November 19

Commentary: Consensus-driven bill protects North Carolina from high power bills and spurs innovation

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The following commentary was written by John Szoka. Szoka is is the CEO of Conservative Energy Network, a national network of state-based organizations focused on promoting clean energy innovation rooted in conservative values. See our commentary guidelines for more information.


It’s been three years since the North Carolina General Assembly passed House Bill 951, legislation known as the Energy Solutions for North Carolina Act. It was an historic occasion to get consensus across the aisle and across House and Senate chambers to pass this bill. It served as a compact with all North Carolinians that the appropriate planning and consideration would go into plotting out an energy future for our state that would keep power bills affordable and stable, accelerate innovation and economic development in clean energy technologies, all while significantly reducing emissions from the electric power sector. 

That legislation — and all the work that’s gone into it so far by the NC Utilities Commission, the utilities, industry groups, and a wide range of stakeholders — is already propelling North Carolina to make meaningful headway towards its shared goals for our state. Its endurance is critical to keeping us on the right path.

Keeping electric rates affordable is a central priority of the law. And whether or not you’re a proponent of clean energy as an ideology, this law is based on a business case: diversifying North Carolina’s energy mix to incorporate more modern power-generating technologies protects ratepayers from the unpredictable and volatile whims of global oil and gas markets. Looking through data from utility rate cases over the last several years, it’s simply a fact that natural gas market price spikes drove the overwhelming majority of increases we all saw on our monthly power bills. The more we can diversify our energy mix with technologies that come with no-fuel-cost sources like onshore and offshore wind, and solar with battery storage, the better off our wallets will be.

And it’s not just residential ratepayers who are better off with the kind of clean energy mix that House Bill 951 legislates, it’s North Carolina’s economy as a whole. When rates are lower, it makes our state a much more attractive place for business and industry to choose to set up shop, bringing with them huge investment dollars and quality local jobs. We should not underestimate how significant a factor that keeping North Carolina’s electricity rates competitive is in driving business investment. We currently enjoy a ranking as one of the best states to do business in, which is directly tied to being able to keep electricity rates below the national average. Electricity prices across the country are anticipated to rise over the coming decade, but if we stay the course with the energy objectives defined in House Bill 951, North Carolina should remain competitive in this area.

The energy plan is so far working as intended. Utilities and stakeholders are working with the NC Utilities Commission to make some very complex decisions about the long-term state of North Carolina’s electricity grid. Making the right decisions that will best accommodate new technologies and strengthen the grid’s reliability, while also controlling costs is a tough task. It’s clear that the Utilities Commission is taking the task laid upon them by this law seriously. And we need to continue to engage in and trust that process, as defined by the consensus legislation we deliberated upon and passed.

An energy plan that keeps rates low for customers and drives economic growth is a sound business model. And North Carolina’s voters know it. Poll after poll shows that North Carolinians understand the correlation between high gas prices and the dollar signs on their monthly power bills. Meanwhile, clean energy technology prices drop year after year. Clean energy reliability and operability rise year after year.

Intentionally diversifying those technologies into our energy mix via House Bill 951 was a common sense business decision for North Carolina’s economy. The leaders who passed this bill into law three years ago had the foresight to establish energy policy that will serve our state well for generations to come. Ensuring that the next sitting legislature supports and sustains this policy will be critical for the affordability and durability of North Carolina’s energy future.

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