HB 351 — Utilities/Rate Base/Fair Value Determination.
Last action — Became Law W/o Signature
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced March 14, 2017. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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2 sponsors
1 primary, 1 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 R).
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Cleared a recorded vote
Passed 2 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
32 added · 39 removedPlain-language change summary
In the updates to House Bill 351, some administrative details were revised, including changes to the date and the reference to the House Principal Clerk. Specifically, the date for the session was updated from March 14 to March 15, 2017, and some language was streamlined to improve clarity. These changes don’t affect the content of the bill itself but help ensure that the bill is accurately presented in the legislative record.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 21 HOUSE BILL 351 Committee Substitute Favorable 4/25/17 Short Title:
Representatives Watford and Collins (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Energy and Public Utilities, if favorable, State and Local Government II March 15, 2017 A BILL TO BE ENTITLED AN ACT AUTHORIZING WATER AND WASTEWATER PUBLIC UTILITIES TO ELECT TO USE A FAIR VALUE DETERMINATION FOR RATE-MAKING PURPOSES WHEN ACQUIRING UTILITIES OWNED BY COUNTIES, MUNICIPALITIES, OR OTHER GOVERNMENTAL ENTITIES.
*H351-v-2**H351-v-1* General Assembly Of North Carolina Session 2017 "§ 62-133.1A.
62-3(23)a.2., may elect to establish rate base by using the fair value of the utility property instead of original cost when acquiring an existing water or wastewater system (system) owned by a municipality or county or an authority or district established under Chapter 162A of the General Statutes.
One appraiser shall represent the public utility acquiring the system and another appraiser shall represent the utility selling the system.
(4) The rate base value of the acquired system,system which shall be reflected in the acquiring public utility's next general rate case for rate-making purposes,purposes shall be the lesser of the purchase price negotiated between the parties to the sale or the fair value plus the fees and costs authorized in subdivision (3) of this subsection.
(2) AnyThe deficienciesaveraging identifiedof by the engineeringappraisers' assessmentvaluations, conductedwhich pursuantshall toconstitute subdivisionfair (2)value offor subsectionpurposes (b) of this sectionsection. and a five-year plan for prudent and necessary infrastructure improvements by the acquiring entity.
(3) ProjectedThe rateassessment impactof fortangible theassets sellingperformed entity'sby customersa forlicensed theprofessional nextengineer, fiveas years.provided in subdivision (2) of subsection (b) of this section.
(4) The averagingcontract of thesale. appraisers' valuations, which shall constitute fair value for purposes of this section.
(5) The assessmentestimated ofvaluation tangiblefees assetsand performedtransaction byand aclosing licensedcosts professionalincurred engineer,by asthe providedacquiring inpublic subdivisionutility. (2) of subsection (b) of this section.
Page(6) 2A Housetariff, Billincluding 351-Secondrates Editionequal Generalto Assemblythe Ofrates Northof Carolinathe Sessionselling 2017utility. (6) The contract of sale.
(7) The estimatedselling valuationutility's feesrates andshall transactionbe andthe closingrates costscharged incurredto bythe customers of the acquiring Page 2 House Bill 351-First Edition General Assembly Of North Carolina Session 2017 public utility.utility until the acquiring public utility's next general rate case, unless otherwise ordered by the Commission for good cause shown.
(8) A tariff, including rates equal to the rates of the selling utility.
The selling utility's rates shall be the rates charged to the customers of the acquiring public utility until the acquiring public utility's next general rate case, unless otherwise ordered by the Commission for good cause shown.
– The Commission shall retain its authority under Chapter 62 of the General Statutes to set rates for the acquired system in future rate cases, and shall have the discretion to classify the acquired system as a separate entity for ratemaking purposes, consistent with the public interest." SECTION 3.
