On the Record: North Carolina at energy crossroads

CAPTION OR IS HERE, THANK YOU.

>>> GOOD EVENING AND WELCOME TO

ON THE RECORD.

NORTH CAROLINA IS AT A

CROSSROADS WHEN IT COMES TO

ENERGY.

WITH CLIMATE CHANGE TO BE

ACCELERATING.

WE ARE RIGHT NOW IN THIS STATE

MAKING DECISIONS ON HOW WE

GENERATE ELECTRICITY FOR 30

YEARS AND IS OBLIGATED.

WE WILL DIG IN.

HOW QUICKLY CAN WE REPLACE COAL

FIRE AND ELECTRICITY PLANT WITH

THE CONSOLER AND OTHER

RENEWABLE ENERGIES FEEL THE

VOID?

HOW CAN NATURAL GAS AND COAL

THAT CAUSES GREENHOUSE GASES,

HOW MUCH OF THAT COULD BE

NUCLEAR?

WE ARE JOINED BY KEVIN

McGLOCKLIN, VICE PRESIDENT OF

ELEMENTAL AFFAIRS AWAY THE

BIGGEST ENERGY PRODUCER IN THE

STATE WHERE THE BIGGEST IN THE

WORLD.

WE ALSO HAVE MR. TUBBS AND WITH

THE LAW CENTER, KNOWLEDGEABLE

NOT ONLY ABOUT THE

ENVIRONMENTAL IMPACT OF ENERGY

PRODUCTION, BUT THE WAY WE

REGULATED IN NORTH CAROLINA.

WE ALSO HEAR AS WE MOVE THROUGH

THIS.

THANK YOU BOTH FOR JOINING US.

KEVIN I WILL START WITH YOU.

YOUR COMPANY HAS BEEN ACCUSED

OF NOT MOVING QUICKLY ENOUGH

AND YIELD TO ADMISSION.

YOUR CALL BUT WANT TO RELY

HEAVILY ON NATURAL GAS TO DO

SO.

I WANT TO PLAY A CLIP FROM A

CLIMATE SCIENTIST FROM DUKE

UNIVERSITY WHO ARGUES THAT IS A

BAD IDEA.

>> WE ARE SAYING CONSEQUENCES

OF CLIMATE CHANGE COME ABOUT

MUCH MORE RAPIDLY THAN WE

THOUGHT.

MORE HEAT WAVES, MORE FIRES,

MORE INTENSE HURRICANES WE NEED

TO PUT ON THE BRAKES

STRAIGHTAWAY.

WE DO NOT HAVE TIME FOR SOME

INTERMEDIATE START.

LIKE BETWEEN CALL AND ZERO

CARBON LIKE NATURAL GAS.

IT LEAKS METHANE UPSTREAM.

IT PRODUCES CO2 AND BURNS.

I TOTALLY AGREE WITH THE

ARGUMENT THAT IT IS BETTER THAN

COAL.

IT'S NOT GOOD ENOUGH TO

MITIGATE CLIMATE CHANGE.

>>, SO, KEVIN, IF A GAS-FIRED

PLANT LAST WATCH?

30 YEARS OR SO, WHY DO YOU WANT

TO BUILD THEM IN 2024 AND 2026?

>> YOU ARE REFERENCING THE

ENERGY LEGISLATION THAT

APPEARED A FEW WEEKS AGO.

IT CAME OUT OF A HOUSE LED

PROCESS WITH UTILITIES, LARGE

MANUFACTURING REPRESENTATIVES,

RETAIL MERCHANTS,

REPRESENTATIVES, CLEAN ENERGY

BUSINESS LEADERS AND ALSO SO,

NORTH CAROLINA SUSTAINABLE

ENERGY ASSOCIATION.

AND REPRESENTS MANY LEADING

ENVIRONMENTAL AGENCIES AND

ADVOCATES.

OUT OF THE PROCESS CAME

LEGISLATION.

ALMOST A 5 TO 1 RATIO.

FIVE BEING RENEWABLES, ONE

THING A LIMITED AMOUNT OF

NATURAL GAS.

