State Codes and Statutes

Statutes > North-carolina > Chapter_62 > GS_62-2

§ 62‑2.  Declaration ofpolicy.

(a)        Upon investigation,it has been determined that the rates, services and operations of publicutilities as defined herein, are affected with the public interest and that theavailability of an adequate and reliable supply of electric power and naturalgas to the people, economy and government of North Carolina is a matter ofpublic policy. It is hereby declared to be the policy of the State of NorthCarolina:

(1)        To provide fairregulation of public utilities in the interest of the public;

(2)        To promote theinherent advantage of regulated public utilities;

(3)        To promote adequate,reliable and economical utility service to all of the citizens and residents ofthe State;

(3a)      To assure thatresources necessary to meet future growth through the provision of adequate,reliable utility service include use of the entire spectrum of demand‑sideoptions, including but not limited to conservation, load management andefficiency programs, as additional sources of energy supply and/or energydemand reductions. To that end, to require energy planning and fixing of ratesin a manner to result in the least cost mix of generation and demand‑reductionmeasures which is achievable, including consideration of appropriate rewards toutilities for efficiency and conservation which decrease utility bills;

(4)        To provide just andreasonable rates and charges for public utility services without unjustdiscrimination, undue preferences or advantages, or unfair or destructivecompetitive practices and consistent with long‑term management andconservation of energy resources by avoiding wasteful, uneconomic andinefficient uses of energy;

(4a)      To assure thatfacilities necessary to meet future growth can be financed by the utilitiesoperating in this State on terms which are reasonable and fair to both thecustomers and existing investors of such utilities; and to that end toauthorize fixing of rates in such a manner as to result in lower costs of newfacilities and lower rates over the operating lives of such new facilities bymaking provisions in the rate‑making process for the investment of publicutilities in plants under construction;

(5)        To encourage andpromote harmony between public utilities, their users and the environment;

(6)        To foster the continuedservice of public utilities on a well‑planned and coordinated basis thatis consistent with the level of energy needed for the protection of publichealth and safety and for the promotion of the general welfare as expressed inthe State energy policy;

(7)        To seek to adjustthe rate of growth of regulated energy supply facilities serving the State tothe policy requirements of statewide development;

(8)        To cooperate withother states and with the federal government in promoting and coordinating interstateand intrastate public utility service and reliability of public utility energysupply;

(9)        To facilitate theconstruction of facilities in and the extension of natural gas service tounserved areas in order to promote the public welfare throughout the State andto that end to authorize the creation of expansion funds for natural gas localdistribution companies or gas districts to be administered under thesupervision of the North Carolina Utilities Commission; and

(10)      To promote thedevelopment of renewable energy and energy efficiency through theimplementation of a Renewable Energy and Energy Efficiency Portfolio Standard(REPS) that will do all of the following:

a.         Diversify theresources used to reliably meet the energy needs of consumers in the State.

b.         Provide greaterenergy security through the use of indigenous energy resources available withinthe State.

c.         Encourage privateinvestment in renewable energy and energy efficiency.

d.         Provide improved airquality and other benefits to energy consumers and citizens of the State.

(b)        To these ends,therefore, authority shall be vested in the North Carolina Utilities Commissionto regulate public utilities generally, their rates, services and operations,and their expansion in relation to long‑term energy conservation andmanagement policies and statewide development requirements, and in the mannerand in accordance with the policies set forth in this Chapter. Nothing in thisChapter shall be construed to imply any extension of Utilities Commissionregulatory jurisdiction over any industry or enterprise that is not subject tothe regulatory jurisdiction of said Commission.

Because of technologicalchanges in the equipment and facilities now available and needed to providetelephone and telecommunications services, changes in regulatory policies bythe federal government, and changes resulting from the court‑ordereddivestiture of the American Telephone and Telegraph Company, competitiveofferings of certain types of telephone and telecommunications services may bein the public interest. Consequently, authority shall be vested in the NorthCarolina Utilities Commission to allow competitive offerings of local exchange,exchange access, and long distance services by public utilities defined in G.S.62‑3(23)a.6. and certified in accordance with the provisions of G.S. 62‑110,and the Commission is further authorized after notice to affected parties andhearing to deregulate or to exempt from regulation under any or all provisionsof this Chapter: (i) a service provided by any public utility as defined inG.S. 62‑3(23)a.6. upon a finding that such service is competitive andthat such deregulation or exemption from regulation is in the public interest;or (ii) a public utility as defined in G.S. 62‑3(23)a.6., or a portion ofthe business of such public utility, upon a finding that the service orbusiness of such public utility is competitive and that such deregulation orexemption from regulation is in the public interest.

