#ncpol: First big scandal of NCGOP era in Raleigh is re: insurance AND NOT SOLAR. (Who’da thunk it?)

 

If you told me early on about perp-walking politicos around Charlotte and Raleigh, I sure would have believed it to have been tied to shady solar deals on Jones Street.  But no, it turned out to be what looks like a petty ham-handed effort to get a bureaucrat at the state Department of Insurance fired via bribery and intimidation.  

 

I’ve long been a fan of state senator Dan Bishop.  I had hoped he’d take on Josh Stein or Thom Tillis.  But he’s filed for Congress in the special election in the Ninth District.     He’s pretty regularly been one of the more solid conservatives in the state senate.  But unfortunately,  we found that even he fell prey to the cooing and wooing of the solar goons.

 

 

One of  the best things about the Pat McCrory administration, former environmental secretary Don Van der Vaart, has authored an interesting piece on how the Raleigh establishment’s love affair with solar subsidies and mandates is killing the fortunes and livelihoods of working, everyday North Carolinians:

 

Roughly $1.25 billion. That’s how much Duke Energy customers will be overpaying for electricity over the next 10 to 15 years. We can thank North Carolina law — and Gov. Roy Cooper — for the higher bills that come with long-term solar energy contracts Duke has been forced to accept. That’s not only bad for Duke’s customers, it puts the utility at odds with a different state law that obligates Duke to seek the lowest-cost electricity and to maintain the reliability of the electric grid.

 

For nearly two years, Duke officials have warned about the root cause of the higher bills, which stems from North Carolina’s interpretation of a federal law known as PURPA. The law requires the utility to buy solar power at old, high rates even though costs for other types of energy have dropped significantly since the old rates were negotiated. States have considerable discretion with PURPA, and because of North Carolina’s very favorable interpretation, our state now has more PURPA contracts for solar power than any other state in the nation.

 

In April 2017, Kendal C. Bowman, Vice President Regulatory Affairs and Policy for North Carolina for Duke Energy Carolinas and Duke Energy Progress, characterized solar power growth under North Carolina’s generous interpretation of PURPA as “uncoordinated and unrestrained.” She told utility regulators they should be concerned about two adverse impacts.

 

First, Bowman noted that under PURPA contracts, Duke was forced to buy any and all power generated by the qualified plants, whether the utility needed it or not, and at prices significantly higher than the cost at which Duke could generate electricity. Duke customers, she testified, are already on the hook for $1 billion in overpayment for electricity to be purchased over the remaining term of existing contracts.

 

Second, Bowman explained that the more solar power is added to the grid, the more difficult it becomes to maintain stability. The reason is simple. Solar power is intermittent. When the sun shines, power is generated, and Duke is required to buy it and quickly see-saw from one source to another.

 

The good news is that the General Assembly listened to Duke’s concerns. The result was House Bill 589, passed in July 2017. While the legislation included concessions to both the utility and the solar lobby, it amended North Carolina’s interpretation of PURPA. That change would have reduced significantly the number of solar contracts and the price paid by Duke as of Sept. 1, 2017. That change would have translated into an estimated $850 million in savings on the cost of future solar power.

The bad news is that WBTV reported that, months later, Cooper pressured Duke to sign a settlement with the solar industry that gutted much of the customer relief included in H.B.589. The pressure was applied after the solar industry claimed Duke’s interpretation of the new law was preventing many projects from being grandfathered under the old over-priced rate. In other words, the industry wanted as many projects as possible to be exempt from the new law, even though the law would reduce the bills for Duke customers.

 

As WBTV reported, records show the CEO of North Carolina’s largest solar company, Markus Wilhelm, reached out to Cooper, asking him to call “Duke leadership” to bring about a settlement of the dispute. According to WBTV, Cooper then used a critical permit that Duke needed for the Atlantic Coast Pipeline as leverage in the deal between Duke and the solar companies.

 

Under the Cooper-brokered solar settlement, Duke must allow about 240 more solar plants to interconnect and receive the older, higher rates. Based on overpayments in the past, these 240 projects could cost customers more than $250 million in additional bills. Translation: higher mandated profit margins for the solar industry equal higher electricity rates for us. […]

 

He’s right about the problems brought on by Big Solar.  But Cooper didn’t do this all by himself.  There are a lot of elected and unelected folks in the legislative building taking money from and carrying water FOR the folks who forced these rate hikes and extra costs on Duke and the rest of us.

 

 

 

4 thoughts on “#ncpol: First big scandal of NCGOP era in Raleigh is re: insurance AND NOT SOLAR. (Who’da thunk it?)

  1. I just don’t understand how any self respecting individual could allow themselves to be part of the solar industry such as it is. Not being self sustaining equates to an affront on free market principles. The left set this scam up and too many on the right have found favor with nurturing the left’s intent.
    Browny Douglas

  2. One consistent opponent of the Solar Goons has been Rep. Michael Speciale. He was part of the group of conservative legislators who held the state budget hostage to force the Speaker to end the old state taxpayer subsidy program for Big Solar.

    The other 3rd district candidate who has been very active against the Solar Goons is Francis deLuca, who exposed their excesses when he ran Civitas.

  3. John,
    I too am a candidate in the 3rd District. I have consistently fought unrestricted solar development since being elected 5 years ago as County Commissioner. I championed stricter regulation, protecting the property rights of neighbors, and strove to ensure decommissioning was funded through performance bonds. I have been consulted throughout NE NC by other local governments, as well as in Virginia and Pennsylvania. Furthermore, I strongly supported the removal of state subsidies, as well as the 80% discount on property tax.

    1. Paul, we need more local government leaders like you to protect our people from this greedy special interest. Unfortunately, we have too many Vichy Republicans in Raleigh, who vote with Big Solar and Big Wind, and that includes two of your primary opponents, Rep. Phil Sheppard and Rep. Greg Murphy.

      If the Congress bid does not pan out, have you thought of running for the legislature?

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