North Carolina 2025 Session Status: In Committee 9 D cosponsors

SB 1045 — Utility Profit Oversight Act.

Last action — Withdrawn From Com

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced April 30, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 26% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 9 sponsors

    2 primary, 7 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (9 D).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

15 added · 16 removed

Plain-language change summary

In the updated version of Senate Bill 1045, some wording has been clarified, emphasizing the authority of the Commission overseeing retail electric rates. Lines have been removed that might have caused confusion regarding the ability of utilities to implement certain rates. These changes matter because they aim to enhance the transparency of how electric rates are determined and ensure that consumers are not subjected to unexpected rate increases.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Apr 30, 2026 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 1045 Short Title:
1045 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS15456-NPa-39 Short Title:Utility Profit Oversight Act.
Utility Profit Oversight Act.
A BILL TO BE ENTITLED AN ACT TO REQUIRE RATIFICATION BY THE GENERAL ASSEMBLY OF ANY RATES PROPOSED BY AN ELECTRIC PUBLIC UTILITY THAT INCREASES THE UTILITY'S AUTHORIZED RATE OF RETURN ON EQUITY.
Rules and Operations of the Senate May 4, 2026 A BILL TO BE ENTITLED AN ACT TO REQUIRE RATIFICATION BY THE GENERAL ASSEMBLY OF ANY RATES PROPOSED BY AN ELECTRIC PUBLIC UTILITY THAT INCREASES THE UTILITY'S AUTHORIZED RATE OF RETURN ON EQUITY.
–Notwithstandinganyotherprovisions ofthis Chapter,the Commission shall not establish or allow to become effective any retail electric rates that increase, or have the effect of increasing, an electric public utility's authorized rate of return on equity, unless ratified by an act of the General Assembly that specifically approves such retail electric rates.
–Notwithstandinganyotherprovisions ofthis Chapter,the Commission shall not establish or allow to become effective anyretail electric rates that increase, or have the effect of increasing, an electric public utility's authorized rate of return on equity, unless ratified by an act of the General Assembly that specifically approves such retail electric rates.
(c) Commission Authority Preserved.
(c) Commission AuthorityPreserved.
– Nothing in this section shall be construed to limit or abrogate the Commission's general authority to supervise and control electric public utilities or relieve the Commission of its duty to prevent electric public utilities from charging unjust and unreasonable rates.
– Nothingin this section shall be construed to limit or abrogate the Commission's general authority to supervise and control electric public utilities or relieve the Commission of its duty to prevent electric public utilities from charging unjust and unreasonable rates.
The electric public utility shall not make any changes in any rate or implement a PBR except upon 30 days' notice to the Commission, and the Commission may require the electric public utility to *DRS15456-NPa-39* General Assembly Of North Carolina Session 2025 provide notice of the pending PBR application to the same extent as provided in G.S.
The electric public utility shall not make any changes in any rate or implement a PBR except upon 30 days' notice to the Commission, and the Commission may require the electric public utility to *S1045-v-1* General Assembly Of North Carolina Session 2025 provide notice of the pending PBR application to the same extent as provided in G.S.
(a) Notwithstanding an order of suspension of an increase in rates, any public utility except a common carrier may, subject to the provisions of subsections (b), (c) and (d) hereof, and an electric public utility subject to G.S.
(a) Notwithstanding an order of suspension of an increase in rates, any public utility except a common carrier may, subject to the provisions of subsections (b), (c) and (d) hereof, and an electric public utilitysubject to G.S.
provided, however, that utilities engaged in the distribution of utility commodities bought at wholesale by the utility for distribution to consumers may put such suspended rate or rates, to the extent occasioned by changes in the wholesale rate of such utility commodity, into effect at the expiration of 30 days after the date when such rate or rates would become effective if not so suspended;
provided, however, that utilities engaged in the distribution of utility commodities bought at wholesale bythe utilityfor distribution to consumers mayput such suspended rate or rates, to the extent occasioned by changes in the wholesale rate of such utility commodity, into effect at the expiration of 30 days after the date when such rate or rates would become effective if not so suspended;
…." Page 2 DRS15456-NPa-39 General Assembly Of North Carolina Session 2025 SECTION 3.(a) The Utilities Commission (Commission) shall conduct a study evaluating the cost of equity capital for electric public utilities doing business in North Carolina.
…." Page 2 Senate Bill 1045-First Edition General Assembly Of North Carolina Session 2025 SECTION 3.(a) The Utilities Commission (Commission) shall conduct a study evaluating the cost of equity capital for electric public utilities doing business in North Carolina.
SECTION 3.(b) No later than January 1, 2027, the Commission shall submit the study required under subsection (a)of this sectiontotheJoint LegislativeCommission onEnergy Policy, the House Committee on Energy and Public Utilities, and the Senate Committee on Agriculture, Energy, and the Environment.
SECTION 3.(b) No later than January 1, 2027, the Commission shall submit the studyrequired under subsection (a)of this sectiontotheJoint LegislativeCommission onEnergy Policy, the House Committee on Energy and Public Utilities, and the Senate Committee on Agriculture, Energy, and the Environment.
DRS15456-NPa-39 Page 3
Senate Bill 1045-First Edition Page 3
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How this bill changes current law

6 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill requires that any increase in an electric public utility's authorized rate of return on equity must be ratified by the General Assembly.

