§ 62-302. Regulatory fee.
§ 62‑302. Regulatoryfee.
(a) Fee Imposed. Itis the policy of the State of North Carolina to provide fair regulation ofpublic utilities in the interest of the public, as provided in G.S. 62‑2.The cost of regulating public utilities is a burden incident to the privilegeof operating as a public utility. Therefore, for the purpose of defraying thecost of regulating public utilities, every public utility subject to thejurisdiction of the Commission shall pay a quarterly regulatory fee, inaddition to all other fees and taxes, as provided in this section. The feescollected shall be used only to pay the expenses of the Commission and thePublic Staff in regulating public utilities in the interest of the public.
It is also the policy of theState to provide limited oversight of certain electric membership corporationsas provided in G.S. 62‑53. Therefore, for the purpose of defraying thecost of providing the oversight authorized by G.S. 62‑53 and G.S. 117‑18.1,each fiscal year each electric membership corporation whose principal purposeis to furnish or cause to be furnished bulk electric supplies at wholesale asprovided in G.S. 117‑16 shall pay an annual fee as provided in thissection.
(b) Public Utility Rate.
(1) Repealed by SessionLaws 2000‑140, s. 56, effective July 21, 2000.
(2) The public utilityregulatory fee for each fiscal year shall be the greater of (i) a percentagerate, established by the General Assembly, of each public utility's NorthCarolina jurisdictional revenues for each quarter or (ii) six dollars andtwenty‑five cents ($6.25) each quarter.
Whenthe Commission prepares its budget request for the upcoming fiscal year, theCommission shall propose a percentage rate of the public utility regulatoryfee. For fiscal years beginning in an odd‑numbered year, that proposedrate shall be included in the budget message the Governor submits to theGeneral Assembly pursuant to G.S. 143C‑3‑5. For fiscal yearsbeginning in an even‑numbered year, that proposed rate shall be includedin a special budget message the Governor shall submit to the General Assembly.The General Assembly shall set the percentage rate of the public utilityregulatory fee by law.
Thepercentage rate may not exceed the amount necessary to generate fundssufficient to defray the estimated cost of the operations of the Commission andthe Public Staff for the upcoming fiscal year, including a reasonable marginfor a reserve fund. The amount of the reserve may not exceed the estimated costof operating the Commission and the Public Staff for the upcoming fiscal year.In calculating the amount of the reserve, the General Assembly shall considerall relevant factors that may affect the cost of operating the Commission orthe Public Staff or a possible unanticipated increase or decrease in NorthCarolina jurisdictional revenues.
(3) If the Commission,the Public Staff, or both experience a revenue shortfall, the Commission shallimplement a temporary public utility regulatory fee surcharge to avert thedeficiency that would otherwise occur. In no event may the total percentagerate of the public utility regulatory fee plus any surcharge established by theCommission exceed twenty‑five hundredths percent (0.25%).
(4) As used in thissection, the term "North Carolina jurisdictional revenues" means:
a. All revenues derivedor realized from intrastate tariffs, rates, and charges approved or allowed bythe Commission or collected pursuant to Commission order or rule, but notincluding tap‑on fees or any other form of contributions in aid ofconstruction.
b. All revenues derivedfrom retail services no longer otherwise regulated by the operation of G.S. 62‑133.5(h)for a local exchange company or competing local provider that has elected to beregulated under that subsection.
(b1) Electric MembershipCorporation Rate. The electric membership corporation regulatory fee for eachfiscal year shall be a dollar amount as established by the General Assembly bylaw.
When the Commission preparesits budget request for the upcoming fiscal year, the Commission shall proposethe amount of the electric membership corporation regulatory fee. For fiscalyears beginning in an odd‑numbered year, the proposed amount shall beincluded in the budget message the Governor submits to the General Assemblypursuant to G.S. 143C‑3‑5. For fiscal years beginning in an even‑numberedyear, the proposed amount shall be included in a special budget message theGovernor shall submit to the General Assembly.
The amount of the electricmembership corporation regulatory fee proposed by the Commission may not exceedthe amount necessary to defray the estimated cost of the operations of theCommission and the Public Staff for the regulation of the electric membershipcorporations in the upcoming fiscal year, including a reasonable margin for areserve fund. The amount of the reserve may not exceed the estimated cost ofthe Commission and the Public Staff for the regulation of the electricmembership corporations for the upcoming fiscal year.
(c) When Due. Theelectric membership corporation regulatory fee imposed under this section shallbe paid in quarterly installments. The fee is due and payable to the Commissionon or before the 15th day of the second month following the end of eachquarter.
The public utility regulatoryfee imposed under this section is due and payable to the Commission on orbefore the 15th day of the second month following the end of each quarter.Every public utility subject to the public utility regulatory fee shall, on orbefore the date the fee is due for each quarter, prepare and render a report ona form prescribed by the Commission. The report shall state the publicutility's total North Carolina jurisdictional revenues for the precedingquarter and shall be accompanied by any supporting documentation that theCommission may by rule require. Receipts shall be reported on an accrual basis.
If a public utility's reportfor the first quarter of any fiscal year shows that application of thepercentage rate would yield a quarterly fee of twenty‑five dollars ($25.00)or less, the public utility shall pay an estimated fee for the entire fiscalyear in the amount of twenty‑five dollars ($25.00). If, after payment ofthe estimated fee, the public utility's subsequent returns show thatapplication of the percentage rate would yield quarterly fees that total morethan twenty‑five dollars ($25.00) for the entire fiscal year, the publicutility shall pay the cumulative amount of the fee resulting from applicationof the percentage rate, to the extent it exceeds the amount of fees, other thanany surcharge, previously paid.
(d) Use of Proceeds. Aspecial fund in the office of State Treasurer, the Utilities Commission andPublic Staff Fund, is created. The fees collected pursuant to this section andall other funds received by the Commission or the Public Staff, except for theclear proceeds of civil penalties collected pursuant to G.S. 62‑50(d) andthe clear proceeds of funds forfeited pursuant to G.S. 62‑310(a), shallbe deposited in the Utilities Commission and Public Staff Fund. The Fund shallbe placed in an interest bearing account and any interest or other incomederived from the Fund shall be credited to the Fund. Moneys in the Fund shallonly be spent pursuant to appropriation by the General Assembly.
The Utilities Commission andPublic Staff Fund shall be subject to the provisions of the State Budget Actexcept that no unexpended surplus of the Fund shall revert to the General Fund.All funds credited to the Utilities Commission and Public Staff Fund shall be usedonly to pay the expenses of the Commission and the Public Staff in regulatingpublic utilities in the interest of the public as provided by this Chapter andin regulating electric membership corporations as provided in G.S. 117‑18.1.
The clear proceeds of civilpenalties collected pursuant to G.S. 62‑50(d) and the clear proceeds offunds forfeited pursuant to G.S. 62‑310(a) shall be remitted to the CivilPenalty and Forfeiture Fund in accordance with G.S. 115C‑457.2. (1989, c. 787, s. 1; 1998‑215,s. 126; 1999‑180, s. 5; 2000‑140, s. 56; 2006‑203, s. 18;2009‑238, s. 6.)