S*696 Session 105 (1983-1984)
S*0696(Rat #0503, Act #0431 of 1984) General Bill, By T.E. Smith, R.H. Ellis,
Holland, Land, Leatherman, Leventis, P.B. McLeod, Moore, H. Rubin and
N.C. Russell
Similar(H 3381)
A Bill to amend Section 58-27-650, Code of Laws of South Carolina, 1976,
relating to electric utilities and cooperatives and reassignment of service
areas; Section 58-27-670, relating to electric service in areas becoming part
of municipalities; Section 58-27-1280, relating to construction or extension
of electric utilities and cooperatives which causes unreasonable interference
of electric service; 58-27-1360, relating to acquisition of property of an
electric service supplier when area is annexed to or incorporated as a
municipality, so as to authorize the Public Service Commission to administer
uniform service rights and responsibilities of electrical suppliers throughout
the State including specific responsibilities within municipal corporate
limits; and by adding Section 58-27-680 so as to provide that the continuation
of electric service under Section 58-27-670 must not be construed as affecting
the authority of an electric supplier pursuant to Section 58-27-620 to service
premises which are already receiving electric service from a municipal
electric system, whether inside or outside municipal boundaries.-amended title
01/18/84 Senate Introduced and read first time SJ-399
01/18/84 Senate Referred to Committee on Judiciary SJ-399
03/28/84 Senate Committee report: Favorable with amendment
Judiciary SJ-1215
04/03/84 Senate Special order SJ-1273
04/04/84 Senate Amended SJ-1283
04/04/84 Senate Read second time SJ-1284
04/04/84 Senate Ordered to third reading with notice of
amendments SJ-1284
04/05/84 Senate Special order SJ-1352
04/10/84 Senate Debate interrupted SJ-1364
04/11/84 Senate Read third time and sent to House SJ-1386
04/12/84 House Introduced and read first time HJ-2406
04/12/84 House Referred to Committee on Judiciary HJ-2406
04/26/84 House Recalled from Committee on Judiciary HJ-2750
05/02/84 House Objection by Rep. Toal, P. Bradley, Freeman,
Hughston & Gulledge HJ-2829
05/03/84 House Objection withdrawn by Rep. Gulledge HJ-2883
05/08/84 House Objection withdrawn by Rep. P. Bradley HJ-2931
05/08/84 House Objection by Rep. Aydlette HJ-2931
05/10/84 House Objection withdrawn by Rep. Toal & Freeman HJ-3033
05/10/84 House Objection by Rep. McTeer, T. Huff, McAbee,
Carnell & Washington HJ-3033
05/23/84 House Special order, set for Thurs 5/24/84 after call
of uncont cal (Under H 3941) HJ-3285
05/24/84 House Read second time HJ-3314
05/29/84 House Read third time and enrolled HJ-3448
05/31/84 Ratified R 503
06/06/84 Signed By Governor
06/06/84 Effective date 06/06/84
06/06/84 Act No. 431
06/18/84 Copies available
(A431, R503, S696)
AN ACT TO AMEND SECTION 58-27-650, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO ELECTRIC UTILITIES AND COOPERATIVES AND REASSIGNMENT OF SERVICE
AREAS; SECTION 58-27-670, RELATING TO ELECTRIC SERVICE IN AREAS BECOMING PART OF
MUNICIPALITIES; SECTION 58-27-1280, RELATING TO CONSTRUCTION OR EXTENSION OF
ELECTRICAL UTILITIES AND COOPERATIVES WHICH CAUSES UNREASONABLE INTERFERENCE OF
ELECTRIC SERVICE; SECTION 58-27-1360, RELATING TO ACQUISITION OF PROPERTY OF AN
ELECTRICAL SERVICE SUPPLIER WHEN AN AREA IS ANNEXED TO OR INCORPORATED AS A
MUNICIPALITY, SO AS TO AUTHORIZE THE PUBLIC SERVICE COMMISSION TO ADMINISTER
UNIFORM SERVICE RIGHTS AND RESPONSIBILITIES OF ELECTRICAL SUPPLIERS THROUGHOUT
THE STATE INCLUDING SPECIFIC RESPONSIBILITIES WITHIN MUNICIPAL CORPORATE LIMITS;
AND BY ADDING SECTION 58-27-680 SO AS TO PROVIDE THAT THE CONTINUATION OF
ELECTRIC SERVICE UNDER SECTION 58-27-670 MUST NOT BE CONSTRUED AS AFFECTING THE
AUTHORITY OF AN ELECTRIC SUPPLIER PURSUANT TO SECTION 58-27-620 TO SERVICE
PREMISES WHICH ARE ALREADY RECEIVING ELECTRIC SERVICE FROM A MUNICIPAL ELECTRIC
SYSTEM, WHETHER INSIDE OR OUTSIDE MUNICIPAL BOUNDARIES.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly finds that assignment of electric service
territories by the Public Service Commission has aided the State in overseeing
the public interest of its citizens by uniformly regulating the responsibilities
and rights of sellers of electricity.
