GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
SESSION LAW 2015-134
HOUSE BILL 356
AN ACT to clarify the cap on the utilities regulatory fee reserve, to set the regulatory fee in statute, and to allow the commission to raise or lower the fee.
The General Assembly of North Carolina enacts:
SECTION 1.(a) G.S. 62‑302(a) reads as rewritten:
"(a) Fee Imposed. – It
is the policy of the State of North Carolina to provide fair regulation of
public utilities in the interest of the public, as provided in G.S. 62‑2.
The cost of regulating public utilities is a burden incident to the privilege
of operating as a public utility. Therefore, for the purpose of defraying the
cost of regulating public utilities, every public utility subject to the
jurisdiction of the Commission shall pay a quarterly regulatory fee, in
addition to all other fees and taxes, as provided in this section. The fees
collected shall be used only to pay the expenses of the Commission and the
Public Staff in regulating public utilities in the interest of the public.public
and to maintain a reasonable margin for a reserve fund. The amount of the
reserve may not exceed one‑half of the cost of operating the Commission
and the Public Staff as reflected in the certified budget for the previous
fiscal year.
It is also the policy of the State to provide limited oversight of certain electric membership corporations as provided in G.S. 62‑53. Therefore, for the purpose of defraying the cost of providing the oversight authorized by G.S. 62‑53 and G.S. 117‑18.1, each fiscal year each electric membership corporation whose principal purpose is to furnish or cause to be furnished bulk electric supplies at wholesale as provided in G.S. 117‑16 shall pay an annual fee as provided in this section.
…."
SECTION 1.(b) Subdivisions 14.19(e1)(4), (5), (6), and (10) of S.L. 2009‑451 are repealed.
SECTION 2. G.S. 62‑302, as amended by Section 1.(a) of this act, reads as rewritten:
"(a) Fee Imposed. – It is the policy of the State of North Carolina to provide fair regulation of public utilities in the interest of the public, as provided in G.S. 62‑2. The cost of regulating public utilities is a burden incident to the privilege of operating as a public utility. Therefore, for the purpose of defraying the cost of regulating public utilities, every public utility subject to the jurisdiction of the Commission shall pay a quarterly regulatory fee, in addition to all other fees and taxes, as provided in this section. The fees collected shall be used only to pay the expenses of the Commission and the Public Staff in regulating public utilities in the interest of the public and to maintain a reasonable margin for a reserve fund. The amount of the reserve may not exceed one‑half of the cost of operating the Commission and the Public Staff as reflected in the certified budget for the previous fiscal year.
It is also the policy of the State to provide limited oversight of certain electric membership corporations as provided in G.S. 62‑53. Therefore, for the purpose of defraying the cost of providing the oversight authorized by G.S. 62‑53 and G.S. 117‑18.1, each fiscal year each electric membership corporation whose principal purpose is to furnish or cause to be furnished bulk electric supplies at wholesale as provided in G.S. 117‑16 shall pay an annual fee as provided in this section.
(b) Public Utility Rate. –
(1) Repealed by Session Laws 2000‑140, s. 56, effective July 21, 2000.
(2) Unless adjusted under subdivision (3) of this subsection, the public utility fee is a percentage of a utility's jurisdictional revenues as follows:
Noncompetitive jurisdiction revenues 0.148%
Subsection (h) competitive jurisdictional revenues 0.06%
Subsection (m) competitive jurisdictional revenues 0.05%
For noncompetitive jurisdictional
revenues as defined in sub‑subdivision (4)a. of this subsection, the
public utility regulatory fee for each fiscal year is the greater of (i) a
percentage rate, established by the General Assembly, of each public utility's
noncompetitive jurisdictional revenues for each quarter or (ii) six dollars and
twenty‑five cents ($6.25) each quarter. For subsection (h)
competitive jurisdictional revenues as defined in sub‑subdivision (4)b.
of this subsection, and subsection (m) competitive jurisdictional revenues as
defined in sub‑subdivision (4)c. of this subsection, the public utility
regulatory fee for each fiscal year is a percentage rate established by the
General Assembly of each public utility's competitive jurisdictional revenues
for each quarter.
When the
Commission prepares its budget request for the upcoming fiscal year, the
Commission shall propose a percentage rate of the public utility regulatory
fee. For fiscal years beginning in an odd‑numbered year, that proposed
rate shall be included in the budget message the Governor submits to the
General Assembly pursuant to G.S. 143C‑3‑5. For fiscal years
beginning in an even‑numbered year, that proposed rate shall be included
in a special budget message the Governor shall submit to the General Assembly.
The General Assembly shall set the percentage rate of the public utility
regulatory fee by law.
