(a) Electric membership corporations may form, organize,acquire, hold, dispose of, and operate any interest up to and including fullcontrolling interest in separate business entities that provide energy servicesand products, telecommunications services and products, water, and wastewatercollection and treatment, so long as those other business entities meet all ofthe following conditions:
(1) They are not financed with loans or grants from the RuralUtilities Service (RUS) of the United States Department of Agriculture (USDA)or the USDA or with similar financing from any successor agency. Thislimitation shall not apply to RUS or USDA loans or grants, or loans or grantsfrom successor agencies, for water or wastewater collection and treatmentprojects.
(2) They are subject to all taxes, specifically includingfederal and State income taxes, levied against business entities of the samestructure and engaged in the same activities.
(3) They fully compensate the electric membership corporationfor the use of personnel, services, equipment, or tangible and intangibleproperty, the greater of (i) a competitive price, which is a price comparablewith prices generally being charged at the time in arms length transactions inthe same market, or (ii) the electric membership corporation's fullydistributed costs, which shall include all direct and indirect costs, includingcost of capital incurred in providing the personnel, services, equipment,tangible property, or intangible property in question. The value of realproperty shall include the intangible value of not having to purchase the realproperty being used, and the value of the identification with the EMC that willexist because of the use of the particular real property. Should the UtilitiesCommission, upon complaint showing reasonable grounds for investigation, findafter investigation, that the charges for those transactions between theelectric membership corporation and the other business entity do not conformwith the provisions of this subdivision, the Utilities Commission is empoweredto direct the electric membership corporation to adjust those charges to complywith the provisions of this subdivision. If the electric membership corporationdoes not comply with the Utilities Commission's directive, then the UtilitiesCommission is empowered to direct the electric membership corporation to divestits interest in the other business entity. For purposes of enforcing thissubdivision, members of the Utilities Commission, the Utilities Commissionstaff, and the Public Staff are authorized to inspect the books and records ofsuch other business entities and the electric membership corporations. TheUtilities Commission shall have the authority to adopt rules and reportingrequirements to enforce this subdivision. The provisions of G.S. 62‑310(a),62‑311, 62‑312, 62‑313, 62‑314, 62‑315, 62‑316,62‑326, and 62‑327 shall apply to electric membership corporationswith respect to the application of this subdivision.
(4) They are organized and operated pursuant to Chapter 55 orChapter 57C of the General Statutes.
(5) They do not receive from an electric membership corporationany investment, loan, guarantee, or pledge of assets in an amount that, in theaggregate, exceeds ten percent (10%) of the assets of that electric membershipcorporation.
(b) An electric membership corporation may not form or organizea separate business entity to engage in activities involving the distribution,storage, or sale of oil, as defined in G.S. 143‑215.77(8), specificallyincluding liquefied petroleum gases, but may acquire, hold, dispose of, andoperate any interest in an existing business entity already engaged in theseactivities, subject to the other provisions of this section.
(c) No director, or spouse of a director, of an electricmembership corporation may be employed or have any financial interest in anyseparate business entity formed, organized, acquired, held, or operated by anelectric membership corporation pursuant to the provisions of this section. (1999‑180, s. 2.)
(a) Electric membership corporations may form, organize,acquire, hold, dispose of, and operate any interest up to and including fullcontrolling interest in separate business entities that provide energy servicesand products, telecommunications services and products, water, and wastewatercollection and treatment, so long as those other business entities meet all ofthe following conditions:
(1) They are not financed with loans or grants from the RuralUtilities Service (RUS) of the United States Department of Agriculture (USDA)or the USDA or with similar financing from any successor agency. Thislimitation shall not apply to RUS or USDA loans or grants, or loans or grantsfrom successor agencies, for water or wastewater collection and treatmentprojects.
(2) They are subject to all taxes, specifically includingfederal and State income taxes, levied against business entities of the samestructure and engaged in the same activities.
(3) They fully compensate the electric membership corporationfor the use of personnel, services, equipment, or tangible and intangibleproperty, the greater of (i) a competitive price, which is a price comparablewith prices generally being charged at the time in arms length transactions inthe same market, or (ii) the electric membership corporation's fullydistributed costs, which shall include all direct and indirect costs, includingcost of capital incurred in providing the personnel, services, equipment,tangible property, or intangible property in question. The value of realproperty shall include the intangible value of not having to purchase the realproperty being used, and the value of the identification with the EMC that willexist because of the use of the particular real property. Should the UtilitiesCommission, upon complaint showing reasonable grounds for investigation, findafter investigation, that the charges for those transactions between theelectric membership corporation and the other business entity do not conformwith the provisions of this subdivision, the Utilities Commission is empoweredto direct the electric membership corporation to adjust those charges to complywith the provisions of this subdivision. If the electric membership corporationdoes not comply with the Utilities Commission's directive, then the UtilitiesCommission is empowered to direct the electric membership corporation to divestits interest in the other business entity. For purposes of enforcing thissubdivision, members of the Utilities Commission, the Utilities Commissionstaff, and the Public Staff are authorized to inspect the books and records ofsuch other business entities and the electric membership corporations. TheUtilities Commission shall have the authority to adopt rules and reportingrequirements to enforce this subdivision. The provisions of G.S. 62‑310(a),62‑311, 62‑312, 62‑313, 62‑314, 62‑315, 62‑316,62‑326, and 62‑327 shall apply to electric membership corporationswith respect to the application of this subdivision.
