Electricity in North Carolina and South Carolina is provided by vertically integrated utilities that own the generation, transmission, and distribution systems. The utilities operate within distinct service territories under regulation by their respective state public utility commissions. Both states currently have regulated monopoly models for electricity service.

In North Carolina, Duke Energy is the largest utility, supplying a majority of the electricity in the state through its subsidiaries (Duke Energy Carolinas and Duke Energy Progress). Under the regulated monopoly model, utilities are granted service territories, and rates are set by the North Carolina Utilities Commission. There is limited competition, and clean energy adoption is driven by state mandates like the Renewable Energy and Energy Efficiency Portfolio Standard.

South Carolina’s electricity market is dominated by Duke Energy, Dominion Energy, and Santee Cooper (a state-owned utility). The South Carolina Public Service Commission oversees rates and service standards. As in North Carolina, clean energy and electricity market competition are relatively limited.

 

Benefits of Expanded Electricity Market Options

Increased electricity market expansion in the Carolinas would:

1. Enable increased market competition that would provide cost savings to customers,

2. Open a path to using technology to automatically dispatch least-cost resources to the grid,

3. Enhance grid reliability by tapping into electricity resources from a larger regional footprint,

4. Create system efficiencies and transparency

5. Foster economic development opportunities and job creation, as well as energy projects that would provide additional property tax base and lower emissions