Bill
SB 844
SB 844 requires large-load facilities (data centers) to obtain a certificate, face local referenda, pay cost-reflective tariffs, fund grid modernization, and strengthen consumer pr
Date Filed: April 27, 2026
Primary Sponsor: Senator Bradley
Purpose and overall aim
- The billita aims to reduce energy costs, ensure fair cost allocation, protect consumers from unsafe disconnections, and modernize North Carolina’s electric grid.
- It targets large electric users (notably data centers) and seeks to address cost implications they impose on the grid, while promoting reliability, grid modernization, and consumer protections.
Key Provisions by Part
PART I. LARGE-LOAD COST ALLOCATION (DATA CENTERS)
- New Article 6C added to Chapter 62:
- Definitions:
- Data center: Facility or group of facilities housing computer systems and related data infrastructure.
- Large-load facility: Nonresidential facility with peak electricity demand of 50 MW or more.
- Large-load facility(s) under common ownership/control or integrated are treated as one for regulatory purposes.
- Political subdivision: County or municipality.
- § 62-127.1 Certificate of operation; large-load facility
- Requirement: A large-load facility must obtain a certificate of operation from the Utilities Commission before construction/operation.
- Issuance standards: The Commission must find the applicant fit, capable, and financially able, and must verify:
- Compliance with existing rate structures (G.S. 62-127.2).
- Harmlessness to other customers (no increased costs borne by others).
- Adequate environmental review (G.S. 62-127.3) and mitigation of adverse effects (social, economic, environmental).
- For data centers: Local referendum consent from the participating political subdivision (G.S. 62-127.4).
- Compliance with other public-interest requirements.
- Certificate duration: Effective upon issuance and continuing unless suspended/revoked.
- Suspension/Revocation: Commission can suspend/revoke after notice and hearings; possible reinstatement or continued suspension.
- § 62-127.2 Electric service tariffs for large-load facilities
- Utilities must file tariffs for large-load service; Commission may approve tiered tariffs based on load and cost causation.
- Criteria for approval:
- Rates must reflect cost causation; large-loads cover capital and incremental costs attributable to serving them.
- No cross-subsidization by residential/small commercial customers.
- Other customers (residential/small commercial) must be held harmless from large-load changes.
- Tariffs must comply with Commission rules.
- § 62-127.3 Environmental review
- The Commission must conduct a formal environmental study for large-load facility proposals, following Article 1, Chapter 113A requirements.
- Consideration of noise, secondary/cumulative impacts, and fee responsibility for studies.
- Adequacy determination required before action on a certificate; ongoing ecological impact review is required (annual report).
- Noise abatement orders may be issued to mitigate impacts.
- § 62-127.4 Local referendum on large-load data centers
- Local governing boards may initiate consent by calling a referendum.
- Ballot proposition: Explicit consent question for issuing a certificate to a specified data center.
- Referendum results filed with the Commission if approved.
Consent and procedural steps also referenced to 113A environmental review alignment and state environmental statutes.
Scheduling/timelines:
Additional cross-reference: 113A environmental review alignment added to 113A-8.2 certification process.
PART II. ON-SITE GENERATION FOR LARGE ENERGY USERS
- Section 2: The Utilities Commission must evaluate and modify standby service charges (including eligibility limits based on maximum demand) to encourage large-load facilities to develop on-site or dedicated generation (renewables, energy storage, CHP).
- Section 3: Clarifies that nothing in this section prohibits utilities from contracts or compensation arrangements with customers to implement projects reducing grid strain or costs.
PART III. EXTREME WEATHER DISCONNECTION PROTECTIONS
- Section 4(a): Prohibits suspension or disconnection of residential retail service during periods of extreme heat or cold (per Commission rules). Requires offering delinquent customers a deferred payment plan if affected by extreme weather.
- Section 4(b): Commission must adopt implementing rules within 180 days of enactment.
PART IV. GRID MODERNIZATION AND COST REDUCTION
- Section 5(a): Adds § 62-108 Grid modernization plan
- Utilities must file a grid modernization plan with the Commission, including measures to improve efficiency, reduce losses, reliability, and enable advanced grid technologies.
- Biennial integrated resource plan filing may trigger a public hearing on the plan.
- The Commission must consider the grid modernization plan when ruling on new transmission-line certificates.
- Section 5(b)–5(c): Transmission-line certificate requirements and approval standards
- Reiterates application contents (need, location, description, environmental report, consistency with grid modernization plan, approvals) and burden of proof.
- Commission must find necessity, reasonableness, environment, cost, and consistency with the grid modernization plan, plus public convenience and necessity.
PART V. TRANSPARENCY AND CONSUMER PROTECTION
- Section 6(a): Utility bill transparency
- Utilities must include on-bill disclosures listing each rate schedule, rider, surcharge, or tax separately with apportioned amounts.
- The Commission must develop a standardized, disaggregated bill format.
- Section 6(b): Rulemaking to implement these provisions within 180 days.
PART VI. APPROPRIATION
- Section 7(a): $5,000,000 in recurring General Funds to the Utilities Commission (starting in FY 2026-2027) for administering certification for large-load customers, reviewing grid modernization plans, enforcing consumer protections, and data analysis on rates.
- Section 7(b): Effective July 1, 2026.
PART VII. EFFECTIVE DATE
- General effective date: Upon becoming law, with specific provisions having their own effective dates as indicated (notably 2026-2027 appropriations and 2028-2029 tariff timelines).
Potential Impacts and Considerations
- Large-load customers (e.g., data centers) would face formal certification, environmental review, and potential local referenda for new facilities; tariffs would be designed to reflect true costs and avoid cross-subsidization.
- Utilities would be required to modernize the grid and consider customer on-site generation, potentially lowering system-wide costs and improving reliability.
- Consumers could benefit from stronger protections against disconnections during extreme weather and from clearer, itemized billing.
- The bill creates new funding for the Utilities Commission to implement these changes and monitor rate impacts.
- Local governance and referenda could influence where large facilities locate, due to consent requirements.
Overall, SB 844 seeks to balance the growth of large-load facilities with fair cost allocation, stronger environmental and community review, consumer protections, and a concerted push toward grid modernization and reliability.
Compiled from official sources — confirm details with the bill’s official record.
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