(4) They are organized and operated pursuant to Chapter 55 orChapter 57C of the General Statutes.
(5) They do not receive from an electric membership corporationany investment, loan, guarantee, or pledge of assets in an amount that, in theaggregate, exceeds ten percent (10%) of the assets of that electric membershipcorporation.
(b) An electric membership corporation may not form or organizea separate business entity to engage in activities involving the distribution,storage, or sale of oil, as defined in G.S. 143‑215.77(8), specificallyincluding liquefied petroleum gases, but may acquire, hold, dispose of, andoperate any interest in an existing business entity already engaged in theseactivities, subject to the other provisions of this section.
(c) No director, or spouse of a director, of an electricmembership corporation may be employed or have any financial interest in anyseparate business entity formed, organized, acquired, held, or operated by anelectric membership corporation pursuant to the provisions of this section. (1999‑180, s. 2.)
(a) Electric membership corporations may form, organize,acquire, hold, dispose of, and operate any interest up to and including fullcontrolling interest in separate business entities that provide energy servicesand products, telecommunications services and products, water, and wastewatercollection and treatment, so long as those other business entities meet all ofthe following conditions:
(1) They are not financed with loans or grants from the RuralUtilities Service (RUS) of the United States Department of Agriculture (USDA)or the USDA or with similar financing from any successor agency. Thislimitation shall not apply to RUS or USDA loans or grants, or loans or grantsfrom successor agencies, for water or wastewater collection and treatmentprojects.
(2) They are subject to all taxes, specifically includingfederal and State income taxes, levied against business entities of the samestructure and engaged in the same activities.
(3) They fully compensate the electric membership corporationfor the use of personnel, services, equipment, or tangible and intangibleproperty, the greater of (i) a competitive price, which is a price comparablewith prices generally being charged at the time in arms length transactions inthe same market, or (ii) the electric membership corporation's fullydistributed costs, which shall include all direct and indirect costs, includingcost of capital incurred in providing the personnel, services, equipment,tangible property, or intangible property in question. The value of realproperty shall include the intangible value of not having to purchase the realproperty being used, and the value of the identification with the EMC that willexist because of the use of the particular real property. Should the UtilitiesCommission, upon complaint showing reasonable grounds for investigation, findafter investigation, that the charges for those transactions between theelectric membership corporation and the other business entity do not conformwith the provisions of this subdivision, the Utilities Commission is empoweredto direct the electric membership corporation to adjust those charges to complywith the provisions of this subdivision. If the electric membership corporationdoes not comply with the Utilities Commission's directive, then the UtilitiesCommission is empowered to direct the electric membership corporation to divestits interest in the other business entity. For purposes of enforcing thissubdivision, members of the Utilities Commission, the Utilities Commissionstaff, and the Public Staff are authorized to inspect the books and records ofsuch other business entities and the electric membership corporations. TheUtilities Commission shall have the authority to adopt rules and reportingrequirements to enforce this subdivision. The provisions of G.S. 62‑310(a),62‑311, 62‑312, 62‑313, 62‑314, 62‑315, 62‑316,62‑326, and 62‑327 shall apply to electric membership corporationswith respect to the application of this subdivision.
(4) They are organized and operated pursuant to Chapter 55 orChapter 57C of the General Statutes.
(5) They do not receive from an electric membership corporationany investment, loan, guarantee, or pledge of assets in an amount that, in theaggregate, exceeds ten percent (10%) of the assets of that electric membershipcorporation.
(b) An electric membership corporation may not form or organizea separate business entity to engage in activities involving the distribution,storage, or sale of oil, as defined in G.S. 143‑215.77(8), specificallyincluding liquefied petroleum gases, but may acquire, hold, dispose of, andoperate any interest in an existing business entity already engaged in theseactivities, subject to the other provisions of this section.
(c) No director, or spouse of a director, of an electricmembership corporation may be employed or have any financial interest in anyseparate business entity formed, organized, acquired, held, or operated by anelectric membership corporation pursuant to the provisions of this section. (1999‑180, s. 2.)
