NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 780

SENATE BILL 420

 

 

AN ACT TO ESTABLISH AN EXPANSION POLICY FOR ELECTRIC UTILITY PLANTS IN NORTH CAROLINA, TO PROMOTE GREATER EFFICIENCY IN THE USE OF ALL EXISTING PLANTS, AND TO REDUCE ELECTRICITY COSTS BY REQUIRING GREATER CONSERVATION OF ELECTRICITY.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 62-110.1 is hereby amended by adding the following new subsections:

"(c)       The commission shall develop, publicize, and keep current an analysis of the long-range needs for expansion of facilities for the generation of electricity in North Carolina, including its estimate of the probable future growth of the use of electricity, the probable needed generating reserves, the extent, size, mix and general location of generating plants and arrangements for pooling power to the extent not regulated by the Federal Power Commission and other arrangements with other utilities and energy suppliers to achieve maximum efficiencies for the benefit of the people of North Carolina, and shall consider such analysis in acting upon any petition by any utility for construction. In developing such analysis, the commission shall confer and consult with the public utilities in North Carolina, the utilities commissions or comparable agencies of neighboring states, the Federal Power Commission, the Southern Growth Policies Board, and other agencies having relevant information and may participate as it deems useful in any joint boards investigating generating plant sites or the probable need for future generating facilities. In addition to such reports as public utilities may be required by statute or rule of the commission to file with the commission, any such utility in North Carolina may submit to the commission its proposals as to the future needs for electricity to serve the people of the State or the area served by such utility, and insofar as practicable, each such utility and the Attorney General may attend or be represented at any formal conference conducted by the commission in developing a plan for the future requirements of electricity for North Carolina or this region. In the course of making the analysis and developing the plan, the commission shall conduct one or more public hearings. Each year, the commission shall submit to the Governor and to the appropriate committees of the General Assembly a report of its analysis and plan, the progress to date in carrying out such plan, and the program of the commission for the ensuing year in connection with such plan.

(d)        In acting upon any petition for the construction of any facility for the generation of electricity, the commission shall take into account the applicant's arrangements with other electric utilities for interchange of power, pooling of plant, purchase of power and other methods for providing reliable, efficient and economical electric service.

(e)        As a condition for receiving such certificate the applicant shall file an estimate of construction costs in such detail as the commission may require. The commission shall hold a public hearing on each such application and no certificate shall be granted unless the commission has approved the estimated construction costs and made a finding that such construction will be consistent with the commission's plan for expansion of electric generating capacity.

(f)         The commission shall maintain an on-going review of such construction as it proceeds and the applicant shall submit each year during construction a progress report and any revisions in the cost estimates for the construction."

Sec. 2.  Article 7 of Chapter 62 of the General Statutes is hereby amended by adding the following new sections:

"§ 62-155.  Electric power rates to promote conservation. — (a) It is the policy of the State to conserve energy through efficient utilization of all resources.

(b)        If the Utilities Commission after study determines that conservation of electricity and economy of operation for the public utility will be furthered thereby, it shall direct each electric public utility to notify its customers by the most economical means available of the anticipated periods in the near future when its generating capacity is likely to be near peak demand and urge its customers to refrain from using electricity at these peak times of the day. In addition, each public utility shall, insofar as practicable, investigate, develop, and put into service, with approval of the commission, procedures and devices that will temporarily curtail or cut off certain types of appliances or equipment for short periods of time whenever an unusual peak demand threatens to overload its system.

(c)        The commission itself shall inform the general public as to the necessity for controlling demands for electricity at peak periods and shall require the several electric public utilities to carry out its program of information and education in any reasonable manner.

(d)        The commission shall study the feasibility of and, if found to be practicable, just and reasonable, make plans for the public utilities to bill customers by a system of non-discriminatory peak pricing, with incentive rates for off-peak use of electricity charging more for peak periods than for off-peak periods to reflect the higher cost of providing electric service during periods of peak demand on the utility system. No order regarding such rates shall be issued by the commission without a prior public hearing, whether in a single electric utility company rate case or in general orders relating to two or more or all electric utilities.

(e)        No Class A electric public utility shall apply for any rate change unless it files at the time of the application a report of the probable effect of the proposed rates on peak demand on it and its estimate of the kilowatt hours of electricity that will be used by its customers during the ensuing one year and five years from the time such rates are proposed to become effective."

Sec. 3.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 24th day of June, 1975.