North Carolina 2025-2026 Regular Session

North Carolina House Bill H745 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 745
	3	+	H D
	4	+	HOUSE BILL DRH30329-NJa-39B
	5	+
5	6
6	7
7	8		Short Title: Fair Competition Study Act. (Public)
8		-	Sponsors: Representatives Moss, Harrison, Hawkins, and Cervania (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
11		-	April 3, 2025
12		-	H745 -v-1
	9	+	Sponsors: Representative Moss.
	10	+	Referred to:
	11	+
	12	+	DRH30329 -NJa-39B
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO CONDUCT A STUDY FOR IMPROVEMENTS AND REFORM FOR FAIR 2
15	15		COMPETITION IN NORTH CAROLINA 'S ENERGY MARKET. 3
16	16		Whereas, much of the electric service provided in North Carolina is currently 4
17	17		provided by vertically integrated providers of electric distribution and transmission services; and 5
18	18		Whereas, the State has adopted legislation, including Session Law 2007-397 and 6
19	19		Session Law 2017-192, to diversify the resources used to reliably meet the energy needs of 7
20	20		consumers and provide economic benefits to the State; and 8
21	21		Whereas, the State has committed to reducing electric power sector greenhouse gas 9
22	22		emissions by seventy percent (70%) below 2005 levels by 2030 and attaining carbon neutrality 10
23	23		by 2050; and 11
24	24		Whereas, electricity sector regulatory framework changes to the wholesale electricity 12
25	25		market may require changes to State law as well as federal authorization; and 13
26	26		Whereas, the South Carolina legislature authorized a study to be completed on 14
27	27		November 18, 2021, to examine the benefits of various restructuring options for electricity 15
28	28		markets associated with electricity generators, transmitters, and distributors in South Carolina; 16
29	29		and 17
30	30		Whereas, regional and interstate arrangements may require changes to laws in states 18
31	31		other than North Carolina; Now, therefore, 19
32	32		The General Assembly of North Carolina enacts: 20
33	33		SECTION 1. The North Carolina Public Utilities Commission shall conduct a study 21
34	34		that accomplishes all of the following: 22
35	35		(1) Assesses the costs and benefits of the current energy market in North Carolina. 23
36	36		(2) Assesses possible reforms to be made to the Southeastern Energy Exchange 24
37	37		Market. 25
38	38		(3) Evaluates the feasibility, costs, and benefits of an energy imbalance market or 26
39	39		regional transmission organization in North Carolina and South Carolina or 27
40	40		the Southeastern United States. 28
41	41		(4) Determines the necessary legal and procedural requirements for establishing 29
42	42		an energy imbalance market in North Carolina and South Carolina or a larger 30
43	43		geographical grid such as a regional transmission organization. 31
44	44		SECTION 2. For the purposes of this act, the following definitions apply: 32
45	45		(1) Consultant. – An independent, qualified individual or entity retained by the 33
46	46		legislature to conduct objective, evidence-based research and analysis related 34
47		-	to utility regulation, cost-recovery practices, and ratepayer impacts in North 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 745-First Edition
49		-	Carolina. The consultant must have demonstrated expertise in energy policy, 1
50		-	utility regulation, public interest advocacy, and must maintain neutrality by 2
51		-	being free from conflicts of interest, including any financial, professional, or 3
52		-	personal ties to utility companies or their affiliates. 4
53		-	(2) Energy imbalance market. – A voluntary market for dispatching real-time 5
54		-	energy across utility service territories in which each participating utility 6
55		-	retains ownership and control of its transmission assets but opts to bid 7
56		-	generation into a centralized dispatch authority. 8
57		-	(3) Regional transmission organization. – An independent, nonprofit organization 9
58		-	that manages the transmission, generation, and retail sale of electricity in a 10
59		-	region and is responsible for the reliability of the real-time electricity market. 11
60		-	(4) Southeastern Energy Exchange Market. – A 15-minute automated energy 12
61		-	exchange market between balancing authorities in the Southeastern United 13
62		-	States involving over 15 entities. 14
63		-	SECTION 3. The Commission shall initiate the study within 90 days after the date 15
64		-	this act becomes law. Within one year of the date of enactment of this act, the Commission shall 16
65		-	submit a written report to the Joint Legislative Energy Policy Commission concerning the results 17
66		-	of the study. The Commission may contract for professional, clerical, or consultant services as 18
67		-	provided by G.S. 120-32.02. The Commission shall seek additional federal funding for the study 19
68		-	to the extent available. The study shall include, but is not limited to, all of the following: 20
69		-	(1) An evaluation of establishing an open access energy imbalance market within 21
70		-	the geographical boundaries of North Carolina and the broader Southeast. 22
71		-	Specific analysis shall be conducted in the following areas: 23
72		-	a. Electricity generation and capacity adequacy and diversity. 24
73		-	b. Customer service and rates. 25
74		-	c. Environmental quality and carbon emissions. 26
75		-	d. Economic opportunity. 27
76		-	e. The potential impacts, including costs and benefits, of an energy 28
77		-	imbalance market on disadvantaged or vulnerable populations or 29
78		-	communities or both. 30
79		-	(2) An evaluation of establishing a Southeastern Regional Transmission 31
80		-	Organization. Specific analysis shall be conducted in all of the following 32
81		-	areas: 33
82		-	a. Electricity generation and capacity adequacy and diversity. 34
83		-	b. Customer service and rates. 35
84		-	c. Environmental quality and carbon emissions. 36
