The New Bern Board of Aldermen talked about the possibility of changing wholesale power supply providers, servicing customers in Hunters Ridge and Perrytown areas, and data centers during their retreat on June 16, 2026, at the Stanley A. White Recreation Center in New Bern, NC.
Electric utility working group
The board of aldermen appointed Best, Trey Ferguson and Dana Outlaw to a working group to review the electric utility in March. The group talked about the possibility of selling the city’s electric system to Duke Energy Progress, but a representative from DEP told them they weren’t interested. DEP was interested in transferring (about 256) Hunters Ridge customers to the city electric system. They talked about their current wholesale power supply contract with the North Carolina Eastern Municipal Power Agency, and it was said that the city would have to let the NCEMPA know by 2027 if they wanted to exit from the NCEMPA contract in 2035. They also talked about a potential stand-alone power supply contract with Duke Progress Energy and are awaiting the terms of the agreement. “GDS, a regional service provider, can assist with managing and administer a stand-alone power supply agreement. However, they will not propose any service offerings until we are under contract with DEP,” according to the Electric Working Group Update.
A little history: The city was one of several municipalities, co-operatives and other entities who worked on a plan — Electric Power in Carolina — to deliver electricity across the state in 1970. Eventually, several municipalities who owned electric utilities in the western part of the state formed the North Carolina Municipal Power Agency 1 and municipalities in the eastern part formed the North Carolina Municipal Power Agency 3 (now known as North Carolina Eastern Municipal Power Agency) and agreed to buy partial ownership interest in investor-owned utilities like Carolina Power & Light Co. and Duke Energy in the 1970s.
The oil crisis of 1973 shocked the global energy market, Organization of the Petroleum Exporting Countries cut oil exports to the U.S. and other countries and ultimately imposed an oil embargo causing an energy crisis in the U.S. and other countries, as reported here.
The U.S. faced another oil crisis in 1979. A nuclear accident also happened that year at Three Mile Island Nuclear Power Plant in Pennsylvania, which changed public perception changed toward nuclear power and reshaped industry operations, safety regulations and policies.
NCEMPA bought ownership interest in CP & L’s (now known as Duke Energy Progress) Brunswick Nuclear Plant Units 1 and 2 in Brunswick County, Mayo Plant in Person County, Roxboro Steam Plant Unit 4 in Person County, and four units at Shearon Harris Nuclear Plant in Wake County in 1981. In return the power agencies received wholesale power and for a return on investment, as reported here. The total cost of the Shearon Harris Nuclear Plant was estimated at $4.4 billion, but the figure will be revised upward to account for delays, as reported here. Four nuclear generating units were planned at Shearon Harris, but only one was built.
The NCMPA 1 bought ownership interest in one generating unit at Duke Energy (Carolinas) Catawba Nuclear Station, located in York County, S.C.
Electricities of North Carolina provide administrative, management, legal, lobbying, and other services to NCEMPA and NCMPA 1 as well as managing their wholesale power supply and other contracts.
In 2000, Carolina Power & Light Co. merged with Florida Progress Corp. and rebranded as Progress Energy in 2003. CP&L, a subsidiary of Progress Energy, was renamed Progress Energy Carolinas. Progress Energy and Duke Energy merged, which expanded Duke Energy’s services to Florida in July 2012. This formed the largest electric investor-owned utility in the U.S.
NCEMPA members — Ayden, Belhaven, Benson, Clayton, Edenton, Elizabeth City, Farmville, Fremont, Greenville Utilities Commission, Hamilton, Hertford, Hobgood, Hookerton, Kinston, La Grange, Laurinburg, Louisburg, Lumberton, New Bern, Pikeville, Red Springs, Robersonville, Rocky Mount, Scotland Neck, Selma, Smithfield, Southport, Tarboro, Wake Forest, Washington, and Wilson – agreed to the sale of their ownership interest in the power plants to Duke Energy Progress for $1.2 billion in July 2015. The total principal and interest reportedly peaked at over $6 billion. New Bern owned $33 million, which was refinanced with municipal revenue bonds and repaid by NCEMPA member customers until July 2025. As part of the agreement, DEP and NCEMPA entered into a 30-year agreement to continue serving the NCEMPA customers that were getting power from the plants, according to agency documents. The power agency’s new rate schedule “resulted in an average wholesale power cost reduction of approximately 17 percent.” Riders were also adjusted, as noted here.
