How the proposed EPA carbon regulation could impact your energy bill

The EPA introduced tighter restrictions on coal and gas-burning power plants, an ambitious effort to curb the U.S. contribution to climate change.

The proposal is designed to essentially eliminate carbon emissions from the energy sector by 2040, driving concerns that costs of compliance could be passed on to consumers.

However, Duke Energy spokesperson Bill Norton says new federal regulations are unlikely to lead to rising rates because North Carolina has already prioritized the clean energy transition.

"We strongly support the Administration’s goal of lowering carbon emissions and have made strong progress toward that shared goal," Norton said.

North Carolina aims to cut carbon emissions in half by 2030 and Duke Energy has already achieved 44% reduction from 2005 levels. The utility is also planning to retire its coal plants by 2035 and its gas-powered plants are equipped to transition to a clean alternative, such as green hydrogen.

This regulation is likely to have a much bigger impact on states that haven’t already paved a path toward carbon neutrality and will have to rely on emerging and expensive carbon capture technology.

Jennifer Diggins with 8 Rivers, a company that develops carbon-free infrastructure, says the proposed regulation along with investment such as the Inflation Reduction Act will spur commercialization in net-zero innovation that hasn't been economically viable in the past.

The power sector represents about a quarter of the nation's greenhouse gas emissions and about a third of North Carolina's climate-warming emissions.

"The key to a workable rule is to align with technology development," Norton said. "We need to ensure that we push ourselves nationally to develop those next-generation technologies as quickly as possible, while ensuring reliability and affordability."