Contains whereas clauses.

Amends GS 62-133 by adding new subsection (g) requiring rates for electric public utilities to be established only through a general rate case. Prohibits the Utilities Commission from approving or implementing any form of automatic or preauthorized multiyear rate adjustment mechanism.

Amends GS 62-133.16 by changing the following definitions: (1) earning sharing mechanism: an annual ratemaking mechanism that shares surplus earnings between the electric public utility and customers over a period of time covered by a PBR plan (was, covered by an MYRP); (2) removing the multiyear rate plan (MYRP) definition; (3) performance-based regulation (PBR): alternative rate-making approach that includes decoupling, an earning sharing mechanism, and one or more performance incentive mechanisms (was, decoupling, one or more performance incentive mechanisms, and an MYRP, including an earnings sharing mechanism or an alternative regulatory mechanism); and (4) rate year: the year for which base rates are effective (removing an MYRP reference in the definition).

Further amends GS 62-133.16 by  removing reference to a MYRP; making small, technical changes; removing several additional requirements for a PBR application with an MYRP and shifting one of those to be a requirement under PBR, which is that the Commission must establish a rider to refund amounts related to the earnings sharing mechanism, and to refund or collect amounts related to PIM rewards or penalties, and decoupling adjustments in a proceeding authorizing a PBR plan; eliminating a requirement related to changes in revenue requirements for the second and third rate years allocation for a MYRP; eliminating an exclusion related to first year of MYRP from the limitations on PIM penalties/rewards; revising the plan period for an approved PBR application to 12 months (was, 36 months).

Also, adds GS 62-133.16(k) clarifying that nothing in GS 62-133.16 should be construed to authorize multiyear rate plans or automatic rate adjustments outside of a general rate proceeding.

Makes conforming changes to GS 62-133.16 to delete MYRP and substitute it with PBR.

Requires the Utilities Commission (Commission) to study the effectiveness of performance-based rate making authorized by SL 2021-165. Provides five required components of the study. Requires the Commission to report its findings and recommendations to the Joint Legislative Energy Policy Commission by March 1, 2027.

Appropriates $10,000 for 2026-27 from the General Fund to the Utilities Commission to be used for purposes consistent with this act, effective July 1, 2026.