AN ACT to direct electric public utilities to conduct grid utilization planning.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 62‑110.1 is amended by adding two new subsections to read:

(c1)    Each electric public utility shall submit for Commission approval a grid utilization report as part of the biennial integrated resource plan filed in accordance with G.S. 62‑110.1(c). The grid utilization report shall include all of the following:

(1)        An assessment of current electric distribution and transmission system performance as compared with optimal utilization of existing electric grid assets at the substation, feeder, and transmission line level on an annual and seasonal basis.

(2)        An analysis on the potential to increase electric grid utilization through the development of non‑wires alternatives, including energy storage resources, customer‑owned or customer‑financed capacity resources, utility‑owned distributed generation resources, and virtual power plants.

(3)        A projected timeframe for implementing plans to increase electric grid utilization.

(4)        Any other information requested by the Commission to evaluate both the current efficiency and performance of the electric public utility's transmission and distribution system and the utility's proposal for improving electric grid utilization.

(c2)      The Commission shall issue a final order regarding the grid utilization report,  submitted by an electric public utility in accordance with subsection (c1) of this section, either with the biennial integrated resources plan or as a standalone order. The Commission shall include in its final order any targets, timeframes, or other guidance necessary for an electric public utility to improve grid utilization performance.

SECTION 2.  No later than November 1, 2026, each electric public utility shall submit for approval by the Utilities Commission the electric grid utilization metrics to be used in the development of the grid utilization report required by G.S. 62‑110.1(c1), as enacted by Section 1 of this act. The metrics submitted under this section shall include (i) the ratio of distribution and transmission system peak load to total distribution and transmission electric grid capacity, (ii) the ratio of electric load delivered to total potential deliverable electric load over the distribution system, and (iii) the percentage of kilowatt‑hours of electricity lost during the distribution process or by the distribution system.

SECTION 3.  The Utilities Commission shall issue a final order regarding any proposed electric grid utilization metrics within 240 days of those proposed metrics being filed with the Commission in accordance with Section 2 of this act. The final order shall include a determination of how such metrics may inform the Commission's consideration of future utility requests for approval of cost recovery for capital investments.

SECTION 4.  There is appropriated from the General Fund to the Utilities Commission the sum of ten thousand dollars ($10,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used for the purpose of implementing this act.

SECTION 5.  Section 4 of this act becomes effective July 1, 2026. The remainder of this act is effective when it becomes law.