§ 62‑110.1. Certificatefor construction of generating facility; analysis of long‑range needs forexpansion of facilities; ongoing review of construction costs; inclusion ofapproved construction costs in rates.
(a) Notwithstanding theproviso in G.S. 62‑110, no public utility or other person shall begin theconstruction of any steam, water, or other facility for the generation ofelectricity to be directly or indirectly used for the furnishing of publicutility service, even though the facility be for furnishing the service alreadybeing rendered, without first obtaining from the Commission a certificate thatpublic convenience and necessity requires, or will require, such construction.
(b) For the purpose ofsubsections (a), (c), and (d) of this section, "public utility" shallinclude any electric membership corporation operating within this State, andthe term "public utility service" shall include the service renderedby any such electric membership corporation.
(c) The Commissionshall develop, publicize, and keep current an analysis of the long‑rangeneeds for expansion of facilities for the generation of electricity in NorthCarolina, including its estimate of the probable future growth of the use ofelectricity, the probable needed generating reserves, the extent, size, mix andgeneral location of generating plants and arrangements for pooling power to theextent not regulated by the Federal Energy Regulatory Commission and otherarrangements with other utilities and energy suppliers to achieve maximumefficiencies for the benefit of the people of North Carolina, and shallconsider such analysis in acting upon any petition by any utility forconstruction. In developing such analysis, the Commission shall confer andconsult with the public utilities in North Carolina, the utilities commissionsor comparable agencies of neighboring states, the Federal Energy RegulatoryCommission, the Southern Growth Policies Board, and other agencies havingrelevant information and may participate as it deems useful in any joint boardsinvestigating generating plant sites or the probable need for future generatingfacilities. In addition to such reports as public utilities may be required bystatute or rule of the Commission to file with the Commission, any such utilityin North Carolina may submit to the Commission its proposals as to the futureneeds for electricity to serve the people of the State or the area served bysuch utility, and insofar as practicable, each such utility and the AttorneyGeneral may attend or be represented at any formal conference conducted by theCommission in developing a plan for the future requirements of electricity forNorth Carolina or this region. In the course of making the analysis anddeveloping the plan, the Commission shall conduct one or more public hearings.Each year, the Commission shall submit to the Governor and to the appropriatecommittees of the General Assembly a report of its analysis and plan, theprogress to date in carrying out such plan, and the program of the Commissionfor the ensuing year in connection with such plan.
(d) In acting upon anypetition for the construction of any facility for the generation ofelectricity, the Commission shall take into account the applicant'sarrangements with other electric utilities for interchange of power, pooling ofplant, purchase of power and other methods for providing reliable, efficient,and economical electric service.
(e) As a condition forreceiving a certificate, the applicant shall file an estimate of constructioncosts in such detail as the Commission may require. The Commission shall hold apublic hearing on each application and no certificate shall be granted unlessthe Commission has approved the estimated construction costs and made a findingthat construction will be consistent with the Commission's plan for expansionof electric generating capacity. A certificate for the construction of a coalor nuclear facility shall be granted only if the applicant demonstrates and theCommission finds that energy efficiency measures; demand‑side management;renewable energy resource generation; combined heat and power generation; orany combination thereof, would not establish or maintain a more cost‑effectiveand reliable generation system and that the construction and operation of thefacility is in the public interest. In making its determination, the Commissionshall consider resource and fuel diversity and reasonably anticipated futureoperating costs. Once the Commission grants a certificate, no public utilityshall cancel construction of a generating unit or facility without approvalfrom the Commission based upon a finding that the construction is no longer inthe public interest.
(e1) Upon the request ofthe public utility or upon its own motion, the Commission may review thecertificate to determine whether changes in the probable future growth of theuse of electricity indicate that the public convenience and necessity requiremodification or revocation of the certificate. If the Commission finds thatcompletion of the generating facility is no longer in the public interest, theCommission may modify or revoke the certificate.
