South Carolina H 4386: Considerations for public utility acquiring certain water or sewer property or assets

Bill Text

2025-2026 Bill 4386 Text of Previous Version (Apr. 23, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4386

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH 
CAROLINA CODE OF LAWS BY ADDING SECTION 58-5-70 SO AS TO REQUIRE THE PUBLIC 
SERVICE COMMISSION TO MAKE CERTAIN CONSIDERATIONS FOR A PUBLIC UTILITY TO 
ACQUIRE PROPERTY OR ASSETS USED TO PROVIDE WATER, SEWERAGE COLLECTION, OR 
SEWERAGE DISPOSAL OWNED BY A COUNTY, MUNICIPALITY, OR SPECIAL PURPOSE DISTRICT.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Article 1, Chapter 5, Title 58 of the S.C. Code is amended 
by adding:

 Section 
58-5-70. (A) In evaluating an 
application for a public utility to acquire property or assets used to provide 
water, sewerage collection, or sewerage disposal owned by a county, 
municipality, or special purpose district, the commission must consider the 
fair market value of the property or assets to be acquired, provided the 
requirements of this section are met.

 (B) Two 
appraisals provided by the public utility on the property or assets being 
acquired must be submitted with the application described in subsection (A). 
These two appraisals must be conducted by two independent utility-valuation 
experts that are mutually selected by the public utility and the county, 
municipality, or special purpose district selling the property. Each appraisal 
must be performed in accordance with the Uniform Standards of Professional 
Appraisal Practice. In addition, the Office of Regulatory Staff, in its 
discretion, may provide an appraisal to the commission.

 (C) In 
determining the fair market value for the property or assets used to provide 
water, sewerage collection, or sewerage disposal, the commission must consider 
the two independent appraisals described in subsection (B) as well as any 
appraisal provided by the Office of Regulatory Staff, if applicable. The 
average of these appraisals, including any appraisal offered by the Office of 
Regulatory Staff, if performed, shall constitute the fair market value. The 
commission shall not consider the original source of funding for any part of 
the tangible assets to determine the value of the property or assets.

 (D)(1) The commission shall promptly fix a 
date for the commencement of a public hearing. This public hearing must be 
scheduled no less than sixty days nor more than ninety days after receipt of 
the application.

 (2) 
The commission must complete the hearing and issue an order on the merits 
within one hundred eighty days following receipt of a complete application.

 (E) In 
the event a public utility acquires property or assets used to provide water, 
sewerage collection, or sewerage disposal owned by a county, municipality, or 
special purpose district, the purchase price or fair market value of the 
property or assets, whichever is less, shall become part of the rate base in 
the public utility's next general rate case, subject to a finding by the 
commission that the acquisition is in the public interest and that such costs 
are just and reasonable. Reasonable transaction and closing costs, including 
the costs of any appraisals and engineering assessment borne by the public 
utility, shall be treated as capital costs that may be recovered by the 
acquiring public utility.

 (F) 
Nothing in this section shall prohibit the public utility or the county, 
municipality, or special purpose district from declining to proceed with an 
acquisition as described in this section.

SECTION 2. This act takes effect upon approval 
by the Governor.

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This web page was last updated on April 23, 2025 at 02:03 PM