Affordable Energy Omnibus.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 844

Short Title: Affordable Energy Omnibus. (Public)
Sponsors: Senator Bradley (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 28, 2026
*S844-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REDUCE ENE RGY COSTS, TO ENSURE FAIR COST ALLOCATIO N, TO 2
PROTECT CONSUMERS, A ND TO MODERNIZE NORT H CAROLINA'S ELECTRI C 3
GRID. 4
Whereas, electricity costs for North Carolina households have increased substantially 5
in recent years, placing financial strain on families; and 6
Whereas, large -load customers, including data centers, can impose significant 7
infrastructure and generation costs on the electric system; and 8
Whereas, it is the policy of the State to ensure that costs are f airly allocated, 9
consumers are protected from unsafe disconnections, and the electric grid is modernized to 10
improve reliability and reduce long-term costs; Now, therefore, 11
The General Assembly of North Carolina enacts: 12
13
PART I. LARGE-LOAD COST ALLOCATION (DATA CENTERS) 14
SECTION 1.(a) Chapter 62 of the General Statutes is amended by adding a new 15
Article to read: 16
"Article 6C. 17
"Large-Load Facilities. 18
"§ 62-127. Definitions. 19
For purposes of this Article, the following definitions apply: 20
(1) Data center. – A facility or group of co -located facilities under common 21
ownership or control used to house computer systems, servers, network 22
equipment, and associated infrastructure for the storage, processing, or 23
transmission of data. 24
(2) Large-load data center. – A data center that meets the definition of a large-load 25
facility. 26
(3) Large-load facility. – A nonresidential facility that has an actual or projected 27
peak electricity demand equal to or greater than 50 megawatts (MW). 28
Facilities under common ownership or control, or that are operationally or 29
contractually integrated, whether located on one or multiple parcels, shall 30
constitute one "large-load facility " for purposes of determining the 31
applicability of any threshold, requirement, limitation, or fee pursuant to this 32
Article. 33
(4) Political subdivision. – A county or municipality. 34
"§ 62-127.1. Certificate of operation; large-load facility. 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 844-First Edition
(a) Application. – No person shall begin the construction or operation of a la rge-load 1
facility without having applied for and obtained a certificate of operation from the Commission. 2
The application for a certificate to operate a large-load facility shall be made in a form prescribed 3
by the Commission. 4
(b) Issuance. – The Commission may, after notice and an opportunity for interested 5
parties to be heard, issue a certificate to operate a large -load facility upon finding that the 6
applicant is fit, capable, and financially able to operate the large-load facility in accordance with 7
this Article. As a condition fo r the issuance and continuation of a certificate to operate a 8
large-load facility, the applicant shall demonstrate to the satisfaction of the Commission all of 9
the following: 10
(1) That any electric services purchased from an electric public utility will be in 11
accordance with rates fixed under G.S. 62-127.2. 12
(2) That other members of the using and consuming public will be held harmless 13
and protected from bearing any increased costs as a result of the elect ric 14
services provided to large-load facilities. 15
(3) That an adequate environmental document studying the environmental 16
impacts of a proposed large -load facility has been completed in compliance 17
with G.S. 62-127.3. 18
(4) That the applicant will mitigate any adverse social, economic, and 19
environmental effects resulting from foreseeable noise pollution caused by the 20
large-load facility. 21
(5) In the case of large -load data centers, that the political subdivision with 22
jurisdiction over the proposed facility has consented by local referendum held 23
in accordance with G.S. 62-127.4 to the Commission issuing a certificate of 24
operation. 25
(6) That the applicant will operate the large-load facility in compliance with any 26
other requirement determined by the Commission to be necessa ry to protect 27
the public interest. 28
(c) Effective Date. – A certificate of operation shall be effective from the date issued by 29
the Commission unless otherwise specified and shall remain in effect until terminated either 30
under its own terms or until suspended or revoked by the Commission as provided in subsection 31
(d) of this section. 32
(d) Certificate Review; Suspension and Revocation. – Upon the request of an electric 33
public utility, the Public Staff, or a person having an interest in the large-load facility's operation, 34
the Commission may review the certificate to determine whether the owner or operator of the 35
large-load facility is conducting operations in compliance with this Article. After notice to the 36
