On North Carolina's ratification of Senate Bill 266

That is why I am pleased to share that on the morning of July 29, both houses of the North Carolina General Assembly ratified into law Senate Bill 266, known as The Power Bill Reduction Act. This result came after an override of Governor Josh Stein’s veto of S.B. 266 on July 3. While Gov. Stein has made it clear to the North Carolina Nuclear Advisory Council that he supports nuclear energy through initiatives in workforce development, my understanding is that he expressed certain concerns about S.B. 266, such as its waiving of the 2030 intermediate decarbonization goal and how the financing for baseload power plants may be borne by industry and individual ratepayers. Well-meaning folks can respectfully have differing opinions on these matters. For example, the North Carolina Utility Commission has observed that the 2030 intermediate decarbonization goal cannot be met. And North Carolina is blessed with a very favorable business, industry, and manufacturing base, which provides a lot of jobs for North Carolinians.

For further background, over the past three years, North Carolina leaders have pressed utilities to accelerate modernization of the state’s electric system to provide reliable, affordable, and cleaner energy to meet the growing energy demands. New nuclear plants have a role to play in addressing this modernization.

Deploying more solar is part of the equation, of course. North Carolina has the 4th largest installed solar energy footprint in the U.S., because the state enjoys a lot of sunny days. Oddly enough, the state’s peak load demand occurs in the winter and solar energy supplies are derated then. So, solar is not the sole answer. To accelerate deployment of new baseload to compliment solar, North Carolina needs more always-on sources like nuclear energy, thus S.B. 266 was necessary. This legislation can save customers money, protect customers’ interests, and provide regulatory oversight to hold utilities accountable, while also providing some assurances.

This legislation can also enable timely investments in baseload generation, including new nuclear, by allowing utilities to recover financing costs on an annual basis. For investments in large capital projects, this could save customers billions of dollars, while keeping costs predictable and reducing sudden price spikes.

This legislation benefits the region and ensures the state’s competitiveness. North Carolina continues to experience unprecedented growth. One of the main attractions is competitive energy prices. In recent years, North Carolina has ranked as a top location for business. In fact, CNBC this year ranked North Carolina the number one state in the nation to conduct business. In addition, North Carolina was recognized last year by Site Selection Group as the “Top State for Manufacturing.” Success in these areas translates to more local and state tax revenues and job creation.

States across the country are feeling the urgency to build new generation sources. For example, 43 states and U.S. territories took action in 2024 to advance new nuclear energy development, according to North Carolina State University’s Clean Energy Technology Center. North Carolina has a significant jump on most other states, and S.B. 266 is a reasonable approach and the next logical step.

S.B. 266 affords North Carolina the opportunity to meet its growing energy needs while allowing new nuclear energy to be deployed faster and at less cost. It can also establish a state policy that allows timely investments and modernization of the electric system.

This fall, the North Carolina Utilities Commission will weigh its options for the optimal deployment of new small and large nuclear energy generation plants in North Carolina. The passage of S.B 266 gives the commission a powerful tool in making those decisions.

Steve Rae

Steve Rae is chair emeritus of the North Carolina Nuclear Advisory Council.