Major capital projects
At the June 16 BOA retreat, Dana Outlaw, one of New Bern’s appointed representatives for NCEMPA, told the aldermen they have to decide whether to stay with NCEMPA, which “would be a safe harbor,” or directly purchase wholesale power through Duke (Energy Progress). He also said they could do what Fayetteville (NC) is doing. “I use the example of the ECCOG (Eastern Carolina Council of Governments) which used to be the Neuse River Council of Governments.” He said it was a nice model for smaller cities who didn’t have staff, but he thought that New Bern figured at some point we didn’t need their resources. He said the aldermen have to make the decision by June 2027.
Trey Ferguson said part of the reason Duke was not interested in purchasing the city’s utility is because they are working on a major capital plan and they are also going through a merger. He said DEP didn’t want to purchase the utility “especially one that has depreciated to the point of ours.”
The city’s contract with NCEMPA expires in 2043, but there are early out provisions for 2035, according to the city.
Ferguson said NCEMPA’s contract would cost $1.1 million. He also said they were waiting for DEP’s proposed term sheet for a power supply contract.
He said the city’s utility infrastructure needs maintenance and upgrades, which is due to a lot of deferred maintenance. “Over the last decade we have not put much into the utility for whatever reason and they have also taken money out of the rate stabilization fund that was supposed to help subsidize when DEP goes up on their contract price,” he said.
He said the working group agreed on the capital improvement plan for the enterprise funds (electric, water, wastewater, and solid waste). He said they need the board of aldermen to give them direction.
He also talked about the potential to serve customers in Hunters Ridge. He said they have a major capital improvement plan, and the new line needs to go into the Croatan (National Forest)” and he understands that’s where the city’s transmission line is, they could service them and as a customer base, there’s some benefit as to infill. He said they thought there is “economic viability with us providing services to Hunters Ridge” if that’s what the customers want and asked the BOA if they were interested. He said DEP would provide outreach to the Hunters Ridge customer base if that’s what the board wants.
Outlaw talked about the NCEMPA deal in 1981 and the nuclear accidents at Three-Mile Island and Chernobyl and said he felt they would be more likely to be locked into a situation with NCEMPA if a catastrophic event affecting oil were to happen than they would be one on one with Duke. He said over 18 years with government, he had been laxed in going to the NCEMPA meetings with the director of the Department of Public Utilities and the city manager and felt “the staff has gone and done the dirty work for the city of New Bern…”
He questioned who would want to put that amount of time into it and getting to know the ins and outs of NCEMPA if they aren’t really getting a salary. He told the board that if they wanted to continue with the municipal power agency, they need to support the city manager and director of DPU “because they don’t want to make political ideology comments about your feelings about electricity in New Bern.” He said it was the elected officials’ job to do that. “We’ve done nothing,” Alderman Outlaw said. He thought they could possibly correct the wrongs of elected leadership and make a difference if they stay in it.
New territory?
Department of Public Utilities Director Charles “Charlie” Bauschard said there are 256 homes in the Hunters Ridge area and he proposed if they take over Duke’s distribution line from Catfish Lake Road through a little bit of the (Croatan National) Forest into Hunters Ridge and the Perrytown area and DEP turns over the assets, easements, and rights-of-way, the city could convert those homes to New Bern’s metering system which could be done in about a day. He said it would cost about $100,000 worth of rewiring and making ready to connect to the pole line and taking the system over. He said annual revenues based on their current rates and average kilowatt hour which is about 1,000 kWh it would be about $515,000 a year in annual revenue. The power supply expenses would be about $325,000 a year with an annual net revenue of $190,000. He said it was a real deal compared to the city’s line extension methodology of the cost of things.
Line extension policy for developers
The director said the developer only gives the city a contribution for extending the line and the city pays for the transformer, the wires from the transformer to the house, and the meter are not part of the developer’s contribution. He said, in this case, the city would be getting line extensions to the neighborhood.
Jeffrey Odham said, “We’re getting the headache and the problem that Duke (EP) has with Hunters Ridge right now. So how are we going to fix those problems?”
“I think their primary headache is it’s served all the way through the (Croatan) National Forest all the way from Havelock, and we are going to cut off that exposure and serve it from our system that’s on Brices Creek Road that comes out of the circuit. So, we’re not going to have that exposure that they have to maintain that line through the national forest,” the director said. He suggested that they hold onto the section of right-of-way or easement between County Line Road and Catfish Lake Road because it can serve them in the future as that area builds out which he speculated it’s going to, it gives them another opportunity to serve that development from the backside.
