N.C. legislature puts energy affordability, access at risk with veto override

By overriding Gov. Josh Stein’s veto of recently passed SB 266, North Carolina lawmakers are risking higher electricity bills, reducing policy certainty, and preventing access to clean energy, Ceres said in a statement.

“Businesses value policy certainty and a stable investment environment as they plan for the future. By undermining that stability, North Carolina has become a less attractive place for businesses to invest,” said Jeff Mauk, director of state policy, Ceres. “The state’s clean energy targets were widely supported by leading businesses across North Carolina who recognize that investing in a cleaner grid will deliver significant economic benefits, including but not limited to the affordability and stability of prices at a time of growing energy demand. Eliminating the state’s 2030 target, by contrast, is projected to lead to significant new costs for ratepayers in the coming years, all while signaling to forward-looking businesses that the state is not prepared to meet the needs of the 21st-century. Ceres thanks Gov. Stein for his veto and pledges to continue working with businesses and investors to meet North Carolina’s 2050 clean power goals, including by supporting additional policies that properly invest in a modern power system that is reliable, affordable, and clean.”

Gov. Stein vetoed SB 266, which dismantles North Carolina’s efforts to reduce climate pollution from the power sector by 70% by 2030, because of concerns about affordability following its June passage. Researchers at both North Carolina State University and Duke University project that the legislation could increase utility rates by more than $20 billion through 2050 because of the volatility of natural gas prices. The bill also establishes provisions that allow the state’s largest utility, Duke Energy, to recover costs for construction works in progress, a policy that has resulted in billions of dollars of sunk costs with no new electricity generation for states such as neighboring South Carolina.

Major companies in North Carolina have long supported clean power policy at the state level, including the carbon reduction goals of HB951, which passed the legislature with bipartisan support in 2021 requiring utilities to achieve an interim target of 70% reductions by 2030 and the still-standing goal to effectively eliminate carbon pollution from the power sector by 2050. Leading businesses have also worked with Ceres to support policy that modernizes the electric grid to deliver affordable, reliable power to the state’s businesses and residents across the Southeast, including in North Carolina. Those efforts include a statement signed by 12 businesses in support of expanded transmission and grid modernization recommendations, submitted to the North Carolina Utilities Commission as it considered Duke’s carbon plan. That’s why several NC companies penned a letter in March urging lawmakers to reject an earlier version of SB 266.

About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world’s sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.