(f) The public utilityshall submit a progress report and any revision in the cost estimate for theconstruction approved under subsection (e) of this section during each year ofconstruction. Upon the request of the public utility or upon its own motion,the Commission may conduct an ongoing review of construction of the facility asthe construction proceeds. If the Commission approves any revised constructioncost estimate and finds that incurrence of the cost of that portion of theconstruction of the facility under review was reasonable and prudent, thecertificate shall remain in effect. If the Commission disapproves any part ofthe revised cost estimate or finds that the incurrence of the cost of thatportion of the construction of the facility then under review was unreasonableor imprudent, the Commission may modify or revoke the certificate.
(f1) The public utilityshall recover through rates in a general rate case conducted pursuant to G.S.62‑133 the actual costs it has incurred in constructing a generatingfacility in reliance on a certificate issued under this section as provided inthis subsection, unless new evidence is discovered (i) that could not have beendiscovered by due diligence at an earlier time and (ii) that reasonably tendsto show that a previous determination by the Commission that a material item ofcost was just and reasonable and prudently incurred was erroneous. If the Commissiondetermines that evidence has been submitted that meets the requirements of thissubsection, the public utility shall have the burden of proof to demonstratethat the material item of cost was in fact just and reasonable and prudentlyincurred.
(1) When a facility hasbeen completed, and the construction of the facility has been subject toongoing review under subsection (f) of this section, the reasonable and prudentcosts of construction approved by the Commission during the ongoing reviewshall be included in the public utility's rate base without further review bythe Commission.
(2) If a facility hasnot been completed, and the construction of the facility has been subject toongoing review under subsection (f) of this section, the reasonable and prudentcosts of construction approved by the Commission during the ongoing reviewshall be included in the public utility's rate base without further review bythe Commission.
(3) If a facility isunder construction or has been completed and the construction of the facilityhas not been subject to ongoing review under subsection (f) of this section,the costs of construction shall be included in the public utility's rate baseif the Commission finds that the incurrence of these costs is reasonable andprudent.
(f2) If the constructionof a facility is cancelled, including cancellation as a result of modificationor revocation of the certificate under subsection (e1) of this section, and theconstruction of the facility has been subject to ongoing review undersubsection (f), absent newly discovered evidence (i) that could not have beendiscovered by due diligence at an earlier time and (ii) that reasonably tendsto show that a previous determination by the Commission that a material item ofcost was just and reasonable and prudently incurred was erroneous, the publicutility shall recover through rates in a general rate case conducted pursuantto G.S. 62‑133 the costs of construction approved by the Commissionduring the ongoing review that were actually incurred prior to cancellation,amortized over a reasonable time as determined by the Commission. In thegeneral rate case, the Commission shall make any adjustment that may berequired because costs of construction previously added to the utility's ratebase pursuant to subsection (f1) of this section are removed from the rate baseand recovered in accordance with this subsection. Any costs of constructionactually incurred, but not previously approved by the Commission, shall berecovered only if they are found by the Commission to be reasonable andprudent. If the Commission determines that evidence has been submitted thatmeets the requirements of this subsection, the public utility shall have theburden of proof to demonstrate that the material item of cost was just andreasonable and prudently incurred.
(f3) If the constructionof a facility is cancelled, including cancellation as a result of themodification or revocation of the certificate under subsection (e1) of thissection, and the construction of the facility has not been subject to ongoingreview under subsection (f) of this section, the public utility shall recoverthrough rates in a general rate case conducted pursuant to G.S. 62‑133the costs of construction that were actually incurred prior to the cancellationand are found by the Commission to be reasonable and prudent, amortized over areasonable time as determined by the Commission. In the general rate case, theCommission shall make any adjustment that may be required because costs ofconstruction previously added to the utility's rate base pursuant to subsection(f1) of this section are removed from the rate base and recovered in accordancewith this subsection.
(g) The certificationrequirements of this section shall not apply to a nonutility‑ownedgenerating facility fueled by renewable energy resources under two megawatts incapacity or to persons who construct an electric generating facility primarilyfor that person's own use and not for the primary purpose of producingelectricity, heat, or steam for sale to or for the public for compensation;provided, however, that such persons shall, nevertheless, be required to reportto the Utilities Commission the proposed construction of such a facility beforebeginning construction thereof.