  • § 62-130.1

    § 62-130.1. General Assembly ratification of rates that increase an electric public utility's authorized rate of return on equity. (a) Ratification Requirement. – Notwithstanding any other provisions of this Chapter, the Commission shall not establish or allow to become effective any retail electric rates that increase, or have the effect of increasing, an electric public utility's authorized rate of return on equity, unless ratified by an act of the General Assembly that specifically approves such retail electric rates.

    This creates a new requirement where any rate increases affecting the rate of return on equity must be approved by the General Assembly.

  • § 62-130.1

    (b) Suspension Order. – If an electric public utility files with the Commission retail electric rates set at an amount that would have the effect of increasing the utility's authorized rate of return on equity, the Commission shall issue an order to suspend the operation of such retail electric rates to the extent that it would allow revenue recovery in excess of the utility's current rate of return on equity authorized by the Commission.

    This provision requires the Commission to suspend the proposed rates if they would increase the rate of return on equity until ratified by the General Assembly.

  • § 62-130.1

    (c) Commission Authority Preserved. – Nothing in this section shall be construed to limit or abrogate the Commission's general authority to supervise and control electric public utilities or relieve the Commission of its duty to prevent electric public utilities from charging unjust and unreasonable rates.

    This clarifies that the Commission retains authority to oversee utilities even with this new ratification requirement.

  • § 62-133.16(d)(3)

    (3) When an electric public utility files with the Commission an application for a general rate case pursuant to G.S. 62-133 and that application includes a PBR application, the Commission shall institute proceedings on the application as provided in this subdivision. The electric public utility shall not make any changes in any rate or implement a PBR except upon 30 days' notice to the Commission, and the Commission may require the electric public utility to provide notice of the pending PBR application to the same extent as provided in G.S. 62-134(a) and G.S. 62-134(a). → (3) When an electric public utility files with the Commission an application for a general rate case pursuant to G.S. 62-133 and that application includes a PBR application, the Commission shall institute proceedings on the application as provided in this subdivision. The electric public utility shall not make any changes in any rate or implement a PBR except upon 30 days' notice to the Commission, and the Commission may require the electric public utility to provide notice of the pending PBR application to the same extent as provided in G.S. 62-134(a) and G.S. 62-134(a). The Commission may suspend the effect of the proposed base rates and PBR implementation pending investigation in the same manner as provided in G.S. 62-134(b), provided that, unless the rates are subject to ratification by the General Assembly under G.S. 62-130.1, the Commission may suspend the implementation of the proposed base rates for no longer than 330 days.

    This change modifies the timeframe for suspension of proposed rates in cases where General Assembly ratification is not required.

  • § 62-134(b)

    This subsection does not apply to suspension orders issued by the Commission for rates subject to ratification by the General Assembly under → This subsection does not apply to suspension orders issued by the Commission for rates subject to ratification by the General Assembly under G.S. 62-130.1.

    This specifies that the suspension process does not apply to rates requiring ratification under the new section.

  • § 62-135

    § 62-135. Temporary rates under bond. (a) Notwithstanding an order of suspension of an increase in rates, any public utility except a common carrier may, subject to the provisions of subsections (b), (c) and (d) hereof, and an electric public utility subject to G.S. 62-130.1 may put such suspended rate or rates into effect upon the expiration of six months after the date when such rate or rates would have become effective, if not so suspended, by notifying the Commission and its consumers of its action in making such increase not less than 10 days prior to the day when it shall be placed in effect; ...

    This adjustment allows an electric public utility subject to ratification to implement temporary rates while suspended for an increasing rate of return on equity.

Action History

  1. Withdrawn From Com

  2. Re-ref Com On Appropriations/Base Budget

  3. Passed 1st Reading

  4. Ref To Com On Rules and Operations of the Senate

  5. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 7 co-sponsors · 170 not signed on

Sponsors (2)

Co-sponsors (7)

Not signed on (170)

170 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

public-safety energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 1045?
SB 1045 is sponsored by Mujtaba A. Mohammed (Democratic), Jonah Garson (Democratic), Sydney Batch (Democratic), Val Applewhite (Democratic), Gale Adcock (Democratic), Lisa Grafstein (Democratic), Michael Garrett (Democratic), DeAndrea Salvador (Democratic), and Kandie D. Smith (Democratic).
What is the current status of SB 1045?
This bill is in committee in the Senate. Introduced April 30, 2026. It must pass committee before a floor vote.
Where can I track SB 1045?
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