The General Assembly further finds that unnecessary duplication of electrical
facilities increases rates and charges to South Carolina citizens and that the
assignment of electric service territories has decreased duplication.
The General Assembly further finds that incorporation of new municipalities and
annexation by existing municipalities alter assignments of service areas
originally made for public convenience and necessity without consideration for
the impact of the change on persons living outside the municipality.
Therefore, in accordance with the powers granted the General Assembly under
Article IX, Section 1, and Article VIII, Section 14, of the Constitution of this
State, it is declared the policy of South Carolina to maintain the assignment of
electric service territories by the Public Service Commission over areas having
been assigned electric suppliers under Section 58-27-640, even when the area
becomes incorporated or annexed to an existing city or town.
Public Service Commission authorized to reassign
SECTION 2. Section 58-27-650 of the 1976 Code is amended to read:
"Section 58-27-650. (A) The Public Service Commission, upon agreement of
the affected electric suppliers, is authorized to reassign to one electric
supplier any area or portion of the area assigned to another and, notwithstanding
the lack of an agreement, the commission upon its own motion or upon complaint
by any electric supplier or county or consolidated political subdivision within
this State, after notice to all affected electric suppliers and after hearing,
if a hearing is requested by any affected electric supplier or any other
interested party, is authorized to reassign to one electric supplier any area or
portion of the area assigned to another, except premises being served by the
other electric supplier or to which any of its facilities for service are
attached and except the portions of the area as are within three hundred feet of
the other electric supplier's lines, upon a finding that the reassignment is
required by public convenience and necessity. In determining whether public
convenience and necessity require the reassignment, the commission shall consider
among other things the adequacy and dependability of the service of the affected
electric suppliers, but may not consider rate differentials between the electric
suppliers.
(B) The Public Service Commission has the authority and jurisdiction, if a
hearing is requested by any affected electric supplier or municipality, to order
any electric supplier to cease and desist from furnishing electric service inside
an assigned area which has been annexed into a municipality upon a finding that
service to existing consumers by the electric supplier which is then furnishing
service, or which has the right to furnish service to the premises, is or will
be inadequate or undependable, and cannot or will not be made adequate or
dependable within a reasonable time, or that the rates, conditions of service or
service regulations, applied to the consumers, are unreasonably discriminatory.
In determining the adequacy and dependability of service or whether rates,
conditions of service, or service regulations are unreasonably discriminatory,
the commission may not consider rate differentials between the affected electric
suppliers or municipality or differences in the provisions of utility service
other than electrical services. Upon a finding of inadequate, undependable, or
unreasonably discriminatory service, the commission shall order necessary
improvements or corrections or the sale of the facilities in accordance with
Section 58-27-1360."
Electric service
SECTION 3. Section 58-27-670 of the 1976 Code is amended to read:
"Section 58-27-670. The furnishing of electric service in any area which
becomes a part of any municipality after the effective date of this section,
either by annexation or incorporation, whether or not the area, or any portion
of the area has been assigned pursuant to Section 58-27-640, is subject to the
provisions of Sections 58-27-1360 and 33-49-250, and any provisions of this
article. No poles, wires, or other facilities of electric suppliers using the
streets, alleys, or other public ways within the corporate limits of a
municipality may be constructed by an electric supplier unless the consent of the
municipal governing body is first obtained. Annexation may not be construed to
increase, decrease, or affect any other right or responsibility a municipality,
rural electric cooperative, or electrical utility may have with regard to
supplying electric service in areas assigned by the Public Service Commission in
accordance with Chapter 27 of Title 58."
