H 3569 Session 109 (1991-1992)
H 3569 General Bill, By I.K. Rudnick, J.M. Baxley, H.H. Keyserling and Kirsh
A Bill to amend Section 58-5-240, as amended, Code of Laws of South Carolina,
1976, relating to the rates of certain gas, heat, and water companies; Section
58-9-540, as amended, relating to the rates of telephone and telegraph
companies; Section 58-11-70, relating to the rates of radio common carriers;
and Section 58-27-870, as amended, relating to the rates of electric
utilities, so as to eliminate the right of these utilities or companies to put
requested rate increases into effect under bond during the pendency of an
appeal; and to repeal Section 58-1-50 relating to certain interest required
when proposed rate increases put into effect under bond are disallowed in
whole or in part.
02/21/91 House Introduced and read first time HJ-4
02/21/91 House Referred to Committee on Labor, Commerce and
Industry HJ-5
02/25/92 House Tabled in committee
A BILL
TO AMEND SECTION 58-5-240, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO THE RATES OF
CERTAIN GAS, HEAT, AND WATER COMPANIES; SECTION
58-9-540, AS AMENDED, RELATING TO THE RATES OF
TELEPHONE AND TELEGRAPH COMPANIES; SECTION 58-11-70,
RELATING TO THE RATES OF RADIO COMMON CARRIERS;
AND SECTION 58-27-870, AS AMENDED, RELATING TO THE
RATES OF ELECTRIC UTILITIES, SO AS TO ELIMINATE THE
RIGHT OF THESE UTILITIES OR COMPANIES TO PUT
REQUESTED RATE INCREASES INTO EFFECT UNDER BOND
DURING THE PENDENCY OF AN APPEAL; AND TO REPEAL
SECTION 58-1-50 RELATING TO CERTAIN INTEREST REQUIRED
WHEN PROPOSED RATE INCREASES PUT INTO EFFECT UNDER
BOND ARE DISALLOWED IN WHOLE OR IN PART.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 58-5-240 of the 1976 Code, as last amended by
Act 184 of 1989, is further amended to read:
"Section 58-5-240. (A) Whenever a public utility desires to
put into operation a new rate, toll, rental, charge, or
classification, or a new regulation, it shall give not less than thirty days'
notice of its intention to file and shall, after the expiration of the
notice period, shall then file with the commission a
schedule setting forth the proposed changes. Subject to the provisions
of subsections (D) and (E) of this section, the proposed changes must not
be put into effect in full or in part until approved by the commission.
(B) After the schedule has been filed, the commission
shall, after notice to the public such as the commission
may prescribe, shall hold a public hearing concerning the
lawfulness or reasonableness of the proposed changes.
(C) The commission shall rule and issue its order approving or
disapproving the changes in full or in part within six months after the
date the schedule is filed.
(D) Should the commission determine that it cannot, due to
circumstances reasonably beyond its control, issue such
the order within the six-month period prescribed by this section,
the commission, may, by order, may extend the
six-month period for an additional five days. Any such order
shall must set forth such the
circumstances and make appropriate findings concerning the need for
the extended period.
If the commission rules and issues its order within the time
aforesaid prescribed, and the utility shall appeal
appeals from the order, by filing with the commission a petition
for rehearing, the utility may not put the rates requested in its
schedule into effect under bond only during the appeal and until
final disposition of the case including court appeals, if any.
Such bond must be in a reasonable amount approved by the
Commission, with sureties approved by the Commission, conditioned
upon the refund, in a manner to be prescribed by order of the
Commission, to the persons, corporations, or municipalities,
respectively, entitled to the amount of the excess, if the rate or rates put
into effect are finally determined to be excessive; or there may be
substituted for the bond other arrangements satisfactory to the
Commission for the protection of parties interested. During any period
in which a utility shall charge increased rates under bond, it shall
provide records or other evidence of payments made by its subscribers
or patrons under the rate or rates which the utility has put into operation
in excess of the rate or rates in effect immediately prior to the filing of
the schedule.
All increases in rates put into effect under the provisions of this
section which are not approved and for which a refund is required shall
bear interest at a rate of twelve percent per annum.
The interest shall commence on the date the disallowed increase is
paid and continue until the date the refund is made.
In all cases in which a refund is due, the Commission shall order a
total refund of the difference between the amount collected under bond
and the amount finally approved.
(E) If the commission fails to rule or issue its order within the
time prescribed in subsection (C) or subsection (D) of this section, the
utility may put into effect the change in rates it requested in its schedule.
The change is to be treated as an approval of the new rate schedule by
the commission.
(F) After the date the schedule is filed with the commission, no
further rate change request under this section may be filed until twelve
months have elapsed from the date of the filing of the schedule;
provided, however, this section shall does not
apply to a request for a rate reduction.
