Capital Connections - October 2025

Legislative Update

 

The North Carolina General Assembly held a quick, two-day session in September where they notably passed regulatory reform legislation supported by ElectriCities and a criminal reform bill. Gov. Stein allowed House Bill 926, Regulatory Reform Act of 2025, to become law without his signature. He cited some of the water quality provisions as his reasoning for not signing. Notably absent from September’s session was an agreement on Medicaid and funding for the proposed North Carolina children’s hospital in Apex. Legislators are slated to return to Raleigh next week to hopefully address some additional budget items.

 

At the federal level, the shutdown continues into a third week as Congress fails to reach a funding agreement. President Trump authorized military pay to continue during the shutdown, which some Republicans have voiced frustration over, because it removes a key bargaining tool during negotiations this week. It is unclear what pressure will move the needle on the current stalemate. 

Rhian Ray

Goverment Affairs Manager

 

Dalton Ashworth

Government Affairs Associate

 

Leah Kirby

Senior Copywriter

Power Agency Contract Extensions Clarified Through Legislation

 

Last month, the North Carolina General Assembly passed House Bill 926, the Regulatory Reform Act of 2025, which includes amendments to North Carolina General Statutes Section 159B.

 

ElectriCities successfully lobbied the General Assembly to include Section 22 of HB 926, which amends NC GS Section 159B so that contracts between a joint agency (North Carolina Municipal Power Agency Number 1 and North Carolina Eastern Municipal Power Agency) and a member municipality may be renewed or extended for additional periods not to exceed 50 years from the date the preceding term expires.

 

This change is important for public power utilities because it provides long-term stability, supports financial planning, and ensures reliable service for communities. Longer agreements also make it easier to secure lower borrowing costs for infrastructure investments, while giving utilities the flexibility to manage resources and negotiate power supply more effectively.

 

ElectriCities greatly appreciates the support of the Treasurer’s Office for collaborating with us on the language, as well as House and Senate leadership, who agreed to include Section 22 on short notice and worked with public power to ensure it moved this year.

 

Our success in securing this important legislative change is a clear example of the value of an engaged membership. Utilizing our collective voice makes a real difference in shaping policies that strengthen public power. Active political engagement is essential to protecting the long-term interests of our communities, and your involvement ensures lawmakers understand the importance of supporting reliable, affordable, locally controlled electricity.

 

As we look ahead to future lobbying efforts, we hope to count on your advocacy in engaging with state and federal leaders. ElectriCities remains committed to equipping you with the information, resources, and support necessary to make those conversations meaningful and effective.

 

Please contact the ElectriCities Government Affairs team if you have any questions regarding this legislation or would like additional information about getting involved.

Duke Updates Integrated Resource Plan

 

Duke Energy has filed its 2025 Carolinas Resource Plan with the North Carolina Utilities Commission, outlining how it will meet rapid growth in electricity demand across North Carolina and South Carolina while keeping customer costs low and maintaining reliability. The plan projects average bill increases of 2.1% per year over the next decade, below inflation and lower than the 2023 plan’s forecast.

 

The 2.1% annual increase is about half the annual increase Duke projected in its 2023 forecast, due, at least in part, to the flexibility provided by Senate Bill 266. ElectriCities strongly advocated for SB 266 to provide much needed flexibility in pursuing a cost-effective and reliable path to decarbonization.

 

Electricity demand in the Carolinas is growing eight times faster than in the past 15 years. This growth is driven largely by new manufacturing and business investments that have brought over 25,000 jobs and $19 billion in announced projects so far in 2025.

 

Duke’s updated plan reflects new state and federal energy policies emphasizing reliability, affordability, and cleaner generation, with significant updates to Duke Energy’s long-term generation mix. Here are the main updates according to Duke:

 

Nuclear: Adds evaluation of large light-water reactor (LLWR) technology alongside small modular reactors (SMRs), targeting new nuclear capacity around 2037 at either Belews Creek, North Carolina (SMR), or W.S. Lee, South Carolina (LLWR).