large-load facility's owner or operator, the C ommission may suspend th e certificate and enter 37
upon a hearing to determine whether the certificate should be revoked. After the hearing, and for 38
good cause shown, the Commission may, in its discretion, reinstate a suspended certificate, 39
continue a suspension of a certificate, or revoke a certificate. 40
"§ 62-127.2. Electric service tariffs for large-load facilities. 41
(a) Application. – Each electric public utility shall file for approval by the Commission 42
tariffs for the provision of electric service to large -load facilities. Subject to the limitations set 43
forth in this section, the Commission may approve a tiered tariff schedule that includes different 44
rates, terms, and conditions for different classes of large -load facilities based on load 45
requirements or other factors related to the cost of service. 46
(b) Commission Approval. – The Commission shall approve a proposed electric service 47
tariff for large -load facilities only upon finding that the tariff is just and reasonable and 48
sufficiently designed to ensure all of the following: 49
(1) That the proposed rates are based on the cost causation principle, as defined 50
in G.S. 62-133.16, and that large -load facilities will be responsible for the 51
General Assembly Of North Carolina Session 2025
Senate Bill 844-First Edition Page 3
entire cost of any capital investments or incremental operational expenses 1
necessary for the electric public utility to serve large-load facilities, including 2
any generation, transmission, distribution, or interconnection costs reasonably 3
attributable to serving this class of customers. 4
(2) That the proposed rates will not result in the electric public utility's other retail 5
customers who are classified as residential or small commercial customers 6
having to cross-subsidize large-load facilities. 7
(3) That the electric public utility 's other retail customers who are classified as 8
residential or small commercial customers will be held harmless, and neither 9
advantaged nor disadvantaged, from large-load facilities either commencing 10
service or discontinuing service under the proposed tariff. 11
(4) That the proposed tariff complies with any other rule or order adopted by the 12
Commission pursuant to this Article. 13
"§ 62-127.3. Environmental review for large-load facilities. 14
(a) Definitions. – The definitions set out in G.S. 113A-9 apply in this section , unless 15
when the context otherwise requires. 16
(b) Environmental Review. – Notwithstanding the thresholds for significant expenditure 17
of public monies or use of public land set forth in G.S. 113A-9, the Commission shall conduct a 18
study of the environmental impacts of any proposal to construct and operate a large-load facility 19
for which a certificate is required under this Article. The study shall meet all of the requirements 20
set forth in G.S. 113A-4 and rules adopted pursuant to G.S. 113A-4. In conducting the study, the 21
Commission shall consider any foreseeable noise impacts , in addition to, notwithstanding 22
G.S. 113A-4(2), the secondary and cumulat ive impacts resulting from the construction and 23
operation of the large -load facility . An environmental assessment shall be prepared for any 24
petition for a certificate under this Article. The determination of whether an environmental 25
impact statement shall also be required shall be made in accordance with the provisions of Article 26
1 of Chapter 113A of the General Statutes. The applicant who petitions the Commission for a 27
certificate under this Arti cle shall pay the costs of special studies necessary to compl y with 28
Article 1 of Chapter 113A of the General Statutes. 29
(c) Adequacy Determination. – The Commission shall not act on any application for a 30
certificate of operatio n for a large -load facility until the Commission has determined that the 31
environmental docu ment is complete and adequate. A decision on the adequacy of the 32
environmental document is subject to review in a contested case on the decision of the 33
Commission to issue or deny a certificate under this Article. 34
(d) Ongoing Review. – The holder of a cert ificate of operation for a large -load facility 35
shall conduct an ongoing review of any ecological impacts caused as a result of the operation of 36
the facility. The certificate holder shall submit an annual report to the Commission summarizing 37
its assessment of the ecological impacts resulting from the operation of the facility. 38
(e) Noise Abatement. – The Commission shall order the holder of a certificate of 39
operation for a large -load facility to mi tigate any adverse social, economic , and environmental 40
effects resulting from noise pollution caused by the large-load facility. 41
"§ 62-127.4. Local referendum on large-load data centers. 42
(a) Initiation. – The governing board of a political subdivision may initiate the process to 43
consent to the Commission issuing a large-load data center a certificate of operation by adopting 44
