H 4467 Session 111 (1995-1996)
H 4467 General Bill, By Allison, Bailey, B.D. Cain, Cooper, Fleming, Jennings,
M.H. Kinon, Kirsh, Lanford, Littlejohn, McCraw, Moody-Lawrence, Phillips,
Stille, Vaughn, C.C. Wells, Whipper and Wilder
Similar(S 1054)
A Bill to amend Section 6-23-60, Code of Laws of South Carolina, 1976,
relating to the filing of petition prior to the acquisition of a project by a
joint agency, so as to further allow the Public Service Commission to approve
certain types of projects which consist of certain kinds of electric
generating plants and provide that the Commission's approval is not necessary
for projects for transmission, distribution, or transformation of electric
power and energy; to amend Section 6-23-90, relating to the rights and powers
of a joint agency, so as to delete a reference to Section 6-23-120, delete the
provision which provides for joint agencies to acquire not less than ten
percent of rated capacity from an electric supplier, adding a provision for
joint agencies to negotiate and enter contracts with any person, firm, or
corporation, within or without the State, authorizing joint agencies to enter
into contracts making them obligated to make payments required by contract
where the facilities from which services are provided are completed, operable
and operating, and that these payments are not subject to reductions and are
not conditioned upon the performance or nonperformance of any party; to amend
Section 6-23-170, relating to investments of a joint agency of monies pending
disbursement, so as to provide that the board of directors or persons
authorized to make investment decisions on behalf on joint agencies are
considered to be trustees and subject to the prudent investor standard; and to
repeal Section 6-23-120, relating to the sale of excess power or output of a
project not then required by any of the members of the joint agency.
01/18/96 House Introduced and read first time HJ-5
01/18/96 House Referred to Committee on Labor, Commerce and
Industry HJ-6
A BILL
TO AMEND SECTION 6-23-60, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE FILING OF A
PETITION PRIOR TO THE ACQUISITION OF A PROJECT BY
A JOINT AGENCY, SO AS TO FURTHER ALLOW THE
PUBLIC SERVICE COMMISSION TO APPROVE CERTAIN
TYPES OF PROJECTS WHICH CONSIST OF CERTAIN KINDS
OF ELECTRIC GENERATING PLANTS AND PROVIDE THAT
THE COMMISSION'S APPROVAL IS NOT NECESSARY FOR
PROJECTS FOR TRANSMISSION, DISTRIBUTION, OR
TRANSFORMATION OF ELECTRIC POWER AND ENERGY;
TO AMEND SECTION 6-23-90, RELATING TO THE RIGHTS
AND POWERS OF A JOINT AGENCY, SO AS TO DELETE A
REFERENCE TO SECTION 6-23-120, DELETE THE
PROVISION WHICH PROVIDES FOR JOINT AGENCIES TO
ACQUIRE NOT LESS THAN TEN PERCENT OF RATED
CAPACITY FROM AN ELECTRIC SUPPLIER, ADDING A
PROVISION FOR JOINT AGENCIES TO NEGOTIATE AND
ENTER CONTRACTS WITH ANY PERSON, FIRM, OR
CORPORATION, WITHIN OR WITHOUT THE STATE,
AUTHORIZING JOINT AGENCIES TO ENTER INTO
CONTRACTS MAKING THEM OBLIGATED TO MAKE
PAYMENTS REQUIRED BY A CONTRACT WHERE THE
FACILITIES FROM WHICH SERVICES ARE PROVIDED ARE
COMPLETED, OPERABLE AND OPERATING, AND THAT
THESE PAYMENTS ARE NOT SUBJECT TO REDUCTIONS
AND ARE NOT CONDITIONED UPON THE PERFORMANCE
OR NONPERFORMANCE OF ANY PARTY; TO AMEND
SECTION 6-23-170, RELATING TO INVESTMENTS OF A
JOINT AGENCY OF MONIES PENDING DISBURSEMENT, SO
AS TO PROVIDE THAT THE BOARD OF DIRECTORS OR
PERSONS AUTHORIZED TO MAKE INVESTMENT
DECISIONS ON BEHALF OF JOINT AGENCIES ARE
CONSIDERED TO BE TRUSTEES AND SUBJECT TO THE
PRUDENT INVESTOR STANDARD; AND TO REPEAL
SECTION 6-23-120, RELATING TO THE SALE OF EXCESS
POWER OR OUTPUT OF A PROJECT NOT THEN REQUIRED
BY ANY OF THE MEMBERS OF THE JOINT AGENCY.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 6-23-60 of the 1976 Code is amended to
read:
"Section 6-23-60. (A) Prior to the proposed
acquisition of a project for the generation or transmission of
electric power and energy by a joint agency, a petition
shall must be filed with the Public Service
Commission setting forth such the material as
deemed considered necessary to permit the Public
Service Commission to make the determination required by this
section. Notice of the filing of such the petition
shall must be given by the Public Service
Commission once a week for three consecutive weeks in a
newspaper of general circulation in the State. A hearing on
such the petition shall is to be
conducted as provided by law.
(B) The Public Service Commission shall be
is authorized to approve or disapprove the proposed
acquisition by a joint agency of a project or projects which
consists of an electric generating plant or plants and associated
facilities designed for, or capable of, operation at a capacity of
more than seventy-five megawatts, or which consist of electric
transmission lines and associated facilities of a designed operating
voltage of one hundred twenty-five kilovolts or more.
There is no requirement for approval by the Public Service
Commission for a project or projects for other transmission or
generating facilities, or for facilities for distribution or
transformation, or any of them, of electric power and energy.
