N.C. Sierra Club calls on Governor Stein to block bill that threatens ratepayers, environment
The N.C. Sierra Club today (June 19) called on Gov. Josh Stein to veto a bill passed by the N.C. General Assembly that would put Duke Energy's North Carolina customers on the hook for power plant construction costs, even if those plants are never operational, and threaten clean air for all state residents by easing the monopoly utility's pledge to reduce carbon dioxide emissions.
Senate Bill 266 is the culmination of efforts by legislative leaders to pass construction work in progress (CWIP) costs to Duke Energy customers, while freeing the utility from its promise to cut carbon emissions by 70 percent over 2005 levels by 2030. S266, previously a bill to ease building code requirements for Hurricane Helene storm victims, was rewritten to include the CWIP and carbon target legislation after two bills with similar language stalled in the House.
Additional sections in S266 would change the way costs are allocated, shifting the burden from large customers to increase the portion residential customers pay by 19%. The bill would not only increase costs to families, but also create a pathway for more frequent rate increases.
The General Assembly gave bipartisan support in 2021 to legislation that called for Duke Energy to reduce carbon emissions in exchange for more favorable rules enabling it to recover costs from ratepayers. The monopoly utility has used that glide path to its advantage even as it now seeks to renege on the 2030 carbon-cutting pledge.
The rewritten S266 passed the House on June 10, and the Senate concurred with that rewrite today (June 18). The bill now advances to the desk of Governor Stein.
Statement from Chris Herndon, North Carolina Chapter Director at the Sierra Club:
"Duke Energy and our legislative leaders would have us believe that utility customers will somehow see their bills go down if they're saddled with the cost of construction works in progress. Why should ratepayers be burdened with power plant construction costs when there's no accountability if those plants never come on line? Why should residential customers absorb an increase in rates so that corporate customers can pay less? Why would we trust a business that's trying to bail on a promise it made just four years ago to reduce carbon emissions in return for an easier road to rate increases? This bill is bad for all North Carolinians, whether they're Duke Energy customers or simply people who want to breathe clean air. Governor Stein must veto it, and make Duke Energy keep its promises."