State Competitiveness: North Carolina

North Carolina policy requires investor-owned utilities to offer net metering with no aggregated capacity limit for customer-owned systems, and a 1% utility peak demand for leased systems.

North Carolina has at least one approved utility green tariff program. Among the state’s five largest utilities by commercial and industrial (C&I) electricity sales, those offering green tariffs account for about 92% of total C&I sales within this top-five group, indicating strong access for large customers.

North Carolina permits municipal ownership of utilities statewide, subject to certain requirements.

North Carolina has a state consumer advocate office that represents ratepayers.

North Carolina has statewide interconnection standards for investor-owned utilities, with no maximum system size for the rules.

North Carolina does not allow PPAs, but allows solar leases.

North Carolina does not have an overall formal requirement for competitive solicitations, but does have a requirement for limited competitive procurement for renewables.

North Carolina does not permit residential electricity customers retail provider choice.

North Carolina does not permit commercial electricity customers retail provider choice.

North Carolina’s electric utility sector, including distribution utilities, is very highly concentrated. The state has a customer concentration (HHI) score of 2,195, which exceeds the 1,800 threshold that signals a highly concentrated market. This indicates that a small number of utilities serve most customers in the state, suggesting limited competition.

Electricity generation in North Carolina is provided by a small number of power producers. The state has a generation concentration (HHI) score of 2,387, which exceeds the 1,800 threshold that signals a highly concentrated market, which indicates that electricity production is controlled by a small number of entities, suggesting limited competition.

North Carolina does not have a state policy allowing for CCA.

North Carolina partially participates in one wholesale market, PJM, covering about 1% of the state’s electricity customers. Additional parts of the state participate in bilateral trading through the Southeast Energy Exchange Market (SEEM).

North Carolina partially participates in one wholesale market (PJM), with non-voting participation available in PJM (about 1% of the state’s customers), a limited level of civil society participation opportunity overall.

North Carolina partially participates in one wholesale market (PJM), with advisory state authority in PJM (about 1% of the state’s customers), a limited level of wholesale market state authority.