AN ACT TO ESTABLISH THE STUDY COMMISSION ON THE FUTURE OF ELECTRIC SERVICE 
IN NORTH CAROLINA.



The General Assembly of North Carolina enacts:



                  Section 1.  The Study Commission on the Future of 
Electric Service in North Carolina is created.  The Commission shall 
consist of 23 voting members as follows:

                  (1)      Six members of the Senate to be appointed by the 
President Pro Tempore of the Senate;

                  (2)      Six members of the House of Representatives to 
be appointed by the Speaker of the House of Representatives;

                  (3)      The Chief Executive Officer of the North 
Carolina Electric Membership Corporation or the Chief Executive Officer's 
designee;

                  (4)      The Chief Executive Officer of ElectriCities of 
North Carolina or the Chief Executive Officer's designee;

                  (5)      The Chief Executive Officer of Duke Power 
Company or the Chief Executive Officer's designee;

                  (6)      The Chief Executive Officer of Carolina Power 
and Light Company or the Chief Executive Officer's designee;

                  (7)      Two residential consumers of electricity, one to 
be appointed by the President Pro Tempore of the Senate and one to be 
appointed by the Speaker of the House of Representatives;

                  (8)      One commercial consumer of electricity to be 
appointed by the President Pro Tempore of the Senate;

                  (9)      Two industrial consumers of electricity, one to 
be appointed by the Speaker of the House of Representatives and one to be 
appointed by the President Pro Tempore of the Senate;

                  (10)     One member of the environmental community to be 
appointed by the Governor; and

                  (11)     One person representing a nationwide electric 
power marketer to be appointed by the Speaker of the House of 
Representatives.

                  The President Pro Tempore of the Senate and the Speaker 
of the House of Representatives shall each designate a cochair from the 
General Assembly membership serving on the Commission.  The Commission 
shall meet upon the call of the cochairs.  A majority of the Commission 
shall constitute a quorum for the transaction of business.

                  Section 2.  The Commission shall examine the cost, 
adequacy, availability, and pricing of electric rates and service in North 
Carolina to determine whether legislation is necessary to assure an 
adequate and reliable source of electricity  and economical, fair, and 
equitable rates for all consumers of electricity in North Carolina.  The 
Commission shall gather data and other information as may be necessary to 
accomplish the purposes of the Commission, including testimony at public 
hearings, and shall work cooperatively with other boards, commissions, and 
entities, taking advantage of their resources and activities for the 
provision of useful information and insight.  In the course of its study, 
the Commission shall seek input and advice from the Attorney General, the 
North Carolina Utilities Commission, and the Public Staff of the Utilities 
Commission.  The Commission shall also obtain guidance by reviewing 
electric utility restructuring experiments conducted in other states.

                  In the course of its study and in making its 
recommendations, the Commission shall fully address the following issues:

                  (1)      Assurance of fairness and equity among all 
                            customer classes;

                  (2)      Reliability of power supply;

                  (3)      Fair treatment of competing power providers;

                  (4)      Universal access to electric energy and assignment 
                            of responsibility to provide it;

                  (5)      Reciprocity between states;

                  (6)      Stranded investment costs and benefits;

                  (7)      Clarification of State and federal jurisdiction;

                  (8)      Environmental impact of restructuring;

                  (9)      Impact of competition on tax revenues;

                  (10)     Alternative forms of regulation;

                  (11)     Obligation to serve and the obligation to 
                            receive service;

                  (12)     Ways to eliminate or equalize subsidies and tax 
                            preferences;

                  (13)     Customer choice of electric providers;

                  (14)     Functional unbundling of electric power generation,
                            transmission, and distribution services;

                  (15)     Impact of competition on service to low-income 
                            consumers;

                  (16)     Impact of competition on renewable energy, 
                            conservation, and efficiency programs;

                  (17)     Impact of competition on the energy expenditures 
                            by State and local government;

                  (18)     Impact of competition on economic development;

                  (19)     Impact of competition on municipal electric 
                            utilities and rural electric cooperatives;

                  (20)     Prevention of anticompetitive or discriminatory 
                            conduct or the unlawful exercise of market power; and

                  (21)     Other relevant and appropriate subjects.

                  Section 3.  The  Commission may contract for consultant 
services as provided by G.S. 120-32.02.  Upon approval of the Legislative 
Services Commission, the Legislative Services Officer shall assign 
professional and clerical staff to assist in the work of the Commission.  
Clerical staff shall be furnished to the Commission through the offices of 
the House of Representatives and Senate Supervisors of Clerks.  The 
Commission may meet in the Legislative Building or the Legislative Office 
Building upon the approval of the Legislative Services Commission.  The 
Commission, while in the discharge of official duties, may exercise all 
the powers provided under the provisions of G.S. 120-19 through G.S. 
120-19.4, including the power to request all officers, agents, agencies, 
and departments of the State to provide any information, data, or 
documents within their possession, ascertainable from their records, or 
otherwise available to them, and the power to subpoena witnesses.

                  Members of the Commission shall receive per diem, 
subsistence, and travel allowances as follows:

                  (1)      Commission members who are members of the 
General Assembly at the rate established in G.S. 120-3.1;

                  (2)      Commission members who are officials or 
employees of the State or of local government agencies at the rate 
established in G.S. 138-6; and

                  (3)      All other Commission members at the rate 
established in G.S. 138-5.

                  Section 4.  The Commission shall make a report to the 
1998 Regular Session of the 1997 General Assembly, which may contain 
recommendations, and shall report the results of its study and its 
recommendations to the 1999 General Assembly. The Commission shall 
terminate upon filing its final report.



                  Section 5.  This act is effective when it becomes law.

                  In the General Assembly read three times and ratified 
this the 22nd day of April, 1997.





         s/       Dennis A. Wicker

                  President of the Senate





         s/       Harold J. Brubaker

                  Speaker of the House of Representatives





         s/       James B. Hunt, Jr.

                  Governor





Approved 2:55 p.m. this 30th day of April, 1997