Fair Competition Study Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 716

Short Title: Fair Competition Study Act. (Public)
Sponsors: Senators Meyer and Murdock (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S716-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CONDUCT A STUDY FOR IMPROVEMEN TS AND REFORM FOR FA IR 2
COMPETITION IN NORTH CAROLINA'S ENERGY MARKET. 3
Whereas, much of the electric service provided in North Carolina is currently 4
provided by vertically integrated providers of electric distribution and transmission services; and 5
Whereas, the State has adopted legislation, including Session Law 2007 -397 and 6
Session Law 2017 -192, to diversify the resources used to reliably meet the energy needs of 7
consumers and provide economic benefits to the State; and 8
Whereas, the State has committed to reducing electric power sector greenhouse gas 9
emissions by seventy percent (70%) below 2005 levels by 2030 and attaining carbon neutrality 10
by 2050. 11
Whereas, electricity sector regulatory framework changes to the wholesale electricity 12
market may require changes to State law as well as federal authorization; and 13
Whereas, the South Carolina legislature authorized a study to be completed on 14
November 18, 2021, to examine the benefits of various res tructuring options for electricity 15
markets associated with electricity generators, transmitters, and distributors in South Carolina; 16
and 17
Whereas, regional and interstate arrangements may require changes to laws in states 18
other than North Carolina; Now, therefore, 19
The General Assembly of North Carolina enacts: 20
SECTION 1. The North Carolina Public Utilities Commission shall conduct a study 21
that accomplishes all the following: 22
(1) Assesses the costs and benefits of the current energy market in North Carolina. 23
(2) Assesses possible reforms to be made to the Southeastern Energy Exchange 24
Market. 25
(3) Evaluates the feasibility, costs, and benefits of an energy imbalance market or 26
regional transmission organization in North Carolina and South Carolina or 27
the Southeastern United States. 28
(4) Determines the necessary legal and procedural requirements for establishing 29
an energy imbalance market in North Carolina and South Carolina or a larger 30
geographical grid such as a regional transmission organization. 31
SECTION 2. For the purposes of this act, the following definitions apply: 32
(1) Consultant. – An independent, qualified individual or entity retained by the 33
legislature to conduct objective, evidence-based research and analysis related 34
to utility regulation, cost re covery practices, and ratepayer impacts in North 35
Carolina. The consultant must have demonstrated expertise in energy policy, 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 716-First Edition
utility regulation, public interest advocacy, and must maintain neutrality by 1
being free from conflicts of interest, including any financial, professional, or 2
personal ties to utility companies or their affiliates. 3
(2) Energy imbalance market. – A voluntary market for dispatching real -time 4
energy across utility service territories in which each participating utility 5
retains ownership and control of its transmission assets but opts to bid 6
generation into a centralized dispatch authority. 7
(3) Regional Transmission Organization. – An independent, non -profit 8
organization that manages the transmission, generation, and retail sale of 9
electricity in a region, and is responsible for the reliability of the real -time 10
electricity market. 11
(4) Southeastern Energy Exchange Market. – A 15 -minute automated energy 12
exchange market between balancing authorities in the southeastern United 13
States involving over 15 entities. 14
SECTION 3. The Commission shall initiate the study within 90 days after the date 15
this act becomes law. Within one year of the date of enactment of this act, the Commission shall 16
submit a written report to the Joint Legislative Energy Policy Commission concerning the results 17
of the study. The Commission may contract for professional, clerical, or consultant services as 18
provided by G.S. 120-32.02. The Commission shall seek additional federal funding for the study 19
to the extent available. The study shall include, but is not limited to, all the following: 20
(1) An evaluation of establishing an open access energy imbalance market within 21
the geographical boundaries of North Carolina and the broader Southeast. 22
Specific analysis shall be conducted in the following areas: 23
a. Electricity generation and capacity adequacy and diversity. 24
b. Customer service and rates. 25
c. Environmental quality and carbon emissions. 26
d. Economic opportunity. 27
e. The potential impacts, including costs and benefits, of an energy 28
imbalance market on disadvantaged or vulnerable populations or 29
communities or both. 30
(2) An evaluation of establishing a Southeastern Regional Transmission 31
Organization. Specific analysis shall be conducted in all the following areas: 32
a. Electricity generation and capacity adequacy and diversity. 33
b. Customer service and rates. 34
c. Environmental quality and carbon emissions. 35
d. Economic opportunity. 36
e. The potential impacts, including costs and benefits, of an energy 37
imbalance market on disadvantaged or vulnerable populations or 38
communities or both. 39
(3) An assessment of possible inefficiencies in the Southeastern Energy Exchange 40
Market and an examination of the costs, benefits, and risks to State and local 41
government, utilities, independent power produ cers, businesses, and 42
customers of all classes regarding the following aspects of the State and 43
region's current electricity system versus an energy imbalance market or 44
potential regional transmission organization. Specific analysis shall be 45
conducted in all the following areas: 46
a. Electricity generation and capacity adequacy and diversity. 47
b. Customer service and rates. 48
c. Environmental quality and carbon emissions. 49
d. Economic opportunity. 50
General Assembly Of North Carolina Session 2025
Senate Bill 716-First Edition Page 3
e. The potential impacts, including costs and benefits, of an en ergy 1
imbalance market on disadvantaged or vulnerable populations or 2
communities or both. 3
(4) The legal and procedural requirements in North Carolina, at the Federal 4
Energy Regulatory Commission, or in other states associated with the 5
adoption of an energy imbalance market or regional transmission 6
organization, including identification of existing laws, regulations, and 7
policies that may need to be amended to implement the electricity market 8
reform measures. 9
SECTION 4. There is appropriated from the General Fund to the North Carolina 10
Utilities Commission the sum of three hundred fifty thousand dollars ($350,000) in nonrecurring 11
funds for the 2025-2026 fiscal year to be used to conduct the study authorized by this act. 12
SECTION 5. This act is effective when it becomes law. 13