85		-	d. Economic opportunity. 37
86		-	e. The potential impacts, including costs and benefits, of an energy 38
87		-	imbalance market on disadvantaged or vulnerable populations or 39
88		-	communities or both. 40
89		-	(3) An assessment of possible inefficiencies in the Southeastern Energy Exchange 41
90		-	Market and an examination of the costs, benefits, and risks to State and local 42
91		-	government, utilities, independent power producers, businesses, and 43
92		-	customers of all classes regarding the following aspects of the State and 44
93		-	region's current electricity system versus an energy imbalance market or 45
94		-	potential regional transmission organization. Specific analysis shall be 46
95		-	conducted in all of the following areas: 47
96		-	a. Electricity generation and capacity adequacy and diversity. 48
97		-	b. Customer service and rates. 49
98		-	c. Environmental quality and carbon emissions. 50
99		-	d. Economic opportunity. 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 745-First Edition Page 3
	47	+	to utility regulation, cost-recovery practices, and ratepayer impacts in North 35
	48	+	Carolina. The consultant must have demonstrated expertise in energy policy, 36
	49	+	H.B. 745
	50	+	Apr 2, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH30329-NJa-39B
	53	+	utility regulation, public interest advocacy, and must maintain neutrality by 1
	54	+	being free from conflicts of interest, including any financial, professional, or 2
	55	+	personal ties to utility companies or their affiliates. 3
	56	+	(2) Energy imbalance market. – A voluntary market for dispatching real-time 4
	57	+	energy across utility service territories in which each participating utility 5
	58	+	retains ownership and control of its transmission assets but opts to bid 6
	59	+	generation into a centralized dispatch authority. 7
	60	+	(3) Regional transmission organization. – An independent, nonprofit organization 8
	61	+	that manages the transmission, generation, and retail sale of electricity in a 9
	62	+	region and is responsible for the reliability of the real-time electricity market. 10
	63	+	(4) Southeastern Energy Exchange Market. – A 15-minute automated energy 11
	64	+	exchange market between balancing authorities in the Southeastern United 12
	65	+	States involving over 15 entities. 13
	66	+	SECTION 3. The Commission shall initiate the study within 90 days after the date 14
	67	+	this act becomes law. Within one year of the date of enactment of this act, the Commission shall 15
	68	+	submit a written report to the Joint Legislative Energy Policy Commission concerning the results 16
	69	+	of the study. The Commission may contract for professional, clerical, or consultant services as 17
	70	+	provided by G.S. 120-32.02. The Commission shall seek additional federal funding for the study 18
	71	+	to the extent available. The study shall include, but is not limited to, all of the following: 19
	72	+	(1) An evaluation of establishing an open access energy imbalance market within 20
	73	+	the geographical boundaries of North Carolina and the broader Southeast. 21
	74	+	Specific analysis shall be conducted in the following areas: 22
	75	+	a. Electricity generation and capacity adequacy and diversity. 23
	76	+	b. Customer service and rates. 24
	77	+	c. Environmental quality and carbon emissions. 25
	78	+	d. Economic opportunity. 26
	79	+	e. The potential impacts, including costs and benefits, of an energy 27
	80	+	imbalance market on disadvantaged or vulnerable populations or 28
	81	+	communities or both. 29
	82	+	(2) An evaluation of establishing a Southeastern Regional Transmission 30
	83	+	Organization. Specific analysis shall be conducted in all of the following 31
	84	+	areas: 32
	85	+	a. Electricity generation and capacity adequacy and diversity. 33
	86	+	b. Customer service and rates. 34
	87	+	c. Environmental quality and carbon emissions. 35
	88	+	d. Economic opportunity. 36
	89	+	e. The potential impacts, including costs and benefits, of an energy 37
	90	+	imbalance market on disadvantaged or vulnerable populations or 38
	91	+	communities or both. 39
	92	+	(3) An assessment of possible inefficiencies in the Southeastern Energy Exchange 40
	93	+	Market and an examination of the costs, benefits, and risks to State and local 41
	94	+	government, utilities, independent power producers, businesses, and 42
	95	+	customers of all classes regarding the following aspects of the State and 43
	96	+	region's current electricity system versus an energy imbalance market or 44
	97	+	potential regional transmission organization. Specific analysis shall be 45
	98	+	conducted in all of the following areas: 46
	99	+	a. Electricity generation and capacity adequacy and diversity. 47
	100	+	b. Customer service and rates. 48
	101	+	c. Environmental quality and carbon emissions. 49
	102	+	d. Economic opportunity. 50 General Assembly Of North Carolina Session 2025
	103	+	DRH30329-NJa-39B Page 3
101	104		e. The potential impacts, including costs and benefits, of an energy 1
102	105		imbalance market on disadvantaged or vulnerable populations or 2
103	106		communities or both. 3
104	107		(4) The legal and procedural requirements in North Carolina, at the Federal 4
105	108		Energy Regulatory Commission, or in other states associated with the 5
106	109		adoption of an energy imbalance market or regional transmission 6
107	110		organization, including identification of existing laws, regulations, and 7
108	111		policies that may need to be amended to implement the electricity market 8
109	112		reform measures. 9
110	113		SECTION 4. There is appropriated from the General Fund to the North Carolina 10
111	114		Utilities Commission the sum of three hundred fifty thousand dollars ($350,000) in nonrecurring 11
112	115		funds for the 2025-2026 fiscal year to be used to conduct the study authorized by this act. 12
113	116		SECTION 5. This act is effective when it becomes law. 13