South Carolina General Assembly
110th Session, 1993-1994

Bill 4


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               Senate
Bill Number:                    4
Primary Sponsor:                Williams
Type of Legislation:            GB
Subject:                        Municipal utilities,
                                regulation provisions
Residing Body:                  Senate
Companion Bill Number:          3179
Computer Document Number:       S.4
Introduced Date:                19930112
Last History Body:              Senate
Last History Date:              19930407
Last History Type:              Committee Report:  majority
                                favorable, with amendment,
                                minority unfavorable
Scope of Legislation:           Statewide
All Sponsors:                   Williams
                                Wilson
Type of Legislation:            General Bill



History


Bill  Body    Date          Action Description              CMN  Leg Involved
____  ______  ____________  ______________________________  ___  ____________

4     Senate  19930407      Committee Report: majority      11
                            favorable, with amendment,
                            minority unfavorable
4     Senate  19930112      Introduced, read first time,    11
                            referred to Committee

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken
Indicates New Matter

COMMITTEE REPORT

April 7, 1993

S. 4

Introduced by SENATORS Williams and Wilson

S. Printed 4/7/93--S.

Read the first time January 12, 1993.

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (S. 4), to amend Section 58-5-30, Code of Laws of South Carolina, 1976, relating to the exemption of municipal utilities from regulation by the public service commission, etc., respectfully

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:

/SECTION 1. Section 58-5-30 of the 1976 Code is amended to read:

"Section 58-5-30. (A) Except as provided by subsection (B)(2), Nothing nothing contained in Articles 1, 3, and 5 of this chapter shall give the Public Service Commission any power to regulate or interfere with public utilities owned or operated by or on behalf of any municipality or regional transportation authority (as defined in Chapter 25 of this Title) or their agencies.

(B) (1) The percentage differential between any rate, rental, or charge for water made by a public utility, owned or operated by or on behalf of a municipality, to customers outside its municipal boundaries relative to that rate, rental, or charge for water made to customers inside its municipal boundaries shall not exceed such percentage difference in rates as exists on the effective date of this act. Provided, that on or after July 1, 1995, such difference in rates shall not exceed the lesser of: (a) one hundred percent of the rates charged to customers inside the municipal boundaries, or (b) the percentage difference in rates as exists on the effective date of this act.

(2) The provisions of item (1) may be waived or adjusted by the Public Service Commission for a definite term upon a showing by the municipality that the percentage of rate differentials as allowed by item (1) will not allow for the generation of a fair rate of return.

(C) The governing body of a public utility owned or operated by or on behalf of a municipality must appoint an Unincorporated Area Rate Advisory Committee of three members when the customers in the areas outside its municipal boundaries exceed ten percent of the total customer base. The percentage of total customer base shall be determined by comparing the number of meters outside the municipality's boundaries to the total number of meters of the utility. The committee must be composed of utility customers served by the municipal utility outside its municipal boundaries. The terms of the committee shall be for three years and the initial appointments shall be staggered. The members of the committee shall act in an advisory capacity to the council or utility commission concerning the utility rate charged to customers outside the municipality's boundaries."

SECTION 2. Section 58-27-1010 of the 1976 Code is amended to read:

"Section 58-27-1010. (A) Except as provided by subsection (B)(2), The the Public Service Commission shall not regulate any contracts made by any municipality with its customers and nothing in this chapter shall be construed as permitting the regulation by the Commission commission of the rates to be charged by any municipal plant to any of its customers, whether these customers be other municipalities, persons, firms, or corporations, or wholesale customers.

(B)(1) No utility owned or operated by or on behalf of a municipality may transfer to the general fund of the municipality within a fiscal year a percentage of the funds generated in areas outside the municipality's corporate limits in excess of the percentage of such funds transferred to the general fund of the municipality in a fiscal year ending on or before December 31, 1992. After July 1, 1995, no utility, owned or operated by or on behalf of a municipality may transfer to the general fund of the municipality within a fiscal year a percentage of funds generated in areas outside the municipal corporate limits in excess of the lesser of: (1) the percentage of such funds transferred to the general fund of the municipality in a fiscal year ending on or before December 31, 1992, or (2) five percent of the total revenues derived within the fiscal year from customers in the area outside the municipal corporate limits. This limitation on utility funds transfer shall not apply to any funds transferred for payment of bonded indebtedness for the plant and equipment of the municipality utility which may have been incurred in the name of the municipality. Except as otherwise provided by this subsection, no utility owned or operated by or on behalf of a municipality may incur, directly or indirectly, municipal expenditures unrelated to the generation, transmission, or provision of such service.

(2) The provision of item (1) may be waived or adjusted by the Public Service Commission for a definite term upon a showing by the municipality that the percentage of rate differentials as allowed by item (1) will not allow for the generation of a fair rate of return.

(C) The governing body of a public utility owned or operated by or on behalf of a municipality must appoint an Unincorporated Area Rate Advisory Committee of three members when the customers in the unincorporated area exceed ten percent of the total customer base. The percentage of total customer base shall be determined by comparing the number of meters in the unincorporated area to the total number of meters of the utility. The committee must be composed of utility customers from the unincorporated area served by the municipal utility. The terms of the committee shall be for three years and the initial appointments shall be staggered. The members of the committee shall act in an advisory capacity to the council or utility commission concerning the utility rate charged to customers in the unincorporated area."

SECTION 3. This act takes effect upon approval by the Governor./

Amend title to conform.

Majority favorable. Minority unfavorable.

MARSHALL B. WILLIAMS JAMES E. BRYAN

For Majority. For Minority.

A BILL

TO AMEND SECTION 58-5-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXEMPTION OF MUNICIPAL UTILITIES FROM REGULATION BY THE PUBLIC SERVICE COMMISSION, SO AS TO LIMIT THE EXEMPTION TO A PUBLIC UTILITY'S OPERATIONS WITHIN THE MUNICIPALITY'S CORPORATE LIMITS; AND TO AMEND SECTION 58-27-1010, RELATING TO THE PROHIBITION ON REGULATION BY THE PUBLIC SERVICE COMMISSION OF CONTRACTS MADE BY A MUNICIPALITY, SO AS TO LIMIT THE PROHIBITION TO CONTRACTS MADE BY A MUNICIPALITY WITH CUSTOMERS WHO ARE LOCATED WITHIN THE CORPORATE LIMITS OF THE MUNICIPALITY.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 58-5-30 of the 1976 Code is amended to read:

"Section 58-5-30. Nothing contained in Articles 1, 3, and 5 of this chapter shall give the Commission commission any power to regulate or interfere with public utilities owned or operated by or on behalf of any municipality within its corporate limits or regional transportation authority (as defined in Chapter 25 of this Title) or their agencies."

SECTION 2. Section 58-27-1010 of the 1976 Code is amended to read:

"Section 58-27-1010. The Commission commission shall not regulate any contracts made by any municipality with its customers who are located within the limits of the municipality, and nothing in this chapter shall be construed as permitting the regulation by the Commission commission of the rates to be charged by any municipal plant to any of its customers who are located within the limits of the municipality, whether these customers be other municipalities, persons, firms, or corporations."

SECTION 3. This act takes effect upon approval by the Governor.

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