ALLI GOLD ROBERTS: Major NC employers say state regulators must adopt stronger plan for power sector

Saturday, Dec. 10, 2022 -- North Carolina's business community infuses billions of dollars into the state's economy each year, provides tens of thousands of jobs for hardworking North Carolinians, and provides goods, services and technologies to every corner of the state. It is asking the state Utilities Commission to craft a plan that prioritizes least-cost resources like energy efficiency and other proven, low-cost, clean technologies including solar, wind, and battery storage.

Posted 12:04 p.m. Dec 10, 2022 — Updated 12:31 p.m. Dec 10, 2022

EDITOR'S NOTE: Alli Gold Roberts is senior director for state policy programs at Ceres, a nonprofit that works with major capital market leaders to solve national and global sustainability challenges.

Businesses throughout North Carolina are leading the transition to a clean economy. They are setting ambitious goals to invest in renewable energy and reduce climate pollution. They are looking for policies and programs that support those goals and position the state as a clean energy leader. While Gov. Roy Cooper has taken important climate actions to support the clean energy transition, North Carolina’s Carbon Plan remains an essential piece of the puzzle.

Major businesses, trade associations, and employers — all of whom are large energy consumers of Duke Energy — supported the passage of House Bill 951 – ENERGY SOLUTIONS FOR NORTH CAROLINA in 2021. That bill directed the N.C. Utilities Commission to develop a Carbon Plan that achieves 70% emissions reductions from the power sector by 2030 and reaches carbon neutrality by 2050.

Now many of those businesses are engaged in the development of the Carbon Plan, either through participating in the commission proceedings or through comments submitted on the record.

With the clock rapidly counting down to the Carbon Plan’s year-end due date, the significance of the final version’s impacts cannot be overstated. To make good on their sustainability goals and support efforts to reduce pollution and climate impacts, North Carolina’s business community needs a Carbon Plan that meets the legally-mandated goals while expanding the state’s market share in the rapidly growing U.S. clean energy economy. Duke’s proposed Carbon Plans miss the mark. It leaves several opportunities for emissions reductions, customer cost savings, and statewide economic development benefits on the table.

In recent years, many of North Carolina’s large businesses made commitments to reduce emissions, become more energy efficient, and scale up their use of clean, renewable energy. As of early 2022, at least 86 businesses with major operations in North Carolina announced commitments to power their operations with 100% renewable energy. These companies understand firsthand how clean energy helps save money, reduce risks, stay competitive, and meet the expectations of their customers, employees, and shareholders. That’s why what the Carbon Plan ultimately looks like and how it is implemented is critical to the business community.

A 2017 analysis shows that renewable energy and energy efficiency investments have saved U.S. companies $3.7 billion a year, freeing up significant capital that can be reinvested into facilities, research and development, employees, and the communities that they serve.

Clean energy investments also help businesses to hedge against fuel price volatility, a particular economic challenge in 2022 as Duke Energy passes hefty fuel costs directly to customers. Clean energy investments also increase businesses’ competitive advantage in a market where customers, investors, and employees increasingly expect companies to lead on sustainability.

The primary concerns among North Carolina’s business community with the Duke Energy proposal center around:

An underinvestment in proven, affordable clean technologies;
Exposure of ratepayers to substantial risk of future stranded assets and volatile fuel costs, and;
Over-reliance in several portfolios on technologies that are not yet market ready.

There are also concerns with the flaws in Duke’s modeling outputs, as several intervenor testified during evidentiary hearings in September. As a result, the utility’s proposed Carbon Plan does not do enough to transform the energy system as businesses envision—and as is required by state law.

Businesses have a limited ability to choose the sources of energy that power the economy, so they are committed to working to systematically improve the emissions performance of our entire power system—as they are now advocating through the Carbon Plan process.

While Duke’s proposed Carbon Plan makes some strides to reduce carbon emissions, the Commission has the opportunity in development of its own plan to maximize renewable energy and efficiency investments in North Carolina over the next decade—and increase consumers direct access to renewable energy projects as well.

North Carolina’s business community infuses billions of dollars into the state’s economy each year, provides tens of thousands of jobs for hardworking North Carolinians, and provides goods, services and technologies to every corner of the state. It is asking the Commission to craft a plan that prioritizes least-cost resources like energy efficiency and other proven, low-cost, clean technologies including solar, wind, and battery storage.

The Commission should establish a plan that helps businesses remain competitive, enables emissions reductions, and creates a reliable and affordable energy plan for all North Carolinians. We cannot afford to miss the mark on the Carbon Plan.