RATE MAKING/WATER/WASTEWATER PUBLIC UTILITIES.

View NCGA Bill Details2017-2018 Session
House Bill 352 (Public) Filed Tuesday, March 14, 2017
AN ACT AUTHORIZING THE UTILITIES COMMISSION TO USE A FULLY PROJECTED FUTURE TEST PERIOD IN RATE MAKING FOR WATER AND WASTEWATER PUBLIC UTILITIES.
Intro. by Watford, Collins.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (Apr 25 2017)

SOG comments (1):

Identical Bill

Identical to S 340 filed on 3/21/17.

H 352

Bill Summaries:

  • Summary date: Apr 19 2017 - More information

    House committee substitute makes the following changes to the 1st edition.

    Makes organizational and technical changes to proposed subsection (c1) in GS 62-133.

    Authorizes a water or wastewater public utility to submit a request for approval of the Utilities Commission, as an alternative to the test period provided for in existing subsection (c), to utilize a fully projected future test period (previously, permitted a public utility to elect the alternative without Commission approval). Requires a fully projected future test period to consist of a 12-month period beginning on or after the date of filing of the application for a general rate case (previously, required the fully projected future test period to consist of the 12-month period beginning with the first month that the new rates will be in effect after application of the full suspension period permitted under GS 62-134).

    Adds a new requirement for the utility to provide an explanation for why a fully projected future test period is more representative of the utility's operations than the test period prescribed in subsection (c) when submitting a request under new subsection (c1).

    Adds a new provision requiring probable future revenues and expenses to be annualized based on the plant and equipment projected to be in operation as of the end of the future test period and otherwise adjusted as necessary to a representative ongoing level. 

    Deletes proposed language directing a public utility that uses a fully projected future test period as part of a final rate determination by the Commission to provide appropriate data evidencing the accuracy of the estimates, and authorizes the Commission to adjust the public utility's rates on the basis of that data after notice and hearing. Instead, adds new language directing a public utility to file with the Commission, no later than four months following the end of a fully projected future test period utilized under new subsection (c1), specified information and data for the fully projected future test period, adjusted as appropriate to reflect the Commission's initial order setting rates in the proceeding. 

    Deletes language directing the Commission to permit facilities projected to be in service during the fully projected future test period to be included in the base rate.

    Adds new language directing the Commission to adopt a rate adjustment mechanism to (1) track and true-up any variations in the revenue requirement determined on the basis of the required information provided by the public utility from the information used to initially set rates in the general rate case proceeding and (2) adjust the initially set rates as appropriate on a going-forward basis, accounting for adjustments initially made by the Commission. 

    Adds that the act expires five years after the act becomes law.


  • Summary date: Mar 14 2017 - More information

    Enacts new GS 62­133(c1), authorizing water or wastewater public utilities to use a fully projected future test period in lieu of the test period provided in subsection (c). Directs the Utilities Commission (Commission), when using a fully projected future test period, to determine the projected rate base at the end of the future test period. Directs the Commission to adopt rules and regulations regarding submission requirements for fully projected future test periods. Directs a public utility that uses a fully projected future test period as part of a final rate determination by the Commission to provide appropriate data evidencing the accuracy of the estimates, and authorizes the Commission to adjust the public utility's rates on the basis of that data after notice and hearing. Directs the Commission to permit facilities projected to be in service during the fully projected future test period to be included in the base rate.


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