Sid Shapiro and Ajulo Othow: Clean, affordable electricity for all in NC

Sid Shapiro and Ajulo Othow - Dec 18, 2022

In a recent article and editorial (“Walmart does the right thing, Dec. 7) , the News & Record reported that Walmart had joined environmental and climate advocates in opposition to Duke Energy’s proposed carbon reduction plan which is now under review by the North Carolina Energy Commission. In the clash of evidence and arguments between Walmart, environmental and climate advocates, and Duke Energy, the fate of low-wealth ratepayers has been almost entirely lost.

As important as it is to adopt a plan that relies on renewable sources of energy, we cannot forget that this process affects people — people who need reliable access to affordable electricity as we shift to a clean energy future. Otherwise, even more of us won’t be able to power our lives.

About one in six North Carolinians couldn’t pay at least one monthly energy bill last year. And due to systemic inequity and discrimination, those of us who struggle are more likely to be low-wealth and of color.

A subsidiary of Duke Energy recently asked state energy officials to increase electrical rates in Raleigh, Asheville and other areas by a whopping 16% by 2025 — a plan that follows sharp increases in other parts of the state. That’s about $300 more per year for the typical residential customer on top of already sky-high bills for electricity and other basic needs.

Duke Energy notes that some customers “might” qualify for lower rates and proposed to help make homes more energy-efficient as a way to reduce costs. But the devil is always in the details, and the impact of such an offer — if it comes to pass — remains to be seen.

For its part, the N.C. Energy Commission needs to do more to hear from all types of “ratepayers,” including by reaching out to underserved communities (few of whom can afford to skip out on work to attend a hearing on state energy policy).

The commission should also adopt the ideas in a petition filed by N.C. Interfaith Power and Light, an affiliate of the North Carolina Council of Churches, which supports consumer-owned generation to help low-wealth North Carolinians generate their own electricity, pay bills and more, while also reducing carbon emissions.

With customer-owned generation of renewable energy, a customer typically receives a credit from the utility company for any excess electricity generated and sold. In the typical scenario, a residential customer’s solar rooftop system generates more electricity than is needed during the day, when sunlight is abundant. This extra electricity then flows back onto the utility system’s grid and the customer will receive a credit against the electricity consumed in the evening. In this way, consumer-owned generation lowers energy bills, spurs statewide economic development and creates more jobs in manufacturing, installation, construction and maintenance.

For its part, the N.C. Energy Commission needs to do more to hear from all types of “ratepayers,” including by reaching out to underserved communities (few of whom can afford to skip out on work to attend a hearing on state energy policy).

The commission should also adopt the ideas in a petition filed by N.C. Interfaith Power and Light, an affiliate of the North Carolina Council of Churches, which supports consumer-owned generation to help low-wealth North Carolinians generate their own electricity, pay bills and more, while also reducing carbon emissions.

With customer-owned generation of renewable energy, a customer typically receives a credit from the utility company for any excess electricity generated and sold. In the typical scenario, a residential customer’s solar rooftop system generates more electricity than is needed during the day, when sunlight is abundant. This extra electricity then flows back onto the utility system’s grid and the customer will receive a credit against the electricity consumed in the evening. In this way, consumer-owned generation lowers energy bills, spurs statewide economic development and creates more jobs in manufacturing, installation, construction and maintenance.

Sid Shapiro holds the Fletcher Chair in Administrative Law at the Wake Forest University School of Law, and Ajulo Othow is founder and CEO of EnerWealth Solutions in Oxford, N.C. Both serve on the board of directors of the Center for Progressive Reform.