Mayor Odham noted the city attorney wasn’t present and said, “Maybe this is just me, but I don’t really want to have this conversation in open. This is about a contract negotiation with a vendor. This should not be done in the open. I mean, we’re talking about negotiating millions of dollars, and I’m not I’m not at a point where I’m going to say anything else about it. I’m not saying I’m not interested or I am interested, but I just think that we need to discuss this in a closed session.”
Alderman Ferguson said if that’s how he felt it would be appropriate under General Statute if that’s how the board wanted to proceed that they could have further discussion and actual contract negotiation in a closed session at the July meeting.
Alderman Aster asked if it could be discussed in closed session at the July meeting?
Odham said, “Sure.”
The board did not vote.
Duke Energy Progress/Duke Energy Carolinas merger
Dana Outlaw said Duke (Energy Progress) is expanding their grid for AI and all this stuff. He said to Director Bauschard, “I asked NCEMPA through Electricities… what are they doing on behalf of the 32 (NCEMPA) cities to make sure that we come out on top of the merger and I didn’t get much of an answer.”
Bauschard said, “No you did not.”
“You said the most recent concern regarding the merger between Duke Energy Progress/Carolinas was all settled through FERC and had 100% of NCEMPA’s support behind it. When it came to the petition to the North Carolina Public Utilities Commission, they said we didn’t have a say in it. And not only did we not have a say in it, but the Electricities staff would not go and petition on our behalf,” he said.
Editor’s note: Before Duke Energy Progress purchased NCEMPA’s ownership interests in generating assets at the power plants, former Department of Public Utilities Director Rhynne told the Aldermen Blackiston (Ward 1), Taylor (Ward 2) Schaible (Ward 3), Kinsey (Ward 4), White (Ward 5), Odham (Ward 6) and Mayor Odham (of Ward 6) that NCEMPA would be “trading a really bad deal for a ‘less’ bad deal; the current liability will be traded for what is essentially a diluted liability. There is no recourse through the Federal Energy Regulatory Commission once the agreement is signed. This is a contract; FERC and NC Utilities Commission will not regulate the contract. If one party breaches, the recourse is for the other party to initiate a lawsuit. FERC will not step in on a contractual matter,” according to closed session meeting minutes, as reported here.
Power supply contracts
Director Bauschard said he thought smaller NCEMPA members benefit more than the city and thought Electricities was having a “difficult time serving the needs of a medium-sized utility that’s it’s on the verge of being a large-size utility.” He said he didn’t think Electricities had a lot of extra ability than what the city has.
He said if they went with Duke versus staying with NCEMPA, “we’ll get information firsthand and we’ll be able to make decisions on that information firsthand without having a middleman in between us. Duke leads me to believe that the rate will be the same as all their other wholesale customers, including NCEMPA including other co-ops including Fayetteville and the structure of the contract will be the same. There are some exceptions particularly in the form of the amount of generation that we’re allocated. They’ve told me broadly that we can keep the amount of generation that they’ve allocated. Now because I need to know that if we get into year two of this process are we investing? What’s going to happen? They’ve given me verbal commitments that we can keep our generation allocation at 20 megawatts.”
“The NCEMPA Electricities staff negotiated a fixed charge in there for our support. They never told us about that until after we gave us support. I took great exception to that, so I think we were misled for the benefit of the company, and we didn’t have a voice in that. And I think that’s the one primary benefit. If we go directly to Duke, we have a voice,” he said.
Trey Ferguson noted the NCEMPA contract for administration services is $1.1 million and said they were waiting for the term sheet from DEP.
Municipal revenue bonds
The board talked about potentially financing projects for the enterprise funds by issuing municipal revenue bonds (electric, water, wastewater, and solid waste) because it may impact all of them.
The 5-year Electric capital plan is estimated to cost $98,802,000. The amount excludes the annual operating capital which averages over $3.3 million per year, according to a city document.
The West New Bern Water Project is estimated to cost between $8.75 million and $9.25 million. The Sewer Fund Wastewater Treatment Plant Expansion is estimated to cost between $36 million and $38 million.
Editor’s note: In 2018, the director of the Department of Public Utilities recommended that the board invest in a new substation which was estimated at $10 million and new transformers, which were estimated at $1 million each, among other improvements.
The 2017-2022 board of aldermen voted to take the money from the Rate Stabilization Fund to cover increases in power costs. They also postponed any increases in the electric rates until after the 2021 election which was postponed until May 2022 with a runoff in July.