(h) Notwithstanding anyother subsections of this section to the contrary, the Commission shall renderits decision on an application for a certificate within 45 days of the date theapplication is filed if (i) the public utility that has applied for thecertificate is subject to the provisions of subsection (e) of G.S. 143‑215.107D;(ii) the application involves a request by the public utility to construct agenerating unit that uses natural gas as the primary fuel at a specific coal‑firedgenerating site that the public utility owns or operates on July 1, 2009; (iii)the coal‑fired generating units at the site are not operated with fluegas desulfurization devices; (iv) the public utility will permanently ceaseoperations of all of the coal‑fired generating units at the site on orbefore the completion of the generating unit that is the subject of thecertificate application; and (v) the installation of the generating unit thatuses natural gas as the primary fuel allows the public utility to meet therequirements of subsection (e) of G.S. 143‑215.107D. When the publicutility applies for a certificate as provided in this subsection, it shallsubmit to the Commission and the Department of Environment and NaturalResources a revised verified statement required pursuant to subsection (i) ofG.S. 62‑133.6 and to the Commission an estimate of the costs ofconstruction of the generating unit that uses natural gas as the primary fuelin such detail as the Commission may require. The provisions of G.S. 62‑82and subsection (e) of this section shall not apply to a certificate applied forpursuant to this subsection. The authority granted pursuant to this subsectionexpires January 1, 2011. (1965, c. 287, s. 2; 1975, c. 780, s. 1; 1979, c.652, s. 2; 2007‑397, s. 6; 2009‑390, s. 1(b).)
§ 62‑110.1. Certificatefor construction of generating facility; analysis of long‑range needs forexpansion of facilities; ongoing review of construction costs; inclusion ofapproved construction costs in rates.
(a) Notwithstanding theproviso in G.S. 62‑110, no public utility or other person shall begin theconstruction of any steam, water, or other facility for the generation ofelectricity to be directly or indirectly used for the furnishing of publicutility service, even though the facility be for furnishing the service alreadybeing rendered, without first obtaining from the Commission a certificate thatpublic convenience and necessity requires, or will require, such construction.
(b) For the purpose ofsubsections (a), (c), and (d) of this section, "public utility" shallinclude any electric membership corporation operating within this State, andthe term "public utility service" shall include the service renderedby any such electric membership corporation.
(c) The Commissionshall develop, publicize, and keep current an analysis of the long‑rangeneeds for expansion of facilities for the generation of electricity in NorthCarolina, including its estimate of the probable future growth of the use ofelectricity, the probable needed generating reserves, the extent, size, mix andgeneral location of generating plants and arrangements for pooling power to theextent not regulated by the Federal Energy Regulatory Commission and otherarrangements with other utilities and energy suppliers to achieve maximumefficiencies for the benefit of the people of North Carolina, and shallconsider such analysis in acting upon any petition by any utility forconstruction. In developing such analysis, the Commission shall confer andconsult with the public utilities in North Carolina, the utilities commissionsor comparable agencies of neighboring states, the Federal Energy RegulatoryCommission, the Southern Growth Policies Board, and other agencies havingrelevant information and may participate as it deems useful in any joint boardsinvestigating generating plant sites or the probable need for future generatingfacilities. In addition to such reports as public utilities may be required bystatute or rule of the Commission to file with the Commission, any such utilityin North Carolina may submit to the Commission its proposals as to the futureneeds for electricity to serve the people of the State or the area served bysuch utility, and insofar as practicable, each such utility and the AttorneyGeneral may attend or be represented at any formal conference conducted by theCommission in developing a plan for the future requirements of electricity forNorth Carolina or this region. In the course of making the analysis anddeveloping the plan, the Commission shall conduct one or more public hearings.Each year, the Commission shall submit to the Governor and to the appropriatecommittees of the General Assembly a report of its analysis and plan, theprogress to date in carrying out such plan, and the program of the Commissionfor the ensuing year in connection with such plan.
(d) In acting upon anypetition for the construction of any facility for the generation ofelectricity, the Commission shall take into account the applicant'sarrangements with other electric utilities for interchange of power, pooling ofplant, purchase of power and other methods for providing reliable, efficient,and economical electric service.