(G) Notwithstanding the provisions of this section, the
commission may allow rates or tariffs to be put into effect without a
hearing upon order of the commission when such the
rates or tariffs do not require a determination of the entire rate structure
and overall rate of return, or when the rates or tariffs do not result in any
rate increase to the public utility, or when the rates or tariffs are for
experimental purposes.
(H) The commission's determination of a fair rate of return must
be documented fully in its findings of fact and based exclusively on
reliable, probative, and substantial evidence on the whole record. The
commission shall specify an allowable operating margin in all water and
wastewater orders."
SECTION 2. Section 58-9-540 of the 1976 Code, as last amended by
Act 184 of 1989, is further amended to read:
"Section 58-9-540. (A) Whenever there is filed with the
commission by any telephone utility a schedule stating a new rate or
rates which affect the telephone utility's general body of subscribers, the
commission shall, after notice to the public such as the
commission may prescribe, shall hold a hearing concerning the
lawfulness or reasonableness of the rate or rates, provided,
however, that when the proposed rate or tariff is a proposal to
institute or modify an offering or regulation that is not part of a general
rate case and does not affect the telephone utility's general body of
subscribers, the commission may approve such the
filing without a hearing. Whenever a new rate is requested which affects
the telephone utility's general body of subscribers, the commission shall
rule and issue its order approving or disapproving the changes in full or
in part within six months of the time of filing.
(B) Should the commission determine that it cannot, due to
circumstances reasonably beyond its control, issue such
the order within the six-month period prescribed by this section,
the commission, may, by order, extend the six-month period for an
additional five days. Any such order shall must set
forth such the circumstances and make appropriate
findings concerning the need for the extended period.
If the commission rules and issues its order within the time
aforesaid prescribed, and the utility shall appeal
appeals from the order, by filing with the commission a petition
for rehearing, the utility may not put the rates requested in its
schedule into effect under bond only during the appeal and until
final disposition of the case including court appeals, if any.
Such bond must be in a reasonable amount approved by the
Commission, with sureties approved by the Commission, conditioned
upon the refund, in a manner to be prescribed by order of the
Commission, to the persons, corporations, or municipalities respectively
entitled to the amount of the excess, if the rate or rates put into effect are
finally determined to be excessive; or there may be substituted for the
bond other arrangements satisfactory to the Commission for the
protection of parties interested. During any period in which a utility shall
charge increased rates under bond, it shall provide records or other
evidence of payments made by its subscribers or patrons under the rate
or rates which the utility has put into operation in excess of the rate or
rates in effect immediately prior to the filing of the schedule.
All increases in rates put into effect under the provisions of this
section which are not approved and for which a refund is required shall
bear interest at a rate of twelve percent per annum. The interest shall
commence on the date the disallowed increase is paid and continue until
the date the refund is made.
In all cases in which a refund is due, the Commission shall order a
total refund of the difference between the amount collected under bond
and the amount finally approved.
(C) If the commission fails to rule or issue its order within the
time prescribed in subsection (A) or (B) of this section, the utility may
put into effect the change in rates it requested in its schedule. The
change is to be treated as an approval of the new rate schedule by the
commission.
(D) After the date the schedule, which affects the telephone
utility's general body of subscribers, is filed with the commission, no
further rate change request which affects the telephone utility's general
body of subscribers may be filed until twelve months have elapsed from
the date of the filing of the schedule; provided, however, this
section shall does not apply to a request for rate
reduction.
(E) The commission's determination of a fair rate of return must
be documented fully in its findings of fact and based exclusively on
reliable, probative, and substantial evidence on the whole record."
SECTION 3. Section 58-11-70 of the 1976 Code is amended to read:
"Section 58-11-70. (A) Whenever there is filed with the
commission by any radio common carrier, a schedule stating a new rate
or rates which affects the radio common carrier's general body of
subscribers, the commission shall, after notice to the public such
as the commission may prescribe, shall hold a hearing
concerning the lawfulness or reasonableness of the rate or rates;
provided, however, that when the proposed rate is a proposal to
institute or modify an offering or regulation that is not part of a general
rate case and does not affect the radio common carrier's general body of
subscribers, the commission may approve such the
filing with a hearing.
(B) The commission shall rule and issue its order approving or
disapproving the changes in full or in part within six months of the time
of filing. If the commission rules and issues its order within the time
aforesaid prescribed, and the radio common carrier shall
appeal from the order, by filing with the commission a petition for
rehearing, the radio common carrier may not put the rate or
rates requested in its schedule into effect under bond during the
appeal and until final disposition of the case including court
appeals, if any. The bond must be filed with the Commission
and must be in a reasonable amount approved by the Commission, with
sureties approved by the Commission, conditioned upon the refund, in
a manner to be prescribed by order of the Commission, to the persons,
corporations, or municipalities respectively entitled to the amount of
excess, if the rate or rates put into effect are finally determined to be
excessive. There may be substituted for the bond other arrangements
satisfactory to the Commission for the protection of the parties
interested.