A PLAN TO CLOSE FIVE CHARCOALER

FACILITIES OVER THE NEXT 10

YEARS IN NORTH CAROLINA.

WE RECOGNIZE THERE IS WHAT IS

RECOGNIZED.

AN OPPORTUNITY TO BRING ENERGY

INTO THE SYSTEM WITHOUT

SACRIFICING RELIABILITY AND

ALSO WITHOUT LOSING OUR

COMPETITIVE EDGE MAC WITH

AFFORDABLE ELECTRICITY PRICES

IN THE STATE.

NATURAL GAS SPECIFICALLY.

MANY RAISED CONCERNS.

WE THINK IT'S IMPORTANT WE

THINK ABOUT NEW TECHNOLOGIES.

AND RELATED TO NATURAL GAS

FACILITIES, THOSE FACILITIES

COULD BE EQUIPPED TO BURN BOTH

NATURAL GAS, BUT ALSO HYDROGEN.

NOW, THAT WOULD BE CARBON FREE

WHEN HYDROGEN IS BURNED.

WE ARE NOT THERE QUITE YET.

>> WE CAN TAKE STEPS TODAY TO

PREPARE FOR THE FUTURE, TO MAKE

SURE ANY NATURAL GAS FACILITIES

CREATED IN THE NEXT DECADE

INCLUDE THE DUAL FUEL OPTION.

>> GET READY LEGISLATION YOU

TALKED ABOUT IS HOUSE BILL 951.

WE WILL HIDDEN THAT A FEW TIMES

AND WOULD YOU AGREE WITH THE

521 RATIO THAT KEVIN MENTIONED

THERE?

ALSO, IS IT FEASIBLE TO MOVE

FROM NATURAL GAS TO HYDROGEN?

THAT SORT OF THING, WOULD IT

KEEP US FROM HAVING STRANDED

ASSETS WE TALK ABOUT LIKE A GAS

PLAN AND WE DON'T NEED IT AS

LONG AS WE THOUGHT WE MIGHT ASK

BUT I GUESS A COUPLE THINGS I

WILL SAY ABOUT THAT.

I THINK THE 51 RATIO IS

PROBABLY NOT A GOOD POINT HERE.

WE HEARD FROM A DOCTOR AT DUKE

UNIVERSITY A MINUTE AGO.

WE NEED TO CUT CARBON POLLUTION

AND GREENHOUSE GAS POLLUTION

VERY QUICKLY IN ORDER TO AVOID

THE WORST EFFECTS OF CLIMATE

CHANGE.

THAT MEANS CUTTING CARBONS 70%

TO 2005 LEVELS TO 2030.

THAT NEEDS TO BE THE GUIDING

STAR.

WE HAVE TO TRANSITION AWAY FROM

FOSSIL FUEL LIKE COAL AND GAS

AND NOT HAVE INDEPENDENCE ON

GAS LONGER.

THERE'S AN OPPORTUNITY COST

HERE TOO.

KEVIN MENTIONED GREEN HYDROGEN.

THAT TECHNOLOGY IS NOT

COMMERCIALIZED YET.

SO, YOUR BETTING ON SOMETHING

THAT MAY OR MAY NOT COME INTO

PLAY WHERE AS RIGHT NOW, THERE

ACTUALLY IS TECHNOLOGY THAT CAN

PROVIDE SOME OF THE SAME

FUNCTIONS AS GAS.

LIKE ENERGY STORAGE OR, DEMAND

RESPONSE WHERE YOU CAN SHIFT

DEMAND FROM WINTER MORNING TO

OTHER TIMES THERE IS AN

OPPORTUNITY WHERE IF YOU ARE

INVESTING IN GAS PLANS, YOU DO

NOT HAVE THOSE DOLLARS TO SPEND

ON SOMETHING ELSE.

SO, I THINK THE IDEA THAT GAS

IS A BRIDGE FUEL TO A CLEAN

ENERGY FUTURE IS AN OUTDATED

NOTION FROM THE EARLY 2000S.

