(a) In fixing the rates for any public utility subject to the provisions of this Chapter, other than bus companies, motor carriers and certain water and sewer utilities, the Commission shall fix such rates as shall be fair both to the public utilities and to the consumer.
(b) In fixing such rates, the Commission shall:
(1) Ascertain the reasonable original cost or the fair value under G.S. 62-133.1A of the public utility's property used and useful, or to be used and useful within a reasonable time after the test period, in providing the service rendered to the public within the State, less that portion of the cost that has been consumed by previous use recovered by depreciation expense. In addition, construction work in progress may be included in the cost of the public utility's property under any of the following circumstances:
a. To the extent the Commission considers inclusion in the public interest and necessary to the financial stability of the utility in question, reasonable and prudent expenditures for construction work in progress may be included, subject to the provisions of subdivision (4a) of this subsection.
b. For baseload electric generating facilities, reasonable and prudent expenditures shall be included pursuant to subdivisions (2) or (3) of G.S. 62-110.1(f1), whichever applies, subject to the provisions of subdivision (4a) of this subsection.
c. For baseload electric generating facilities, if the Commission determines there is an overall cost-savings for customers over the life of the generating facility and a baseload electric generating facility has been subject to an annual ongoing review process pursuant to G.S. 62-110.1(f), the Commission shall, upon determining through the ongoing review process that the expenditures were reasonably and prudently incurred, allow an increase in base rates outside of the rate-making processes established under this section or G.S. 62-133.16 to reflect solely the financing costs on such reasonable and prudent expenditures, with the increase being effective 30 days after the Commission's order finding that the expenditures were reasonable and prudent and allocated on a demand basis among customer classes. Any recovery authorized pursuant to this sub-subdivision shall be limited to those financing costs accrued on actual, reasonable, and prudent construction costs, after taking into account any direct customer contributions actually received that offset such construction costs, up to the estimated construction cost estimate approved by the Commission or later amended by the Commission pursuant to G.S. 62-110.1(e). If applicable, any revenues actually received from customers participating in a Commission-approved customer program shall be used to reduce the construction costs of the baseload electric generating facility and thereby proportionately reduce the amount of financing costs recovered hereunder. In the event the Commission approves cancellation of a generating facility for which financing costs have been recovered pursuant to this sub-subdivision, then: (i) as of the date the Commission approves cancellation of the construction of the generating facility, the electric public utility shall cease recovery of such financing costs pursuant to this sub-subdivision; and (ii) all costs determined by the Commission pursuant to G.S. 62-110.1(f) to have been imprudently incurred shall be disallowed and shall not be recovered from customers. With respect to natural gas baseload electric generating facilities, the authorization to recover financing costs pursuant to this sub-subdivision shall sunset as of December 31, 2033, for all construction costs incurred after December 31, 2033, but continued recovery of financing costs on construction costs for natural gas baseload electric generating facilities incurred prior to December 31, 2033, shall be permitted subject to all conditions of this sub-subdivision.
(1a) Apply the rate of return established under subdivision (4) of this subsection to rights-of-way acquired through agreements with the Department of Transportation pursuant to G.S. 136-19.5(a) if acquisition is consistent with a definite plan to provide service within five years of the date of the agreement and if such right-of-way acquisition will result in benefits to the ratepayers. If a right-of-way is not used within a reasonable time after the expiration of the five-year period, it may be removed from the rate base by the Commission when rates for the public utility are next established under this section.
(2) Estimate such public utility's revenue under the present and proposed rates.
(3) Ascertain such public utility's reasonable operating expenses, including actual investment currently consumed through reasonable actual depreciation.
(4) Fix such rate of return on the cost of the property ascertained pursuant to subdivision (1) of this subsection as will enable the public utility by sound management to produce a fair return for its shareholders, considering changing economic conditions and other factors, including, but not limited to, the inclusion of construction work in progress in the utility's property under sub-subdivision b. of subdivision (1) of this subsection, as they then exist, to maintain its facilities and services in accordance with the reasonable requirements of its customers in the territory covered by its franchise, and to compete in the market for capital funds on terms that are reasonable and that are fair to its customers and to its existing investors.