The percentage
rate may not exceed the amount necessary to generate funds sufficient to defray
the estimated cost of the operations of the Commission and the Public Staff for
the upcoming fiscal year, including a reasonable margin for a reserve fund. The
amount of the reserve may not exceed the estimated cost of operating the
Commission and the Public Staff for the upcoming fiscal year. In calculating
the amount of the reserve, the General Assembly shall consider all relevant
factors that may affect the cost of operating the Commission or the Public
Staff or a possible unanticipated increase or decrease in North Carolina
jurisdictional revenues.
(3) In the first half of
each calendar year, the Commission shall review the estimated cost of operating
the Commission and the Public Staff for the next fiscal year, including a
reasonable margin for the reserve fund allowed under this section. In making
this determination, the Commission shall consider all relevant factors that may
affect the cost of operating the Commission or the Public Staff or a possible
unanticipated change in competitive and noncompetitive jurisdictional revenues.
If the estimated receipts provided for under this section are less than the
estimated cost of operating the Commission and the Public Staff for the next
fiscal year, including the reasonable margin for the reserve fund, then If
the Commission, the Public Staff, or both experience a revenue
shortfall, the Commission shall may implement a temporaryincrease
the public utility regulatory fee surcharge on noncompetitive
jurisdictional revenues effective for the next fiscal year.to avert the
deficiency that would otherwise occur. In no event may the total percentage
rate of the public utility regulatory fee on noncompetitive jurisdiction
revenues plus any surcharge established by the Commission exceed twenty‑five
hundredths percent (0.25%).seventeen and one‑half hundredths of
one percent (0.175%). If the estimated receipts provided for under this section
are more than the estimated cost of operating the Commission and the Public
Staff for the next fiscal year, including the reasonable margin for the reserve
fund, then the Commission shall decrease the public utility regulatory fee on
noncompetitive jurisdictional revenues effective for the next fiscal year.
(4) As used in this section:
a. "Noncompetitive jurisdictional revenues" means all revenues derived or realized from intrastate tariffs, rates, and charges approved or allowed by the Commission or collected pursuant to Commission order or rule, but not including tap‑on fees or any other form of contributions in aid of construction.
b. "Subsection (h) competitive jurisdictional revenues" means all revenues derived from retail services provided by local exchange companies and competing local providers that have elected to operate under G.S. 62‑133.5(h).
c. "Subsection (m) competitive jurisdictional revenues" means all revenues derived from retail services provided by local exchange companies and competing local providers that have elected to operate under G.S. 62‑133.5(m).
(b1) Electric Membership
Corporation Rate. – The electric membership corporation regulatory fee for each
fiscal year shall be a dollar amount as established by the General Assembly
by law.is two hundred thousand dollars ($200,000).
When the Commission prepares
its budget request for the upcoming fiscal year, the Commission shall propose
the amount of the electric membership corporation regulatory fee. For fiscal
years beginning in an odd‑numbered year, the proposed amount shall be
included in the budget message the Governor submits to the General Assembly
pursuant to G.S. 143C‑3‑5. For fiscal years beginning in an
even‑numbered year, the proposed amount shall be included in a special
budget message the Governor shall submit to the General Assembly.
The amount of the electric
membership corporation regulatory fee proposed by the Commission may not exceed
the amount necessary to defray the estimated cost of the operations of the
Commission and the Public Staff for the regulation of the electric membership
corporations in the upcoming fiscal year, including a reasonable margin for a
reserve fund. The amount of the reserve may not exceed the estimated cost of
the Commission and the Public Staff for the regulation of the electric
membership corporations for the upcoming fiscal year.
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(e) Recovery of fee
increase.Fee changes. – If a utility's regulatory fee obligation is increased,changed,
the Commission shall either adjust the utility's rates to reflect the change
allow for the recovery of the increased fee obligation, or approve
the utility's request for an accounting order allowing deferral of the increase
change in the fee obligation."
SECTION 3. G.S. 62‑302(b)(2), as amended by Section 2 of this act, reads as rewritten:
"(2) Unless adjusted under subdivision (3) of this subsection, the public utility fee is a percentage of a utility's jurisdictional revenues as follows:
Noncompetitive jurisdiction revenues 0.148%
Subsection (h)
competitive jurisdictional revenues 0.06%0.04%
Subsection (m) competitive
jurisdictional revenues 0.05%0.02%"
SECTION 4. Section 2 is effective July 1, 2015, and applies to jurisdictional revenues earned in each quarter that begins on or after July 1, 2015. Section 3 is effective July 1, 2016, and applies to jurisdictional revenues earned in each quarter that begins on or after July 1, 2016. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 29th day of June, 2015.
s/ Philip E. Berger
President Pro Tempore of the Senate
s/ Tim Moore
Speaker of the House of Representatives
s/ Pat McCrory
Governor
Approved 11:45 a.m. this 30th day of June, 2015