Background

Electricity Rates

Senate Bill 3:  the Part Renewable Energy, Part Coal and Nuclear bill

In August 2007, North Carolina became the first state in the southeast to enact a renewable energy and efficiency standard.  According to the 135-page technical report commissioned for the Utilities Commission, the renewable energy and efficiency part of the bill should generate jobs, energy savings, and energy independence. 

Specifically, as compared to the utilities’ “business as usual,” the renewable energy and efficiency requirement should generate 2,700 more jobs, and over 20 years, save customers at least $577 million.  Furthermore, the homegrown energy production will free North Carolinians from exclusive dependence upon fossil fuels that cost $1.6 billion per year, most of which goes out of state.  
 
Unfortunately, utilities succeeded in grafting 16 pages, unrealted to renewable energy or efficiency, onto the 10-page renewable energy and efficiency bill.  The additions include costly expansion of the fuel clause and additional profit and prepayment on incomplete coal and nuclear projects.

NCPIRG defended the interests and pocketbooks of residents during the proceedings for Senate Bill 3, “Promote Renewable Energy/Baseload Generation.” We published fact sheets, testified before five Senate and House Committees, and wrote letters to newspapers and opinion pieces.

NCPIRG and allies gained some consumer protections and also beat back the pork barrel provisions inserted by the utilities' lobbyist, who were paid $176,000+ for lobbying related to Senate Bill 3.  Check out our Win and Watch List on Senate Bill 3.  

Natural Gas Rates

Victory, Piedmont Natural Gas Needs to Follow PSNC.

Residents should never have to pay more than their neighbors because they used less energy. Such a policy makes no economic or environmental sense.

Yet, PSNC and Piedmont Natural Gas have charged customers more when they used less. Both natural gas providers required customers to use a quota of natural gas in the summer in order to qualify for lower rates in the winter. 

The Utilities Watchdog Project organized grassroots and legislative opposition to the unfair rate schedules. We submitted a legislative letter and consumer petition opposing the practices of PSNC and Piedmont Natural Gas.

Two weeks after the Utilities Watchdog Project began working, PSNC filed to end its practice.

Meanwhile, Piedmont Natural Gas continues to charge customers more for using less. 

De-coupling- boondoggle for Piedmont.

Piedmonat Natural Gas secured legislation that guarantees a fixed profit, irrespective of how much natural gas residents use.  This is called "de-coupling" because it decouples profit from residents' consumption. So if residents use less natural gas than expected, residents’ rates will increase to compensate Piedmont Natural Gas’s profit margin.

In a pilot project, Piedmont Natural Gas accrued or collected an extra $51 million from residents than they would have absent de-coupling. Unless utilities are required to prove that they caused consumers to conserve energy, then de-coupling simply guarantees utilities a profit for doing nothing.  Stay tuned for NCPIRG actions to promote fair efficiency policies.