WE JUST KNOW A LOT MORE NOW

ABOUT THE SCIENCE.

YOU CANNOT JUST LOOK AT THE

SMOKESTACK.

YOU NEED TO LOOK AT AS THE

DOCTOR MENTIONED, WORK WITH THE

UPSTREAM METHANE LAKES FROM THE

WELL TO THE PIPELINE.

THERE IS A SAYING THAT I REALLY

LIKE WHICH IS THE STONE AGE

HEADSTONES.

THE PLANT HAD SMART ENGINEERS.

>> I WAS EXAMINING SOME OF

THEM.

I HAVE CONFIDENCE IN THEIR

ABILITY TO HELP US INNOVATE OUR

WAY INTO A CLEANER FUTURE THAT

MIGHT INVOLVE, YOU KNOW,, WE

ARE GOING TO NEED TO CONTINUE

LEARNING.

THAT'S PROBABLY TRUE.

>> NOT BUILDING NEW PLANTS NOW

THAT ARE GOING TO BE WHITE

ELEPHANTS IN A COUPLE DECADES.

>> KEVIN, PART OF THE BILL WE

TALKED ABOUT I BELIEVE MOVES

ROXBORO, WHERE THE LARGEST

PLANT I BELIEVE IN THE COUNTRY,

FROM COAL TO NATURAL GAS BUT

THAT SEEMS A REAL RELIANCE ON

NATURAL GAS THERE.

DO WE REALLY NEED THAT BRIDGE?

SOME OF THE THINGS GOODWIN WAS

TALKING ABOUT IS IT TECHNOLOGY

CLOSE ENOUGH TO READY TO SKIP

THE BRIDGE?

>> I DON'T WANT TO QUIBBLE WITH

YOU.

>> YOU ARE RIGHT.

ROXBORO IS ONE OF THE FIVE COAL

FACILITIES THAT WOULD BE

TRANSITIONED OR RETIRED AS A

RESULT OF THIS LEGISLATION.

>>, THERE IS NOT A MANDATE FOR

NATURAL GAS.

AT THAT FACILITY.

IN FACT, IT WAS INTENTIONAL BY

SOME OF THE NEGOTIATORS TO

THINK ABOUT THE RETIREMENT DAY

OF THE FACILITY OUT FURTHER

ENOUGH SO TECHNOLOGY COULD BE

AVAILABLE.

TO TRANSITION WITHOUT NATURAL

GAS IF NEEDED.

OR, IF THE DECISION IS MADE,

FOR BOTH RELIABILITY CONCERNS,

ALSO TO POSITION MORE QUICKLY

FROM COAL, AT LEAST NATURAL GAS

IS AN OPTION FOR THE

LEGISLATION AT THAT FACILITY.

SPA COMEDY NATURAL GAS UNITS

ARE WE TALKING ABOUT?

ONE OF YOUR CRITICS SAYS IT IS

50 PLANNED FOR THE BILL.

AND THE IRP.

THE 15 YEAR PLAN DUKE ENERGY

HAS . VISIT 50 OVER THE NEXT

COUPLE DECADES?

>> I MADE NEED TO CONSULT SOME

OF MY SMART ENGINEERS.

GOODWIN MENTIONED ON THAT, I

CAN'T SPEAK TO THE LEGISLATION.

THE LEGISLATION, UNDER THE

LEGISLATION DIRECTS AGAIN, FIVE

COAL FACILITIES, THE

REPLACEMENT OF ONE LIMITED

NATURAL GAS FACILITY AT

MARSHALL.

ACTUALLY A COAL FACILITY

EXPECTED TO RETIRE IN 2035.

>>, BECAUSE OF LEGISLATION, AND

RETIRES ALMOST A DECADE

EARLIER.

WITHOUT ADDITIONAL COAL ASH AT

THE FACILITY.

ROXBORO IS LEFT WITH AVAILABLE

TECHNOLOGY WHEN IT'S TIME TO

MAKE THOSE DECISIONS BASED ON

REVIEW BY THE UTILITY

COMMISSION.

