NC must be more competitive with energy costs | Opinion
An opinion piece argues that North Carolina's electricity prices are not competitive with neighboring states, ranking 28th lowest nationally. The author refutes the idea that data centers are a significant driver of these costs and advocates for policy changes to lower energy expenses. Recommendations include modifying clean-energy goals and prioritizing reliable baseload power generation.
An opinion piece published in the Wilmington Star-News addresses North Carolina's energy competitiveness, highlighting that the state's electricity prices rank 28th lowest nationally, higher than several neighboring states like Virginia, South Carolina, Tennessee, and Georgia, according to an American Legislative Exchange Council (ALEC) report. While gasoline prices are more competitive, the author, John Hood, a board member of the John Locke Foundation, expresses concern over electricity costs.
Hood attributes higher electricity prices partly to North Carolina’s renewable-portfolio standard, arguing it obligates consumers to pay more compared to states with more reasonable or no clean energy targets. He also addresses a politically popular, but in his view, unsubstantiated explanation that demand from new data centers is driving up electricity prices. Citing a study by Thomas Pyle and Daniel Simmons of the Institute for Energy Research, Hood states there's "no statistically significant correlation" between data center concentration and higher or faster-increasing electricity rates, advising against blocking their construction given their economic benefits.
The article refers to a past action where the General Assembly overrode Governor Josh Stein’s veto last year to modify clean-energy goals, potentially saving households and businesses billions. John Locke Foundation colleague Jon Sanders recommends further actions, including converting carbon goals from mandatory to aspirational and ensuring that any retirement of baseload power generation is replaced with an equal or greater amount of new baseload generation, such as nuclear or natural-gas plants. Sanders also proposes an "Only Pay for What You Get" Act to incentivize reliable generation, emphasizing electricity's role as a basic human need and a critical factor in economic development.