Senate Bill 382 Shifts NC Utilities Commission Control and Limits Attorney General’s Role in Commission Dockets

A new bill passed by North Carolina Republican state lawmakers on November 20 would restrict Governor-elect Josh Stein and other newly elected Democrat officials’ powers. The bill is now in Governor Roy Cooper’s hands to consider whether to sign it, veto it or let it become law without his signature. 

Senate Bill 382, “Disaster Relief-3/Budget/Various Law Changes” (SB382), spells out a wide-ranging overhaul of moving executive branch power away from recently elected Democrats to Republicans. The conference report was previously a six-page bill on dental practice reforms. It was revised into a 132-page conference report that could not be amended by legislators because of procedural rules disallowing amendments on conference reports.  

If SB382 becomes law, it would reduce the authority of several newly elected Democratic executive officials, such as governor, lieutenant governor, attorney general, and state superintendent of public schools; allocate funding to various programs and state agencies; and shift $227 million from the state’s rainy-day fund to the Hurricane Helene recovery fund. However, the money wouldn’t be allocated until a future legislative session.  

The bill passed the House 63-46; three Republicans from Western North Carolina joined all Democrats present in voting “no.” The Senate approved the bill with a vote of 30-19 along party lines.   

There are several energy-related provisions included in SB382:  

• The bill would prevent Governor-elect Josh Stein from appointing a majority of commissioners on the NC Utilities Commission (NCUC) by giving one of the governor’s appointments to the state treasurer. The State Treasurer-elect is Brad Briner, a Republican. The NC General Assembly previously passed legislation that will decrease the NCUC from seven to five commissioners next July. (Commissioners Jeff Hughes, Kim Duffley, and Floyd McKissick’s terms end on June 30, 2025.) SB382 designates two appointments to the governor, one appointment to the state treasurer, and one appointment each to the House Speaker and Senate President Pro Tem. Currently, the governor selects the Chair of the NCUC; however, SB382 would require the Chair to be elected by the five commissioners.

• The bill would also prevent the attorney general from participating in lawsuits, namely those where action by the legislature is being challenged (on grounds of constitutionality) in court, and appealing NCUC-approved rate increases or other orders. The Attorney General-elect is Jeff Jackson, a Democrat.

• The bill would also prevent the Attorney General’s Office from intervening at the NCUC as part of its consumer protection role, similar to the Public Staff. Our understanding is that the Attorney General could still petition to intervene as other parties do, but the Commission would not be obligated to approve the intervention. 

• SB382 would also strip the lieutenant governor of the power to chair several committees on energy issues, specifically through the elimination of the state’s Energy Policy Council, which has been chaired by the lieutenant governor. Democratic Sen. Rachel Hunt will take over the position of lieutenant governor after the Republicans held the office for the last 12 years.

• The bill would also disallow the lieutenant governor from chairing a legislative committee on “energy-crisis management,” a committee that only forms during the declaration of an energy crisis.   

• SB382 would encourage swine waste-to-energy facilities in Tier 1 counties (the most economically distressed counties in the state) by offering a one-time enhanced credit to increase the value of RECs (renewable energy certificates) that the facilities may produce.   

Next steps 

SB382 now awaits action by Gov. Cooper, who is likely to veto the bill. If that happens, a veto override vote could be attempted by legislators in December.