Substantively identical to S 720, filed 3/25/25.
Adds terms advertising, Commission (NC Utilities Commission), lobbying, political influence activities, public official, public utility, rate base, regulatory matters, and test-year method to GS 62-133.8. Makes technical changes. Expands the fees that must be just and reasonable under GS 62-131 to include tolls, charges, and schedules made by public utilities. Specifies that those fees will only be deemed reasonable if all of the three listed criteria are met, including (1) the utility demonstrates that the aggregate rates provide revenues that are no greater than the actual costs incurred in serving NC customers, as described; (2) the utility demonstrates that no part of its rates, tolls, or charges include recovery of the 13 described prohibited costs; and (3) rates must equitably classify customer groups and ensure fairness across all categories, including residential, commercial, and industrial customers. Authorizes the Commission to apply a test-year method of estimating revenue needs and to approve special rates or contracts for individual customers or customer classes if it determines that such measures are in the public interest, do not unreasonably burden other customers, and align with State emissions reductions goals.
Enacts GS 62-131A, preventing public utilities from attempting to recover in rates any of the listed prohibited costs in GS 62-131. Requires regulated public utilities to submit an annual report to the Commission on the four specified matters, including a written, itemized description of any expenses associated with prohibited activities. Requires the Commission to review those reports for compliance with the act. Requires a public utility to clearly and conspicuously disclose in all its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporation's shareholders or ratepayers and publish its report to the Commission on its website. Requires the Commission to: (1) impose penalties on public utilities that recover prohibited costs through rates, equal to the amount improperly recovered and refund them to the ratepayers; and (2) assess civil penalties for the described violations that is not less than $50,000 or more than $150,000 per violation. Describes how these settlements and penalty funds are to be used. Enacts GS 62-131B authorizing the Commission to adopt alternative regulatory mechanisms, including performance-based rates or special customer rates, provided that such measures accomplish all of the following: (1) protect the public interest; (2) ensure equitable treatment across customer classes; and (3) do not compromise the reliability of electric service. Before approving any alternative regulatory plan, requires the Commission to ensure that the plan will not increase costs for other customers beyond reasonable limits or conflict with State energy goals, including renewable energy deployment. Requires the Commission to initiate rulemaking to amend its rules by November 1, 2025, to implement the act. Specifies that the rules cannot require public utilities to file more than one annual report related to advertising and political activities, except as required under GS 62-133.6. 
Contains a severability clause.

Statutes affected:
Filed: 62-133.8, 62-131
Edition 1: 62-133.8, 62-131