(e) As a condition forreceiving a certificate, the applicant shall file an estimate of constructioncosts in such detail as the Commission may require. The Commission shall hold apublic hearing on each application and no certificate shall be granted unlessthe Commission has approved the estimated construction costs and made a findingthat construction will be consistent with the Commission's plan for expansionof electric generating capacity. A certificate for the construction of a coalor nuclear facility shall be granted only if the applicant demonstrates and theCommission finds that energy efficiency measures; demand‑side management;renewable energy resource generation; combined heat and power generation; orany combination thereof, would not establish or maintain a more cost‑effectiveand reliable generation system and that the construction and operation of thefacility is in the public interest. In making its determination, the Commissionshall consider resource and fuel diversity and reasonably anticipated futureoperating costs. Once the Commission grants a certificate, no public utilityshall cancel construction of a generating unit or facility without approvalfrom the Commission based upon a finding that the construction is no longer inthe public interest.
(e1) Upon the request ofthe public utility or upon its own motion, the Commission may review thecertificate to determine whether changes in the probable future growth of theuse of electricity indicate that the public convenience and necessity requiremodification or revocation of the certificate. If the Commission finds thatcompletion of the generating facility is no longer in the public interest, theCommission may modify or revoke the certificate.
(f) The public utilityshall submit a progress report and any revision in the cost estimate for theconstruction approved under subsection (e) of this section during each year ofconstruction. Upon the request of the public utility or upon its own motion,the Commission may conduct an ongoing review of construction of the facility asthe construction proceeds. If the Commission approves any revised constructioncost estimate and finds that incurrence of the cost of that portion of theconstruction of the facility under review was reasonable and prudent, thecertificate shall remain in effect. If the Commission disapproves any part ofthe revised cost estimate or finds that the incurrence of the cost of thatportion of the construction of the facility then under review was unreasonableor imprudent, the Commission may modify or revoke the certificate.
(f1) The public utilityshall recover through rates in a general rate case conducted pursuant to G.S.62‑133 the actual costs it has incurred in constructing a generatingfacility in reliance on a certificate issued under this section as provided inthis subsection, unless new evidence is discovered (i) that could not have beendiscovered by due diligence at an earlier time and (ii) that reasonably tendsto show that a previous determination by the Commission that a material item ofcost was just and reasonable and prudently incurred was erroneous. If the Commissiondetermines that evidence has been submitted that meets the requirements of thissubsection, the public utility shall have the burden of proof to demonstratethat the material item of cost was in fact just and reasonable and prudentlyincurred.
(1) When a facility hasbeen completed, and the construction of the facility has been subject toongoing review under subsection (f) of this section, the reasonable and prudentcosts of construction approved by the Commission during the ongoing reviewshall be included in the public utility's rate base without further review bythe Commission.
(2) If a facility hasnot been completed, and the construction of the facility has been subject toongoing review under subsection (f) of this section, the reasonable and prudentcosts of construction approved by the Commission during the ongoing reviewshall be included in the public utility's rate base without further review bythe Commission.
(3) If a facility isunder construction or has been completed and the construction of the facilityhas not been subject to ongoing review under subsection (f) of this section,the costs of construction shall be included in the public utility's rate baseif the Commission finds that the incurrence of these costs is reasonable andprudent.
(f2) If the constructionof a facility is cancelled, including cancellation as a result of modificationor revocation of the certificate under subsection (e1) of this section, and theconstruction of the facility has been subject to ongoing review undersubsection (f), absent newly discovered evidence (i) that could not have beendiscovered by due diligence at an earlier time and (ii) that reasonably tendsto show that a previous determination by the Commission that a material item ofcost was just and reasonable and prudently incurred was erroneous, the publicutility shall recover through rates in a general rate case conducted pursuantto G.S. 62‑133 the costs of construction approved by the Commissionduring the ongoing review that were actually incurred prior to cancellation,amortized over a reasonable time as determined by the Commission. In thegeneral rate case, the Commission shall make any adjustment that may berequired because costs of construction previously added to the utility's ratebase pursuant to subsection (f1) of this section are removed from the rate baseand recovered in accordance with this subsection. Any costs of constructionactually incurred, but not previously approved by the Commission, shall berecovered only if they are found by the Commission to be reasonable andprudent. If the Commission determines that evidence has been submitted thatmeets the requirements of this subsection, the public utility shall have theburden of proof to demonstrate that the material item of cost was just andreasonable and prudently incurred.
