NC governor vetoes bill that would let Duke Energy miss its goal on reducing emissions
AI-generated summary reviewed by our newsroom.
- Gov. Josh Stein vetoed Senate Bill 266, blocking delays to 2030 emissions goals.
- Stein opposed Duke’s use of upfront customer charges for unbuilt power plants.
- Critics argue the bill shifts energy costs to households and weakens climate targets.
N.C. Gov. Josh Stein on Wednesday vetoed a bill designed to let Duke Energy delay planned cuts in carbon emissions from its power plants in the state. The bill also would allow the electric utility to switch to a financing method in which it would charge rate-payers for new power plants before they’re built.
The Republican-dominated General Assembly ratified Senate Bill 266 on June 23 and sent it to Stein, a Democrat, for his signature the next day.
After vetoing the bill, Stein said in a statement, “This summer’s record heat and soaring utility bills (have) shown that we need to focus on lowering electricity costs for working families — not raising them. And as our state continues to grow, we need to diversify our energy portfolio so that we are not overly reliant on natural gas and its volatile fuel markets.”
Stein cited analysis of the bill released this week by researchers at N.C. State University showing it could cost could cost North Carolina ratepayers up to $23 billion through 2050 due to higher fuel costs.
“This bill not only makes everyone’s utility bills more expensive, but it also shifts the cost of electricity from large industrial users onto the backs of regular people — families will pay more so that industry pays less. Additionally, this bill walks back our state’s commitment to reduce carbon emissions, sending the wrong signal to businesses that want to be a part of our clean energy economy. My job is to do everything in my power to lower costs and grow the economy.
“This bill fails that test.”
Would the changes cause power bills to go up or down?
“The Power Bill Reduction Act” has been controversial.
Among its provisions, the bill would release Duke Energy from a goal set by law in 2021 to achieve a 70% drop in the amount of carbon dioxide released by power plants in North Carolina from 2005 levels by the year 2030.
Duke Energy has said the goal is “inexecutable” and that delaying the cost of transitioning to cleaner forms of energy production would allow the company to find the most cost-effective ways to do so, potentially saving customers billions of dollars. The company has said it would continue to work toward reducing emissions and aim for carbon neutrality — meaning for every ton of carbon dioxide power plants emit, an equivalent amount of carbon dioxide emissions is prevented — by 2050 as was set by the 2021 law.
Environmental and consumer advocacy groups said passing Senate Bill 266 and allowing Duke Energy to miss the 2030 emissions-reductions target would actually cost customers billions of dollars because the utility would continue to rely heavily on natural gas, the price of which can fluctuate quickly.
Critics say the delay would also show a lack of commitment by the state to a move toward cleaner energy sources such as solar.
The bill also would allow Duke Energy to make greater use of the Construction While in Progress, or CWIP, method of financing new plant construction, meaning it could bill customers in advance to raise money for new power plants.
Supporters of the change say CWIP saves consumers money because the utility avoids paying — and passing along — interest charged on borrowed funds. Duke Energy said the bill contained adequate safeguards to prevent problems cited in other states where there were huge construction-cost overruns or pre-paid plants never went online. Duke Energy said modernizing CWIP would allow it to build plants to meet the increasing demand for energy the state is seeing.
Reaction to Stein’s veto of Senate Bill 266
Consumer advocates, including Claire Williamson, senior energy policy advocate at the N.C. Justice Center, said these and other provisions of Senate Bill 266 could unfairly shift the cost of producing energy onto residential rate-payers and away from the industries that are the biggest driver of increased demand.
“We are very grateful that Governor Stein vetoed Senate Bill 266,” Williamson said Wednesday afternoon. “I think he is looking out not just for the North Carolina rate-payers, but everybody, since this was a bill that was really set up to benefit Duke Energy and the large industrial customers.
“We want industry and jobs and economic development, but they also need to be paying the costs they’re incurring, and shifting those to residential customers is a burden.
“That’s just not fair.”
Donald Bryson, CEO of the John Locke Foundation, said Wednesday his group was disappointed in Stein.
“By vetoing the ‘Power Bill Reduction Act,’ Governor Stein has chosen ideology over affordability. This bill would have lifted a costly and unrealistic carbon mandate that threatened to raise electric bills and strain grid reliability. North Carolina families and businesses deserve energy policy rooted in least-cost planning — not political posturing.
“We urge the General Assembly to override this veto and protect ratepayers from unnecessary burdens.”
This story was originally published July 2, 2025 at 4:31 PM.