>> WE ARE GOING TO TAKE THE

FIRST BREAK.

WHEN WE COME BACK, WE WILL TALK

MORE ABOUT ENERGY REGULATION IN

TOUCHED ON.

>>> WELCOME BACK.

WE HAVE KEVIN McGLOCKLIN FROM

DUKE INJURY AND A ATTORNEY

SPECIALIZING IN ENERGY

RECORDATION.

GAS IS NEEDED BUT ONE OF THE

KEY THINGS IN NORTH CAROLINA

WITH ENERGY INFRASTRUCTURE IS

STATE REGULARS ALLOW DUKE

ENERGY A 7% RETURN ON EQUITY.

I THINK IT'S FAIR TO CALL THAT

PROFIT ON CAPITAL COST BUT IF

YOU BUILD A EXPENSIVE NATURAL

GAS PLANT THERE'S A BUILT IN

RETURN FOR THE . HOW IMPORTANT

IS THAT WITH WHAT WE ARE

TALKING ABOUT HERE?

ARE WE INCENTIVIZING THE RIGHT

THINGS?

>> I THINK THAT THE RETURN ON

EQUITY MIGHT BE A LITTLE HIGHER

THAN 7%.

I THINK IT'S SOMEWHERE AROUND

NINE OR 10 AND CHANGE.

>>, WHAT WE ARE TALKING ABOUT

IS, A RETURN ON INVESTMENT IN

POWER PLANTS AND OTHER ASSETS.

THAT IS HOW THE UTILITY MAKES

MONEY.

IT'S NOT A VALUE JUDGMENT.

YOU KNOW, DUKE ENERGY,

UTILITIES NEED, THEY ARE

UTILITIES THAT NEED TO CREATE

VALUE FOR SHAREHOLDERS AND THAT

IS HOW THEY DO IT.

THEY BUILD THINGS AND THEY OWN

THINGS AND EARN A RETURN IN

THE.

>>, THE BUSINESS MODEL REALLY

NEEDS TO CHANGE.

THE UTILITY IS NOT JUST

REWARDED FOR SPENDING MONEY ON

LARGE CAPITAL PROJECT.

BUT, INSTEAD, IT'S REWARDED FOR

PERFORMANCE METRICS THAT

PROMOTE STATE POLICIES THAT DO

THINGS LIKE ENCOURAGE ENERGY

EFFICIENCY OR DEPLOYMENT OF

RENEWABLES AND AFFORDABILITY.

WE TALKED A LITTLE BIT ABOUT

BILL 951.

THERE ARE PROVISIONS IN THEY'RE

HEADING IN THE DIRECTIONS OF

UTILITIES THAT THIS MODEL

FORMED.

THAT IS POSITIVE.

BUT, THE PROBLEM IS, IN THIS

LEGISLATION, THAT IS INTRODUCED

RECENTLY, THERE IS TOO MUCH

POTENTIAL FOR THE UTILITY TO

OVERTURN.

WITHOUT REALLY ANY RECOURSE FOR

THE UTILITY COMMISSION OR THE

CONSUMER ADVOCATE AGENCY TO

ENSURE THAT THE UTILITY COMES

IN AND HAS EVERYTHING TRUE UP

SO THEY ARE NOT EARNING TOO

MUCH.

THAT IS WHAT REALLY BIG CONCERN

ABOUT HOUSE BILL 951.

THEN THERE ARE A COUPLE OF IT.

LET'S TALK ABOUT, IF THERE IS A

CHANCE, DURING THE SHOW TODAY.

>> YES, WE WILL GET DEEPER

INTO.

KEVIN, FEEL FREE TO DISAGREE

WITH SOME OF WHAT YOU BROUGHT

UP THERE.

BUT THERE IS A LOT OF PRIVATE

PRESSURE ON DUKE ENERGY NOW,

RIGHT?

