SB 1024 — My Power Bill Is Too High.

FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA AprSESSION 30,2025 2026S S.B.1 SENATE BILL 1024 Short Title:

1024 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS45480-NPa-27 Short Title:

Rules and Operations of the Senate May 4, 2026 A BILL TO BE ENTITLED AN ACT TO REPEAL MULTIYEAR RATE-MAKING AUTHORITY AUTHORIZED BY S.L.

and Whereas,undercurrentlaw,electricpublicutilitiesarepermittedtoproposemultiyear rateplans(MYRPs)that allowratesto increaseautomaticallyincreaseautomaticallyover overseveralseveral yearswithout thesame levels of annual regulatory scrutiny;

and Whereas, performance incentive mechanisms in North Carolina have been discussed and implementedat levels that areeffectivelyareeffectivelycappedat cappedatapproximatelyonepercent approximately onepercent (1%)ofutility earnings, which is insufficient to outweigh the financial incentives associated with large-scale capital investments;

and Whereas, without strongerincentives orpenaltiestieddirectlyorpenaltiestieddirectlyto to outcomes thatthatmatter matter to customers—such as bill affordability, peak demand reduction, and avoided infrastructure costs—performance-based rate making risks becoming a nominal reform rather than a meaningful consumer protection tool;

and *DRS45480-NPa-27**S1024-v-1* General Assembly Of North Carolina Session 2025 Whereas, the General Assembly finds that stronger performance incentives and greater regulatory accountability are necessary to ensure that utility actions align with consumer interests;

The Commission shall not approve or implement anyanyform form of automatic or preauthorized multiyear rate adjustment mechanism." SECTION 2.(a) Repeal MYRP.

– An electric public utility shall be permitted to submit a PBR applicationinageneralratecaseproceedinginitiatedpursuanttoapplicationinageneralratecaseproceedinginitiatedpursuanttoG.S. G.S.

62-133, including actual changes in costs, revenues, or the cost of the electric public utility's propertypropertyused used and useful, or to be used and useful within a reasonable time after the test period, plus costs associated with a known and measurable set of capital investments, net of operating benefits, associated with a set of discrete and identifiable capital spending projects to be placed in service during the first rate year.

Subsequent changes in base rates in the second and third rate years of the MYRP shall be based on Page 2 DRS45480-NPa-27Senate Bill 1024-First Edition General Assembly Of North Carolina Session 2025 projected incremental Commission-authorized capital investments that will be used and useful during the rate year and associated expenses, net of operating benefits, including operation and maintenance savings, and depreciation of rate base associated with the capital investments, that are incurred or realized during each rate year of the MYRP period;

In the alternative, the utility may request and the Commission may grant, if it deems appropriate, permission to establish a regulatoryregulatoryasset asset and defer to such regulatoryregulatoryall all or a portion of the asset incremental costs related to such electric generation investments to be considered for recovery in a future rate proceeding.

For each quarter of a MYRP, the electric public utility shall report regarding the status of the approved MYRP projects in the manner directed by the Commission, including reporting on any project that is canceled, along with a detailed explanation regardingregardingthe the reasons for such cancellation and the replacement capital spending project, if any.

DRS45480-NPa-27Senate Bill 1024-First Edition Page 3 General Assembly Of North Carolina Session 2025 2.

… (4) Any PIM shall be structured to ensure that, pursuant to subdivisions (1) and (2) of this subsection, any penalty shall be refunded to customers and any reward shall be collected from customers and shall be limited such that the total of all potential and actual PIM incentives or penalties does not exceed one percent (1%) of the electric public utility's total annual revenue requirement thatis usedtofixratesusedtofix rates duringthefirst yearoftheMYRP pursuant to G.S.

Any incentives related to demand-side management andenergyefficiencymeasurespursuanttoandenergyefficiencymeasurespursuanttoG.S. G.S.

– The Utilities Commission shall conduct a study evaluating the effectiveness of performance-based rate making authorized bybyS.L. S.L.

Page 4 DRS45480-NPa-27Senate Bill 1024-First Edition General Assembly Of North Carolina Session 2025 (1) An assessment of whether any current performance incentive mechanisms materially influence utility investment decisions.

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