A bipartisan coalition of House and Senate members on Tuesday unveiled legislation that would allow dozens of eastern North Carolina communities to proceed with a critical sales agreement that will reduce electricity rates and spur job growth and economic development across eastern North Carolina.

Halifax County towns affected by the legislation include Hobgood and Scotland Neck.

The agreement would allow Duke Energy Progress to purchase stakes in power generation facilities currently owned in part by North Carolina Eastern Municipal Power Agency, which is comprised of 32 cities and towns in eastern North Carolina.

The sales agreement has already been approved by the Federal Energy Regulatory Commission, but state legislative action is required to proceed.

This initiative is a win-win – it will bring affordable energy to eastern North Carolina, make the region far more competitive for new jobs and ensure all customers of both entities ultimately pay less on their utility bills,” said Republican Senator Buck Newton, who represents Wilson, Johnston and Nash and is a primary sponsor of the Senate bill.

The proposed legislation enables NCEMPA to issue new bonds to facilitate the sale of the generation assets, and allows Duke Energy Progress to receive the cost of its asset purchase.

It also requires Duke Energy Progress to spread out cost recovery over 20 to 30 years, which ensures a benefit for all customers – regardless of location – in the long-term.

“Senator Newton and I have been working on the Electricities rate problem since we first ran for office in 2010. I am thrilled that Duke and NCEMPA have been able to hammer out a solution that benefits all North Carolina citizens,” Representaive Jeff Collins, a Republican who represents Franklin and Nash counties and is a primary sponsor of the House bill.

Currently, NCEMPA customers are paying as much as 35 percent more than customers in other parts of the state for electricity, a consequence of NCEMPA carrying close to $2 nillion in decades-old debt.

Under the agreement, NCEMPA will reduce its debt by more than 70 percent leading to lower rates for their customers and removing one of the largest obstacles to economic development in eastern North Carolina.

Duke Energy Progress will take ownership of a lower-cost electricity supply, which is anticipated to generate approximately $70 million in fuel savings per year.

According to NCEMPA, besides Hobgood and Scotland Neck, the following member municipalities should see relief:

Apex, Ayden, Belhaven, Benson, Clayton, Edenton, Elizabeth City, Farmville, Fremont, Greenville, Hamilton, Hertford, Hookerton, Kinston, La Grange, Laurinburg, Louisburg, Lumberton, New Bern, Pikeville, Red Springs, Robersonville, Rocky Mount, Selma, Smithfield, Southport, Tarboro, Wake Forest, Washington and Wilson.

This agreement will alleviate the problem of sky-high electricity rates, which have not only placed a heavy burden on working families, but have also deterred new businesses from locating in the eastern part of the state – where utility bills have historically made the cost of doing business much higher.