YOU HAVE ANOTHER COMPANY NEXT

IN POSITION TO TAKE OVER, A

HEDGE FUND WANTS TO BREAK THE

COMPANY UP, HERE WE ARE TALKING

ABOUT DECADES OF POLICY.

IS A PRESSURE ON MANAGEMENT TO

DO EVERY BIT OF VALUE THEY CAN

FOR SHAREHOLDERS.

HOW DO YOU BALANCE THAT?

>> YOU BALANCE IT BY KEEPING

THE MAIN PRIORITY THE MAIN

PARTY.

FOR DUKE ENERGY AND THE DUKE

ENERGY LEADERS, THE MAIN

PRIORITY IS PROVIDING

AFFORDABLE, RELIABLE AND

CLEANER ENERGY FOR CUSTOMERS.

THAT IS WHAT MANY OF MY

COLLEAGUES AND LEADERSHIP THINK

ABOUT EVERY DAY.

WHEN WE WITNESS IT JUST THIS

PAST WEEK IN RECOVERING FROM

TROPICAL STORM ELSA.

MY COLLEAGUES, THE LINE WORKERS

AND THE CONTROL OPERATORS WHO

ARE MAKING SURE OUR POWERS IN.

WITH DECADES WERE IN THE STUDY.

THAT IS HOW WE FOCUS ON WHAT

THE PRIORITIES ARE.

WE ALSO ARE LISTENING TO OUR

CUSTOMERS.

THE CURRENT CUSTOMERS AND THOSE

CUSTOMERS WHO WE ARE ACTIVELY

RECRUITING TO THE ECONOMIC

DEVELOPMENT EFFORTS TO COVER

NORTH CAROLINA.

THOSE COMPANIES, APPLE MOST

RECENTLY, THEY WANT TO SEE

CLEANER ENERGY ON THE SYSTEM.

SO, WE LET THIS OPPORTUNITY

THAT WE HAVE RIGHT IN FRONT OF

US TODAY.

PERHAPS YOU SAY WE ARE AT A

CROSSROADS.

I WOULD SAY WE ARE AT THIS VERY

UNIQUE OPPORTUNITY HERE IN

2021.

WHERE WE HAVE AN OPPORTUNITY TO

SET A COURSE FORWARD OVER THE

NEXT DECADE TO BRING CLEANER

ENERGY ONTO OUR SYSTEM WITHOUT

SACRIFICING RELIABILITY AND

AFFORDABLE ENERGY PRICES.

NOW, I APPRECIATE COMMENTS

ABOUT THE PERFORMANCE-BASED

RATES.

THERE ARE SOME FANTASTIC

POLICIES THAT CAME OUT OF

GOVERNOR COOPER'S CLEAN ENERGY

PLAN AND CLEAN ENERGY TASK

FORCE.

DEALING WITH PERFORMANCE-BASED

RATES.

THIS IS SOMETHING, THREE

THINGS.

A MULTI YEAR RATE PLAN.

PERFORMANCE INCENTIVE MEASURES

TO HOLD THE UTILITY . AND,

DECOUPLED . A WORD I DID NOT

KNOW UNTIL I CAME TO DO.

DECOUPLING IS A GREAT LINK

BETWEEN THE INCENTIVES FOR THE

ELECTRIC COMPANY TO SELL YOU

MORE ELECTRICITY.

THOSE THREE THINGS TOGETHER ARE

A GREAT STEP FORWARD FOR DUKE

ENERGY.

GREAT SUPPORT FOR CUSTOMERS.

WE ARE VERY PLEASED LEGISLATIVE

LEADERS HAVE DECIDED TO KEEP

PROVISIONS IN THE LEGISLATION.

AGAIN, TALKING ABOUT

INCENTIVES.

THE REASON THAT THERE IS A

CHANGE NEEDED IN THE REGULATORY

PROCESS IS, YOU ARE RIGHT.

THE OLD MODEL, THE OLD MODEL

WAS THE UTILITY WAS CONSENTED

TO HAVE LARGE CENTRAL COAL

PLANTS FOR INSTANCE.

THAT IS THAT THE FUTURE.

THE FUTURE?