(f3) If the constructionof a facility is cancelled, including cancellation as a result of themodification or revocation of the certificate under subsection (e1) of thissection, and the construction of the facility has not been subject to ongoingreview under subsection (f) of this section, the public utility shall recoverthrough rates in a general rate case conducted pursuant to G.S. 62‑133the costs of construction that were actually incurred prior to the cancellationand are found by the Commission to be reasonable and prudent, amortized over areasonable time as determined by the Commission. In the general rate case, theCommission shall make any adjustment that may be required because costs ofconstruction previously added to the utility's rate base pursuant to subsection(f1) of this section are removed from the rate base and recovered in accordancewith this subsection.
(g) The certificationrequirements of this section shall not apply to a nonutility‑ownedgenerating facility fueled by renewable energy resources under two megawatts incapacity or to persons who construct an electric generating facility primarilyfor that person's own use and not for the primary purpose of producingelectricity, heat, or steam for sale to or for the public for compensation;provided, however, that such persons shall, nevertheless, be required to reportto the Utilities Commission the proposed construction of such a facility beforebeginning construction thereof.
(h) Notwithstanding anyother subsections of this section to the contrary, the Commission shall renderits decision on an application for a certificate within 45 days of the date theapplication is filed if (i) the public utility that has applied for thecertificate is subject to the provisions of subsection (e) of G.S. 143‑215.107D;(ii) the application involves a request by the public utility to construct agenerating unit that uses natural gas as the primary fuel at a specific coal‑firedgenerating site that the public utility owns or operates on July 1, 2009; (iii)the coal‑fired generating units at the site are not operated with fluegas desulfurization devices; (iv) the public utility will permanently ceaseoperations of all of the coal‑fired generating units at the site on orbefore the completion of the generating unit that is the subject of thecertificate application; and (v) the installation of the generating unit thatuses natural gas as the primary fuel allows the public utility to meet therequirements of subsection (e) of G.S. 143‑215.107D. When the publicutility applies for a certificate as provided in this subsection, it shallsubmit to the Commission and the Department of Environment and NaturalResources a revised verified statement required pursuant to subsection (i) ofG.S. 62‑133.6 and to the Commission an estimate of the costs ofconstruction of the generating unit that uses natural gas as the primary fuelin such detail as the Commission may require. The provisions of G.S. 62‑82and subsection (e) of this section shall not apply to a certificate applied forpursuant to this subsection. The authority granted pursuant to this subsectionexpires January 1, 2011. (1965, c. 287, s. 2; 1975, c. 780, s. 1; 1979, c.652, s. 2; 2007‑397, s. 6; 2009‑390, s. 1(b).)
§ 62‑110.1. Certificatefor construction of generating facility; analysis of long‑range needs forexpansion of facilities; ongoing review of construction costs; inclusion ofapproved construction costs in rates.
(a) Notwithstanding theproviso in G.S. 62‑110, no public utility or other person shall begin theconstruction of any steam, water, or other facility for the generation ofelectricity to be directly or indirectly used for the furnishing of publicutility service, even though the facility be for furnishing the service alreadybeing rendered, without first obtaining from the Commission a certificate thatpublic convenience and necessity requires, or will require, such construction.
(b) For the purpose ofsubsections (a), (c), and (d) of this section, "public utility" shallinclude any electric membership corporation operating within this State, andthe term "public utility service" shall include the service renderedby any such electric membership corporation.
