Energy

This bill restricts the City of Rocky Mount from using money earned by its electric utility to fund general city expenses beyond specific operational needs. It mandates that revenue from electric rates must primarily cover the costs of running the power system, paying off related debts, and keeping rates low for customers. The only exception allows the city to transfer a limited amount of surplus funds to other municipal accounts, capped at the greater of 3% of the system's assets or 5% of its annual revenue. Effective July 1, 2026, these rules apply exclusively to Rocky Mount, preventing the transfer of electric utility profits to the city's general fund for unrelated purposes.

SB 261, the Energy Security and Affordability Act, removes a mandated interim timeline for carbon reduction by North Carolina's major electric utilities (those serving 150,000+ customers) and introduces an alternative cost recovery method for ongoing construction of base load power plants. The bill requires these utilities to achieve a 70% reduction in carbon dioxide emissions by 2030 (from 2005 levels) and carbon neutrality by 2050, with the Utilities Commission developing a Carbon Plan by 2026 for achieving these goals. It specifies that new solar energy must come from 45% third-party power purchase agreements for small solar facilities (80 MW or less) and 55% utility-owned or purchased sources, including for solar paired with storage. This bill directly affects North Carolina's largest electric utilities and the Utilities Commission, altering their regulatory framework for emissions and infrastructure costs.