The bill H. 4386 aims to amend the South Carolina Code of Laws by adding Section 58-5-70, which establishes specific requirements for the Public Service Commission when evaluating applications from public utilities seeking to acquire water, sewerage collection, or sewerage disposal assets owned by counties, municipalities, or special purpose districts. The bill mandates that the commission must consider the fair market value of the assets, which must be supported by two independent appraisals conducted by mutually selected utility-valuation experts. Additionally, the Office of Regulatory Staff may provide an appraisal, and the average of these appraisals will determine the fair market value.

Furthermore, the bill outlines procedural requirements for public hearings, stipulating that they must occur within a specified timeframe after the application is received. It also states that the purchase price or fair market value of the acquired assets will be included in the public utility's rate base in its next general rate case, contingent upon a finding that the acquisition is in the public interest. The bill allows for reasonable transaction costs to be treated as capital costs recoverable by the utility. Importantly, it clarifies that either party may choose not to proceed with the acquisition. The act will take effect upon the Governor's approval.

Statutes affected:
04/23/2025: 58-5-70
Latest Version: 58-5-70