North Carolina is one of the fastest growing, most economically viable states in the country. Reliable energy sources are essential to maintain the state’s momentum and allow all its citizens to share in that prosperity. That’s why State Treasurer Dale R. Folwell, CPA, sent a letter today to the Federal Energy Regulatory Commission (FERC) requesting that the agency approve the extension of the MVP Southgate pipeline project’s completion date to June 18, 2026.
The MVP Southgate project is a proposed interstate pipeline to deliver natural gas to PSNC Energy at existing facilities in Rockingham and Alamance counties in North Carolina, and to provide access to existing, expanding and new markets in southern Virginia and central North Carolina.
On June 18, 2020, FERC authorized the construction and operation of 75.1 miles of pipeline and associated facilities in Virginia and North Carolina. However, opponents of the pipeline have successfully delayed construction of the main line through a series of lawsuits and permit challenges. But the recent debt ceiling deal between the White House and Congress cleared the way for the MVP main line, which could start sending natural gas by the end of the year. The MVP Southgate pipeline, however, remains incomplete and would require FERC to approve an extension of the date for completion.
“I am deeply concerned by these delays and their potential impact on North Carolinians, particularly those of low to moderate income. We must advocate for the invisible citizens of this state. Insufficient energy infrastructure and a lack of diversity in interstate natural gas supply pose a threat to North Carolina’s ability to support its tremendous population growth, high quality of life and status as a great state for business,” Treasurer Folwell said. “We have worked hard to maintain a AAA bond rating, providing significant savings to taxpayers and helping to secure the state’s No. 1 ranking on CNBC’s list of top states for business in the U.S. for the second year in a row. Our ability to maintain these achievements could be jeopardized without adequate supplies of affordable and reliable clean energy.”
Treasurer Folwell noted the potential for energy disaster when a 2021 cyberattack disabled the Colonial Pipeline system, leaving the state without a reliable supply of gasoline and diesel fuel.
“Right now, we only have one interstate transmission pipeline for natural gas and that’s Transco,” said Treasurer Folwell. “We have 80,000 miles of roads and 35,000 miles of natural gas pipelines in North Carolina. We spend billions on building and maintaining the roads and highways we travel on every day. But we need to build and support the infrastructure that we do not see, like underground pipelines, that are just as vital to the economic growth of the state.”
Local governments in Alamance and Rockingham counties will benefit greatly through construction and operation of the proposed MVP Southgate. Construction will support an estimated 1,130 jobs in North Carolina and generate $6.3 million in state and local tax revenues. The pipeline will generate an estimated $3.4 million in new ad valorem tax revenue every year for North Carolina localities after it begins operating. These funds and jobs will be vital to helping fuel the economic engine that supports tax revenue and job growth at a local level.
“As Chairman of both the Local Government Commission and the State Banking Commission, I see the need for additional energy resources in our cities and counties daily,” said Treasurer Folwell. “With the loss of the furniture, textile and tobacco industries the availability of reliable energy supplies in rural North Carolina is critical to attracting new business to these areas. New businesses create jobs and increased tax revenue, improving the fiscal health of our local governments.”
Treasurer Folwell noted that while our state banks are exceptionally stable and strong, new energy supplies are essential for future industrial and residential growth leading to even greater financial stability for the state’s banking system.
“The MVP Southgate project must be built. FERC should approve a three-year extension of the project’s completion date, as Mountain Valley has requested, so this important project can be completed to meet public demand for more affordable and reliable clean energy,” Treasurer Folwell said.