(c) The Commissionshall develop, publicize, and keep current an analysis of the long‑rangeneeds for expansion of facilities for the generation of electricity in NorthCarolina, including its estimate of the probable future growth of the use ofelectricity, the probable needed generating reserves, the extent, size, mix andgeneral location of generating plants and arrangements for pooling power to theextent not regulated by the Federal Energy Regulatory Commission and otherarrangements with other utilities and energy suppliers to achieve maximumefficiencies for the benefit of the people of North Carolina, and shallconsider such analysis in acting upon any petition by any utility forconstruction. In developing such analysis, the Commission shall confer andconsult with the public utilities in North Carolina, the utilities commissionsor comparable agencies of neighboring states, the Federal Energy RegulatoryCommission, the Southern Growth Policies Board, and other agencies havingrelevant information and may participate as it deems useful in any joint boardsinvestigating generating plant sites or the probable need for future generatingfacilities. In addition to such reports as public utilities may be required bystatute or rule of the Commission to file with the Commission, any such utilityin North Carolina may submit to the Commission its proposals as to the futureneeds for electricity to serve the people of the State or the area served bysuch utility, and insofar as practicable, each such utility and the AttorneyGeneral may attend or be represented at any formal conference conducted by theCommission in developing a plan for the future requirements of electricity forNorth Carolina or this region. In the course of making the analysis anddeveloping the plan, the Commission shall conduct one or more public hearings.Each year, the Commission shall submit to the Governor and to the appropriatecommittees of the General Assembly a report of its analysis and plan, theprogress to date in carrying out such plan, and the program of the Commissionfor the ensuing year in connection with such plan.
(d) In acting upon anypetition for the construction of any facility for the generation ofelectricity, the Commission shall take into account the applicant'sarrangements with other electric utilities for interchange of power, pooling ofplant, purchase of power and other methods for providing reliable, efficient,and economical electric service.
(e) As a condition forreceiving a certificate, the applicant shall file an estimate of constructioncosts in such detail as the Commission may require. The Commission shall hold apublic hearing on each application and no certificate shall be granted unlessthe Commission has approved the estimated construction costs and made a findingthat construction will be consistent with the Commission's plan for expansionof electric generating capacity. A certificate for the construction of a coalor nuclear facility shall be granted only if the applicant demonstrates and theCommission finds that energy efficiency measures; demand‑side management;renewable energy resource generation; combined heat and power generation; orany combination thereof, would not establish or maintain a more cost‑effectiveand reliable generation system and that the construction and operation of thefacility is in the public interest. In making its determination, the Commissionshall consider resource and fuel diversity and reasonably anticipated futureoperating costs. Once the Commission grants a certificate, no public utilityshall cancel construction of a generating unit or facility without approvalfrom the Commission based upon a finding that the construction is no longer inthe public interest.
(e1) Upon the request ofthe public utility or upon its own motion, the Commission may review thecertificate to determine whether changes in the probable future growth of theuse of electricity indicate that the public convenience and necessity requiremodification or revocation of the certificate. If the Commission finds thatcompletion of the generating facility is no longer in the public interest, theCommission may modify or revoke the certificate.
(f) The public utilityshall submit a progress report and any revision in the cost estimate for theconstruction approved under subsection (e) of this section during each year ofconstruction. Upon the request of the public utility or upon its own motion,the Commission may conduct an ongoing review of construction of the facility asthe construction proceeds. If the Commission approves any revised constructioncost estimate and finds that incurrence of the cost of that portion of theconstruction of the facility under review was reasonable and prudent, thecertificate shall remain in effect. If the Commission disapproves any part ofthe revised cost estimate or finds that the incurrence of the cost of thatportion of the construction of the facility then under review was unreasonableor imprudent, the Commission may modify or revoke the certificate.
(f1) The public utilityshall recover through rates in a general rate case conducted pursuant to G.S.62‑133 the actual costs it has incurred in constructing a generatingfacility in reliance on a certificate issued under this section as provided inthis subsection, unless new evidence is discovered (i) that could not have beendiscovered by due diligence at an earlier time and (ii) that reasonably tendsto show that a previous determination by the Commission that a material item ofcost was just and reasonable and prudently incurred was erroneous. If the Commissiondetermines that evidence has been submitted that meets the requirements of thissubsection, the public utility shall have the burden of proof to demonstratethat the material item of cost was in fact just and reasonable and prudentlyincurred.
(1) When a facility hasbeen completed, and the construction of the facility has been subject toongoing review under subsection (f) of this section, the reasonable and prudentcosts of construction approved by the Commission during the ongoing reviewshall be included in the public utility's rate base without further review bythe Commission.
(2) If a facility hasnot been completed, and the construction of the facility has been subject toongoing review under subsection (f) of this section, the reasonable and prudentcosts of construction approved by the Commission during the ongoing reviewshall be included in the public utility's rate base without further review bythe Commission.