House Bill 351-Second351-First Edition Page 3
Action History
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Became Law W/o Signature
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Ch. SL 2018-51
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Concurred In S Com Sub
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Ordered Enrolled
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Ratified
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Pres. To Gov. 6/14/2018
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Reptd Fav
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Placed on Today's Calendar
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Passed 2nd Reading
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Passed 3rd Reading
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Special Message Sent To House
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Special Message Received For Concurrence in S Com Sub
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Cal Pursuant 36(b)
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Placed On Cal For 06/14/2018
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Reptd Fav Com Substitute
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Com Substitute Adopted
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Re-ref Com On Rules and Operations of the Senate
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Withdrawn From Com
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Re-ref to Commerce and Insurance. If fav, re-ref to Rules and Operations of the Senate
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Regular Message Sent To Senate
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Regular Message Received From House
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Amend Adopted A1
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Passed 2nd Reading
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Passed 3rd Reading
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Ordered Engrossed
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Reptd Fav Com Substitute
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Cal Pursuant Rule 36(b)
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Placed On Cal For 04/26/2017
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Serial Referral To State and Local Government II Stricken
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Passed 1st Reading
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Ref to the Com on Energy and Public Utilities, if favorable, State and Local Government II
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Filed
Sponsors
- Sam Watford · Primary
- Collins · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 1 co-sponsors · 177 not signed on · 5 voted No
Sponsors (1)
- Sam Watford Republican
Co-sponsors (1)
- Collins
Not signed on (177)
177 members have not signed on to this bill.
Show all 177 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 55 | 7 | 0 | 14 |
| Republican | 26 | 0 | 0 | 2 |
| Democratic | 9 | 4 | 0 | 2 |
| U | 1 | 0 | 0 | 0 |
| Total | 91 | 11 | 0 | 18 |
| % of votes cast | 76% | 9% | 0% | 15% |
How each member voted (120)
| Member | Party | Vote |
|---|---|---|
| Lewis | — | Yea |
| McElraft | — | Not Voting |
| Michaux | — | Yea |
| Muller | — | Yea |
| Murphy | — | Not Voting |
| Steinburg | — | Yea |
| Zachary | — | Yea |
| Autry | — | Yea |
| Boswell | — | Yea |
| Cleveland | — | Yea |
| Conrad | — | Yea |
| Dobson | — | Yea |
| Faircloth | — | Yea |
| Farmer-Butterfield | — | Yea |
| Floyd | — | Yea |
| Fraley | — | Yea |
| Garrison | — | Yea |
| Gill | — | Not Voting |
| G.Adcock | — | Yea |
| L.Bell | — | Yea |
| C.Graham | — | Yea |
| G.Graham | — | Yea |
| G.Martin | — | Yea |
| W.Richardson | — | Yea |
| B.Turner | — | Yea |
| J.Bell | — | Yea |
| Brawley | — | Yea |
| BrendenJones | — | Yea |
| DestinHall | — | Yea |
| K.Hall | — | Yea |
| Malone | — | Yea |
| S.Martin | — | Yea |
| Beasley | — | Yea |
| Burr | — | Yea |
| Collins | — | Yea |
| Dollar | — | Yea |
| Dulin | — | Yea |
| Earle | — | Yea |
| Elmore | — | Yea |
| Goodman | — | Yea |
| Grange | — | Yea |
| Hanes | — | Yea |
| Hardister | — | Yea |
| Henson | — | Yea |
| Holley | — | Yea |
| Horn | — | Yea |
| Hurley | — | Yea |
| Lucas | — | Yea |
| McNeill | — | Yea |
