Bill > H4386

This bill amends South Carolina law to establish a detailed process for evaluating public utility acquisitions of water and sewer infrastructure owned by counties, municipalities, or special purpose districts. The bill requires the Public Service Commission to consider fair market value when reviewing such acquisitions, mandating that the public utility submit two independent appraisals conducted by mutually selected utility-valuation experts following professional appraisal standards. The Office of Regulatory Staff may also provide an additional appraisal, and the fair market value will be determined by averaging these appraisals. The commission must hold a public hearing between 60 and 90 days after receiving the application and must complete the hearing and issue an order within 180 days. If the acquisition is approved and deemed in the public interest, the purchase price or fair market value (whichever is less) will be incorporated into the utility's rate base in its next general rate case, with reasonable transaction and closing costs recoverable as capital costs. The bill importantly allows either party to decline the acquisition, providing flexibility in the process. The legislation will take effect upon the Governor's approval, aiming to provide a transparent and standardized approach to public utility infrastructure acquisitions.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=4386&session=126&summary=B