Notwithstanding the provisionsof G.S. 62‑110(b) and G.S. 62‑134(h), the following servicesprovided by public utilities defined in G.S. 62‑3(23)a.6. aresufficiently competitive and shall no longer be regulated by the Commission:(i) intraLATA long distance service; (ii) interLATA long distance service; and(iii) long distance operator services. A public utility providing such servicesshall be permitted, at its own election, to file and maintain tariffs for suchservices with the Commission up to and including September 1, 2003. Nothing inthis subsection shall limit the Commission's authority regarding certificationof providers of such services or its authority to hear and resolve complaintsagainst providers of such services alleged to have made changes to the servicesof customers or imposed charges without appropriate authorization. For purposesof this subsection, and notwithstanding G.S. 62‑110(b), "longdistance services" shall not include existing or future extended areaservice, local measured service, or other local calling arrangements, and anyfuture extended area service shall be implemented consistent with Commissionrules governing extended area service existing as of May 1, 2003.

The North Carolina UtilitiesCommission may develop regulatory policies to govern the provision of telecommunicationsservices to the public which promote efficiency, technological innovation,economic growth, and permit telecommunications utilities a reasonableopportunity to compete in an emerging competitive environment, giving dueregard to consumers, stockholders, and maintenance of reasonably affordablelocal exchange service and long distance service.

(b1)      Broadband serviceprovided by public utilities as defined in G.S. 62‑3(23)a.6. issufficiently competitive and shall not be regulated by the Commission.

(c)        The policy andauthority stated in this section shall be applicable to common carriers ofpassengers by motor vehicle and their regulation by the North CarolinaUtilities Commission only to the extent that they are consistent with theprovisions of the Bus Regulatory Reform Act of 1985. (1963, c. 1165, s. 1; 1975,c. 877, s. 2; 1977, c. 691, s. 1; 1983 (Reg. Sess., 1984), c. 1043, s. 1; 1985,c. 676, s. 3; 1987, c. 354; 1989, c. 112, s. 1; 1991, c. 598, s. 1; 1995, c.27, s. 1; 1995 (Reg. Sess., 1996), c. 742, ss. 29‑32; 1998‑132, s.18; 2003‑91, s. 1; 2005‑95, s. 1; 2007‑397, s. 1.)

State Codes and Statutes

Statutes > North-carolina > Chapter_62 > GS_62-2

§ 62‑2.  Declaration ofpolicy.

(a)        Upon investigation,it has been determined that the rates, services and operations of publicutilities as defined herein, are affected with the public interest and that theavailability of an adequate and reliable supply of electric power and naturalgas to the people, economy and government of North Carolina is a matter ofpublic policy. It is hereby declared to be the policy of the State of NorthCarolina:

(1)        To provide fairregulation of public utilities in the interest of the public;

(2)        To promote theinherent advantage of regulated public utilities;

(3)        To promote adequate,reliable and economical utility service to all of the citizens and residents ofthe State;

(3a)      To assure thatresources necessary to meet future growth through the provision of adequate,reliable utility service include use of the entire spectrum of demand‑sideoptions, including but not limited to conservation, load management andefficiency programs, as additional sources of energy supply and/or energydemand reductions. To that end, to require energy planning and fixing of ratesin a manner to result in the least cost mix of generation and demand‑reductionmeasures which is achievable, including consideration of appropriate rewards toutilities for efficiency and conservation which decrease utility bills;

(4)        To provide just andreasonable rates and charges for public utility services without unjustdiscrimination, undue preferences or advantages, or unfair or destructivecompetitive practices and consistent with long‑term management andconservation of energy resources by avoiding wasteful, uneconomic andinefficient uses of energy;