(4a) Require each public utility to discontinue capitalization of the composite carrying cost of capital funds used to finance construction (allowance for funds) on the construction work in progress included in its rate based upon the effective date of the first and each subsequent general rate order issued with respect to it after the effective date of this subsection; allowance for funds may be capitalized with respect to expenditures for construction work in progress not included in the utility's property upon which the rates were fixed. In determining net operating income for return, the Commission shall not include any capitalized allowance for funds used during construction on the construction work in progress included in the utility's rate base.
(5) Fix such rates to be charged by the public utility as will earn in addition to reasonable operating expenses ascertained pursuant to subdivision (3) of this subsection the rate of return fixed pursuant to subdivisions (4) and (4a) on the cost of the public utility's property ascertained pursuant to subdivisions (1) and (1a) of this subsection.
(c) The original cost of the public utility's property, including its construction work in progress, shall be determined as of the end of the test period used in the hearing and the probable future revenues and expenses shall be based on the plant and equipment in operation at that time. If the public utility elects to establish rate base using fair value, the fair value determination of the public utility's property shall be made as provided in G.S. 62-133.1A, and the probable future revenues and expenses shall be based on the plant and equipment in operation at the end of the test period. The test period shall consist of 12 months' historical operating experience prior to the date the rates are proposed to become effective, but the Commission shall consider such relevant, material and competent evidence as may be offered by any party to the proceeding tending to show actual changes in costs, revenues or the cost of the public utility's property used and useful, or to be used and useful within a reasonable time after the test period, in providing the service rendered to the public within this State, including its construction work in progress, which is based upon circumstances and events occurring up to the time the hearing is closed, provided that the public utility has provided notice of the potential for such change at least 60 days prior to the start of the hearing. In setting the electric public utility's authorized rate of return on equity, the Commission shall consider any increased or decreased risk to either the electric public utility or its ratepayers that may result from recovery of financing costs pursuant to subdivision (1) of subsection (b) of this section.
(d) The Commission shall consider all other material facts of record that will enable it to determine what are reasonable and just rates.
(e) The fixing of a rate of return shall not bar the fixing of a different rate of return in a subsequent proceeding.
(f) Repealed by Session Laws 1991, c. 598, s. 7.
(g) Reserved.
(h) Repealed by Session Laws 1998-128, s. 4, effective September 4, 1998. (1899, c. 164, s. 2, subsec. 1; Rev., s. 1104; C.S., s. 1068; 1933, c. 134, s. 8; 1941, c. 97; 1963, c. 1165, s. 1; 1971, c. 1092; 1973, c. 956, s. 1; c. 1041, s. 1; 1975, c. 184, s. 2; 1977, c. 691, ss. 2, 3; 1981, c. 476; 1981 (Reg. Sess., 1982), c. 1197, s. 6; 1985, c. 676, s. 15(2); 1989 (Reg. Sess., 1990), c. 962, s. 4; 1991, c. 598, s. 7; 1998-128, s. 4; 2007-397, s. 8; 2018-51, s. 1; 2025-78, s. 2(b).)
Notes of Decisions
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
· cites it 162× “By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
State Ex Rel. Utils. Comm'n v. Gen. Tel. Co. of the Se., 189 S.E.2d 705 (N.C. 1972).
· cites it 51× “Normally, when the grantee sells its business to another company, the monopolistic franchise commands a substantial price, over and above the exchange value of the physical properties transferred with it.”
State Ex Rel. Utils. Comm'n v. Carolina Util. Customers Ass'n, 333 S.E.2d 259 (N.C. 1985).
· cites it 42× “See N.C.Gen.Stat. § 62-133 (1982). Such benefits will inure to these customers only if and when the two Catawba units are completed and thereby become available as backup suppliers of power in the event the McGuire station is unable to supply power to Duke's retail ratepayers.”
State Ex Rel. Utils. Comm'n v. Conservation Council, 320 S.E.2d 679 (N.C. 1984).
· cites it 30× “The appellants contend that the final order of the Commission falls short of this standard because its finding of Fact *62 Number 7 is simply a recitation of the factors in G.S. § 62-133 (b)(1). 1 We disagree. The purpose of the findings required by G.”
