North Carolina H1168 limits electric utilities' ability to recover historical fuel costs from customers.

North Carolina H1168 modifies the state's utility regulations to limit electric public utilities' ability to recover historical fuel costs from customers. The bill applies to rate-making mechanisms filed after April 2026. It requires the Utilities Commission to evaluate whether fuel and fuel-related costs were reasonable and prudently incurred, incorporating experienced over-recovery or under-recovery of costs during a test period. The bill also mandates the use of deferral accounting and appropriates $10,000 for the Utilities Commission in the 2026-2027 fiscal year.

North Carolina H1168 limits electric utilities' ability to recover historical fuel costs from customers.

North Carolina H1168 modifies the state's utility regulations to limit electric public utilities' ability to recover historical fuel costs from customers. The bill applies to rate-making mechanisms filed after April 2026. It requires the Utilities Commission to evaluate whether fuel and fuel-related costs were reasonable and prudently incurred, incorporating experienced over-recovery or under-recovery of costs during a test period. The bill also mandates the use of deferral accounting and appropriates $10,000 for the Utilities Commission in the 2026-2027 fiscal year.