(4a)      To assure thatfacilities necessary to meet future growth can be financed by the utilitiesoperating in this State on terms which are reasonable and fair to both thecustomers and existing investors of such utilities; and to that end toauthorize fixing of rates in such a manner as to result in lower costs of newfacilities and lower rates over the operating lives of such new facilities bymaking provisions in the rate‑making process for the investment of publicutilities in plants under construction;

(5)        To encourage andpromote harmony between public utilities, their users and the environment;

(6)        To foster the continuedservice of public utilities on a well‑planned and coordinated basis thatis consistent with the level of energy needed for the protection of publichealth and safety and for the promotion of the general welfare as expressed inthe State energy policy;

(7)        To seek to adjustthe rate of growth of regulated energy supply facilities serving the State tothe policy requirements of statewide development;

(8)        To cooperate withother states and with the federal government in promoting and coordinating interstateand intrastate public utility service and reliability of public utility energysupply;

(9)        To facilitate theconstruction of facilities in and the extension of natural gas service tounserved areas in order to promote the public welfare throughout the State andto that end to authorize the creation of expansion funds for natural gas localdistribution companies or gas districts to be administered under thesupervision of the North Carolina Utilities Commission; and

(10)      To promote thedevelopment of renewable energy and energy efficiency through theimplementation of a Renewable Energy and Energy Efficiency Portfolio Standard(REPS) that will do all of the following:

a.         Diversify theresources used to reliably meet the energy needs of consumers in the State.

b.         Provide greaterenergy security through the use of indigenous energy resources available withinthe State.

c.         Encourage privateinvestment in renewable energy and energy efficiency.

d.         Provide improved airquality and other benefits to energy consumers and citizens of the State.

(b)        To these ends,therefore, authority shall be vested in the North Carolina Utilities Commissionto regulate public utilities generally, their rates, services and operations,and their expansion in relation to long‑term energy conservation andmanagement policies and statewide development requirements, and in the mannerand in accordance with the policies set forth in this Chapter. Nothing in thisChapter shall be construed to imply any extension of Utilities Commissionregulatory jurisdiction over any industry or enterprise that is not subject tothe regulatory jurisdiction of said Commission.

Because of technologicalchanges in the equipment and facilities now available and needed to providetelephone and telecommunications services, changes in regulatory policies bythe federal government, and changes resulting from the court‑ordereddivestiture of the American Telephone and Telegraph Company, competitiveofferings of certain types of telephone and telecommunications services may bein the public interest. Consequently, authority shall be vested in the NorthCarolina Utilities Commission to allow competitive offerings of local exchange,exchange access, and long distance services by public utilities defined in G.S.62‑3(23)a.6. and certified in accordance with the provisions of G.S. 62‑110,and the Commission is further authorized after notice to affected parties andhearing to deregulate or to exempt from regulation under any or all provisionsof this Chapter: (i) a service provided by any public utility as defined inG.S. 62‑3(23)a.6. upon a finding that such service is competitive andthat such deregulation or exemption from regulation is in the public interest;or (ii) a public utility as defined in G.S. 62‑3(23)a.6., or a portion ofthe business of such public utility, upon a finding that the service orbusiness of such public utility is competitive and that such deregulation orexemption from regulation is in the public interest.

Notwithstanding the provisionsof G.S. 62‑110(b) and G.S. 62‑134(h), the following servicesprovided by public utilities defined in G.S. 62‑3(23)a.6. aresufficiently competitive and shall no longer be regulated by the Commission:(i) intraLATA long distance service; (ii) interLATA long distance service; and(iii) long distance operator services. A public utility providing such servicesshall be permitted, at its own election, to file and maintain tariffs for suchservices with the Commission up to and including September 1, 2003. Nothing inthis subsection shall limit the Commission's authority regarding certificationof providers of such services or its authority to hear and resolve complaintsagainst providers of such services alleged to have made changes to the servicesof customers or imposed charges without appropriate authorization. For purposesof this subsection, and notwithstanding G.S. 62‑110(b), "longdistance services" shall not include existing or future extended areaservice, local measured service, or other local calling arrangements, and anyfuture extended area service shall be implemented consistent with Commissionrules governing extended area service existing as of May 1, 2003.