State Ex Rel. Utils. Comm'n v. Pub. Staff, 343 S.E.2d 898 (N.C. 1986).
· cites it 26× “According to the Public Staff, this "mismatch" improperly distorts the ratio of expenses to revenue and the test year concept of N.C.G.S. § 62-133(c). Secondly, the Public Staff argues that once the Commission used the 1985 data in calculating expenses, it was required under N.”
State ex rel. Utils. Comm'n v. Att'y Gen., 739 S.E.2d 541 (N.C. 2013).
· cites it 23× “This Court previously has set forth the procedure that the Commission must follow when making an ROE determination: In finding essential, ultimate facts, the Commission must consider and make its determination based upon all factors particularized in section 62-133, including…”
State Ex Rel. Utils. Comm'n v. Nantahala Power & Light Co., 332 S.E.2d 397 (N.C. 1985).
· cites it 18× “Chapter 62, the Commission is authorized to conduct hearings to investigate the propriety of proposed rate changes and to make such orders with regard to the proposed rate as may be just and reasonable.”
State Ex Rel. Utils. Comm'n v. Edmisten, 230 S.E.2d 651 (N.C. 1976).
· cites it 12× “It would seem entirely feasible to determine all these expenses per Kwh, month by month, by relatively simple, speedy, inexpensive and reasonably accurate accounting techniques, leaving the rate base and the fair rate of return thereon for much less frequent determination by the…”
— N.C. Gen. Stat. § 62-133(a) — 20 cases
State Ex Rel. Utils. Comm'n v. Nantahala Power & Light Co., 332 S.E.2d 397 (N.C. 1985).
“Chapter 62, the Commission is authorized to conduct hearings to investigate the propriety of proposed rate changes and to make such orders with regard to the proposed rate as may be just and reasonable.”
State ex rel. Utils. Comm'n v. Att'y Gen., 739 S.E.2d 541 (N.C. 2013).
“This Court previously has set forth the procedure that the Commission must follow when making an ROE determination: In finding essential, ultimate facts, the Commission must consider and make its determination based upon all factors particularized in section 62-133, including…”
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
“By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
— N.C. Gen. Stat. § 62-133(a)(4) — 1 case
— N.C. Gen. Stat. § 62-133(b) — 22 cases
State Ex Rel. Utils. Comm'n v. Gen. Tel. Co. of the Se., 189 S.E.2d 705 (N.C. 1972).
“Normally, when the grantee sells its business to another company, the monopolistic franchise commands a substantial price, over and above the exchange value of the physical properties transferred with it.”
State Ex Rel. Utils. Comm'n v. Edmisten, 230 S.E.2d 651 (N.C. 1976).
“It would seem entirely feasible to determine all these expenses per Kwh, month by month, by relatively simple, speedy, inexpensive and reasonably accurate accounting techniques, leaving the rate base and the fair rate of return thereon for much less frequent determination by the…”
State Ex Rel. Utils. Comm'n v. Conservation Council, 320 S.E.2d 679 (N.C. 1984).
“The appellants contend that the final order of the Commission falls short of this standard because its finding of Fact *62 Number 7 is simply a recitation of the factors in G.S. § 62-133 (b)(1). 1 We disagree. The purpose of the findings required by G.”
— N.C. Gen. Stat. § 62-133(b)(1) — 18 cases
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
“By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
— N.C. Gen. Stat. § 62-133(b)(1a) — 2 cases
— N.C. Gen. Stat. § 62-133(b)(2) — 2 cases
State Ex Rel. Utils. Comm'n v. Carolina Util. Customers Ass'n, 333 S.E.2d 259 (N.C. 1985).
“See N.C.Gen.Stat. § 62-133 (1982). Such benefits will inure to these customers only if and when the two Catawba units are completed and thereby become available as backup suppliers of power in the event the McGuire station is unable to supply power to Duke's retail ratepayers.”
— N.C. Gen. Stat. § 62-133(b)(3) — 12 cases
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
“By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
State Ex Rel. Utils. Comm'n v. Conservation Council, 320 S.E.2d 679 (N.C. 1984).
