Water
Providers that Fall under Regulation of the
North Carolina Utilities Commission
Customers Served
Section 62-3 of the General Statutes of North
Carolina provides in part that anyone furnishing water to fifteen (15)
or more residential customers for compensation is a public utility, subject
to regulation by the North Carolina Utilities Commission. The fifteen (15)
residential customers specified by the Statutes applies to the total number
of customers served by the person, regardless of whether the person operates
more than one system, and regardless of the number of customers served
by each separate system. The definition of a public utility also includes
anyone furnishing water and/or sewer to non-residential type customers,
regardless of number.
Certificate of Public Convenience and Necessity
Section 62-110 of the General Statutes requires
in part that a public utility must obtain a franchise (Certificate of Public
Convenience and Necessity) from the Utilities Commission. The franchise
authorizes the utility to furnish utility services in a specified area.
A separate franchise must be obtained for each area not contiguous to a
previously franchised area.
Section 62-138 of the General Statutes
requires in part that a public utility must file with the Utilities Commission
a schedule listing all rates and charges for utility services. The rates
and charges are subject to approval by the Commission. Any billing to customers
regardless of profit is considered to be operating as a utility.
Rules for Governing the Resale of Water and Sewer Utility Service Provided by an Apartment Complex
Section 62-110 (g) of the General Statutes
authorized the Utilities Commission to adopt rules for governing the resale
of water and sewer utility service provided to persons who occupy the same
contiguous premises. An apartment complex, comprising one or more buildings
under common ownership or management, located on property that is not separated
by property owned or managed by others is considered to be the same contiguous
premises. No provider shall begin reselling water or sewer utility service
prior to applying for and receiving a certificate of authority from the
Commission and posting a bond in the form and amount required by the Commission.
The rates charged by a provider will be
set to generate revenue no greater than the total of: (1) the cost of purchased
water and sewer service, (2) the cost of meter reading, and (3) the cost
of billing and collection. No more than $2.00 may be added to the cost
of purchased water and sewer service as an administrative fee to compensate
the provider for meter reading, billing, and collection.
Section 62-138 of the General Statutes
requires in part that a public utility must file with the Utilities Commission
a schedule listing all rates and charges for utility services. The rates
and charges are subject to approval by the Commission. Any billing to customers
regardless of profit is considered to be operating as a utility.
It should also be noted that Section 130A-311
through 130A-332, the North Carolina Drinking Water Act, applies to each
public water system in the State that sells water to any person. The drinking
water rules include, but are not limited to, the topics of water quality
monitoring; record-keeping and reporting; inspection of public water systems;
and review and approval of design and construction. Apartment complexes
that did not fall under the requirements of the Drinking Water Act will
be subject to those rules once the owners start charging for service.
Exempted Authorities
By Section 62-3, the term "public utility,"
shall not include a municipality, an authority organized under the North
Carolina Water and Sewer Authorities Act, or nonprofit water membership
or consumer owned corporations financed by the Farmers Home Administration,
the United States Department of Housing and Urban Development, or any similar
or successor federal financing agency, provided, that (I) any such financing
administration, department or agency exercise substantial control over
and regulation of any such corporation's rates and terms and conditions
of service, and (ii) the members or consumer-owners of any such corporation,
shall elect the governing board of the corporation. A water or sewer system
owned by a homeowners' association that provides water or sewer service
only to members or leaseholds of members is not subject to regulation.
Who To Contact
Any party planning to purchase water or sewer
utility service from a supplier and then reselling the service to end-users
is requested to advise the Public Staff in writing prior to the onset of
that service and submit an application to the Chief Clerk of the North
Carolina Utilities Commission. Your letter should describe the number of
customers planned to be served by you and the rates to be charged, as follows:
-
Name of each water and/or sewer system (subdivision
name, etc.).
-
Number of customers that can be served by
mains already in place.
-
Number of customers served by each system.
-
Number of paying customers on each system.
-
Water and Sewer rate charges on each system.
-
Person to whom water and/or sewer bills are
paid.
Mail should be addressed to:
Chief Clerk,
North Carolina Utilities Commission
P.O. Box 29510
Raleigh, North Carolina 27626-0510
and to the
NC Utilities Commission - Public Staff
4326 Mail Service Center
Raleigh, NC 27699-4326
This page last updated on March 20, 2012 // For comments or questions contact:
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