Fossil fuel interests seek to kneecap North Carolinas growing solar industry
by Molly Taft, Laura A. Shepard, and Monika Sharma at Think Progress
https://thinkprogress.org/north-carolina-considers-a-bill-to-give-duke-energy-more-power-over-the-solar-industry-6f5ef28e3743
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North Carolina solar companies owe much of their success to an obscure federal law passed in the wake of the 1973 OPEC oil crisis, when shortages produced lines around the block at gas stations and tipped the U.S. economy into recession. At that time, Americans got about one-sixth of their electrical power from burning petroleum, much of it imported from the Middle East. In a bid for greater energy independence, lawmakers approved The Public Utility Regulatory Policy of 1978, known as PURPA.
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While PURPA is a federal law, state regulators have a lot of wiggle room when it comes to implementation. North Carolina regulators have historically required longer contracts from utilities, making solar an especially attractive option. That’s because while solar poses high upfront costs, it pays for itself over the long term through savings on fuel. With conventional power plants, by contrast, operators continue to pay for coal or gas over the life of the plant.
But just when PURPA is beginning to do what its drafters intended, utilities in North Carolina want to hobble the policy.
Utilities make money in part by owning and operating power plants. But when utilities are required to source power from independently owned solar arrays, their own coal- and gas-fired power plants generate less electricity — and less revenue. Moreover, the need for additional capacity is shrinking. North Carolina’s electricity demand has flattened in recent years.
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