Bill Text: NC H356 | 2015-2016 | Regular Session | Amended
Bill Title: NCUC Reg. Fee Changes
Spectrum: Partisan Bill (Republican 6-0)
Status: (Passed) 2015-06-30 - Ch. SL 2015-134 [H356 Detail]
Download: North_Carolina-2015-H356-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
H 1
HOUSE BILL 356
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Short Title: NCUC Reg. Fee Changes. |
(Public) |
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Sponsors: |
Representatives Arp, Collins, and Warren (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
Public Utilities. |
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March 26, 2015
A BILL TO BE ENTITLED
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.
…
(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.