In determining whether or not it is mutually
beneficial to the joint agency and an electric supplier serving the
county or counties within which any member municipalities are
located, the Public Service Commission shall take into
consideration, but shall is not be limited to,
the following:
(i)(1) the economies and efficiencies to be
achieved in constructing on a large scale, facilities for the
generation and transmission of electric power and energy;
(ii)(2) the municipalities' needs for reserve
and peaking capacity and to meet obligations under pooling and
reserve-sharing agreements reasonably related to its needs for power
and energy to which it is or may become a party;
(iii)(3) the estimated useful life of
such the project;
(iv)(4) the estimated time necessary for the
planning, development, acquisition, or construction of
such the project and the length of time required in
advance to obtain, acquire, or construct additional power
supplies;
(v)(5) the reliability and availability of
existing or alternative power supply sources and the costs of
such the existing or alternative power supply
sources; and
(vi)(6) the load forecast of capacity of a
project and the utilization of such the capacity by
the joint agency for a reasonable period of time subsequent to the
date of commercial operation of the project.
(C) Any party in interest may appeal the commission's
action pursuant to Sections 58-27-2310 to 58-27-2340 of the 1976
Code."
SECTION 2. Section 6-23-90(j)(1) of the 1976 Code is
amended to read:
"(1) To acquire by negotiated purchase or lease from an
electric supplier not less than ten percent of the rated capacity of
one or more any portion of a project or projects under
construction on the date of approval of this chapter, or on which
construction will commence subsequent to the date of approval of
this chapter, either individually or jointly with one or more
municipalities in any other state, owning electric generation,
transmission, or distribution facilities, or with any political
subdivisions or agencies of any other state and to pay all or any
part of the cost thereof of it from the proceeds of
bonds of the joint agency or from any other funds available to the
joint agency;"
SECTION 3. Section 6-23-90(o) of the 1976 Code is amended
to read:
"(o) To generate, produce, transmit, deliver, exchange,
purchase, or sell for resale only, electric power or energy,
and to enter into contracts for any or all such purposes, subject
to the provisions of Section 6-23-120 hereof;"
SECTION 4. Section 6-23-90(p) of the 1976 Code is amended
to read:
"(p) To negotiate and enter into contracts for the
purchase, exchange, interchange, wheeling, pooling, or
transmission of electric power and energy with any municipality,
any joint agency of any other state owning electric, transmission or
distribution facilities, or with any political subdivision or agencies
of any other state, any electric cooperative, any public or private
electric utility, or any state, federal or municipal agency which
owns electric generation, transmission or distribution facilities in
this State or any other state marketing, sale, or use, for
resale only, of electric power and energy with any person, firm, or
corporation, public or private, whether situate within or without the
State;"
SECTION 5. Section 6-23-90(q) of the 1976 Code is amended
to read:
"(q) To negotiate and enter into contracts for the
sale, or use of electric power and energy with any joint
agency, electric cooperative, municipality, or any political
subdivisions or agencies or any public or private electric utility of
any other state, and any joint agency, electric cooperative,
municipality, public or private electric utility, or any state or federal
agency or political subdivision thereof located within the area
generally served by the electric supplier from whom the joint
agency has purchased the Project, and any electric supplier owning
and operating nuclear electric generating facilities, subject to the
provisions of Section 6-23-120 purchase, exchange,
interchange, wheeling, pooling, transmission, marketing, sale, or
use, for resale only, of electric power and energy, with any person,
firm, or corporation, public or private, whether situate within or
without this State, and the contract may provide that the joint
agency is to be obligated to make the payments required by the
contract whether the facilities from which the contracted services
are provided, are completed, operable or operating, notwithstanding
the suspension, interruption, interference, reduction or curtailment
of the output of the facilities, or the power and energy contracted
for, and that the payments under the contract must not be subject to
any reductions, whether by offset or otherwise, and are not
conditioned upon the performance or nonperformance of any party
to the contract;"
SECTION 6. Section 6-23-170 of the 1976 Code is amended to
read:
"Section 6-23-170. The resolution authorizing the
bonds of any issue or the trust agreement securing such bonds may
provide that any of such moneys may be temporarily invested and
reinvested pending disbursements thereof and such securities and
other investments as shall be provided in such resolution or trust
agreement, and shall provide that any bank or trust company with
which such moneys shall be deposited shall act as trustee of such
moneys and shall hold and apply the same for the purposes hereof,
subject to such regulation as this chapter and such resolution or
trust agreement may provide. Notwithstanding any provision
of law to the contrary, the board of directors of joint agencies or
persons authorized to make investment decisions on behalf of joint
agencies investing public funds are considered to be trustees and
subject to the prudent investor standard. When investing,
reinvesting, purchasing, acquiring, exchanging, selling, and
managing public funds, a trustee shall act with care, skill, prudence,
and diligence under the circumstances then prevailing, that a
prudent person acting in a like capacity and familiarity with those
matters would use in the conduct of funds of a like character.
When investing, reinvesting, purchasing, acquiring, exchanging,
selling, and managing funds of a joint agency, the primary objective
of a trustee is to safeguard the principal of the funds under its
control. The secondary objective is to meet the liquidity needs of
the joint agency. The third objective is to achieve a return on the
funds under its control. Monies of joint agencies not required for
the immediate necessities of the joint agency may be invested and
reinvested in securities and other investments as the board of
directors of joint agencies shall determine in accordance with the
objectives enumerated above. The securities and other investments
which may be used by the trustee is to be listed in a formal, written
investment policy approved by the board of directors of joint
agencies."
SECTION 7. Section 6-23-120 of the 1976 Code is repealed.
SECTION 8. This act takes effect upon approval by the
Governor.
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