Interference with service
SECTION 4. Section 58-27-1280 of the 1976 Code is amended to read: "Section
58-27-1280. If any electrical utility, rural electric cooperative, or any
governmental body or agency which owns or operates equipment or facilities for
generating, transmitting, delivering, or furnishing electricity in this State,
in constructing or extending its lines, plant, or system, unreasonably interferes
or is about to interfere unreasonably with the service or system of any other
electrical utility, rural electric cooperative, or governmental body or agency,
the commission on complaint of the electrical utility, rural electric
cooperative, or governmental body or agency complaining to be injuriously
affected may, after hearing, make orders and prescribe terms and conditions in
harmony with this chapter as are just and reasonable including the removal of
lines and the issuance of a cease and desist order to the electrical utility,
rural electric cooperative, or governmental body or agency causing the
interference."
Acquisition of property of electrical supplier
SECTION 5. Section 58-27-1360 of the 1976 Code is amended to read:
"Section 58-27-1360. When any area in which electric service is being
furnished at wholesale or retail by a supplier of electricity including municipal
corporations, public or governmental agencies, and rural electric cooperatives,
is incorporated as a city or town or is annexed to an existing incorporated city
or town, the city or town or, with the consent of the governing body of such city
or town, an electrical utility furnishing electricity in that city or town by
franchise, contract, permit, or other consent, have the right to acquire the
property of a supplier of electricity brought within corporate limits upon a
finding by the commission pursuant to subsection (B) of section 58-27-650 that
inadequate, undependable, or unreasonably discriminatory service is being
provided and upon payment of just compensation. The supplier of electricity
having property or facilities in areas incorporated as a city or town or annexed
into an existing city or town has the right to compel the city or town or an
electrical utility operating in that city or town pursuant to a franchise,
contract, permit, or other consent to purchase the facilities and properties and
to compel the payment of just compensation. The city or town may not elect to
purchase nor give its consent to a purchase by another supplier of electricity
until the commission has ruled upon adequacy of service, and it has first given
ten days' written notice to the suppliers concerned of its intention to purchase
or consent to the purchase of property situate within the limits of the
municipality used for providing electric service in the municipality.
Within ten days after notice is given that the right to acquire or sell the
facilities and properties is exercised, the parties shall each select a
representative in order to reach an agreement on just compensation. The selling
supplier shall make its pertinent books and records available to the
representative of the purchasing supplier. If the representatives are unable to
agree on just compensation within a period of sixty days, they shall jointly
request the resident judge of the judicial circuit in which the facilities and
properties to be purchased are situate to submit a list of five disinterested
persons from which the selection of an arbiter must be made. The resident judge
shall submit the list within five days after receipt of a request. Within five
days after receipt of the list from the resident judge, the representatives of
the parties shall meet, and each party has alternate strikes, the first strike
to be chosen by lot, until one person remains on the list, and this person is the
arbiter, whose expenses and fee for service rendered, as assessed by him against
either or both parties, are subject to review by the resident judge. The arbiter
shall give each representative an opportunity to be heard, and his decision on
just compensation, including reasonable expenses, engineers' and attorneys' fees
justifiably incurred by the selling supplier as allowed by the arbiter, is final
and binding on the parties.
If either party fails to act during the time limitation set forth above for the
accomplishment of a particular step within this procedure without the consent of
the other party, then the party failing to act forfeits his rights in the
selection of an arbiter and his rights to be heard by the arbiter.
For the purposes of this section, 'just compensation' consists of the total of
the following:
(a) Reproduction cost, new, of the facilities being acquired, less depreciation
on a straight-line basis;
(b) Cost of reintegrating the system of the selling supplier after detaching
the portion to be sold (including allowance for idle substation, transmission,
and generation capacity caused in the remaining portion of the system or of any
supplying systems, the cost of which is borne in whole or in part by the selling
system,) and;
(c) An additional amount, in recognition of the loss of revenue of greater than
average value, equivalent to two and one-half times the gross revenue derived by
the selling supplier from the consumers on the lines being acquired during the
twelve months next preceding the first of the month in which notice of purchase
was given the selling supplier.
The total sum paid by an electrical utility or municipality under the
provisions of this section for acquisition of facilities is the original cost of
the facilities to be entered on its books and records for all accounting
purposes, including rate making."
Continuation of electric service
SECTION 6. Article 5 of Chapter 27 of Title 58 of the 1976 Code is amended by
adding:
"Section 58-27-680. The continuation of electric service under Section
58-27-670 must not be construed as affecting the authority of an electric
supplier pursuant to Section 58-27-620 to serve premises which are already
receiving electric service from a municipal electric system, whether inside or
outside municipal boundaries."
Time effective
SECTION 7. This act shall take effect upon approval by the Governor. |