S 152 Session 125 (2023-2024) S 0152 General Bill, By Young A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 58-5-410, RELATING TO ELECTION TO COME UNDER THE NATURAL GAS RATE STABILIZATION ACT, SO AS TO REMOVE THE PROVISION THAT AN ELECTION SHALL REMAIN IN EFFECT UNTIL THE NEXT GENERAL RATE PROCEEDING; BY AMENDING SECTION 58-5-415, RELATING TO THE DURATION OF AN ELECTION AND THE WITHDRAWAL OF A REQUEST TO COME UNDER THE NATURAL GAS RATE STABILIZATION ACT, SO AS TO PROVIDE THAT ELECTION BY A UTILITY UNDER THE NATURAL GAS RATE STABILIZATION ACT SHALL REMAIN IN EFFECT FOR FIVE YEARS AND THAT THE UTILITY MAY OPT OUT; BY AMENDING SECTION 58-5-420, RELATING TO THE CONTENTS OF AN ORDER, SO AS TO REMOVE CERTAIN REQUIREMENTS FOR FIGURES; BY AMENDING SECTION 58-5-450, RELATING TO THE REVIEW OF REPORTS AND PROPOSED TARIFF RATE ADJUSTMENTS, SO AS TO PROVIDE THAT THE OFFICE OF REGULATORY STAFF SHALL PROPOSE CHANGES TO RATE DESIGN; BY AMENDING SECTION 58-5-470, RELATING TO THE REVIEW OF INITIAL ORDERS, SCOPE, AND RULE TO SHOW CAUSE FOR WHY A FULL RATE PROCEEDING SHOULD NOT BE INITIATED, SO AS TO PROVIDE THAT THE RIGHT OF REGULATORY STAFF TO FILE CERTAIN ACTIONS IS NOT LIMITED; AND BY ADDING SECTION 58-5-416 SO AS TO PROVIDE A LIMITATION ON THE DURATION OF ELECTION. A bill to amend the South Carolina Code of Laws by amending Section 58-5-410, relating to ELECTION TO COME UNDER THE NATURAL GAS RATE STABILIZATION ACT, so as to REMOVE THE PROVISION THAT AN ELECTION SHALL REMAIN IN EFFECT UNTIL THE NEXT GENERAL RATE PROCEEDING; by amending Section 58-5-415, relating to THE DURATION OF AN ELECTION AND THE WITHDRAWAL OF A REQUEST TO COME UNDER THE NATURAL GAS RATE STABILIZATION ACT, so as to PROVIDE THAT ELECTION BY A UTILITY UNDER THE NATURAL GAS RATE STABILIZATION ACT SHALL REMAIN IN EFFECT FOR FIVE YEARS AND THAT THE UTILITY MAY OPT OUT; by amending Section 58-5-420, relating to THE CONTENTS OF AN ORDER, so as to REMOVE CERTAIN REQUIREMENTS FOR FIGURES; by amending Section 58-5-450, relating to THE REVIEW OF REPORTS AND PROPOSED TARIFF RATE ADJUSTMENTS, so as to PROVIDE THAT THE OFFICE OF REGULATORY STAFF SHALL PROPOSE CHANGES TO RATE DESIGN; by amending Section 58-5-470, relating to THE REVIEW OF INITIAL ORDERS, SCOPE, AND RULE TO SHOW CAUSE FOR WHY A FULL RATE PROCEEDING SHOULD NOT BE INITIATED, so as to PROVIDE THAT THE RIGHT OF REGULATORY STAFF TO FILE CERTAIN ACTIONS IS NOT LIMITED; and by adding Section 58-5-416 so as to PROVIDE A LIMITATION ON THE DURATION OF ELECTION. Whereas, the Natural Gas Rate Stabilization Act (RSA) was ratified in 2005 for the purposes of increasing the stability and predictability of natural gas rates charged to retail customers; providing an efficient rate-setting mechanism for smaller, periodic rate adjustments; and encouraging investment in new, updated, and expanded natural gas infrastructure, reducing the cost of proceedings for consumers and the public; and Whereas, after a return on equity, cost of service, revenue allocation, capital structure, or rate design is elected by an investor-owned natural gas utility, the RSA provides no opportunity for the Public Service Commission to review and make appropriate changes; and Whereas, it is reasonable that the Public Service Commission should be permitted to review and make changes to the return on equity, cost of service, revenue allocation, capital structure, and rate design every five years. Now, therefore, Be it enacted by the General Assembly of the State of South Carolina: SECTION 1. Section 58-5-410 of the S.C. Code is amended to read: Section 58-5-410. A public utility providing natural gas distribution service, in its discretion and at anytime, may elect to have the terms of this article SECTION 2. Section 58-5-415 of the S.C. Code is amended to read: Section 58-5-415. The election by a utility to have the terms of this SECTION 3. Section 58-5-420(2) of the S.C. Code is amended to read: (2) the commission separately shall state the amount of the utility's net plant in service, construction work in progress, accumulated deferred income taxes, inventory, working capital, and other rate base components. It also shall state the utility's depreciation expense, operating and maintenance expense, income taxes, taxes other than income taxes, other components of income for return, revenues, capital structure, cost of debt, overall cost of capital, and earned return on common equity. The figures stated shall be those which the commission has determined to be the appropriate basis on which rates were set in the applicable orders. SECTION 4. Section 58-5-450 of the S.C. Code is amended to read: Section 58-5-450. The Office of Regulatory Staff shall review the monitoring report filed pursuant to Sections 58-5-430 and 58-5-440 to determine compliance with its terms taking into account the findings of any audit conducted by the Office of Regulatory Staff concerning compliance with Sections 58-5-430 and 58-5-440. The Office of Regulatory Staff shall propose those adjustments, including changes to rate design, it determines to be required to bring the report into compliance with Section 58-5-440. Based upon that report and the findings of any audit conducted by the Office of Regulatory Staff, the commission shall order the utility to make the adjustments to tariff rates necessary to achieve the revenue levels indicated in Section 58-5-440. SECTION 5. Section 58-5-470 of the S.C. Code is amended to read: Section 58-5-470. The review of Initial Orders pursuant to Sections 58-5-460 and 58-5-465 is limited to issues related to compliance with the terms of this SECTION 6. Section 58-5-416. (A) Every five years, a public utility that has operated under the terms of this (B) After an application has been filed with the commission and a copy provided to regulatory staff, the commission shall, after such notice to the public as the commission may prescribe, hold a public hearing concerning the lawfulness or reasonableness of the relief requested. (C) Upon receipt of information pursuant to subsection (A), the commission shall issue an order pursuant to the requirements of Section 58-5-420. (D) The commission shall rule and issue its order approving or disapproving changes in full or in part within six months after the date that information pursuant to subsection (A) is filed. SECTION 7. Pursuant to Section 58-5-416, as added by this act, within twelve months of the effective date of this act, a public utility that has operated under the terms of SECTION 8. This act takes effect upon approval by the Governor. ----XX---- |