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Bill Summary · HB 745

HB 745 — Fair Competition Study Act (North Carolina) — Summary

Status: Introduced Nov 12, 2024; passed 1st reading. Effective: when enacted.
Primary subject areas: utilities, electricity markets, studies/reports, commissions, infrastructure, environmental impacts.

Purpose / Intent

Require the North Carolina Utilities Commission (NCUC) to conduct a comprehensive, independent study of North Carolina’s electricity market structure and regional market arrangements to assess whether market reforms (including an energy imbalance market or a regional transmission organization) would produce net benefits — for reliability, costs, emissions, equity, and economic opportunity — and to identify legal and procedural steps needed to implement reforms.

Key provisions

  • Study lead and timeline

    • The NCUC must begin the study within 90 days of enactment.
    • The Commission must deliver a written report to the Joint Legislative Energy Policy Commission within one year of enactment.

  • Scope of the study (required elements)

    • Assess costs and benefits of the current North Carolina energy market.
    • Assess potential reforms to the Southeastern Energy Exchange Market (SEEM).
    • Evaluate feasibility, costs, and benefits of:
    • An energy imbalance market (EIM) operating within NC and the broader Southeast; and
    • A regional transmission organization (RTO) covering North Carolina, South Carolina, or the Southeastern U.S.
    • Identify legal and procedural requirements at the state level, at the Federal Energy Regulatory Commission (FERC), and in other states to adopt an EIM or RTO; identify statutes, regulations, or policies that would need amendment.
    • Specific analyses for any market option must include impacts on:
    • Generation and capacity adequacy/diversity,
    • Customer service and rates,
    • Environmental quality and greenhouse gas emissions,
    • Economic opportunity,
    • Potential impacts (costs/benefits) on disadvantaged or vulnerable populations and communities.

  • Definitions & consultant requirements

    • Defines “energy imbalance market,” “regional transmission organization,” and “Southeastern Energy Exchange Market.”
    • Authorizes use of an independent consultant with demonstrated energy/utility expertise; consultant must be neutral and free of conflicts of interest.

  • Contracting and funding

    • NCUC may contract for professional, clerical, or consultant services per G.S. 120‑32.02.
    • NCUC must seek available federal funding to support the study.
    • Appropriates $350,000 (nonrecurring) from the General Fund to NCUC for FY 2025–26 to conduct the study.

Who is affected

  • North Carolina Utilities Commission (responsible for conducting the study and reporting).
  • State Legislature and Joint Legislative Energy Policy Commission (study recipient).
  • Regulated utilities (vertically integrated distribution/transmission companies), independent power producers, municipal and cooperative utilities, and market participants (SEEM participants).
  • Consumers and businesses (potentially affected by future market structure changes, rates, reliability).
  • Disadvantaged and vulnerable communities (study must evaluate distributional impacts).
  • Potentially FERC and neighboring states if interstate market changes are recommended.

Procedural/Timeline notes

  • Study initiation: within 90 days after enactment.
  • Final report: within one year of enactment to the Joint Legislative Energy Policy Commission.
  • Nonrecurring appropriation of $350,000 is provided for the study in FY 2025–26.

Potential implications

  • The study may lead to legislative or regulatory proposals to join or form a regional market structure (EIM or RTO), or to modify participation in SEEM.
  • Implementation of any market reform could require changes in state law, coordination with federal regulators (FERC), and agreements with other states or regional entities.
  • Outcomes could affect electricity prices, grid reliability, emissions trajectories, and allocation of economic benefits and burdens across communities.

This summary focuses on the North Carolina HB 745 (Fair Competition Study Act) as enacted for study and appropriation.

Compiled from official sources — confirm details with the bill’s official record.

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