Bill Summary for H 351 (2017-2018)

Summary date: 

Mar 14 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 351 (Public) Filed Tuesday, March 14, 2017
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.
Intro. by Watford, Collins.

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Bill summary

Enacts new GS 62­133.1A (Fair value determination of government­owned water and wastewater systems). Authorizes water and wastewater public utilities to elect to establish rate base by using the fair value of the utility property instead of original cost when acquiring an existing water or wastewater system owned by a municipality or county or an authority or district. Establishes criteria for the determination of the fair value, including evaluation and assessment by two separate appraisals, and a licensed engineer jointly retained by the acquiring and selling utilities to conduct an assessment. Establishes procedure for application to the Commission for a determination of the rate base value of the system to be acquired, including requirements for submission of specified information. Directs the Commission to issue its final order approving or denying an application that meets the requirements within four months of the date on which the application was filed. An order approving an application must determine the rate base value of the acquired property for rate­making purposes. Clarifies that the Commission retains its authority to set rates for the acquired system in future rate cases.

Makes conforming changes to GS 62­133.

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