House committee substitute makes the following changes to the 1st edition. Deletes all provisions in previous edition and replaces them with AN ACT PROVIDING THAT THE TOWNS OF CLAYTON, SELMA, AND SMITHFIELD SHALL USE REVENUE DERIVED FROM RATES FOR ELECTRIC SERVICE FOR PAYING THE DIRECT AND INDIRECT COSTS OF OPERATING THE ELECTRIC SYSTEM, TRANSFERRING AMOUNTS THAT REPRESENT A RATE OF RETURN ON THE INVESTMENT IN THE ELECTRIC SYSTEM, AND MAKING DEBT SERVICE PAYMENTS. Enacts new GS 159B-39 to authorize a municipality to use the revenue derived from rates for electric service to (1) pay the direct and indirect costs of operating the electric system and (2) transfer to other funds of the municipality a sum that reflects a rate of return on investment in the electric system to the extent allowed by the statute. Requires that remaining revenue be used to lower electric service rates in the areas served by the system and to make additional debt service payments on bonds or other indebtedness incurred by the municipality to finance improvements to the electric system. Prohibits a municipality from transferring revenue from an electric utility fund to any other municipal fund for any purpose unless explicitly authorized by law. Provides that the direct and indirect costs of operating the electric system include eight specified items.
States that the restrictions do not apply to any action required to be taken by the Local Government Commission under GS 159-181(c). Provides details regarding the transfer of funds of a municipality as a rate of return on investment. Applies only to the towns of Clayton, Selma and Smithfield. Effective July 1, 2011.