A BILL TO BE ENTITLED AN ACT TO PERMIT WATER UTILITIES TO ADJUST RATES FOR CHANGES IN COSTS BASED ON THIRD-PARTY RATES AND TO AUTHORIZE THE UTILITIES COMMISSION TO APPROVE A RATE ADJUSTMENT MECHANISM FOR WATER AND SEWER UTILITIES TO RECOVER COSTS FOR WATER AND SEWER SYSTEM IMPROVEMENTS. Enacted June 12, 2013. Effective June 12, 2013.
Summary date: Jun 13 2013 - View summary
Summary date: May 14 2013 - View summary
House amendment makes the following change to the 2nd edition:
Makes technical change to the bill title by substituting the word "utilities" for the word "authorities."
Summary date: May 9 2013 - View summary
House committee substitute makes the following changes to the 1st edition.
Makes technical changes.
Amends GS 62-133.13, defining eligible sewer system improvements to mean: (1) collection main extensions installed to implement solutions to wastewater problems, (2) improvements necessary to reduce inflow and infiltration to the collection system to comply with applicable laws and regulations, (3) unreimbursed costs of relocating facilities due to highway construction or relocation projects, and (4) mechanical equipment installed as in-kind replacements for customers.
Summary date: Apr 10 2013 - View summary
Enacts new GS 62-133.1 to require the Utilities Commission (Commission) to allow a water or sewer public utility to adjust its rates to reflect changes in costs based solely upon changes in the rates imposed by third-party suppliers of purchased water or sewer service. Requires the Commission to issue an order approving, denying, or approving with modifications a requested rate adjustment within 60 days of the date of filing of a completed petition, unless that time is for good cause extended up to a maximum of 90 days.
Enacts new GS 62-133.12 to allow the Commission to approve a rate adjustment mechanism in a general rate proceeding to allow a water or sewer public utility to recover through a system improvement charge the incremental depreciation expense and capital costs associated with the utility's reasonable and prudently incurred investment in eligible water and sewer system improvements. The adjustment mechanism may be approved only upon a finding that the mechanism is in the public interest and allows for the elimination or modification of the rate adjustment mechanism if it finds that it is not in the public interest. Defines eligible water system improvements and eligible sewer system improvements. Caps cumulative system improvement charges for a water or sewer utility pursuant to a rate adjustment mechanism at 5% of the total annual service revenues approved by the Commission in the water or sewer utility's last general rate case.