Bill
SB 1027
Prohibits utility shut-offs during extreme heat, extreme cold with subfreezing temps, and poor air quality, while requiring reconnection options and affordable repayment plans.
Purpose and intent
- The bill aims to protect residential tenants during periods of extreme heat, extreme cold, and poor air quality.
- It provides protections against utility shut-offs, authorizes tenant-led installation of portable cooling and air filtration devices, and imposes procedural rules for reconnection and payment plans.
- It also requires state agency reporting on disconnections and makes several technical/housekeeping changes.
Key provisions
1) Prohibition on utility shut-offs during extreme conditions (G.S. 62-159.1)
- Public utilities and electric membership corporations may not suspend or disconnect residential service during:
- Periods of extreme heat (as defined by related weather/air quality alerts),
- Periods of poor air quality (as defined in the bill),
- Periods of extreme cold with high temperature under 32°F.
- Utilities must offer delinquent customers affected by such weather events the option to settle unpaid balances through a deferred payment plan.
2) Definitions and period triggers (G.S. 42-40, definitions section)
- Introduces defined terms for this act, including:
- Period of extreme heat: Begins 24 hours before an official heat-related alert and ends 48 hours after the alert expires; repeats/overlaps extend accordingly.
- Period of poor air quality: Begins 24 hours before an air quality alert and ends 48 hours after it expires; overlaps extend accordingly.
- Portable air filtration device: A typical purifier that does not require structural changes to install/use.
- Portable cooling device: Air conditioner or evaporative cooler that can be placed without structural modification.
- Protected tenant: A tenant who is a victim of domestic violence, sexual assault, or stalking.
3) Tenant rights to install portable devices (New § 42-42.4)
- Landlords may not prohibit or restrict a tenant from installing/using portable cooling or air filtration devices, with exceptions:
- Install/use would violate codes or laws, safety guidelines, cause uninhabitable conditions, or require more electrical service than available.
- Window-mounted devices must meet safety/structural criteria (e.g., not obstructing egress, not damaging the window/frame, drainage issues, secure placement).
- If a permanently installed cooling/heat pump exists, the restriction can be enforced only if allowed under the section.
- Landlords must provide written notice within 48 hours of a default reason to enforce restrictions, and tenants must remove offending devices within 48 hours of such notice if required.
- Landlords are immune from liability for damages, injuries, or death caused by tenant-installed devices.
- Landlords must include information in leases about rights, responsibilities, and restrictions related to these devices.
4) Restrictions on termination of utility service during extreme conditions (New § 42-42.5)
- During extreme heat or poor air quality, landlords may not involuntarily terminate electric or water service due to nonpayment, except as otherwise provided.
- If a tenant’s service is disconnected, they may request reconnection during such periods.
- Landlords must inform tenants of the reconnection option in disconnection notices and attempt to reconnect promptly upon request.
- If a repayment plan is required, it must comply with the chapter and be designed to:
- Pay past due amounts by May 15 (or as soon as possible thereafter) and maintain monthly payments not exceeding 6% of the tenant’s net monthly income.
- Ensure ongoing utility service; higher percentages may be agreed to by the tenant but default rules apply if payments are below 6%.
- If external assistance payments arrive later, the tenant should contact the landlord to reformulate the plan.
5) Administrative funding for reporting (Section 5)
- Appropriates $100,000 recurring from the General Fund to the North Carolina Utilities Commission starting in the 2026-2027 fiscal year.
- Purpose: to assemble and disseminate an annual report on disconnections.
6) Effective date and scope (Section 6)
- Effective July 1, 2026.
- Applies to rental agreements or leases entered into or renewed on or after that date.
Impacted parties
Procedural and timeline notes
Overall impact
Compiled from official sources — confirm details with the bill’s official record.
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