During any period in which a radio common carrier shall charge
increased rates under bond, it shall provide records or other evidence of
payments made by its subscribers under the rate or rates which the radio
common carrier has put into operation in excess of the rate or rates in
effect immediately prior to the filing of its schedule.
All increases in rates put into effect under the provisions of this
section which are not approved and for which a refund is required shall
bear interest at a rate of twelve percent per annum. The interest shall
commence on the date the disallowed increase is paid and continue until
the date the refund is made.
In all cases in which a refund is due, the Commission shall order a
total refund of the difference between the amount collected under bond
and the amount finally approved.
(C) If the commission fails to rule and issue its order within six
months after the date the schedule is filed, the radio common carrier may
put into effect the change in rate or rates it requested in its schedule. The
change is to be treated as an approval of the new rate schedule by the
commission.
(D) After the date the schedule, which affects the radio common
carrier's general body of subscribers, is filed with the commission, no
further rate change request which affects the radio common carrier's
general body of subscribers may be filed until twelve months have
elapsed from the date of the filing of the schedule; provided,
however, this section shall does not apply to a
request for a rate reduction."
SECTION 4. Section 58-27-870 of the 1976 Code, as last amended by
Act 184 of 1989, is further amended to read:
"Section 58-27-870. (A) After a schedule setting forth the
proposed changes in its rates or tariffs has been filed, the commission
shall hold a public hearing concerning the lawfulness or reasonableness
of the proposed changes.
(B) When the proposed changes relate to rates or tariffs the
commission shall rule and issue its order approving or disapproving the
changes within six months after the date the schedule is filed.
(C) Should the commission determine that it cannot, due to
circumstances reasonably beyond its control, issue such
the order within the six-month period prescribed by this section,
the commission, may, by order, may extend the
six-month period for an additional five days. Any such order
shall must set forth such the
circumstances and make appropriate findings concerning the need for
the extended period.
If the commission rules and issues its order within the time
aforesaid prescribed, and the utility shall appeal
appeals from the order, by filing with the commission a petition
for rehearing, the utility may not put the rates requested in its
schedule into effect under bond only during the appeal and until
final disposition of the case including court appeals, if any.
Such bond must be in a reasonable amount approved by the
Commission, with sureties approved by the Commission, conditioned
upon the refund, in a manner to be prescribed by order of the
Commission, to the persons, corporations, or municipalities respectively
entitled to the amount of the excess, if the rate or rates put into effect are
finally determined to be excessive; or there may be substituted for the
bond other arrangements satisfactory to the Commission for the
protection of parties interested. During any period in which a utility shall
charge increased rates under bond, it shall provide records or other
evidence of payments made by its subscribers or patrons under the rate
or rates which the utility has put into operation in excess of the rate or
rates in effect immediately prior to the filing of the schedule.
All increases in rates put into effect under the provisions of this
section which are not approved and for which a refund is required shall
bear interest at a rate of twelve percent per annum. The interest shall
commence on the date the disallowed increase is paid and continue until
the date the refund is made.
In all cases in which a refund is due the Commission shall order a
total refund of the difference between the amount collected under bond
and the amount finally approved.
(D) If the commission fails to rule or issue its order within the time
prescribed in subsections (B) or (C) of this section, the utility may put
into effect the change in rates it requested in its schedule. The change is
to be treated as an approval of the new rate schedule by the commission.
(E) After the date the schedule is filed with the commission, no
further rate change request under this section may be filed until twelve
months have elapsed from the date of the filing of the schedule;
provided, however, this section shall does not
apply to a request for rate reduction.
(F) Notwithstanding the provisions of Sections 58-27-860 and
58-27-870 this section, the commission may allow rates
or tariffs to be put into effect without notice and hearing upon order of
the commission when such these rates or tariffs do not
require a determination of the entire rate structure and overall rate of
return, or when the rates or tariffs do not result in any rate increase to the
electrical utility, or when the rates or tariffs are for experimental
purposes, or when the rates or tariffs so filed are otherwise
necessary to obtain an orderly rate administration.
(G) The commission's determination of a fair rate of return must
be documented fully in its findings of fact and based exclusively on
reliable, probative, and substantial evidence on the whole record."
SECTION 5. Section 58-1-50 of the 1976 Code is repealed.
SECTION 6. This act takes effect upon approval by the Governor.
-----XX----- |