Land Use Ordinance
Development Services Director Jessica Rhue said staff were working on a number of text amendments to the Land Use Ordinance that would be presented to the board at upcoming meetings.
“You’re going to start hearing about data centers. I’m not going to say too much about data centers. Our ordinance doesn’t specifically really call this stuff out, but nor does anybody else’s and kind of need to find right now the way the law is written a similar use, if somebody was to come ask for one today, so, we’re trying to make some preparation in our ordinance all of our codes actually for when that starts hitting New Bern,” Director Rhue said.
She also talked about removing the requirement for an applicant to obtain a special use permit for a parking lot.
Alderman Ferguson said, “Whatever development regulations we can put on data centers, I think is a good a worthwhile conversation.”
Smart grid
The city approved changes to the capital project ordinance for the advanced metering infrastructure/demand side management project fund in January 2016 that added $5,600,000 which brought the total cost to $9,050,000, according to minutes. This allowed them to implement smart meter projects which would allow transmission of two-way radio frequency signals which interrupt the electric flow to certain appliances like water heaters, air conditioners, heat strips, and other things during times of peak electric demand when the utility is charged the most for the purchase of electricity.
Mass-scale internet fiber optic installation projects
The New Bern Board of Aldermen agreed to accommodate MetroNet’s mass-scale internet fiber optic installation in 2021. The cost of make-ready work, materials and the costs of repairing property that was damaged during the installation were mostly paid out of the Electric Fund. Water Resources and Public Works departments also bore some costs.
Relocation of utility infrastructure
The city has been relocating electric, water, sewer, and fiber optic lines to accommodate the NC Department of Transportation’s US 70 and the NC 43 projects.
Third-party payment processing
The city contracted with “Doxim, a secure, third-party payment processing site operated and maintained independently of the city,” according to their website.
AI and Data storage facilities
In July 2025, President Trump signed an executive order that said, “We will pursue bold, large-scale industrial plans to vault the United States further into the lead on critical manufacturing processes and technologies that are essential to national security, economic prosperity, and scientific leadership. These plans include artificial intelligence (AI) data centers and infrastructure that powers them, including high‑voltage transmission lines and other equipment. It will be a priority of my Administration to facilitate the rapid and efficient buildout of this infrastructure by easing Federal regulatory burdens.” The order says, “In addition, my Administration will utilize federally owned land and resources for the expeditious and orderly development of data centers…”
Generative AI boom
A massive effort is afoot to develop generative AI data centers that allow artificial intelligence to scrape web data on a massive scale to generate image, text, and videos in response to text prompts. The facilities will need electricity, water, wastewater and solid waste and other vital resources to accommodate the projects that are being proposed in cities and towns across the country.
Developer files plan to build data storage facility near Shearon Harris plant
In NC, a developer filed a proposal with the town of Apex to build a 300-megawatt data storage facility near the Shearon Harris Nuclear Plant in New Hill, Wake County. Although city officials have told NewBernNow.com that they no longer have a stake in the Shearon Harris site, the development could impact city utility customers as Apex and New Bern are both NCEMPA members. The proposed facility would be called “New Hill Digital Campus,” as reported by WRAL. The developer told WRAL the conceptual plan includes “four, 70-feet-tall data storage buildings. “Our utility bill would flow directly through Duke Energy,” the article said. He continued, “the proposed facility would use up to one million gallons of water per day for cooling purposes. He said the source will be reclaimed water from the Western Wake Regional Reclamation Facility.” It was widely reported in March 2026 that the developer halted plans after public pushback.
“Zachry Group is proud to announce that, after a competitive process, it has been awarded the engineering, procurement, and construction contract for the first Person County Combined Cycle Project by Duke Energy, as reported by BusinessWire in August 2025. “The Trump administration is giving Duke Energy a $28.4 million grant to upgrade a coal plant in North Carolina,” as reported by NCNewsline in June 2026.
As previously mentioned, New Bern owned interest in generating units at two power plants in Person County.
WRAL reported, “The Redmond, Washington-based tech giant paid $26.85 million for the 1,385-acre mega site in 2024. ‘Across the state, proposals for hyperscale data centers built to support artificial intelligence and cloud computing are driving unprecedented demand for electricity and water. That surge is reshaping long-term energy planning, raising new questions about who bears the environmental and financial costs of keeping the grid running.’”
The video was not livestreamed. Video recordings are usually uploaded to City 3 TV, city’s Facebook page and/or YouTube channel.
Meeting agendas and packets can be found here.
By Wendy Card, editor. Send an email with questions or comments.