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. The bill mandates that the commission must consider the fair market value of the property, which is determined through two independent appraisals conducted by mutually selected experts. Additionally, the Office of Regulatory Staff may provide an appraisal, and the average of these appraisals will be used to establish the fair market value.

Furthermore, the bill outlines procedural requirements for the commission, including the scheduling of a public hearing within a specified timeframe and the issuance of an order within 180 days of receiving a complete application. It also stipulates that the purchase price or fair market value of the acquired property 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