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Advocates for changing the way electricity is managed and delivered in North Carolina are hoping that a bill filed in the state House of Representatives last week will give a boost to the idea. But don't hold your breath: The state's big utility, Duke Energy, opposes it and has a lot of influence at the General Assembly.
State Rep. Larry Strickland and three primary co-sponsors — all Republicans — introduced House Bill 503, the Storm Resiliency Study Act, on March 28. It proposes spending $500,000 for a study of potential electricity market reforms by the North Carolina Policy Collaboratory at UNC-Chapel Hill and outside consultants.
The bill was referred to the House Rules Committee. It's not clear when it might get a hearing.
Supporters say reforms are needed to reduce energy bills and prevent blackouts like those that struck Duke Energy customers last December. They also say increased competition could speed the shift to renewable energy to fight climate change.
Savings for customers could be significant. The proposed study would be similar to one delivered to South Carolina legislators recently that predicts consumers and businesses would save up to $362 million a year if the state joined a regional electricity network. The same consultants in 2019 estimated that North Carolina customers could save up to $600 million a year, though that was not a full-fledged study like the one called for in the bill.
For Duke Energy, there's a lot at stake. Under the state's current regulated monopoly system, with rules it has helped to write, Duke earns a guaranteed return on big investments in power plants and the grid. And since Duke's stock is publicly traded, the steady, predictable rise in profits keeps investors happy.
That's why Duke doesn't want to upend the status quo.
The study would examine the benefits of switching to some other system, such as a regional transmission organization, or RTO. An RTO is an independent group that coordinates, controls and monitors the electric grid over multiple states in a competitive market. Companies that belong to the system make money by sending electricity to the grid or delivering power from the grid to customers — or both.
The study presented to South Carolina lawmakers two weeks ago said the biggest savings would come by joining PJM, an RTO that manages power over an area from northeastern North Carolina to New Jersey to Illinois.
Duke Energy opposes that idea. Duke spokesman Bill Norton said in an email: "Duke Energy is committed to delivering reliable service to every community we serve at the lowest possible cost, while improving our operations every day. An RTO is not a good fit for North Carolina. We are focused instead on implementing the goals set forth by state leaders in H951 (the state's 2021 energy reform law) and delivering a cleaner, more resilient energy future for all of our customers."
Strickland and other lawmakers, along with consumer and business groups, have urged the state to look at reforms for years. Supporters have argued that besides saving money, a regional energy market could help avoid blackouts like those in December. At that time, Duke Energy underestimated electricity demand and struggled with power plants that shut down because they weren't prepared for frigid weather.
"The Christmas Eve blackouts were an alarming wake-up call for the General Assembly," Strickland said in a press release announcing the bill. "Obviously, our current system is not reliable enough. It’s simply unacceptable in modern North Carolina that cold weather should leave our people, many of them sick or elderly, alone in the frigid dark. That’s not just embarrassing, it seriously threatened people’s lives."
Supporters of reform note that the PJM system had no blackouts during the same storm. Since Duke is not part of PJM, it was unable to buy power it needed from the network. In late January, a collection of environmental and renewable energy groups put out their own analysis arguing that future blackouts could be avoided if North Carolina joins a regional power system.
While Duke is expected to fight any moves toward electricity market reform, there are plenty of groups in North Carolina who would like to see it get a hearing — both consumers and businesses.
Kevin Martin is executive director of the Carolina Utility Customers Association (CUCA), which represents manufacturers. He says the organization has supported studying a competitive electricity market for nearly 20 years.
"It is worth studying," Martin said. "We are dealing with a regulated monopoly model that has been in place for over 100 years. And so much has changed in the energy business. So much has changed in the technology, automation, as well as on the plant side, on the manufacturing side."
"So all of this change says, 'Is this 100-year-old system, the best system for today?' And the answer is we don't know. That's why we're asking, and have been in support of a study," Martin said.
Martin said the potential savings warrant further study, especially as electricity rates rise. He noted that Duke Energy is asking regulators to approve big rate increases over the next three years. "I would much rather look into, 'Hey, what can we do to reduce the costs and stay competitive in our region?'" he said.
Co-sponsors of the bill are state Reps. Ed Goodwin (R-Chowan), Kyle Hall (R-Stokes) and John Torbett (R-Gaston). A similar bill was filed in 2021, but never got out of committee
The report for South Carolina lawmakers said electricity market reforms would work best if North Carolina was also part of the restructuring. South Carolina Sen. Tom Davis (R-Beaufort) said in a press release of the North Carolina bill:
"I am pleased to see North Carolina take a serious look at what cost savings alternatives may be available to ratepayers there. North Carolina does not want a reputation for rate hikes and rolling blackouts. I look forward to working with lawmakers in North Carolina to see how both of our states may be able to mutually benefit from reform."
That can only happen if the General Assembly takes the lead, said Martin.
"The utility is always going to resist that change. They are never going to support any market reform or market reform study. So until our legislature and leaders tell them to do it, they won't and they'll resist with every fiber of their being," Martin said.
If the bill is approved, a report would be due to the General Assembly in 2025.
NOAA to study urban heat in Asheville
Asheville is among 18 communities where the National Oceanic and Atmospheric Administration (NOAA) will work with citizens this summer to map urban "heat islands." NOAA says in a press release that it's the seventh year for the Urban Heat Island mapping campaign.
The study looked at Durham and Raleigh in 2021, where it found temperature differentials of as much as 10 degrees. NOAA says extreme heat is the top weather-related cause of death in the United States, a problem that worsens as the climate warms.
Higher temperatures are found in areas with fewer trees, more pavement and less grass, and these often are communities of color and lower income. The agency hopes the data will help local decision-makers devise strategies to reduce the health effects of heat.
Union County starts a Sustainable Energy Academy
Students in a cluster of schools in Union County will learn about sustainability through a new K-12 program approved by the school board Tuesday. The Sustainable Energy Academy will be housed at the Parkwood Cluster, which includes Prospect Elementary, Western Union Elementary, Waxhaw Elementary, Parkwood Middle and Parkwood High. Students at all grade levels will follow a curriculum that teaches energy efficiency, sustainable resources for energy and food production, and new energy technologies, according to the school system.