a resolution. The resolution shall call for a referendum on the question of authorizing the 45
Commission to issue a certificate of operation for a specific large -load dat a center. The 46
referendum shall be held and conducted by the county board of elections in accordance with 47
G.S. 163-287. 48
(b) Ballot Proposition. – A proposition to authorize the Commission to issue a certificate 49
of operation under G.S. 62-127.1 shall be printed on a ballot in substantially the following form: 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 844-First Edition
"Shall (the political subdivision) consent to the Utilities Commission issuing a certificate of 1
operation to allow the construction and operation of (the large-load data center)? 2
[ ] YES 3
[ ] NO" 4
If a majority of the votes cast on the proposition are in the affirmative, the political subdivision 5
consents to the Commission issuing a certificate of operation to the large -load data center. If a 6
majority of the votes cast are in the negative, the resolution is void. 7
(c) Referendum Result. – If the referendum is approved under this section, a certified true 8
copy of the resolution and a certified true copy of the referendum results shall be filed with the 9
Commission." 10
SECTION 1.(b) Article 1 of Chapter 113A of the General Statutes is amended by 11
adding a new section to read: 12
"§ 113A-8.2. Certification of large-load electricity customers. 13
An environmental assessment shall be prepared for any application for a certificate of 14
operation, filed with the Utilities Commission in accordance with Article 6C of Chapter 62 of 15
the General Statutes, to construct or operate a large-load facility, as defined in G.S. 62-127." 16
SECTION 1.(c) The rate schedule required to be submitted for approval by the 17
Utilities Commission pursuant to G.S. 62-127.2, as enacted by subsection (a) of this section, shall 18
be submitted by the electric public utility no later than July 1, 2028. Effective January 1, 2029, 19
an electric public utility shall not provide electric service to a large-load facility except under the 20
rates approved by the Utilities Commission in accordance with G.S. 62-127.2. 21
22
PART II. ON-SITE GENERATION FOR LARGE ENERGY USERS 23
SECTION 2. The Utilities Commission shall evaluate and modify as necessary 24
existing standby service charges, including any eligibility limits based on maximum electricity 25
demands, for the purpose of encouraging lar ge-load facilities to develop and operate on -site or 26
dedicated generation resources, including renewable energy, energy storage, and combined heat 27
and power generation. 28
SECTION 3. G.S. 62-140 is amended by adding a new subsection to read: 29
"(d) Nothing in this section shall be construed to prohibit an electric public utili ty from 30
entering into agreements with customers or offering or receiving compensation or other forms of 31
consideration for the purpose of implementing a project or measure that r educes grid strain or 32
lowers systemwide costs." 33
34
PART III. EXTREME WEATHER DISCONNECTION PROTECTIONS 35
SECTION 4.(a) G.S. 62-159.1 reads as rewritten: 36
"§ 62-159.1. Debt collection practices. 37
… 38
(c) No public utility or electric membership corporation shall suspend or disconnect 39
service to a residential retail customer during periods of extreme heat or cold, as defined by rule 40
of the Commission. A public utility and electric membership corporation shall offer customers 41
with delinquent accounts, who have been adversely affected by an extreme weather event, with 42
the option of settling any unpaid balance through participation in a deferred payment plan." 43
SECTION 4.(b) This section is effective when it becomes law. The Commission 44
shall adopt rules to implement th e provisions of G.S. 62-159.1(c), as enacted by subsection (a) 45
of this section, no later than 180 days after the effective date of this section. 46
47
PART IV. GRID MODERNIZATION AND COST REDUCTION 48
SECTION 5.(a) Article 5A of Chapter 62 of the General Statutes is amended by 49
adding a new section to read: 50
"§ 62-108. Grid modernization plan. 51
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Senate Bill 844-First Edition Page 5
(a) Each electric p ublic utility shall submit to the Commission a proposed grid 1
modernization plan to maintain and improve the adequacy, reliability, and resiliency of the 2
electric grid to serve the people of the State or the area served by the utility. In developing the 3
grid modernization plan, the electric public utility shall propose measures to improve system 4
efficiency, reduce energy losses, implement reliability improvements, and facilitate the 5
integration of advanced grid technologies. The Commission shall conduct a public hearing on an 6
electric public utility's proposed grid modernization plan in the year a biennial integrated resource 7
plan is filed and may hold a public hearing in a year that an annual update of an integrated 8
resource plan is filed. 9
