Task Force Report Outlines Path for Meeting North Carolina’s Growing Energy Demand

A state task force formed by Gov. Josh Stein has released an interim report offering early recommendations aimed at keeping electricity in North Carolina affordable, reliable and cleaner as demand rises.

The panel, created through an executive order in August 2025, is co-chaired by North Carolina Department of Environmental Quality Secretary Reid Wilson and state Rep. Kyle Hall and includes about 30 industry experts and policymakers. Members spent their first six months reviewing energy demand trends tied to population growth, data centers and advanced manufacturing, meeting in full sessions from September through February along with subcommittee discussions.

Stein said dependable and sustainable power supplies are essential for families and businesses as demand grows, and he described the report as a step toward policies that protect affordability, reliability and sustainability.

The findings highlight projections from Duke Energy showing electricity demand across the utility’s systems could increase between 16% and nearly 60% by 2040. By comparison, statewide demand rose about 7% between 2005 and 2025. The report also notes average residential power bills increased nearly 30% between 2017 and 2024, with most of those increases attributed to fuel costs — particularly fluctuations in natural gas prices.

Wilson said the task force’s work is focused on identifying solutions that balance cost and reliability as energy use climbs. Hall added that members reached consensus on some ideas but not unanimously, reflecting differing viewpoints on how best to respond to rapid growth in electricity consumption.

Among the initial recommendations, the task force calls for exploring new pricing structures so large electricity users such as data centers shoulder more of the costs tied to their power use. The report also suggests examining options allowing major customers to secure their own generation capacity, encouraging flexible power use during peak demand periods, and reviewing how new power sources and users connect to the grid.

Additional proposals include evaluating the fiscal impact of sales tax exemptions granted to data centers, studying technologies to expand transmission capacity, considering incentives to help households and small businesses improve energy efficiency, developing an independent demand-forecasting process, and exploring reporting requirements on energy and water use by data centers.

The interim report marks the beginning of a longer review process. Task force members are expected to refine their analysis over the next year, with more detailed policy recommendations scheduled for release in early 2027.