On Friday, the North Carolina Public Utilities Commission (NCUC) announced its long-awaited carbon planaims to significantly reduce carbon emissions by 2030 and achieve net zero emissions by 2050.
Late on December 30, 2022, just one day before the deadline, the NCUC announced plans for Duke Energy, the state’s primary utility. Critics say the NCUC plan may not be fully compliant. House Bill 951 We need to prioritize reliability and affordability, and are seeking an immediate oversight hearing to ensure our plans comply with the law.
“China emits enough carbon dioxide to wipe out North Carolina’s gains in minutes, but the North Carolina Public Utilities Commission has warned of higher bills and colder weather during the winter. We chose to make state rate payers pay for the energy plans that insure our homes.” Said Amy Cook, CEO of the John Locke Foundation. “Our initial analysis of the Public Utilities Commission report suggests that it may not be fully compliant with House Bill 951, the bipartisan legislation passed by Congress and signed into law by Gov. Roy Cooper. shows.”
The NCUC has been working on a carbon plan for the past 14 months as directed by the NC General Assembly through House Bill 951. The goal is to reduce carbon emissions by 70{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} from 2005 levels by 2030 and reach net zero by 2050. while applying the minimum cost criterion. The NCUC appears to have paid special attention to suggestions from Duke Energy and the Commission’s staff policy researchers.
“What North Carolinians need in this plan is what legislators have enacted into law: reducing CO2 emissions without making power expensive, unstable, or unreliable.” said John Sanders, director of the John Locke Foundation’s Center for Food, Power and Living. “Electricity is not a luxury item, it is an important household need. That is why it has always been state law to make it as affordable as possible and readily available at the flip of a switch.”
Sanders said the NCUC Keeping costs reasonable and maintaining grid reliability while meeting legal CO2 reduction targets By adding zero-emission nuclear, pumped-storage, battery and natural gas facilities, rather than replacing operating baseload power plants with “freak solar and wind, depending on the weather.”
Cook expressed concern that the plan would procure large amounts of unreliable intermittent energy sources and “shutter” 9,000 MW of baseload coal. She argued that this could lead to longer and more severe rolling blackouts in North Carolina like the one experienced on Christmas Eve.
Cook urged decision makers to adopt “clean and reliable energy schemes that minimize the financial burden on rate payers and improve grid reliability and security.”[ing] To a few well-funded special interest groups. ”
The John Locke Foundation Makes Its Own Proposal Energy crossroads plan as an alternative.
Meanwhile, Duke Energy said: support For the planning of NCUC. In a statement, the company said it viewed the plan as a “constructive achievement” to advance the clean energy transition and support diverse energy sources. The company said it has already retired two-thirds of its aging coal-fired power plants in North and South Carolina, cutting emissions by more than 40{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} since 2005.
NCUC’s plans are largely consistent with Duke Energy’s proposal. criticism when they are released. However, the NCUC’s plans are flexible and he expects the next review process to begin in September 2023.
Legislative feedback and the Inflation Reduction Act of 2022 (IRA) could influence future NCUC carbon planning decisions. The IRA provides billions of dollars in tax incentives and is expected to have a significant impact on infrastructure costs, although the exact impact is currently unknown.
The plan calls for Duke’s remaining coal-fired power plants to be phased out by 2035 and requires Duke to continue developing targeted plans to engage low-income, minority, and rural communities. I am instructing you to A press release from NCUC is available Here.
The next review hearing is scheduled to begin in September 2023, and the commission will hear from expert witnesses to consider the carbon plan proposal. The Commission plans to accept alternative proposals in early 2024 and continue review hearings on the proposals.