“The appellants contend that the final order of the Commission falls short of this standard because its finding of Fact *62 Number 7 is simply a recitation of the factors in G.S. § 62-133 (b)(1). 1 We disagree. The purpose of the findings required by G.”
— N.C. Gen. Stat. § 62-133(b)(4) — 27 cases
State ex rel. Utils. Comm'n v. Att'y Gen., 739 S.E.2d 541 (N.C. 2013).
“This Court previously has set forth the procedure that the Commission must follow when making an ROE determination: In finding essential, ultimate facts, the Commission must consider and make its determination based upon all factors particularized in section 62-133, including…”
— N.C. Gen. Stat. § 62-133(b)(4a) — 1 case
State Ex Rel. Utils. Comm'n v. Conservation Council, 320 S.E.2d 679 (N.C. 1984).
“The appellants contend that the final order of the Commission falls short of this standard because its finding of Fact *62 Number 7 is simply a recitation of the factors in G.S. § 62-133 (b)(1). 1 We disagree. The purpose of the findings required by G.”
— N.C. Gen. Stat. § 62-133(b)(5) — 9 cases
State Ex Rel. Utils. Comm'n v. Carolina Util. Customers Ass'n, 333 S.E.2d 259 (N.C. 1985).
“See N.C.Gen.Stat. § 62-133 (1982). Such benefits will inure to these customers only if and when the two Catawba units are completed and thereby become available as backup suppliers of power in the event the McGuire station is unable to supply power to Duke's retail ratepayers.”
— N.C. Gen. Stat. § 62-133(b)(l) — 19 cases
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
“By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
State Ex Rel. Utils. Comm'n v. Conservation Council, 320 S.E.2d 679 (N.C. 1984).
“The appellants contend that the final order of the Commission falls short of this standard because its finding of Fact *62 Number 7 is simply a recitation of the factors in G.S. § 62-133 (b)(1). 1 We disagree. The purpose of the findings required by G.”
State Ex Rel. Utils. Comm'n v. Nantahala Power & Light Co., 332 S.E.2d 397 (N.C. 1985).
“Chapter 62, the Commission is authorized to conduct hearings to investigate the propriety of proposed rate changes and to make such orders with regard to the proposed rate as may be just and reasonable.”
— N.C. Gen. Stat. § 62-133(c) — 15 cases
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
“By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
State Ex Rel. Utils. Comm'n v. Pub. Staff, 343 S.E.2d 898 (N.C. 1986).
“According to the Public Staff, this "mismatch" improperly distorts the ratio of expenses to revenue and the test year concept of N.C.G.S. § 62-133(c). Secondly, the Public Staff argues that once the Commission used the 1985 data in calculating expenses, it was required under N.”
State Ex Rel. Utils. Comm'n v. Carolina Util. Customers Ass'n, 333 S.E.2d 259 (N.C. 1985).
“See N.C.Gen.Stat. § 62-133 (1982). Such benefits will inure to these customers only if and when the two Catawba units are completed and thereby become available as backup suppliers of power in the event the McGuire station is unable to supply power to Duke's retail ratepayers.”
— N.C. Gen. Stat. § 62-133(d) — 16 cases
State Ex Rel. Utils. Comm'n v. Duke Power Co., 287 S.E.2d 786 (N.C. 1982).
“By the adoption of this statute, the legislature intended to establish an overall scheme for fixing rates, and it must be interpreted in its entirety in order to comply with the legislative intent. In this instance the more appropriate principle of statutory construction is…”
State Ex Rel. Utils. Comm'n v. Pub. Staff, 343 S.E.2d 898 (N.C. 1986).
“According to the Public Staff, this "mismatch" improperly distorts the ratio of expenses to revenue and the test year concept of N.C.G.S. § 62-133(c). Secondly, the Public Staff argues that once the Commission used the 1985 data in calculating expenses, it was required under N.”
— N.C. Gen. Stat. § 62-133(e) — 1 case
— N.C. Gen. Stat. § 62-133(f) — 2 cases
Annotations are extracted automatically from the opinions in the
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treatment. Dots show Syfertize treatment of the citing case itself.