§ 159B-2. Legislative findings and purposes. - North Carolina Statutes

§ 159B‑2. Legislative findings and purposes.

The General Assembly hereby finds and determines that:

A critical situation exists with respect to the present and futuresupply of electric power and energy in the State of North Carolina;

The public utilities operating in the State have sustained greatlyincreased capital and operating costs;

Such public utilities have found it necessary to postpone or curtailconstruction of planned generation and transmission facilities serving theconsumers of electricity in the State, increasing the ultimate cost of suchfacilities to the public utilities, and that such postponements andcurtailments will have an adverse effect on the provision of adequate andreliable electric service in the State;

The above conditions have occurred despite substantial increases inelectric rates;

In the absence of further material increases in electric rates,additional postponements and curtailments in the construction of additionalgeneration and transmission facilities may occur, thereby impairing thoseutilities' ability to continue to provide an adequate and reliable source ofelectric power and energy in the State;

Seventy‑two municipalities in the State have for many years ownedand operated systems for the distribution of electric power and energy tocustomers in their respective service areas and are empowered severally toengage in the generation and transmission of electric power and energy;

Such municipalities owning electric distribution systems have anobligation to provide their inhabitants and customers an adequate, reliable andeconomical source of electric power and energy in the future;

In order to achieve the economies and efficiencies made possible by theproper planning, financing, sizing and location of facilities for thegeneration and transmission of electric power and energy which are notpractical for any municipality acting alone, and to insure an adequate,reliable and economical supply of electric power and energy to the people ofthe State, it is desirable for the State of North Carolina to authorizemunicipal electric systems to jointly plan, finance, develop, own and operateelectric generation and transmission facilities appropriate to their needs inorder to provide for their present and future power requirements for all useswithout supplanting or displacing the service at retail of other electricsuppliers operating in the State; and

The joint planning, financing, development, ownership and operation ofelectric generation and transmission facilities by municipalities which ownelectric distribution systems and the issuance of revenue bonds for suchpurposes as provided in this Chapter is for a public use and for public andmunicipal purposes and is a means of achieving economies, adequacy andreliability in the generation of electric power and energy and in the meetingof future needs of the State and its inhabitants.

In addition to the authority granted municipalities to jointly plan,finance, develop, own and operate electric generation and transmission facilitiesby Article 2 of this Chapter and the other powers granted in said Article 2,and in addition and supplemental to powers otherwise conferred onmunicipalities by the laws of this State for interlocal cooperation, it isdesirable for the State of North Carolina to authorize municipalities and jointagencies to form joint municipal assistance agencies which shall be empoweredto provide aid and assistance to municipalities in the construction, ownership,maintenance, expansion and operation of their electric systems, and to empowerjoint agencies authorized herein to provide aid and assistance tomunicipalities or joint municipal assistance agencies in the development andimplementation of integrated resource planning, including, but not limited to,the evaluation of resources, generating facilities, alternative energyresources, conservation and load management programs, transmission anddistribution facilities, and purchase power options, and in the development,construction and operation of supply‑side and demand‑sideresources, in addition to exercising such other powers as hereinafter providedto joint municipal assistance agencies and joint agencies. In order to providemaximum economies and efficiencies to municipalities and the consuming publicin the generation and transmission of electric power and energy contemplated byArticle 2 of this Chapter, it is also desirable that the joint municipalassistance agencies authorized herein be empowered to act as provided inArticle 3 of this Chapter and that such agency or agencies be empowered to actfor and on behalf of any one or more municipalities or joint agencies, asrequested, with respect to the construction, ownership, maintenance, expansionand operation of their electric systems; and that the joint agencies authorizedherein be empowered to act as provided in Article 2 of this Chapter and thatsuch joint agencies be empowered to act for and on behalf of any one or moremunicipalities or joint municipal assistance agencies, in each case as requested,with respect to the integrated resource planning and development, construction,and operation of supply‑side and demand‑side options describedabove. (1975, c. 186, s. 1; 1983,c. 609, s. 2; 1991 (Reg. Sess., 1992), c. 888, s. 1; 1995, c. 412, s. 1.)