Senate Bill 338 Summary

• Requires the North Carolina Utilities Commission to establish inverted tiered electricity rates for residential, commercial, public, and industrial customers, charging higher per-kilowatt-hour rates for greater electricity usage to encourage conservation and efficiency.

• Exempts low-income renters with annual income below 150% of the federal poverty level from higher tiered rates and sets a goal of achieving 40-60% statewide reduction in electricity consumption from 2019 levels within 10 years.

• Creates an Energy Efficiency Bank to issue low-interest loans and grants to customers for energy efficiency and renewable energy projects, funded by taxes on energy-inefficient products, surplus tiered rate revenues, and peak facility closure savings.

• Imposes a 5% privilege tax on retailers selling energy-inefficient household products (those not qualifying for Energy Star certification) and a 5% excise tax on such products sold outside the state for use in North Carolina.

• Becomes effective January 1, 2020, with utilities required to provide ratepayers one year of advance notice comparing their projected bills under the new tiered rate structure.