North Carolina SB 397: Natural Gas/Rate Adjustment Mechanism.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S 1
SENATE BILL 397*

Short Title: Natural Gas/Rate Adjustment Mechanism. (Public)
Sponsors: Senator Newton (Primary Sponsor).
Referred to: Commerce.
March 25, 2013
*S397-v-1*
A BILL TO BE ENTITLED 1
AN ACT AUTHORIZING THE UTILITIES COMMISSION TO ADOPT, IMPLEMENT, 2
MODIFY, OR ELIMINATE A RATE ADJUSTMENT MECHANISM FOR NATURAL 3
GAS LOCAL DISTRIBUTION COMPANY RATES. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. Article 7 of Chapter 62 of the General Statutes is amended by adding 6
a new section to read as follows: 7
"§ 62-133.7A. Rate adjustment mechanism for natural gas local distribution company 8
rates. 9
In setting rates for a natural gas local distribution company in a general rate case 10
proceeding under G.S. 62-133, the Commission may adopt, implement, modify, or eliminate a 11
rate adjustment mechanism to enable the company to recover the prudently incurred capital 12
investment and associated costs of complying with federal gas pipeline safety requirements, 13
including a return based on the company's then authorized return. The Commission shall adopt, 14
implement, modify, or eliminate a rate adjustment mechanism authorized under this section 15
only upon a finding by the Commission that the mechanism is in the public interest." 16
SECTION 2. This act is effective when it becomes law. 17