 

Natural Gas: Keeps five combined-cycle units from the prior plan and adds two new combustion turbines, for a total of seven. Also adds liquefied natural gas storage to improve fuel reliability and cost stability.

 

Battery Storage: Expands planned capacity to 5,600 MW by 2034, nearly doubling the 2023 target, supported by federal tax credits.

 

Solar: Maintains the goal of 4,000 MW by 2034, continuing to leverage federal incentives.

 

Pumped Storage Hydro: Defers expansion of the Bad Creek facility from 2034 to 2040, prioritizing near-term solar, natural gas, and battery projects.

 

Coal: Extends the operation of certain dual-fuel coal units (Belews Creek, Cliffside, Marshall) by 2 to 4 years due to eased federal restrictions, while maintaining an orderly transition away from coal.

 

Wind: Remains uneconomical through 2040 but will be revisited in future planning cycles.

 

The plan also includes efficiency upgrades that add about 300 MW of clean capacity through nuclear uprates, 280 MW of additional pumped storage, and improvements to the natural gas fleet to lower emissions and costs.

Shutdown Stalls LIHEAP Funding

 

The Low Income Home Energy Assistance Program (LIHEAP) remains a vital resource for households struggling to afford their energy bills, and public power utilities often see firsthand the difference it makes in their communities. By helping customers cover essential heating and cooling costs, LIHEAP reduces financial strain and supports reliable utility service.

 

During the current federal government shutdown, however, LIHEAP operations are being disrupted. The Department of Health and Human Services’ Administration for Children and Families has announced that staff will not be available to provide program support, and no new LIHEAP grants will be issued until the shutdown ends. While states can continue to use previously awarded funds, including carryover or reallotment dollars, the reimbursement process may be delayed due to federal furloughs.

 

For public power utilities, this could mean increased uncertainty for customers who depend on LIHEAP assistance. The American Public Power Association is working with the National Energy and Utility Affordability Coalition to monitor the situation and understand how state and local LIHEAP programs may be affected.

 

Stay tuned to future Capital Connections editions for further updates on the government shutdown and LIHEAP.      

ElectriCities staff in Raleigh celebrate Public Power Week.

 

Public Power Week 2025

 

Last week, ElectriCities and public power communities across North Carolina and the country came together to celebrate Public Power Week 2025. Held annually during the first full week of October, the event recognizes the vital role public power plays in delivering safe, reliable, and affordable electricity to nearly 1.6 million North Carolinians. This year’s celebration was further highlighted by a proclamation from North Carolina Gov. Josh Stein, officially recognizing the importance of public power in our state.

 

Public Power Week also gave ElectriCities members the chance to highlight their local impact. Utilities celebrated their employees, engaged customers through education, and highlighted how municipally owned systems are powering a brighter future. These activities not only strengthened connections with the communities they serve, but they also underscored the value of local ownership and accountability in keeping the lights on.

Senate Confirms FERC Commissioners

 

Last week, the United States Senate approved Senate Resolution 412, confirming nearly 100 nominees across various positions. Among them were Republicans Laura Swett and David LaCerte, who will now serve as commissioners on the Federal Energy Regulatory Commission (FERC).

 

Swett previously served as a senior legal and policy advisor at FERC and as a lawyer in the commission’s Office of Enforcement. She is now counsel at Vinson & Elkins LLP, where she handles state and federal energy and regulatory litigation.

 

LaCerte, a U.S. Marine Corps veteran, is the White House liaison and senior adviser to the director of the U.S. Office of Personnel Management where he was previously appointed as senior advisor from 2020 to 2021. He was also special counsel at Baker Botts, an oil and gas law firm, where he worked on energy litigation from 2023 to 2025.  

     

Their confirmations complete the five-member commission, which now consists of three Republicans and two Democrats. While Swett and LeCerte were nominated and confirmed as commissioners, one is likely to assume the position of FERC chairman, replacing Democrat David Rosner.

 

ElectriCities looks forward to getting to know the new commissioners and to educating them about the value of public power and the unique role public power plays in the utility industry.

ElectriCities of NC

1427 Meadow Wood Blvd. Raleigh, NC 27604