 days before annual hearings, including fuel supply agreements with no information blacked out. The rule would take effect when the bill becomes law. Annual hearings would calculate the split using a past 12-month period.

Electric public utilities would seek approval from the North Carolina Utilities Commission for a voluntary Bring Your Own Generation program. Customers would qualify with peak demand of at least one megawatt, or another threshold set by the Commission. Power systems must be on or next to their premises, mainly serving their own needs. Approved rates would reflect participants' costs and benefits to the grid without a net cost increase for residential and small commercial customers. Participants could separately agree to let utilities use their power systems or adjust their electricity use to help the grid. Utilities would review applications for completeness within 10 days of receipt and give a written technical feasibility decision within 60 days of receiving a complete application. Utilities would sign connection agreements within 90 days of receiving complete applications and finish connections within 180 days of signing. Both deadlines allow exceptions for good cause demonstrated to the Commission. This section would take effect upon becoming law. Within 180 days, utilities would apply for approval and Commerce would prepare a permit checklist and agency contact process. Utilities would report program results by January 1 annually, and the Commission would report to lawmakers by March 1.

Local governments would offer electronic permit applications and meet decision deadlines for covered on-site power systems. These rules would cover local development permits for building on-site power systems serving eligible large electricity customers. Local land-use requirements would have to reasonably relate to public safety, building codes, or compatibility with local land-use plans. The deadlines would require approval or denial, without guaranteeing approval. Starting when this section becomes law, complete applications would require decisions within 30 business days for systems rated at five megawatts or less, or 60 business days for larger systems.

The state would set aside $35 million from the General Fund for the Workforce Housing Loan Program. The North Carolina Housing Finance Agency would receive the money for the Workforce Housing Loan Program. The funding would be a one-time allocation. If enacted, this funding section would have a stated effective date of July 1, 2026.