(3) If a facility isunder construction or has been completed and the construction of the facilityhas not been subject to ongoing review under subsection (f) of this section,the costs of construction shall be included in the public utility's rate baseif the Commission finds that the incurrence of these costs is reasonable andprudent.
(f2) If the constructionof a facility is cancelled, including cancellation as a result of modificationor revocation of the certificate under subsection (e1) of this section, and theconstruction of the facility has been subject to ongoing review undersubsection (f), absent newly discovered evidence (i) that could not have beendiscovered by due diligence at an earlier time and (ii) that reasonably tendsto show that a previous determination by the Commission that a material item ofcost was just and reasonable and prudently incurred was erroneous, the publicutility shall recover through rates in a general rate case conducted pursuantto G.S. 62‑133 the costs of construction approved by the Commissionduring the ongoing review that were actually incurred prior to cancellation,amortized over a reasonable time as determined by the Commission. In thegeneral rate case, the Commission shall make any adjustment that may berequired because costs of construction previously added to the utility's ratebase pursuant to subsection (f1) of this section are removed from the rate baseand recovered in accordance with this subsection. Any costs of constructionactually incurred, but not previously approved by the Commission, shall berecovered only if they are found by the Commission to be reasonable andprudent. If the Commission determines that evidence has been submitted thatmeets the requirements of this subsection, the public utility shall have theburden of proof to demonstrate that the material item of cost was just andreasonable and prudently incurred.
(f3) If the constructionof a facility is cancelled, including cancellation as a result of themodification or revocation of the certificate under subsection (e1) of thissection, and the construction of the facility has not been subject to ongoingreview under subsection (f) of this section, the public utility shall recoverthrough rates in a general rate case conducted pursuant to G.S. 62‑133the costs of construction that were actually incurred prior to the cancellationand are found by the Commission to be reasonable and prudent, amortized over areasonable time as determined by the Commission. In the general rate case, theCommission shall make any adjustment that may be required because costs ofconstruction previously added to the utility's rate base pursuant to subsection(f1) of this section are removed from the rate base and recovered in accordancewith this subsection.
(g) The certificationrequirements of this section shall not apply to a nonutility‑ownedgenerating facility fueled by renewable energy resources under two megawatts incapacity or to persons who construct an electric generating facility primarilyfor that person's own use and not for the primary purpose of producingelectricity, heat, or steam for sale to or for the public for compensation;provided, however, that such persons shall, nevertheless, be required to reportto the Utilities Commission the proposed construction of such a facility beforebeginning construction thereof.
(h) Notwithstanding anyother subsections of this section to the contrary, the Commission shall renderits decision on an application for a certificate within 45 days of the date theapplication is filed if (i) the public utility that has applied for thecertificate is subject to the provisions of subsection (e) of G.S. 143‑215.107D;(ii) the application involves a request by the public utility to construct agenerating unit that uses natural gas as the primary fuel at a specific coal‑firedgenerating site that the public utility owns or operates on July 1, 2009; (iii)the coal‑fired generating units at the site are not operated with fluegas desulfurization devices; (iv) the public utility will permanently ceaseoperations of all of the coal‑fired generating units at the site on orbefore the completion of the generating unit that is the subject of thecertificate application; and (v) the installation of the generating unit thatuses natural gas as the primary fuel allows the public utility to meet therequirements of subsection (e) of G.S. 143‑215.107D. When the publicutility applies for a certificate as provided in this subsection, it shallsubmit to the Commission and the Department of Environment and NaturalResources a revised verified statement required pursuant to subsection (i) ofG.S. 62‑133.6 and to the Commission an estimate of the costs ofconstruction of the generating unit that uses natural gas as the primary fuelin such detail as the Commission may require. The provisions of G.S. 62‑82and subsection (e) of this section shall not apply to a certificate applied forpursuant to this subsection. The authority granted pursuant to this subsectionexpires January 1, 2011. (1965, c. 287, s. 2; 1975, c. 780, s. 1; 1979, c.652, s. 2; 2007‑397, s. 6; 2009‑390, s. 1(b).)
