Bill > S1076

This bill, specifically targeting the City of Rocky Mount, amends existing law to prohibit the city from transferring revenues generated by its electric power system to other municipal funds, except for specific, legally authorized purposes. Previously, the law allowed for such transfers to reflect a rate of return on the city's investment in the electric system, with limits based on a percentage of gross capital assets or gross annual revenues. This bill removes that allowance, restricting the use of electric system revenues solely to operating costs of the electric system, lowering electric rates for customers, or making additional debt payments for system improvements. The bill clarifies that "operating costs" include debt service, capital improvements, power purchases, required reserves, maintaining a rate stabilization fund, and payments in lieu of taxes to other governmental units, as well as reimbursements to other municipal funds for costs reasonably allocable to the electric system. This change aims to ensure that the revenues from the electric utility are primarily used for the benefit of the electric system itself and its customers, rather than being diverted for other general municipal purposes.