NC S266

Eliminates the interim 70% carbon reduction target by 2030 for large electric utilities, retaining only the 2050 carbon neutrality goal and extending the Carbon Plan deadline from December 31, 2022 to December 31, 2026

Allows utilities to recover financing costs on baseload generating facility construction through rate increases outside normal rate cases, with mandatory ongoing annual reviews of construction costs for prudence; authorization for natural gas facilities sunsets December 31, 2033

Expands fuel cost recovery to include all capacity and transmission charges from power purchases, emissions allowances, and renewable energy procurement costs, with annual increases capped at 2.5% of retail revenues and quarterly reporting requirements when over/under-recovery exceeds 10%

Modifies performance-based regulation by allowing combustion turbine generators in multi-year rate plans subject to the 4% annual cap, extending rate case suspension period from 300 to 330 days, and adding quarterly reporting on capital project status

Codifies securitization financing for coal plant retirements, allowing utilities to issue bonds to recover 100% of remaining net book value of subcritical coal-fired generating facilities plus associated costs, with charges passed to all retail customers