| Presnell | — | Yea |
| Wray | — | Yea |
| R.Turner | — | Yea |
| DuaneHall | — | Nay |
| Jackson | — | Nay |
| B.Richardson | — | Nay |
| T.Moore(Speaker) | — | Not Voting |
| R.Moore | — | Not Voting |
| BertJones | — | Not Voting |
| Johnson | — | Not Voting |
| Stone | — | Not Voting |
| Black | — | Nay |
| Boles | — | Not Voting |
| Bradford | — | Not Voting |
| Bumgardner | — | Not Voting |
| Fisher | — | Nay |
| Hunter | — | Not Voting |
| Insko | — | Nay |
| Jordan | — | Not Voting |
| McGrady | — | Not Voting |
| Rogers | — | Yea |
| Saine | — | Yea |
| Speciale | — | Yea |
| Szoka | — | Yea |
| Terry | — | Nay |
| Williams | — | Yea |
| Yarborough | — | Yea |
| Amos L. Quick, III | Democratic | Yea |
| Becky Carney | Democratic | Not Voting |
| Cecil Brockman | Democratic | Yea |
| Cynthia Ball | Democratic | Yea |
| Dante Pittman | Democratic | Yea |
| Deb Butler | Democratic | Nay |
| Eric Ager | Democratic | Nay |
| Garland E. Pierce | Democratic | Yea |
| Graig Meyer | Democratic | Nay |
| Joe John | Democratic | Yea |
| Marcia Morey | Democratic | Yea |
| Mary Belk | Democratic | Not Voting |
| Pricey Harrison | Democratic | Nay |
| Robert T. Reives, II | Democratic | Yea |
| Shelly Willingham | Democratic | Yea |
| Carl Ford | Republican | Yea |
| Dean Arp | Republican | Yea |
| Dennis Riddell | Republican | Yea |
| Donna McDowell White | Republican | Yea |
| Donny Lambeth | Republican | Yea |
| Frank Iler | Republican | Yea |
| Harry Warren | Republican | Yea |
| Hugh Blackwell | Republican | Yea |
| Jay Adams | Republican | Yea |
| Jimmy Dixon | Republican | Yea |
| John A. Torbett | Republican | Yea |
| John M. Blust | Republican | Yea |
| John Sauls | Republican | Yea |
| Julia C. Howard | Republican | Yea |
| Kelly E. Hastings | Republican | Yea |
| Kevin Corbin | Republican | Yea |
| Larry C. Strickland | Republican | Yea |
| Larry W. Potts | Republican | Yea |
| Mark Brody | Republican | Yea |
| Mike Clampitt | Republican | Yea |
| Mitchell S. Setzer | Republican | Yea |
| Phil Shepard | Republican | Not Voting |
| Sam Watford | Republican | Yea |
| Sarah Stevens | Republican | Yea |
| Stephen M. Ross | Republican | Yea |
| Ted Davis, Jr. | Republican | Not Voting |
| W. Ted Alexander | Republican | Yea |
| William D. Brisson | Republican | Yea |
| Carla D. Cunningham | U | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 9 | 0 | 0 | 1 |
| Unaffiliated | 28 | 3 | 0 | 2 |
| Democratic | 6 | 1 | 0 | 0 |
| Total | 43 | 4 | 0 | 3 |
| % of votes cast | 86% | 8% | 0% | 6% |
How each member voted (50)
| Member | Party | Vote |
|---|---|---|
| Randleman | — | Yea |
| Ballard | — | Yea |
| Barefoot | — | Yea |
| Barrett | — | Yea |
| Fitch | — | Nay |
| Foushee | — | Nay |
| D.Davis | — | Yea |
| J.Jackson | — | Yea |
| Smith | — | Yea |
| McKissick | — | Yea |
| Woodard | — | Yea |
| Brown | — | Yea |
| J.Davis | — | Yea |
| B.Jackson | — | Yea |
| Newton | — | Yea |
| Tucker | — | Yea |
| VanDuyn | — | Nay |
| Barringer | — | Not Voting |
| Bishop | — | Yea |
| Curtis | — | Yea |
| Dunn | — | Yea |
| Edwards | — | Yea |
| Gunn | — | Yea |
| Harrington | — | Yea |
| Horner | — | Yea |
| Krawiec | — | Yea |
| Meredith | — | Yea |
| Pate | — | Not Voting |
| Rabin | — | Yea |
| Tarte | — | Yea |
| Tillman | — | Yea |
| Wade | — | Yea |
| Wells | — | Yea |
| Amanda P. Cook | Democratic | Yea |
| Dan Blue | Democratic | Yea |
| Gladys A. Robinson | Democratic | Nay |
| Jay J. Chaudhuri | Democratic | Yea |
| Joyce Waddell | Democratic | Yea |
| Paul A. Lowe, Jr. | Democratic | Yea |
| Tracy Clark | Democratic | Yea |
| Bill Rabon | Republican | Yea |
| Carl Ford | Republican | Not Voting |
| Danny Earl Britt, Jr. | Republican | Yea |
| Michael V. Lee | Republican | Yea |
| Norman W. Sanderson | Republican | Yea |
| Phil Berger | Republican | Yea |
| Ralph Hise | Republican | Yea |
| Tom McInnis | Republican | Yea |
| W. Ted Alexander | Republican | Yea |
| Warren Daniel | Republican | Yea |
Subjects
Frequently asked questions
- Who sponsors HB 351?
- HB 351 is sponsored by Sam Watford (Republican) and Collins.
- What is the current status of HB 351?
- This bill has been enacted into law. Introduced March 14, 2017. Enacted.
- Where can I track HB 351?
- Track HB 351 free on One Click Politics — get push/email alerts when it moves.
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