Energy Policy Task Force Addresses Growing Electricity Demand in North Carolina
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North Carolina is one of the top 10 electricity-producing states in the country, however, it consumes four times more energy than it produces. In response to the rapidly growing demand for electricity, North Carolina Governor Josh Stein established the Energy Policy Task Force to strengthen energy infrastructure and affordability across the state. NC Department of Environmental Quality (DEQ) Secretary Reid Wilson and Representative Kyle Hall co-chair the task force, which includes 30 energy experts and bi-partisan policymakers. The NC Clean Energy Technology Center (NCCETC) staffs the task force, along with the NC Office of the Governor, NC DEQ, and the NC Department of Commerce.
The task force is required to submit an annual report to the Governor, the General Assembly, the North Carolina Utilities Commission, the North Carolina Rural Electrification Authority, and the public. The task force released an interim report in February 2026, providing initial findings and recommendations that were developed during the first six months of discussions.
The inaugural Energy Policy Task Force meeting was held in Raleigh on September 30, 2025. Governor Stein provided the charge to the task force, emphasizing the need for reliable, affordable, clean energy to support North Carolina’s path to net zero. He acknowledged that meeting rising electricity demand is a bipartisan matter, in which working with a diverse array of stakeholders would be strategic in achieving the goals of the task force. Following Governor Stein’s remarks, the task force members were sworn in by Judge Rober Rader.
At the September 30 meeting, Dr. Arman Shehabi, Staff Scientist at Lawrence Berkeley National Laboratory (LBNL) gave a presentation on data center load growth. The presentation was followed by Lesley Jantarasami, Vice President for Research and Industry Strategy at the Smart Electric Power Alliance (SEPA). Jantarasami provided information on utility approaches to addressing load growth, and recommended the Database of Emerging Large-Load Tariffs (DELTa) as a resource to help plan for load growth. Todd Olinsky-Paul, Senior Project Director at the Clean Energy States Alliance, addressed state approaches to load growth and gave examples of successful legislation that states have implemented across the country.
After the informative presentations, the task force structure and work plan was discussed. The task force is divided into two subcommittees, Load Growth and Technical Advisory. The Load Growth Subcommittee aims to develop estimates of load growth forecasts under varying economic outlook scenarios; address the implications of load growth and new large loads; identify technological and policy solutions; evaluate strategies for avoiding stranded assets; and identify recommendations for minimizing residential rate increases.
The Technical Advisory Subcommittee aims to advise the Office of the Governor on any commissioned modeling of the state’s electricity system; develop testable hypotheses and questions to inform state energy policy; increase transparency and public understanding of models; and provide quantitative and qualitative assessment results. Task force members were requested to assign a representative from their organization to join each of these subcommittees, or to join the subcommittee themselves.
The meeting concluded after the task force discussed its goals and priorities for possible options to address load growth in North Carolina.
The second task force meeting was held on December 2, 2025, at the North Carolina Museum of Natural Sciences. In this meeting, Indiana Office of Energy Development Chief Policy Officer Luke Wilson gave a presentation on Indiana’s energy landscape including energy prices and load growth, recent actions, and forecast considerations.
Virginia State Corporation Commissioner Kelsey Bagot then presented about the data center landscape in Virginia, giving an overview of the state’s regulatory framework and load growth, recent legislative actions, and lessons learned.
Task force subcommittee co-chairs followed the presentations with updates on their findings to date. The Load Growth Subcommittee co-chairs shared policy research on a variety of strategies that had been proposed or explored by lawmakers in other states, and shared progress on the interim report due to the Governor in February. The Technical Advisory Subcommittee co-chair shared considerations for the task force to recognize when it comes to modeling energy system scenarios, sensitivities, and cost assumptions.
The next task force meeting was held at the Albemarle Building on January 22, 2026. David Gardiner, President & Principal at David Gardiner and Associates, gave a presentation on data center heat reuse and how it can be used as a tool to mitigate load growth. Task force members inquired about how this strategy has been used in other states, including the size of projects, the consistency of the heat recovered, and whether utility energy efficiency programs could be utilized to support a similar program.
An update was then given by the Technical Advisory Subcommittee, where preliminary findings were provided. The subcommittee shared interest in assessing scenarios to inform the cost and operational impacts of large load deployment in North Carolina. They explained that large load growth will require substantial capital investment in utility-scale generation resources, including gas-fired generation. They also noted that the cost impacts of major capital investment will be heavily influenced by federal policy and large industry trends that determine resource-specific costs.
The remainder of the meeting was used to review the draft interim report. Task force members deliberated on the recommendations in the report, pointing out areas that needed to be explored or researched further.
The next two task force meetings were held on February 3 and February 10, 2026. These meetings largely focused on the interim report, in preparation to submit it to the Governor on February 15. All task force members were given a chance to note areas in need of revision and propose changes. On February 10, Secretary Wilson moved for a vote to approve the text of the report. Seven members abstained from voting, and all other members present voted to approve it.
Released on February 15, 2026, the interim report includes a summary of the task force’s activities to date, along with nine preliminary recommendations on policies and actions that will contribute to the management of increasing electricity demand.
The task force delivered the following recommendations for consideration or implementation:
- Develop Options for Large Load Tariffs
- Develop Options for “Bring Your Own Capacity” and Alternative Capacity Procurement Methods
- Develop Options to Encourage Load Flexibility
- Explore Reforms to Large Load and Generation Interconnection Processes
- Assess the Dollar and Strategic Value of Existing Sales and Use Tax Exemptions for Data Centers
- Explore Evaluation Process for Advanced Transmission Technologies and Grid-Enhancing Technologies
- Explore Residential and Small Business Incentives for Energy Efficiency Improvements
- Explore Development of a Third-Party Load Forecasting Process
- Explore Energy and Water Usage Reporting for Data Centers
Over the course of the next year, the task force intends to explore these recommendations further and will provide a more detailed report on or before February 15, 2027. The Technical Advisory Subcommittee expects to release a technical modeling report within the next few months.
The meeting following the release of the interim report took place at the NC Museum of Sciences on April 8, 2026, beginning with an overview of the task force workplan for 2026-2027. The Load Growth Subcommittee plans to hold three educational sessions on large load tariffs, bring your own capacity (BYOC), and load flexibility. The Technical Advisory Subcommittee intends to hold four educational sessions on interconnection reform, grid-enhancing and advanced transmission technologies, load forecasting, and energy efficiency.
Representatives from Microsoft then presented about the company’s data centers, including their “Community-First AI Infrastructure Plan.” They also discussed Microsoft’s engagement in regard to large load tariff designs around the country, and how reliable grid development can be supported through long-term contracts and financial commitments. Task force members inquired about Microsoft’s local transparency policies, and for more details about water use and contaminants.
Governor Stein then arrived to give remarks about the interim report released by the task force in February. The NC Department of Commerce followed up his remarks with a presentation on sales and use tax exemptions received by data centers in the state. Following a discussion of the analysis, task force members split into breakout groups to discuss the three topics established by the Load Growth Subcommittee: large load tariffs, BYOC, and load flexibility. After the load growth discussion, breakout groups then focused on the topics recommended by the Technical Advisory Subcommittee: interconnection reform, grid-enhancing and advanced transmission technologies, and load forecasting. A third round of discussions were held on affordability and energy efficiency and distributed energy resources (DERs).
The task force will continue to meet to determine strategies to strengthen North Carolina’s electricity infrastructure and energy affordability. The NC Clean Energy Technology Center looks forward to continuing to support the task force in its efforts to keep utility costs affordable for North Carolinians, meet economic development and environmental protection goals, and manage increasing energy demand.