North Carolina utilities pass 100% of their fuel costs on to customers. But the industry has changed in recent decades, and utilities now exert more control over when and how they buy fuel — or whether they need it at all.
A recent study from the Rocky Mountain Institute found that fuel‑cost sharing, a system in which utilities absorb some of the volatility in fuel prices, could have saved North Carolina customers nearly $89 million between 2020 and 2024. According to the report, the change would have had little effect on utilities’ bottom lines.
While the potential savings wouldn’t significantly lower monthly bills on their own, supporters say the policy would push utilities to better manage — and ultimately reduce — future fuel costs.
Josh Brooks, a policy strategist with the North Carolina Sustainable Energy Association, said the proposal encourages utilities to think strategically.
“Utilities don’t control gas prices,” Brooks said. “But they do control how much gas they purchase, when they purchase it, and whether they hedge or not.”
Other states, including Idaho, Wisconsin and Missouri, have already adopted fuel‑cost sharing policies aimed at curbing energy costs.
