In a filing yesterday with the N.C. Utilities Commission (NCUC), the state’s electric utilities indicated that settlement discussions with Fibrowatt and others “have resolved the primary issues that prompted the Joint Movants’ motion as it relates to the poultry waste set-aside.” In this filing, (opens as .pdf) the utilities formally withdrew their August 2009 request for the NCUC to delay and modify the poultry waste provisions in North Carolina’s landmark renewable energy legislation.

The filing suggests that North Carolina’s utilities have now acknowledged that they must comply with the requirements set forth by the N.C. General Assembly in 2007. Beginning in 2012, North Carolina utilities must generate or purchase 170,000 megawatt hours of renewable energy from poultry waste. The figure climbs to 700,000 megawatt hours in 2013 and 900,000 megawatt hours in 2014 and beyond.

However, the filing does include a caveat that utilities “may in the future collectively or individually seek relief from the requirements … should issues arise that warrant such relief.”

This is a significant and positive development for Fibrowatt. This action will lead to further substantive discussions between Fibrowatt and the utilities and should lead to final negotiations about long-term power purchase agreements for the North Carolina projects.