The North Carolina UtilitiesCommission may develop regulatory policies to govern the provision of telecommunicationsservices to the public which promote efficiency, technological innovation,economic growth, and permit telecommunications utilities a reasonableopportunity to compete in an emerging competitive environment, giving dueregard to consumers, stockholders, and maintenance of reasonably affordablelocal exchange service and long distance service.

(b1)      Broadband serviceprovided by public utilities as defined in G.S. 62‑3(23)a.6. issufficiently competitive and shall not be regulated by the Commission.

(c)        The policy andauthority stated in this section shall be applicable to common carriers ofpassengers by motor vehicle and their regulation by the North CarolinaUtilities Commission only to the extent that they are consistent with theprovisions of the Bus Regulatory Reform Act of 1985. (1963, c. 1165, s. 1; 1975,c. 877, s. 2; 1977, c. 691, s. 1; 1983 (Reg. Sess., 1984), c. 1043, s. 1; 1985,c. 676, s. 3; 1987, c. 354; 1989, c. 112, s. 1; 1991, c. 598, s. 1; 1995, c.27, s. 1; 1995 (Reg. Sess., 1996), c. 742, ss. 29‑32; 1998‑132, s.18; 2003‑91, s. 1; 2005‑95, s. 1; 2007‑397, s. 1.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_62 > GS_62-2

§ 62‑2.  Declaration ofpolicy.

(a)        Upon investigation,it has been determined that the rates, services and operations of publicutilities as defined herein, are affected with the public interest and that theavailability of an adequate and reliable supply of electric power and naturalgas to the people, economy and government of North Carolina is a matter ofpublic policy. It is hereby declared to be the policy of the State of NorthCarolina:

(1)        To provide fairregulation of public utilities in the interest of the public;

(2)        To promote theinherent advantage of regulated public utilities;

(3)        To promote adequate,reliable and economical utility service to all of the citizens and residents ofthe State;

(3a)      To assure thatresources necessary to meet future growth through the provision of adequate,reliable utility service include use of the entire spectrum of demand‑sideoptions, including but not limited to conservation, load management andefficiency programs, as additional sources of energy supply and/or energydemand reductions. To that end, to require energy planning and fixing of ratesin a manner to result in the least cost mix of generation and demand‑reductionmeasures which is achievable, including consideration of appropriate rewards toutilities for efficiency and conservation which decrease utility bills;

(4)        To provide just andreasonable rates and charges for public utility services without unjustdiscrimination, undue preferences or advantages, or unfair or destructivecompetitive practices and consistent with long‑term management andconservation of energy resources by avoiding wasteful, uneconomic andinefficient uses of energy;

(4a)      To assure thatfacilities necessary to meet future growth can be financed by the utilitiesoperating in this State on terms which are reasonable and fair to both thecustomers and existing investors of such utilities; and to that end toauthorize fixing of rates in such a manner as to result in lower costs of newfacilities and lower rates over the operating lives of such new facilities bymaking provisions in the rate‑making process for the investment of publicutilities in plants under construction;

(5)        To encourage andpromote harmony between public utilities, their users and the environment;

(6)        To foster the continuedservice of public utilities on a well‑planned and coordinated basis thatis consistent with the level of energy needed for the protection of publichealth and safety and for the promotion of the general welfare as expressed inthe State energy policy;

(7)        To seek to adjustthe rate of growth of regulated energy supply facilities serving the State tothe policy requirements of statewide development;

(8)        To cooperate withother states and with the federal government in promoting and coordinating interstateand intrastate public utility service and reliability of public utility energysupply;

(9)        To facilitate theconstruction of facilities in and the extension of natural gas service tounserved areas in order to promote the public welfare throughout the State andto that end to authorize the creation of expansion funds for natural gas localdistribution companies or gas districts to be administered under thesupervision of the North Carolina Utilities Commission; and

(10)      To promote thedevelopment of renewable energy and energy efficiency through theimplementation of a Renewable Energy and Energy Efficiency Portfolio Standard(REPS) that will do all of the following:

a.         Diversify theresources used to reliably meet the energy needs of consumers in the State.

b.         Provide greaterenergy security through the use of indigenous energy resources available withinthe State.

c.         Encourage privateinvestment in renewable energy and energy efficiency.

d.         Provide improved airquality and other benefits to energy consumers and citizens of the State.

