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 and requires the submission of two independent appraisals conducted by mutually selected utility-valuation experts. Additionally, the commission may consider any appraisal provided by the Office of Regulatory Staff, and the average of these appraisals will determine the fair market value.

Furthermore, the bill stipulates that a public hearing must be scheduled within 60 to 90 days of receiving an application, and the commission is required to issue an order within 180 days. It also states that the purchase price or fair market value, whichever is lower, 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. Reasonable transaction and closing costs incurred by the public utility can be treated as recoverable capital costs. The bill allows for the possibility that either party may choose not to proceed with the acquisition.

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