AN ACT AUTHORIZING WATER AND WASTEWATER PUBLIC UTILITIES TO ELECT TO USE A FAIR VALUE DETERMINATION FOR RATE-MAKING PURPOSES WHEN ACQUIRING UTILITIES OWNED BY COUNTIES, MUNICIPALITIES, OR OTHER GOVERNMENTAL ENTITIES.
House committee substitute makes the following changes to the 1st edition.
Amends proposed GS 62-133.1A (Fair value determination of government-owned water and wastewater systems). Makes technical change to subsection (a). Makes clarifying change to subsubdivision (b)(1)a. Amends subsection (c), setting forth the required content of an application to the Utilities Commission for a determination of the rate base value of the system to be acquired, by adding two new requirements. Adds that the application must contain (1) any deficiencies identified by the engineering assessment and a five-year plan for prudent and necessary infrastructure improvements by the acquiring entity and (2) the projected rate impact for the selling entity's customers for the next five years. Amends subsection (e), establishing that the Commission has the discretion to classify the acquired system as a separate entity for ratemaking purposes, consistent with the public interest.
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