H*4545 Session 111 (1995-1996)
H*4545(Rat #0425, Act #0348 of 1996) General Bill, By Klauber, Allison, Askins,
Bailey, Carnell, Cato, C.D. Chamblee, Davenport, L.L. Elliott, R.C. Fulmer,
Gamble, Haskins, R.J. Herdklotz, Kennedy, Knotts, Koon, Lanford, Law, Limehouse,
Littlejohn, Mason, Quinn, Rice, Riser, Sharpe, Simrill, D. Smith, R. Smith,
Tripp, Vaughn, Whatley, Witherspoon, S.S. Wofford, H.G. Worley, D.A. Wright,
W.J. Young and Young-Brickell
A Bill to amend Section 58-27-865, Code of Laws of South Carolina, 1976,
relating to electric utilities, rates and charges, estimates of fuel costs,
reports, and adjustment of difference between actual and estimated costs, so
as to, among other things, define "fuel cost" for purposes of this Section,
delete certain language, and provide that there shall exist a rebuttable
presumption that an electrical utility made every reasonable effort to
minimize cost associated with the operation of its nuclear generation facility
or system, as applicable, if the utility achieved a net capacity factor of
ninety-two and one-half percent or higher during the period under
review.-amended title
02/06/96 House Introduced and read first time HJ-173
02/06/96 House Referred to Committee on Labor, Commerce and
Industry HJ-173
04/24/96 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-2
05/01/96 House Amended HJ-11
05/01/96 House Read second time HJ-13
05/02/96 House Read third time and sent to Senate HJ-7
05/02/96 Senate Introduced and read first time SJ-39
05/02/96 Senate Referred to Committee on Judiciary SJ-39
05/08/96 Senate Committee report: Favorable Judiciary SJ-15
05/09/96 Senate Read second time SJ-95
05/09/96 Senate Unanimous consent for third reading on next
legislative day SJ-95
05/10/96 Senate Read third time and enrolled SJ-1
05/23/96 Ratified R 425
05/29/96 Signed By Governor
05/29/96 Effective date 05/29/96
06/06/96 Copies available
06/06/96 Act No. 348
(A348, R425, H4545)
AN ACT TO AMEND SECTION 58-27-865, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO ELECTRIC UTILITIES,
RATES AND CHARGES, ESTIMATES OF FUEL COSTS, REPORTS,
AND ADJUSTMENT OF DIFFERENCE BETWEEN ACTUAL AND
ESTIMATED COSTS, SO AS TO, AMONG OTHER THINGS,
DEFINE "FUEL COST" FOR PURPOSES OF THIS
SECTION, DELETE CERTAIN LANGUAGE, AND PROVIDE THAT
THERE SHALL EXIST A REBUTTABLE PRESUMPTION THAT AN
ELECTRICAL UTILITY MADE EVERY REASONABLE EFFORT TO
MINIMIZE COST ASSOCIATED WITH THE OPERATION OF ITS
NUCLEAR GENERATION FACILITY OR SYSTEM, AS
APPLICABLE, IF THE UTILITY ACHIEVED A NET CAPACITY
FACTOR OF NINETY-TWO AND ONE-HALF PERCENT OR
HIGHER DURING THE PERIOD UNDER REVIEW.
Be it enacted by the General Assembly of the State of South
Carolina:
"Fuel cost" defined; rebuttable presumption; etc.
SECTION 1. Section 58-27-865 of the 1976 Code is amended to
read:
"Section 58-27-865. (A) The words `fuel cost' as used in this
section shall include the cost of fuel, fuel costs related to purchased
power, and the cost of SO2 emission allowances as used and shall be
reduced by the net proceeds of any sales of SO2 emission allowances by
the utility.
(B) The commission shall direct each electrical utility which incurs
fuel cost for the sale of electricity to submit to the commission, within
such time and in such form as the commission may designate, its
estimates of fuel costs for the next twelve months. The commission may
hold a public hearing at any time between the twelve-month reviews to
determine whether an increase or decrease in the base rate amount
designed to recover fuel cost should be granted. Upon investigation of
the estimate and conducting public hearings in accordance with law, the
commission shall direct each company to place in effect in its base rate
an amount designed to recover, during the succeeding twelve months, the
fuel costs determined by the commission to be appropriate for that
period, adjusted for the over-recovery or under-recovery from the
preceding twelve-month period. The commission shall direct the electrical
utilities to send notice to the utility customers with the antecedent billing
of the time and place of the public hearings to be held every twelve
months, and the commission shall again direct the electrical utilities to
send notice to the utility customers with the next billing if the utility is
granted a rate increase by the commission.
(C) The commission shall direct the electrical utilities to account
monthly for the differences between the recovery of fuel costs through
base rates and the actual fuel costs experienced, by booking the
difference to unbilled revenues with a corresponding deferred debit or
credit, the balance of which will be included in the projected fuel cost
component of the base rates for the succeeding period. The commission
shall direct the electrical utilities to submit monthly reports of fuel costs
and monthly reports of all scheduled and unscheduled outages of
generating units with a capacity of one hundred megawatts or greater.
(D) Upon request by the commission staff, the electrical utilities, or
the Consumer Advocate, a public hearing must be held by the
commission at any time between the twelve-month reviews to determine
whether an increase or decrease in the base rate amount designed to
recover fuel costs should be granted. If the request is by an electrical
utility for a rate increase, the commission shall direct the utility to send
notice of the request and hearing to all customers with the next billing,
and if the commission grants the rate request subsequent to the request
and hearing, the commission shall direct the utility to send notice of the
amount of the increase or decrease to all customers with the next
billing.
(E) The commission may offset, to the extent considered appropriate,
the cost of fuel recovered through sales of power pursuant to
interconnection agreements with neighboring electrical utilities against
fuel costs to be recovered.
(F) The commission shall disallow recovery of any fuel costs that it
finds without just cause to be the result of failure of the utility to make
every reasonable effort to minimize fuel costs or any decision of the
utility resulting in unreasonable fuel costs, giving due regard to reliability
of service, economical generation mix, generating experience of
comparable facilities, and minimization of the total cost of providing
service. There shall be a rebuttable presumption that an electrical utility
made every reasonable effort to minimize cost associated with the
operation of its nuclear generation facility or system, as applicable, if the
utility achieved a net capacity factor of ninety-two and one-half percent
or higher during the period under review. The calculation of the net
capacity factor shall exclude reasonable outage time associated with
reasonable refueling, reasonable maintenance, reasonable repair, and
reasonable equipment replacement outages; the reasonable reduced power
generation experienced by nuclear units as they approach a refueling
outage; the reasonable reduced power generation experienced by nuclear
units associated with bringing a unit back to full power after an outage;
Nuclear Regulatory Commission required testing outages unless due to
the unreasonable acts of the utility; outages found by the commission not
to be within the reasonable control of the utility; and acts of God. The
calculation also shall exclude reasonable reduced power operations
resulting from the demand for electricity being less than the full power
output of the utility's nuclear generation system. If the net capacity
factor is below ninety-two and one-half percent after reflecting the above
specified outage time, then the utility shall have the burden of
demonstrating the reasonableness of its nuclear operations during the
period under review.
(G) The commission is authorized to promulgate, in accordance with
the provisions of this section, all regulations necessary to allow the
recovery by electrical utilities of all their prudently incurred fuel costs as
precisely and promptly as possible, in a manner that tends to assure
public confidence and minimize abrupt changes in charges to
consumers."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Approved the 29th day of May, 1996. |