The bill S. 656 aims to amend the South Carolina Code of Laws by adding Section 58-5-70, which establishes new requirements for the Public Service Commission when evaluating applications from public utilities seeking to acquire property or assets related to water, sewerage collection, or sewerage disposal owned by local government entities. Key provisions include the requirement for two independent appraisals conducted by mutually selected experts, which must adhere to the Uniform Standards of Professional Appraisal Practice. The commission is mandated to consider these appraisals, along with any appraisal provided by the Office of Regulatory Staff, to determine the fair market value of the property or assets.

Additionally, the bill stipulates that a public hearing must be scheduled within 60 to 90 days of receiving an application, and the commission must issue a decision within 180 days. It also specifies 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. 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.

Statutes affected:
05/06/2025: 58-5-70
Latest Version: 58-5-70