NCGA must reject rushed, poorly researched 'Ratepayer Risks Act'
Yet another team of researchers has warned of the potential for economic and environmental harm from Senate Bill 266, the "Ratepayer Risks Act" passed by the N.C. General Assembly and vetoed by Gov. Josh Stein.
The new analysis from researchers at Duke University's Nicholas Institute affirms an earlier study from a N.C. State University research team, which found that S266 could saddle North Carolina families with an additional $23 billion in electricity costs due to increased purchases of expensive fossil fuels.
N.C. House and Senate leaders are expected to hold votes on overriding Stein's S266 veto this week, despite the damning evidence from multiple impartial, thoughtful analyses conducted since the bill was rushed through the legislative process.
Statement from Chris Herndon, Chapter Director, NC Sierra Club, on the latest findings:
"How much more information do legislators need before they stand up for the North Carolinians who elected them? Senate Bill 266 looks worse and worse by the day, as it’s become quite clear how this rushed and poorly researched bill would raise residential customer rates while reducing North Carolina's energy capacity and costing our state billions of dollars in lost investments and tax revenue. Lawmakers must now stand up for the people they represent by sustaining Governor Stein’s veto of SB266."
More background on Senate Bill 266:
By allowing Duke Energy to back out of its promise to cut carbon emissions (a pledge that won bipartisan support for legislation that gave Duke an easier path to raise rates):
- North Carolina will lose 50,700 job opportunities and $47.2 billion in unmaterialized power sector investments between 2030 and 2035, leading to a loss of $1.5 billion in unrealized state tax revenue. (BW Research Partnership for NC Sustainable Energy Association & Environmental Defense Fund)
- North Carolina families could be stuck with an additional $23 billion in electricity costs due to increased purchases of expensive fossil fuels. (NC State University, supported by Duke University's Nicholas Institute for Energy, Environmenet & Sustainability)
- Shifts 19 percent more of the fuel cost burden onto residential customers from commercial and industrials. (EQ Research)
Allows Duke Energy to charge customers for the construction cost of new power plants long before those plants are completed – and even if they're not.
- A poll by Conservatives for Clean Energy showed that 85 percent oppose this upfront customer financing model, known as “construction work in progress” or CWIP.
- CWIP legislation in other states has meant utility customers are, in some cases, still paying for power plants that were finished over time and over budget, or not finished at all.