NC: Progressive rate design legislation under review

Legislation introduced in North Carolina (H. 377, S. 483) would require the North Carolina Utilities Commission to develop an inverted tiered-block electric rate structure for all customer classes in order to encourage energy efficiency and energy conservation. The new rate structure would include accommodations for low-income users and be designed to achieve a 40% to 60% reduction in statewide electricity consumption by 2025. In addition, rates would be structured to guarantee utilities a reasonable rate of return. The legislation would also establish an energy efficiency bank to provide loans for energy efficiency and renewable energy projects, as well as grants to low-income households for energy efficiency and renewable energy. Furthermore, a tax would be imposed a on energy-inefficient equipment and products.