Potential financial losses amounting to billions in investments and employment opportunities for North Carolina due to the energy bill
In a recent development, a new study has shed light on the potential financial and economic implications of Senate Bill 266, a controversial bill aimed at unraveling North Carolina's climate law. The study, conducted by researchers from an unspecified organisation, paints a stark picture of the consequences if the bill were to become law.
The study predicts that the bill could cost the state more than 50,000 jobs annually from 2030 to 2035, with North Carolina seeing over $47.2 billion sacrificed in power-plant construction during this period. From a economic standpoint, the bill could also result in tens of billions of dollars in lost investments.
The research also suggests that the bill could lead to massive increases in fuel costs for consumers. Under a worst-case but plausible scenario for gas prices, customers could pay $23 billion more in fuel costs on their electric bills by midcentury as a result.
The study indicates that the limitation hampering the state's ability to meet current energy needs and undermines North Carolina's competitive edge in attracting energy-intensive industries. If SB 266 becomes law, Duke Energy would have 12 fewer gigawatts of capacity in 2035 to meet peaks in power demand.
Experts suggest that without the necessary capacity, Duke Energy would likely purchase more out-of-state power or rely more heavily on fossil fuels. This could potentially lead to an increase in greenhouse gas emissions and a departure from the state's renewable energy goals.
The study contradicts claims from SB 266 proponents that the bill will save money and promote more power generation. Gov. Josh Stein, a Democrat, vetoed the bill on July 2, citing concerns about the bill's potential impact on the state's economy and environment.
The Senate leader Phil Berger plans to vote on the override of the veto on Tuesday, July 29. The House could attempt an override of Stein's veto the same day. Notably, the new study does not account for the potential consumer savings from building fewer new sources of generation, but the governor is aware of this fact.
The bill, first passed by the Senate in March, aims to override a veto of the measure by Gov. Josh Stein. It repeals the 2030 deadline for utility Duke Energy to curb its climate pollution 70% compared to 2005 levels. The study calculates the economic losses of foregoing those new power plants, including massive amounts of solar and wind, 300 megawatts of new nuclear, and 1,400 megawatts of combined-cycle gas plants.
The new analysis draws on earlier projections from Public Staff, the state-sanctioned customer advocate. More than $1.4 billion in tax revenue would also be left on the table, the study says. The provided search results do not contain information about the organisation that conducted the new research report on the possible financial and economic impacts of Senate Bill 266 in North Carolina.
