Reform the Utility Regulatory Environment

While North Carolina’s citizens and businesses enjoy access to reliable and low-cost electricity, demand projections suggest a clear need to boost capacity and/or promote greater efficiencies in energy production, transmission and usage.  Amid these competing priorities, the electricity sector is now struggling to find an energy vision and a business model that takes these issues into consideration.

To make strides in that direction, North Carolina needs to change the old utility model that allows additional revenue with increasing energy sales.  The state also needs accurate data on the state’s long term energy needs to foster a public debate on the best strategy to meet the state’s growing energy demand amid environmental and public health concerns.

The IEI Energy Working Groups made the following recommendations to reform the state's utility regulation:

Reward smart management: Design a regulatory environment that rewards utilities, electric cooperatives, municipalities and others for providing all types of energy services – electricity, energy efficiency and load management. 

Reform utility rate structure: Create incentives and remove disincentives for utilities and consumers to profit from increased efficiency and transparent pricing.

Create a renewable energy credit market: North Carolina needs to manage, measure and verify a market for renewable energy credits.