(b) The Commission shall consider the electric public utility's grid modernization plan in 10
acting upon any petition by the utility for a certificate to construct a new transmission line." 11
SECTION 5.(b) G.S. 62-102(a) reads as rewritten: 12
"§ 62-102. Application for certificate. 13
(a) An applicant for the certificate described in G.S. 62-101 shall file an application with 14
the Commission containing the following information: 15
(1) The reasons the transmission line is needed; 16
(2) A description of the proposed location of the transmission line; 17
(3) A description of the proposed transmission line; 18
(4) An environmental report setting forth: 19
a. The environmental impact of the proposed action; 20
b. Any proposed mitigating measures that may minimize the 21
environmental impact; and 22
c. Alternatives to the proposed action. 23
(4a) A statement on the proposed action 's consistency with the electric public 24
utility's grid modernization plan, as provided in G.S. 62-108; 25
(5) A list of all necessary approvals that the applicant must obtain before it may 26
begin to construct the transmission line; and 27
(6) Any other information the Commission requires." 28
SECTION 5.(c) G.S. 62-105 reads as rewritten: 29
"§ 62-105. Burden of proof; decision. 30
(a) The burden of proof is on the applicant in all cases under this Article, except that any 31
party proposing an alternative location for the proposed transmission line shall have the burden 32
of proof in sustaining its position. The Commission may consider any factors that it finds are 33
relevant and material to its decision. The Commission shall grant a certificate for the 34
construction, operation, and maintenance of the proposed transmission line if it finds:finds all of 35
the following: 36
(1) That the proposed transmission line is necessary to satisfy the reasonable 37
needs of the public for an adequate and reliable supply of electric 38
energy;energy. 39
(2) That, when compared with reasonable alter native courses of action, 40
construction of the transmission line in the proposed location is reasonable, 41
preferred, and in the public interest;interest. 42
(3) That the costs associated with the proposed transmission line are 43
reasonable;reasonable. 44
(4) That the impact the proposed transmission line will have on the environment 45
is justified considering the state of available technology, the nature and 46
economics of the various alternatives, and other material considerations; 47
andconsiderations. 48
(4a) That the proposed transmission line is consistent with the grid modernization 49
plan developed under G.S. 62-108 and will result in either long -term 50
consumer cost-savings or measurable reliability improvements. 51
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 844-First Edition
(5) That the environmental compatibility, public convenience, and necessity 1
require the transmission line. 2
(b) If the Commission determines that the location of the proposed transmission line 3
should be modified, it may condition its certificate upon modifications it finds necessary to make 4
the findings and determinations set forth in subsection (a) of this section." 5
6
PART V. TRANSPARENCY AND CONSUMER PROTECTION 7
SECTION 6.(a) Article 3 of Chapter 62 of the General Statutes is amended by adding 8
a new section to read: 9
"§ 62-55. Utility bill transparency. 10
(a) Each public utility shall include on any bill for services charged to a customer a clear 11
and concise statement of each applicable rate schedule, rider, surcharge, or tax that factors into 12
the computation of the amount charged by the public utility to the c ustomer. Each separate rate 13
schedule, rider, surcharge, and tax shall be listed discretely and contain the apportioned amount 14
charged to the customer for that billing period. 15
(b) In order to promote greater transparency of utility costs charged to consumers, the 16
Commission shall develop a standardized billing format to be used by public utilities in 17
compliance with the requirements under subsection (a) of this section." 18
SECTION 6.(b) This section is effective when it becomes law. The Commission 19
shall adopt rules to implement the provisions of G.S. 62-55, as enacted by subsection (a) of this 20
section, no later than 180 days after the effective date of this section. 21
22
PART VI. APPROPRIATION 23
SECTION 7.(a) There is appropriated from the General Fund to the Utilities 24
Commission the sum of five million dollars ($5,000,000) in recurring funds beginning in the 25
2026-2027 fiscal year to be used for purposes consistent with this act, including ad ministering 26
the certification requirements for large -load customers, reviewing electric public utilities' grid 27
modernization plans, enforcing consumer protection laws, and conducting data analysis on utility 28
rates. 29
SECTION 7.(b) This section becomes effective July 1, 2026. 30
31
PART VII. EFFECTIVE DATE 32
SECTION 8. Except as otherwise provided, this act is effective when it becomes 33
law. 34