PROVIDING THAT A MUNICIPALITY OWNING OR OPERATING A MUNICIPAL ELECTRIC SYSTEM SHALL USE REVENUE DERIVED FROM RATES FOR ELECTRIC SERVICE FOR PAYING THE COSTS OF OPERATING THE ELECTRIC SYSTEM AND MAKING DEBT SERVICE PAYMENTS AND SHALL USE EXCESS REVENUE FOR LOWERING RATES, MAKING ADDITIONAL DEBT SERVICE PAYMENTS, AND REDUCING THE MUNICIPALITY'S COMMITMENT UNDER CONTRACTUAL OBLIGATIONS TO A JOINT MUNICIPAL POWER AGENCY.
Enacts new GS 160A-323.1 to require any municipality that owns or operates a municipal electric system to use the revenue derived from rates for electric service to pay the costs of operating the electric system and make debt service payments. Requires that remaining revenue be used to lower electric service rates in the areas served by the system, make additional debt service payments, or reduce the municipality’s commitment under contractual obligations to a joint municipal power agency. Prohibits a municipality from transferring revenue from an electricity utility fund to any other municipal fund for any purpose unless it is explicitly authorized by law. Effective July 1, 2011.