GRID INVESTMENT.

THE FUTURE, CONNECTING

RENEWABLE ENERGY RESOURCES TO

THE GRID.

GRID HARDENING AND

STRENGTHENING.

TECHNOLOGY TO PROTECT

INFRASTRUCTURE.

FROM STORMS AND ISSUES.

THAT IS THE FUTURE.

WHAT IS IN THE BILL IS A

REGULATORY STRUCTURE TO THE

NEEDS OF NORTH CAROLINIANS FOR

THE FUTURE.

>> VERY QUICK.

THE REFORM IN THE BILL, A LOT

OF PEOPLE SAY IT HELPS DUKE

ENERGY OVERTURN, EARN TOO MUCH

MONEY TOO QUICKLY OVER THE NEXT

COMING YEARS, WHAT YOU SAY WITH

THAT?

BUT I AGREE WITH IT.

THERE'S AN ASYMMETRICAL NATURE

OF THE POTENTIAL FOR

OVERTURNING IN THE BILL.

DID COULD OVERTURN BY QUITE A

BIT DIFFERENT NUMBERS AROUND, I

AM NOT QUITE SURE WHAT THE

RIGHT NUMBER IS.

>> THE POTENTIAL FOR EARNING

THEIR, THE PROBLEM IS, THE

UTILITY COMMISSION ANYBODY

ELSE, REGULATORS, IF THEY CATCH

WIND OF THAT AND SAY, GOSH, WE

BETTER GET IN THERE AND MAKE

SURE THEY ARE NOT PAYING TOO

MUCH.

CAN I COMMENT A LITTLE BIT,

SINCE KEVIN MENTIONED THE TASK

FORCE, CAN I COMMENT ON THE

PROCESS OF NEGOTIATING THE

LEGISLATION?

BUT I THINK I WILL HAVE TO WAIT

FOR THE THIRD.

WE WILL COME BACK AND WE WILL

GET FURTHER INTO THIS BILL.

WE WILL ALSO TALK ABOUT WHAT

THE SOLAR INDUSTRY THINKS ABOUT

NORTH CAROLINA.

WELCOME BACK.

WE'RE TALKING ENERGY POLICY AND

HOUSE BILL 591 951 IN NORTH

CAROLINE IT.

I WANT TO GIVE HER THE

OPPORTUNITY TO TALK A LITTLE

BIT ABOUT PROCESS . A NOT

UNUSUAL AT THE STATE HOUSE.

AS THIS WAS DEVELOPED THE BILL

IS DEVELOPING IF NOT DONE

PUBLICLY FOR THE MOST PART, A

LOT OF PEOPLE WHO WANT TO BE A

PART OF IT WERE CUT OUT.

SOCKETS RIGHT.

KEVIN MENTIONED THE TASK FORCE

COMING OUT OF GOVERNOR COOPER'S

CLEAN ENERGY PLAN.

THE TASK FORCE WAS REALLY THE

FIRST GROUP OF STAKEHOLDERS.

PART OF DUKE ENERGY,

MUNICIPALITIES.

REALLY ANYBODY WITH INTEREST IN

THE NORTH CAROLINA ENERGY

FUTURE WAS INVOLVED.

SOME OF THE UTILITY COMMISSION

STAFF.

THE LEGISLATIVE STAFF AND

LEGISLATORS AS WELL.

THEY MET FEBRUARY 3 DECEMBER OF

LAST YEAR.

MANY, MANY MEETINGS.

ZOOM LIKE SO MANY OF US ARE

DOING A. BUT, IT WAS A REALLY

ROBUST PROCESS . A IT WAS NOT

EASY.

BUT WE MADE A LOT OF PROGRESS

ON A LOT OF THESE ISSUES.

IT'S REALLY A SHAME THAT THE

PROCESS WAS KIND OF SHUNTED OFF

BY LEADERSHIP INTO A CLOSED-

DOOR, SECRET NEGOTIATION

PROCESS IN WHICH SOME

STAKEHOLDERS WERE NOT ALLOWED

TO TALK ABOUT WHAT WAS ON THE

TABLE.

