Clean Energy Groups Challenge Utility Commission Cancellation of N.C. Solar Development

CHAPEL HILL, N.C. - The Southern Environmental Law Center filed a motion for preliminary injunction today in Wake County Superior Court and challenged the N.C. Utilities Commission's order halting North Carolina's 2026 solar and storage procurement process as unconstitutional.

At a time of escalating energy costs and demand, the 2026 solar procurement would improve affordability and reliability for North Carolinians who buy electricity from Duke Energy if allowed to go forward. The sudden order from the state utility commission violates not just the statutes governing the utilities commission, but also, as a result, the state's constitutional guarantees of due process and access to court review. Without taking evidence, holding a hearing, or even receiving public comments, the order not only halts regulated monopoly Duke Energy from taking further action to procure solar and energy storage, but effectively cancels it because the delay will make the procurement impossible.

"The state utilities commission issued an unconstitutional order that blocks low-cost, reliable, and homegrown solar and storage energy resources for North Carolinians," said Nick Jimenez, a senior attorney at the Southern Environmental Law Center. "Keeping solar and battery energy off the grid will impact our energy costs over the long term, especially with the increasing demand from data centers and other large loads."

The Southern Environmental Law Center filed the motion on behalf of the Southern Alliance for Clean Energy, Vote Solar, Sierra Club, and Environmental Justice Community Action Network.

The complaint filed in court outlines how the order violates due process according to the North Carolina constitution. Unlawful and troubling aspects of the order include:

• It violated the required goal of least-cost long-term planning by the regulated energy monopoly.
• It was not supported by a factual record, in contrast with the large factual record supporting the solar energy procurement target it deferred.
• It is internally contradictory.
• It modified a prior final order without notice and a public hearing.

The order came about a month before the expert witness hearing in the current long-term planning of energy resources proceeding for Duke Energy, the predominant regulated monopoly in the state. The pause on solar and battery procurement undermines Duke's current proposed portfolio of energy resources. It leaves a "hole" in Duke's plan that risks increasing the cost to keep the lights and air conditioning on for North Carolinians. Duke itself has declared that it needs all the resources in its proposed plan, including solar and storage in its 2026 procurement, to reliably meet load growth. It also threatens the utility's progress towards North Carolina's 2050 carbon pollution reduction requirement goal.

The order came less than two weeks after Duke updated its load forecast, showing it expects an additional 2GW of new demand from "large-load customers" like data centers. Facing such energy demand, delaying the procurement of new least-cost solar power and battery energy storage, which improves grid reliability while reducing fuel costs and pollution, does not make sense.

In the lawsuit, the conservation groups requested that the court declare the unlawful order void and order the 2026 procurement of solar energy to go forward as was previously planned. Until the order is rescinded, it remains in effect and impacts reliability and affordability in North Carolina.

The conservation groups statements are below:

"Expensive and volatile fuel costs have only increased the financial burden of gas and coal, that's on top of the price we all pay for damaging our environment. Cancelling a low-cost, clean energy source would be a giant step backwards," said Mikaela Curry, Beyond Coal Campaign manager for Sierra Club. "Solar is cheaper, faster and cleaner and must be built without delay, especially if we are serious about meeting rapidly increasing electricity demand at the lowest cost for North Carolinians."

"Eliminating solar and solar-plus-storage procurement leaves the door wide open for harmful, polluting methane gas plant projects to go forward," said Stacey Washington, clean energy, and equity director for the Southern Alliance for Clean Energy. "With energy costs and bills increasing, it makes no sense to effectively cancel solar development, a low-cost resource option that would keep some money in the pockets of North Carolinians."

"This order blocks solar and storage- proven by Duke's 2023 resource plan to be cost-effective solutions that are necessary to maintaining a reliable grid," said Jake Duncan, southeast senior regulatory director at Vote Solar. "This order threatens to raise bills for communities already burdened by rate increases."

"Energy bills are increasing and harmful polluters are continuing to impact our communities," said Maggie Galka, board chair of EJCAN. "The order from the state utilities commission cuts an affordable, reliable solution while also putting customers at risk of even higher bills."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.