ElectriCities-supported Bill to Provide N.C. Municipal Power Agency Number 1 Investment Flexibility Passes General Assembly

Authority could mean lower wholesale rates for 19 cities in central and western North Carolina

RALEIGH, NORTH CAROLINA [June 23, 2021]—  On Tuesday, the North Carolina General Assembly unanimously passed Senate Bill 323, a bill that would give the 19 cities and towns that comprise N.C. Municipal Power Agency Number 1 (NCMPA1) the authority to invest NCMPA1’s nuclear decommissioning fund through a combined fund managed by North Carolina State Treasurer Dale Folwell. The result could mean a decrease in wholesale electric rates for NCMPA1, which is a co-owner of the Catawba Nuclear Power Station in York County, S.C.

“Today is a great day for the 19 cities and towns that participate in N.C. Municipal Power Agency Number 1,” said Roy Jones, CEO of ElectriCities, the membership organization of municipally owned electric utilities that includes the 19 NCMPA1 municipalities. “I want to thank House Speaker Tim Moore and Senate Leader Phil Berger, along with our bill sponsors, for making this legislation a priority and for their continued support of public power communities.”

As with all nuclear station owners, the Nuclear Regulatory Commission requires the establishment and maintenance of a decommissioning fund to restore a site once a nuclear plant is closed. Similar to a pension fund, funds must be accumulated through member contributions and investment earnings to meet projected costs. The contributions are ultimately paid for by NCMPA1 member ratepayers.

The bill could lead to lower wholesale electric rates, assuming current assumptions of revenue, cost, and projected and actual market returns hold true. It would allow the power agency to invest the decommissioning fund in the existing Ancillary Governmental Participant Investment Program (AGPIP) managed by the state treasurer. The expanded range of investment options available through AGPIP would provide NCMPA1 the opportunity to earn higher returns in the fund.

“We appreciate the support and guidance of Treasurer Folwell during this process,” Jones said. “Mr. Folwell has long been a friend to public power communities in North Carolina, and we thank him for his continued support.”

The 19 member cities of NCMPA1 are Albemarle, Bostic, Cherryville, Cornelius, Drexel, Gastonia, Granite Falls, High Point, Huntersville, Landis, Lexington, Lincolnton, Maiden, Monroe, Morganton, Newton, Pineville, Shelby, and Statesville.

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