GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S 2
SENATE BILL 365*
Finance Committee Substitute Adopted 5/1/13
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Short Title: Affordable and Reliable Energy Act. |
(Public) |
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Sponsors: |
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Referred to: |
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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:
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(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).
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(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
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(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
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(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
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(h) Cost Recovery and Customer Charges. -
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(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
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(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.
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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.