Section 1.

Defines large load customer in GS 62-3 (definitions pertaining to public utilities) so that it means a nonresidential customer for retail electric service who has an actual or projected peak demand equal to or greater than 50 megawatts (MW). For a nonresidential customer who operates facilities located at multiple sites, the aggregate demand of the nonresidential customer across multiple sites shall be used for purposes of determining the applicability of any threshold, requirement, or limitation in GS Chapter 62. Defines a very large load customer to mean a large-load customer who has an actual or projected peak demand equal to or greater than 100 MW.  Makes organizational changes. Makes conforming change to GS 62-133.5 to account for organizational changes.

Section 2.

Enacts Article 6C, pertaining to large-load electricity customers (Customers) to GS Chapter 62, as follows. Imposes, in GS 62-127.1, electric service tariffs for Customers. Requires each public utility to apply to the Utilities Commission (UC) for approval of tariffs for the provision of electric service to Customers. Authorizes the UC to approve a tiered tariff schedule that includes different rates, terms, and conditions for different classes for Customers. Instructs the UC to require that an electric public utility incorporate the eight enumerated terms and conditions to any tariff applicable to Customers. Allows the UC to require that an electric public utility limit which very large-load customers can receive electric service under a tariff to those very large-load customers who either (1) procure dedicated or incremental energy resources under the program established in new GS 62-127.2 or (2) participate in a UC-approved mechanism to mitigate system cost impacts. Limits the UC’s authority to approve tariffs for Customers only if it finds that the tariff is just and reasonable and designed to ensure the five listed conditions, including that the proposed rates will not result in residential or small commercial customers having to cross-subsidize Customers.

Adds new GS 62-127.2, pertaining to dedicated or incremental energy supply for Customers, as follows. Requires each electric public utility to file an application requesting approval of a program to allow Customers to select clean energy facilities from which the electric public utility will procure energy and capacity on behalf of the Customer. Provides for terms and conditions. Limits each contracted amount of capacity to no more than 125% of the maximum annual peak demand of the Customer’s facilities. Requires that in addition to the Customer’s normal retail bill, the cost of any clean energy resources and capacity produced by the electric public utility for the Customer to be paid by the Customer. Requires the UC to ensure that all other ratepayers are held neutral, neither advantaged nor disadvantaged, from the impact of the clean energy resources procured on behalf of the Customer. Requires, in new GS 62-127.3, the UC to adopt rules to implement the article, as described.

Directs the tariff application required to be filed with the UC to be filed by the electric public utility no later than 180 days after the section becomes law. Effective January 1, 2028, prevents an electric public utility from providing electric service to a Customer except under the terms of a tariff approved by the UC. The application required to be filed with the UC pursuant to GS 62-127.2, as enacted by subsection (a) of this section, must be filed by the electric public utility no later than 180 days after the section becomes law.

Section 3.

Directs the UC to evaluate and modify as necessary existing standby service charges, including any eligibility limits based on maximum electricity demands, for the purpose of Customers to self-develop dedicated or incremental generation resources in order to meet their electricity needs through self-supply.

Section 4.

Adds new GS 62-157.1, creating Grid Modernization Funds (Fund[s]), as follows. Contains findings pertaining to the investment in increased electric generation and transmission infrastructure. Requires the UC, after a hearing, to order an electric public utility to create a Fund for the purpose of reducing the system-wide costs incurred as a result of serving the growing electricity demands of Customers, to be supervised and administered by the UC. Allows electric public utilities to apply Fund funds to grid modernization projects that are designed to reduce low-income energy burdens and to encourage peak load reduction, energy efficiency, demand response measures, and distributed energy resources, including virtual power plants. Directs the UC to ensure that all such projects are consistent with the statute and GS 62-110.9 (requirements for reductions in CO2 emissions from electric public utilities). Instructs the UC to require that an electric public utility assess a surcharge on the purchases of electric power by Customers to fund these projects. Provides for monthly surcharges set by the UC, assessed as described, after notice and an opportunity for interested parties to be heard. Authorizes the UC to conduct a hearing to review an electric public utility’s implementation of grid modernization projects and the surcharge on electricity purchased by Customers. Allows the UC, after notice and an opportunity for other parties to be heard, to approve a revision to the surcharge or make other appropriate adjustments to the administration of the grid modernization projects fund. Requires an electric public utility to submit an annual report to the UC and State Energy Office, as described.

Section 5.

Adds new GS 62-108, requiring the UC to establish a current grid modernization plan (Plan) to maintain and improve the adequacy, reliability, and resiliency of the electric grid for the benefit of the people of North Carolina. Requires the UC to consider the Plan when acting upon any petition by an applicant for a certificate to construct a new transmission line. Provides for public hearings on the Plan and requires the UC to consult with electric power suppliers, the Public Staff and other interested parties in developing the Plan. Sets out annual reporting requirements. Makes conforming changes to GS 62-101 and GS 62-105 (pertaining to transmission lines).

Section 6.

Amends GS 62-110.1 (certificate for construction of a generating facility) to require the UC to mandate that an applicant for construction of an electric generating facility for new growth anticipated by Customers (as described) demonstrate the reasonableness of such future growth projections by distinguishing between confirmed and speculative sources of new electricity demand and to file any agreements between the applicant and the Customer. Prevents the UC from granting such a certificate unless the applicant demonstrates that its future demand growth projections are reasonable and supported by competent evidence.

Section 7.

Requires, in new GS 62-353, each Customer to file an annual report with the Department of Environmental Quality (DEQ) and the UC containing the seven required pieces of information about its facilities during the prior year. Tasks the UC with compiling statistical information on the aggregate amounts of energy and water consumed by the Customers to publish on its website. Designates the Customer reports themselves as confidential. Makes conforming change to GS 143-355 (DEQ’s powers and duties).

Section 8.

Appropriates $10,000 from the General Fund to the UC for 2026-27 to be used for purposes consistent with the act.

Section 9.

Effective July 1, 2026, except as otherwise provided.