North Carolina SB 729: Electrical Contracting by Utilities.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S 1

SENATE BILL 729*

Short Title: Electrical Contracting by Utilities. (Public)
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Sponsors: Senator Daniel.
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Referred to: Public Utilities.
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April 22, 1991

A BILL TO BE ENTITLED 1
AN ACT TO PREVENT UNFAIR COMPETITION BY ELECTRIC POWER 2
SUPPLIERS. 3
The General Assembly of North Carolina enacts: 4
Section 1. Chapter 87 of the General Statutes is amended by adding a new 5
Article to read: 6
“ARTICLE 4A. 7
"UNFAIR ELECTRIC SUPPLIERS PRACTICES CONTROL ACT. 8
"§ 87-51.1. Short title. 9
This act shall be known and may be cited as the Unfair Electric Power Suppliers 10
Practices Control Act. 11
"§ 87-51.2. Purpose. 12
(a) The General Assembly finds and declares as follows: 13
(1) It is the public policy of this State to promote free and open 14
competition in electrical contracting, as defined in G.S. 87-43. 15
(2) Free and open competition in electrical contracting will promote the 16
availability of quality electrical contracting at a reasonable cost to the 17
consumer. 18
(3) Such free and open competition can be achieved only if the market for 19
electrical contracting is not distorted or dominated by electric power 20
suppliers who, by virtue of their special status as regulated monopolies 21
in the development and distribution of energy, have an unfair 22
advantage in energy-related markets. 23

GENERAL ASSEMBLY OF NORTH CAROLINA 1991
Page 2 SENATE BILL 729* version 1
(4) Electric power suppliers should be in the business of development, 1
transport, sale, and conservation of their energies only. 2
(b) It is, therefore, the intent of the General Assembly that electric power 3
suppliers be prohibited from engaging in electrical contracting except in matters 4
pertaining to load control devices, single-family residential security lighting, roadway 5
and highway lighting. 6
"§ 87-51.3. Prohibited activities. 7
(a) Except as otherwise provided in this act, electric power suppliers are 8
prohibited from engaging in electrical contracting. An electric power supplier, for the 9
purpose of this act, is a public utility company, a private utility company, an electric 10
membership co-op, a municipal utility, or any other entity that furnishes electric energy 11
for private or public use. 12
(b) It shall not be unlawful for an electric power supplier, upon being properly 13
licensed pursuant to Article 4 of Chapter 87 of the General Statutes, to engage in 14
electrical contracting to the extent necessary to install, service, and remove load control 15
devices on and from appliances and equipment located on the premises of consumers. 16
The State Board of Examiners of Electrical Contractors shall establish a special 17
restricted classification of license, pursuant to G.S. 87-43.3, for such electrical 18
contracting. 19
(c) It shall not be unlawful for an electric power supplier to install, service, and 20
maintain single-family residential security lights mounted on poles owned by it. 21
(d) It shall not be unlawful for an electric power supplier to install, service, and 22
maintain roadway and highway lighting on public rights-of-way. 23
(e) It shall not be unlawful for an affiliated or subsidiary entity of an electric 24
power supplier to engage in electrical contracting provided the following criteria are 25
met: 26
(1) The affiliated business entity shall not have any place of business at a 27
premises owned by the electric power supplier, or at a premises leased 28
or subleased by the electric power supplier to the affiliated business 29
entity. 30
(2) The name of the affiliated business entity shall bear no resemblance to 31
the name of the electric power supplier. Neither the supplier nor the 32
affiliated business entity shall trade upon, promote, or advertise the 33
affiliated status in any manner. 34
(3) The affiliated business entity shall not share the use of equipment, 35
tools, vehicles, inventory, personnel, or other resources of the electric 36
power supplier. 37
(4) The affiliated business entity shall not advertise, promote, or market its 38
products or services through mailings of the electric power supplier or 39
in advertisements in which the electric power supplier's name is set 40
forth. The electric power supplier shall not advertise, promote, or 41
market its services through mailings of the affiliated business entity or 42
in advertisements in which the affiliated business entity's name is set 43
forth. 44

1991 GENERAL ASSEMBLY OF NORTH CAROLINA
SENATE BILL 729* version 1 Page 3
(5) The affiliated business entity shall maintain books and records separate 1
and distinct from those of the electric power supplier. 2
(6) All costs and expenses involved in operating the affiliated business 3
entity shall be borne by the affiliated business entity and not by the 4
electric power supplier and revenues from the affiliated business