GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2013

S                                                                                                                                                    2

SENATE BILL 365*

Finance Committee Substitute Adopted 5/1/13

 

Short Title:        Affordable and Reliable Energy Act.

(Public)

Sponsors:

 

Referred to:

 

March 20, 2013

A BILL TO BE ENTITLED

AN ACT to reduce tHE burden of high energy costs on the citizens of north carolina by revising the renewable energy portfolio standards and to provide for cost recovery by public utilities for certain costs of compliance with Renewable Energy Portfolio Standards.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 62-2(a)(10) reads as rewritten:

" 62-2.  Declaration of policy.

(a)        Upon investigation, it has been determined that the rates, services and operations of public utilities as defined herein, are affected with the public interest and that the availability of an adequate and reliable supply of electric power and natural gas to the people, economy and government of North Carolina is a matter of public policy. It is hereby declared to be the policy of the State of North Carolina:

(10)      To promote the development of renewable energy and energy efficiency through the implementation of a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) that will do all of the following:

a.         Diversify the resources used to reliably meet the energy needs of consumers in the State.

b.         Provide greater energy security through the use of indigenous energy resources available within the State.

c.         Encourage private investment in renewable energy and energy efficiency.

d.         Provide improved air quality and other benefits to energy consumers and citizens of the State."

SECTION 2.  G.S. 62-133.8 reads as rewritten:

" 62-133.8.  Renewable Energy and Energy Efficiency Portfolio Standard (REPS).

(b)        Renewable Energy and Energy Efficiency Standards (REPS) for Electric Public Utilities. -

(1)        Each electric public utility in the State shall be subject to a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) according to the following schedule:

Calendar Year                                         REPS Requirement

2012 through 2023                                 3% of 2011 North Carolina retail sales

2015                                                      6% of 2014 North Carolina retail sales

2018                                                      10% of 2017 North Carolina retail sale

2021 and thereafter                                 12.5% of 2020 North Carolina retail sales

(c)        Renewable Energy and Energy Efficiency Standards (REPS) for Electric Membership Corporations and Municipalities. -

(1)        Each electric membership corporation or municipality that sells electric power to retail electric power customers in the State shall be subject to a Renewable Energy and Energy Efficiency Portfolio Standard (REPS) according to the following schedule:

Calendar Year                                         REPS Requirement

2012 through 2023                                 3% of 2011 North Carolina retail sales

2015                                                      6% of 2014 North Carolina retail sales

2018 and thereafter                                 10% of 2017 North Carolina retail sales

(d)        Compliance With REPS Requirement Through Use of Solar Energy Resources. - For the years listed below, no less than the corresponding percentage For calendar year 2018 and for each calendar year thereafter, at least two-tenths of one percent (0.2%) of the total electric power in kilowatt hours sold to retail electric customers in the State, or an equivalent amount of energy, shall be supplied by a combination of new solar electric facilities and new metered solar thermal energy facilities that use one or more of the following applications: solar hot water, solar absorption cooling, solar dehumidification, solar thermally driven refrigeration, and solar industrial process heat. The terms of any contract entered into between an electric power supplier and a new solar electric facility or new metered solar thermal energy facility shall be of sufficient length to stimulate development of solar energy; provided, the Commission shall develop a procedure to determine if an electric power supplier is in compliance with the provisions of this subsection if a new solar electric facility or a new metered solar thermal energy facility fails to meet the terms of its contract with the electric power supplier. As used in this subsection, "new" means a facility that was first placed into service on or after January 1, 2007. The electric power suppliers shall comply with the requirements of this subsection according to the following schedule:

                                                                                  Requirement for Solar

Calendar Year                                                             Energy Resources

2010                                                                             0.02%

2012                                                                             0.07%

2015                                                                             0.14%

2018 through 2023                                                        0.20%

(e)        Compliance With REPS Requirement Through Use of Swine Waste Resources. - For calendar year 2018 and for each calendar year thereafter, at least two-tenths of one percent (0.2%)For the years listed below, no less than the corresponding percentage of the total electric power in kilowatt hours sold to retail electric customers in the State shall be supplied, or contracted for supply in each year, by swine waste. The electric power suppliers, in the aggregate, shall comply with the requirements of this subsection according to the following schedule:

                                                                                 Requirement for Swine

Calendar Year                                                             Waste Resources

2012                                                                             0.07%

2015                                                                             0.14%

2018 through 2023                                                        0.20%

(f)         Compliance With REPS Requirement Through Use of Poultry Waste Resources. - For calendar year 2014 and for each calendar year thereafter, at least 900,000 megawatt hoursthe years listed below, at least the number of megawatt hours of the total electric power sold to retail electric customers in the State or an equivalent amount of energy shall be supplied, or contracted for supply in each year, by poultry waste combined with wood shavings, straw, rice hulls, or other bedding material. The electric power suppliers, in the aggregate, shall comply with the requirements of this subsection according to the following schedule:

                                                                                Requirement for Poultry

Calendar Year                                                             Waste Resources

2012                                                                  170,000 megawatt hours

2013                                                                  700,000 megawatt hours

2014 through 2023                                             900,000 megawatt hours

(h)        Cost Recovery and Customer Charges. -

(4)        An electric power supplier shall be allowed to recover the incremental costs incurred to comply with the requirements of subsections (b), (c), (d), (e), and (f) of this section and fund research as provided in subdivision (1) of this subsection through an annual rider not to exceed the following per-account annual charges:

                                                                                                         2015 and

Customer Class                     2008-2011       2012-20142023       thereafter

Residential per account                 $10.00                  $12.00                  $34.00

Commercial per account               $50.00                $150.00                $150.00

Industrial per account                 $500.00             $1,000.00             $1,000.00

(6)        The costs shall be recovered from individual customers as a separately assessed surcharge. The surcharge shall be identified on the customer bills as a special surcharge for green energy.

."

SECTION 3.  Incremental costs incurred by an electric power supplier prior to July 1, 2013, to comply with any requirement repealed by this act may be recovered as provided in G.S. 62-133.8(h). For the purposes of cost recovery under this act, costs incurred prior to July 1, 2013, include all of the following:

(1)        Costs under purchase contracts for renewable energy entered into prior to July 1, 2013, for the purpose of complying with REPS requirements repealed by this act.

(2)        The costs of renewable energy facilities built by a public utility for which a certificate of public convenience and necessity has been issued by the Commission prior to July 1, 2013, for the purpose of complying with REPS requirements repealed by this act.

(3)        Other costs the Utilities Commission determines are reasonable and prudent costs incurred prior to July 1, 2013, to comply with the REPS requirements repealed by this act.

SECTION 4.  This act becomes effective July 1, 2013.