North Carolina House bill seeks to restrict utilities from recouping prior fuel expenses

State Rep. Dante Pittman has introduced legislation in the North Carolina House intended to curb utilities from recovering past fuel costs from ratepayers, the North Carolina State House reported.

Filed as HB 1168 on April 30 in the 2025 regular session, the bill bears the short title: ‘Limit Electric Util. Hist. Fuel Cost Recovery.’

The following is a summary of provisions based on the official bill language, with clarifying interpretations.

Specifically, the bill would change state law to prevent the Utilities Commission from authorizing electric public utilities to recover fuel and related costs accrued before the test period considered in a fuel-cost case, reestablishing limitations on charging customers for historic fuel expenses. Provisions for public hearings, evidence review, and interest on amounts over- or under-recovered remain in place, as do guidelines for deferral accounting and 12-month riders for rate adjustments. For implementation, the measure allocates $10,000 in one-time General Fund resources to the Utilities Commission. The legislation is slated to begin July 1, 2026, and would apply to rate-making mechanisms filed at or after that date.

Of the four lawmakers sponsoring this bill, Robert T. Reives, II led with 50 bills introduced during the 2025 regular session.

North Carolina legislation undergoes a multi-stage path before enactment. A legislator starts by filing a bill, which is then assigned to a committee. Each chamber must read the bill three times. If either chamber makes changes after passage, both must agree to a unified version. When both chambers approve the same text, it goes to the governor, who then has 10 days (or 30 if the legislature is adjourned) to sign, veto, or allow the bill to become law without a signature.

Additional information on current legislation and measures can be found here.

Pittman earned his BA from the University of North Carolina at Chapel Hill in 2018.

A Democrat, Pittman was elected to the North Carolina State House in 2025, representing the 24th House district following Ken Fontenot’s tenure.