In May, over 353,000 North Carolina households received notices from their electricity provider that they were at risk of disconnection.
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Sen. DeAndrea Salvador (D-Mecklenburg) said that figure underscores how many families are struggling this summer to cover rising energy costs.
“People are trying to make decisions about groceries, rent, childcare, and all of the other costs that compete for a space in a household budget,” said Salvador.
At a Wednesday press conference, Salvador said as the legislative session begins to wind down, North Carolina lawmakers still have time to address consumer protections and how rising energy costs are passed on to residential customers.
“When people are struggling with costs to keep the lights on, to be comfortable, to be safe, we should be willing to examine every part of the system that is contributing to that burden,” said the Mecklenburg County Democrat.
Sen. Natalie Murdock (D-Durham) said an elderly constituent in her own district living on a fixed income was unable to cover the cost of groceries, diabetes medication and a higher-than-expected energy bill. The woman picked up her prescriptions, went to the food bank, and still fell behind in paying her electric bill.
“When someone’s power gets cut, when it’s over 90 degrees outside, we’re not simply talking about discomfort. We’re talking about a life-threatening situation for people who did nothing wrong except run out of money before the month ran out,” said Murdock.
Murdock and Salvador have introduced Senate Bill 1027, which would prohibit public utilities and electric membership corporations from suspending or disconnecting service to residential retail customers during a period of extreme heat.
Utilities in North Carolina are required to protect customers from power shutoffs when temperatures are freezing. But the same protection does not apply during the summer until temperatures exceed 105 degrees, according to Murdock. However, she said temperatures don’t have to get that high to be dangerous.
“Senate Bill 1027 fixes this. It says, when the National Weather Service declares a heat emergency, your utility cannot be shut off. It is a straightforward bill to fix straightforward problems,” said Murdock.
Sen. Joyce Waddell (D-Mecklenburg) said the affordability situation has become so dire in some of North Carolina’s low-income neighborhoods, residents have run an extension cord between homes to provide power when one neighbor has had their utilities disconnected.
“Seniors on fixed incomes, veterans, and individuals living with chronic illnesses are often the most vulnerable when utility services are disconnected,” said Waddell. “It’s our responsibility to help.”
Another provision in S1027 would require landlords to allow a tenant to install a portable cooling unit or air filtration device.
Waddell said that would help prevent asthma attacks and other health emergencies in the extreme heat.
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Senator Michael Garrett (D-Guilford) said that families have no real negotiating power when the Duke Energy bill arrives.
“If you live where they serve, Duke is the only option you have,” said Garrett. “Every month, the average household pays about $143. And roughly $25 of that is pure profit handed to shareholders.”
Duke Energy maintains rate increases are needed to keep up with North Carolina’s rapid growth, plant modernization and updates to the grid.
However, Duke Energy Carolinas this week reduced its proposed rate hike from 18% to 11.6%.
Garrett says pushback from state Attorney General Jeff Jackson, the Utilities Commission’s Public Staff, advocates and angry customers made a difference.
“That should tell you everything. That number was never carved in stone. It moved because people pushed. Which means it can move again, and it should,” said Garrett.
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Duke Energy says residential customers who are struggling with their bill have a number of assistance options including installment plans, due date extensions and disconnection extensions. The due date extension option is open to those customers not on an installment plan and only available twice per year.
Beyond rising residential bills, Senate Democrats want to create a new rate class for data centers and other large energy users to ensure that residential customers don’t get stuck with the tab for higher demand.
“We’re seeing a lot of investment in new technology, but we can’t see into the future to determine if that technology will stand the test of time,” said Sen. Lisa Grafstein (D-Wake). “Senate Bill 1026 says that if data centers shut down early, they’re still responsible for paying back the cost of infrastructure built for them.”
Republicans have advanced their own bill this session to ensure data centers pay their fair share, but environmentalists say that bill is problematic because it also legally blocks Duke Energy from retiring any major coal plant until state regulators approve a new nuclear facility.
Salvador said any of the bills benefiting North Carolina consumers should still be included in a larger package or a standalone piece of legislation before adjournment. With the hottest part of the summer ahead, she’s hopeful extreme heat and energy costs won’t be a partisan issue.
“When the outdoor temperature is 105, the heat index can be 10 to 20 degrees higher in a home that doesn’t have good insulation,” said Salvador. “[It] can essentially be a hot box, and you have seniors who are literally sweating it out because they are concerned about losing access altogether.”
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