Big players in the state’s energy sector are meeting behind closed doors, hammering out details for major energy legislation that may be revealed later this session.
At least one attendee said the group has agreed not to speak about the process. Others involved largely declined comment or did not return calls, but the working group includes representatives from Duke Energy, clean energy lobbyists and lobbying groups for manufacturers and retailers, which are both big electricity users.
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Lobbyists for environmental and other advocacy groups said no one is in the room representing residential electric customers or environmental groups. They criticized the process but asked for anonymity because they hope to be included further down the road.
Multiple sources told WRAL News that the meetings are coordinated through House Rules Chairman Destin Hall’s office. Hall, R-Caldwell, confirmed energy issues are being discussed, but he declined to go into specifics or identify the people or sectors represented in the meetings.
“House lawmakers have been working with a diverse and evolving group of parties on a number of energy issues,” Hall said in an email. “This is a process similar to what occurs across every policy sector. Once we get closer to a final product, I will gladly send it over.”
Public Staff at the North Carolina Utilities Commission, which represents ratepayers when utility issues come before the commission, isn’t involved, its executive director confirmed. Neither is the Governor’s Office, spokeswoman Dory MacMillan said in response to WRAL News' questions.
Nor are any House Democrats, according to House Minority Leader Robert Reives.
“Unfortunately, it’s not that unusual,” Reives, D-Chatham, said of the process.
Reives said he understands the group is hashing out long-term energy policy for the state. Rep. Pricey Harrison, D-Guilford, an environmentalist who follows energy issues closely, said her “sense” is that the talks surround an update to House Bill 589, a major piece of energy legislation from 2017.
Among other things, that bill set the stage for a solar energy expansion in North Carolina, though Duke Energy and solar companies quickly fell to disagreement over just how the bill would be implemented. The measure was better known for a late addition: A temporary moratorium on new wind farm projects.
Duke still seeking regulatory changes
What a new bill will look like remains to be seen. Duke Energy is the state’s largest electric company, and spokeswoman Grace Rountree said in an email that “specific questions about the legislative process are best suited for leaders in the General Assembly.” She declined to discuss the emerging new bill.
“However, our customers throughout North Carolina want and deserve clean, reliable and affordable energy,” Rountree said via email. “As we continue making the clean energy transition in North Carolina, we are always willing to participate in constructive dialogue with stakeholders and policymakers on a cost-effective path forward.”
Chairmen for the House Energy and Public Utilities committee either didn’t respond to questions about the process or deferred to Hall’s office for comment.
Duke Energy’s desire for legislative changes came up in the company’s February quarterly call with investors, and two years ago, the company sought major changes to the way state regulators review and approve electricity rate increases. That bill failed but remains a priority for the company.
In the February call, Duke Energy President and Chief Executive Lynn Good told analysts that the company continues to seek regulatory reforms that incentivize the company’s move away from coal and an overall reduction in carbon dioxide output.
“The session that is underway right now, there will be some milestones in April around potential introduction of bills,” Good said on the call, according to a company transcript. “So, what I would point to is with common objectives, with a desire to create momentum on carbon reduction, I think that alignment provides a great foundation for moving forward.”
Good also noted that a separate group of stakeholders, one attached to Cooper’s Clean Energy Plan, was wrapping up its work at the time.
“These conversations have been very helpful in creating a common understanding among the interested parties on clean energy principles and the regulatory changes needed to effectuate a generation transition,” Good said. “As the 2021 legislative session begins, we believe both the stakeholders and policymakers will benefit from this work.”
Cooper’s Clean Energy Plan brought together a broader group, though, than seems to be working on the new House bill.
“This just seems to be more driven by the leadership, with industry,” Harrison said. “There’s a lot that’s lost in that matchup.”
Harrison said she was told that this group will “come up with a construct and seek more input from there.”
There’s no comparable effort in the state Senate, according to Sen. Paul Newton, R-Cabarrus, a former Duke Energy executive. But Newton said Tuesday that he understands “the House has that stakeholder process underway.”