THE PROCESS LEADS TO A BAD

OUTCOME.

THAT IS WHY WE ARE HERE NOW

WITH SO MANY FOLKS OPPOSING THE

BILL.

IT HAS SOME POSITIVE THINGS IT.

VERY POSITIVE THINGS FOR SOLAR

ENERGY.

CERTAINLY CLOSING COAL PLANTS

IS POSITIVE.

ALSO, THERE IS A THEME THAT

RUNS THROUGHOUT THE LEGISLATION

THAT WOULD TIE THE UTILITY

COMMISSION HANDS AND TAKE AWAY

THEIR AUTHORITY.

THE COMMISSIONERS ARE VERY WELL

QUALIFIED FOLKS.

THEY HAVE BEEN VETTED BY THE

LEGISLATURE.

LET THEM DO THEIR JOB, TO

REGULATE IN THE PUBLIC

INTEREST.

>> WE HAVE BEEN BANGING ON THE

BILL A LITTLE BIT.

YOU MEASURE THE SOLAR INDUSTRY.

I WANT TO KNOW THE INDUSTRY

SUPPORTS AND IN PARTICULAR TIER

CLIP FROM THE CHAIRMAN OF THE

CAROLINA CLEAN ENERGY BUSINESS

ASSOCIATION.

HE BASICALLY SAYS, PASSING

NOTHING IS NOT AN OPTION FOR

THE INDUSTRY.

THEY WANT TO EXTEND ASSISTANT

THE STATE HAS FOR SOLAR

CONSTRUCTION.

>> REALLY WE ARE AT A SPOT

WHERE WE GO BACK TO THE

REGULATORY ENVIRONMENT WHERE

DEVELOPMENT IS COMING TO A STOP

IN NORTH CAROLINA AND ABSENCE

OF NEW POLICY DRIVERS, THE

REPAIRS DON'T GET THE BENEFIT

OF THE CLEAN ENERGY AND THE

COST-SAVING THE STATE COULD.

>> ALL RIGHT, WE USED TO

BELIEVE IT NUMBER TWO I BELIEVE

IN SOLAR IN THE COUNTRY.

WE ARE STARTING TO SLIP . WHY

ARE WE SLIPPING?

WHAT WE NEED TO RE-ACCELERATE

THAT?

>> I DO NOT KNOW IF WE HAVE

BEEN SLIPPING AS MUCH AS OTHER

STATES HAVE HIT THE PADDLE AND

ADVANCED MUCH MORE QUICKLY THAN

WE HAVE OVER THE PAST SEVERAL

YEARS.

THAT'S A PART OF THE BILL WE

VERY MUCH SUPPORT.

VERY ALIGNED.

WITH THE CLEAN ENERGY BUSINESS

IN NORTH CAROLINA WITH A

MANDATE FOR ADDITIONAL

RENEWABLES TO BE ADDED TO THE

SYSTEM.

AS I SAID EARLIER.

IT'S WHAT CUSTOMERS WANT.

RENEWABLES ARE AN IMPORTANT

PART OF THE MIX FOR FUTURE

ENERGY GENERATIONS.

TO HELP ADDRESS HOME REDUCTION

GOALS.

ALSO, TO SUPPORT JOBS IN NORTH

CAROLINA.

SO, IT'S AN AREA OF ALIGNMENT

AMONGST MANY OF THE NEGOTIATORS

WHO WORK IN THE LEGISLATION.

>> I WANT TO TALK ABOUT WHAT

THE BILL DOES.

THERE IS NO MENTION OF CLIMATE

CHANGE.

NO CONTEMPLATION OF MORE

REPETITIVE ENERGY REGIMES.

SOUTH CAROLINA IS STUDYING ONE-

HOUR PROVIDERS CAN ESSENTIALLY

IT ON ENERGY PRICES.

I KNOW THAT WOULD BE A MAJOR

SHIFT, BUT WHY NOT CONSIDER IT

HERE?

