A question of ‘regulatory surplus’
For large customers with 100% clean energy commitments, a green tariff is a necessity in North Carolina, where Duke has a monopoly and cities, data centers, and the like can’t buy clean energy directly from solar farms.
In theory, a green tariff allows a company such as Google or Amazon to spur a new supply of clean energy equal to its electric demand, with Duke acting as an administrative go-between. An earlier iteration of Green Source Advantage more or less did just that.
But the accounting got more complicated in 2021, when a bipartisan state law required Duke to cut its carbon pollution by at least 95% by 2050. If the company is legally required to build scores of solar farms anyway, can a large customer legitimately claim its sponsorship of one project makes a difference?
This question of “regulatory surplus” sparked a flurry of arguments and counterarguments before…
