A new state law calls for more energy from renewable sources, but area electric customers shouldn't expect to get socked with big cost increases.

The law, which went into effect Jan. 1, calls for electric utilities to generate more of their power from renewable sources and maintain greater energy efficiency. According to the law, renewable/efficient energy must account for 3 percent of retail sales by 2012, 6 percent by 2015, 10 percent by 2018 and 12.5 percent by 2021.

Chris Powell, director of public relations for Albemarle Electric Membership Corp., said renewable energy may cost more than traditional energy sources, but the legislation caps how much of that cost may be passed on to customers. Residential customers, for example, cannot be charged more than $10 per year in alternative energy cost increases through 2011.

Powell said renewable energy falls under several categories, including solar power, swine waste and poultry waste.

"We buy a blend of electricity," he said. "We get some from hydroelectric power."

City Manager Rich Olson said Elizabeth City has already turned to more energy-efficient practices.

"That's one of the reasons we've made Cycle and Save mandatory," he said. "It will meet our short-term requirements under the legislation."

Cycle and Save, the city's load management program, was previously voluntary and netted participants an annual credit. However, the city last year revoked the credit and slapped a monthly surcharge on customers who opt not to participate.

Olson said the city is exploring ways of meeting the law's long-term requirements with ElectriCities, the administrative arm of the city's power distributor, the North Carolina Eastern Municipal Power Agency.

Ken Raber, senior vice president for ElectriCities, said there is currently no way of knowing how the agency will meet the requirements. He said the N.C. Utilities Commission was supposed to issue rules for compliance last month, but has yet to do so.

"We're in a holding pattern," he said.

Raber said a portion of Elizabeth City's power comes through Progress Energy, which does use renewable sources. However, he did not know how much of the city's sales that power accounts for.

Powell said the legislation provides co-ops and power companies with a lot of flexibility. He said renewable energy certificates, which function as offsets, can be purchased from in-state or out-of-state renewable facilities.

Powell said its possible that the legislature may adjust the law's requirements in future sessions. In the meantime, he said AEMC is developing a proposal for renewable energy sources and exploring its options.

(Contact Zac Goldstein at zgoldstein@coxnc.com)