>> I THINK CERTAINLY IT WAS

PART OF THE CONVERSATION.

THAT FOLKS AT.

MANY FOLKS WOULD SAY THE

LEGISLATION DOES NOT GO FAR

ENOUGH.

FOR DIFFERENT POLICY ISSUES.

SOME SAY IT GOES TOO FAR.

THE ELECTRICITY SYSTEM WE HAVE

IN NORTH CAROLINA, ONE THAT

CONTINUES TO PROVIDE RELIABLE,

AFFORDABLE AND NOW CLEANER

ENERGY WITH THINK IT IS

IMPORTANT TO KEEP THE SYSTEM IN

PLACE.

AND TRAVIS I WOULD SAY, WHAT

HAPPENED EARLIER THIS WINTER WE

NEED TO LOOK.

150 TEXANS PERISHED.

BECAUSE THERE, THE DEREGULATED

ELECTRICITY SYSTEM FAILED.

FOR SOME FOLKS, ELECTRICITY IS

JUST A COMMODITY.

BUT, FOR THOSE OF US, LIKE THE

FOLKS I REPRESENTED WITH DUKE

ENERGY.

WE KNOW ELECTRICITY IS MUCH

MORE THAN JUST A COMMODITY.

IT'S AN ESSENTIAL SERVICE.

WE ARE PROUD TO PROVIDE THAT

FOR NORTH CAROLINIANS ACROSS

THE STATE.

>> SURE, I UNDERSTAND.

COST IS A CONCERN.

YOU ACKNOWLEDGE, YES KEVIN?

THIS GIVES DUKE ENERGY AN AWFUL

LOT OF WHAT IT WANTED FOR

SEVERAL YEARS.

>> THE I RECOGNIZE ABSOLUTELY.

WE TALK ABOUT THE SUPPORT OF

TRANSITION AWAY FROM CALL.

ADDING CLEANER ENERGY.

PROVIDING REFORM AND DOING IT

IN AN AFFORDABLE WAY.

ABSOLUTELY.

I AM VERY SUPPORTIVE OF THOSE

OBJECTIVES.

AND A GOOD REFERENCE TO THE

FACT THAT OTHER VOICES NEED TO

BE HEARD.

NOT HOW SHE PARAPHRASED IT.

THAT IS WHAT WE ARE SEEING

RIGHT NOW IN THE LEGISLATIVE

PROCESS.

THE BILL EMERGED, THE

OPPORTUNITY FOR FEEDBACK.

I BELIEVE POLICYMAKERS ARE

LISTENING.

I KNOW DUKE ENERGY IS LISTEN.

OUR GOAL IS TO END THE SESSION.

THE LEGISLATIVE SESSION.

WITH CONSENSUS, BIPARTISAN

LEGISLATION.

THAT ADVANCES NORTH CAROLINA

FORWARD AND SIGNED AND

SUPPORTED FULLY BY GOVERNOR

COOPER.

WE HAVE AN EXCELLENT

OPPORTUNITY IN FRONT OF US THAT

WE DON'T MISS THE OPPORTUNITY.

>> VERY QUICKLY, DO YOU THINK

IT IS POSSIBLE WHERE THE BILL

IS NOT TO GET OVER THAT BENCH

LINE?

THE BILL NEEDS TO GO BACK TO

THE DRAWING BOARD.

BUT, IF LEADERSHIP IS READY TO

OPEN UP THE PROCESS TO OTHER

VOICES, I THINK A LOT OF US ARE

READY TO ROLL UP HER SLEEVES

AND HAVE A CONVERSATION.

AS IT STILL STANDS TODAY, THE

BAD OUTWEIGHS THE GOOD.

>> ALL RIGHT, WE WILL HAVE MORE

COVERAGE ON THIS BILL.

WRAL.COM, FOLLOW OUR

THE SHOW.

>>> I KNOW THIS COULD BE A

DENSE TOPIC.

THANK YOU FOR PAYING ATTENTION

TO.

THANK YOU FOR TUNING IN AND

ALSO TO OUR GUEST.

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