(b)        To these ends,therefore, authority shall be vested in the North Carolina Utilities Commissionto regulate public utilities generally, their rates, services and operations,and their expansion in relation to long‑term energy conservation andmanagement policies and statewide development requirements, and in the mannerand in accordance with the policies set forth in this Chapter. Nothing in thisChapter shall be construed to imply any extension of Utilities Commissionregulatory jurisdiction over any industry or enterprise that is not subject tothe regulatory jurisdiction of said Commission.

Because of technologicalchanges in the equipment and facilities now available and needed to providetelephone and telecommunications services, changes in regulatory policies bythe federal government, and changes resulting from the court‑ordereddivestiture of the American Telephone and Telegraph Company, competitiveofferings of certain types of telephone and telecommunications services may bein the public interest. Consequently, authority shall be vested in the NorthCarolina Utilities Commission to allow competitive offerings of local exchange,exchange access, and long distance services by public utilities defined in G.S.62‑3(23)a.6. and certified in accordance with the provisions of G.S. 62‑110,and the Commission is further authorized after notice to affected parties andhearing to deregulate or to exempt from regulation under any or all provisionsof this Chapter: (i) a service provided by any public utility as defined inG.S. 62‑3(23)a.6. upon a finding that such service is competitive andthat such deregulation or exemption from regulation is in the public interest;or (ii) a public utility as defined in G.S. 62‑3(23)a.6., or a portion ofthe business of such public utility, upon a finding that the service orbusiness of such public utility is competitive and that such deregulation orexemption from regulation is in the public interest.

Notwithstanding the provisionsof G.S. 62‑110(b) and G.S. 62‑134(h), the following servicesprovided by public utilities defined in G.S. 62‑3(23)a.6. aresufficiently competitive and shall no longer be regulated by the Commission:(i) intraLATA long distance service; (ii) interLATA long distance service; and(iii) long distance operator services. A public utility providing such servicesshall be permitted, at its own election, to file and maintain tariffs for suchservices with the Commission up to and including September 1, 2003. Nothing inthis subsection shall limit the Commission's authority regarding certificationof providers of such services or its authority to hear and resolve complaintsagainst providers of such services alleged to have made changes to the servicesof customers or imposed charges without appropriate authorization. For purposesof this subsection, and notwithstanding G.S. 62‑110(b), "longdistance services" shall not include existing or future extended areaservice, local measured service, or other local calling arrangements, and anyfuture extended area service shall be implemented consistent with Commissionrules governing extended area service existing as of May 1, 2003.

The North Carolina UtilitiesCommission may develop regulatory policies to govern the provision of telecommunicationsservices to the public which promote efficiency, technological innovation,economic growth, and permit telecommunications utilities a reasonableopportunity to compete in an emerging competitive environment, giving dueregard to consumers, stockholders, and maintenance of reasonably affordablelocal exchange service and long distance service.

(b1)      Broadband serviceprovided by public utilities as defined in G.S. 62‑3(23)a.6. issufficiently competitive and shall not be regulated by the Commission.

(c)        The policy andauthority stated in this section shall be applicable to common carriers ofpassengers by motor vehicle and their regulation by the North CarolinaUtilities Commission only to the extent that they are consistent with theprovisions of the Bus Regulatory Reform Act of 1985. (1963, c. 1165, s. 1; 1975,c. 877, s. 2; 1977, c. 691, s. 1; 1983 (Reg. Sess., 1984), c. 1043, s. 1; 1985,c. 676, s. 3; 1987, c. 354; 1989, c. 112, s. 1; 1991, c. 598, s. 1; 1995, c.27, s. 1; 1995 (Reg. Sess., 1996), c. 742, ss. 29‑32; 1998‑132, s.18; 2003‑91, s. 1; 2005‑95, s. 1; 2007‑397, s. 1.)