South Carolina General Assembly
115th Session, 2003-2004

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Bill 4405

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

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COMMITTEE REPORT

January 21, 2004

H. 4405

Introduced by Reps. Cato, Wilkins and Sandifer

S. Printed 1/21/04--H.

Read the first time June 5, 2003.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (H. 4405) to amend Section 58-27-865, as amended, Code of Laws of South Carolina, 1976, relating to fuel costs incurred by electrical utilities for the sale of electricity, 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 Section 58-27-865(A)(2) of the 1976 Code, as contained in SECTION 1, and inserting:

/        (2)    In order to clarify the intent of this section, 'fuel costs related to purchased power', as used in subsection (A)(1) shall include:

(a)    costs of firm generation capacity purchases, which are defined as purchases made to cure a capacity deficiency or to maintain adequate reserve levels; 'costs of firm generation capacity purchases' include the total delivered costs of firm generation capacity purchased excluding only generation capacity reservation charges and generation capacity option charges;

(b)    the total delivered cost of economy purchases of electric power including, but not limited to, transmission charges; 'economy purchases' are defined as purchases made to displace higher cost generation, at a price which is less than the purchasing utility's avoided variable costs for the generation of an equivalent quantity of electric power. /

Renumber sections to conform.

Amend title to conform.

HARRY F. CATO for Committee.

            

A BILL

TO AMEND SECTION 58-27-865, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FUEL COSTS INCURRED BY ELECTRICAL UTILITIES FOR THE SALE OF ELECTRICITY, SO AS TO FURTHER CLARIFY THAT THE TERM "FUEL COSTS RELATED TO PURCHASED POWER" INCLUDES COSTS OF FIRM GENERATION CAPACITY PURCHASES AND THE TOTAL DELIVERED COST OF ECONOMY PURCHASES OF ELECTRIC POWER.

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

SECTION    1.    Section 58-27-865(A)    of the 1976 Code, as amended by Act 348 of 1996, is further amended to read:

"(A)(1)    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 must be reduced by the net proceeds of any sales of SO2 emission allowances by the utility.

(2)    In order to clarify the intent of this section, 'fuel costs related to purchased power', as used in subsection (A)(1) shall include:

(a)    costs of firm generation capacity purchases, which are defined as purchases made to cure a capacity deficiency or to maintain adequate reserve levels; 'costs of firm generation capacity purchases' include either:

(i)     the actual cost of fuel for energy delivered under firm generation capacity purchases, if identified by seller; otherwise,

(ii)    the total delivered costs of firm generation capacity purchased excluding only generation capacity reservation charges and generation capacity option charges;

(b)    the total delivered cost of economy purchases of electric power including, but not limited to, transmission charges; 'economy purchases' are defined as purchases made to displace higher cost generation, at a price which is less than the purchasing utility's avoided variable costs for the generation of an equivalent quantity of electric power."

SECTION    2.    This act takes effect upon approval by the Governor.

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