§ 62-110.2. Electric service areas outside of municipalities. - North Carolina Statutes

§ 62‑110.2. Electric service areas outside of municipalities.

(a)        As used in this section, unless the context otherwiserequires, the term:

(1)        "Premises" means the building, structure, orfacility to which electricity is being or is to be furnished; provided, thattwo or more buildings, structures, or facilities which are located on one tractor contiguous tracts of land and are utilized by one electric consumer forcommercial, industrial, institutional, or governmental purposes, shall togetherconstitute one "premises," except that any such building, structure,or facility shall not, together with any other building, structure, orfacility, constitute one "premises" if the electric service to it isseparately metered and the charges for such service are calculatedindependently of charges for service to any other building, structure, orfacility; and

(2)        "Line" means any conductor for the distribution ortransmission of electricity, other than

a.         In the case of overhead construction, a conductor from the polenearest the premises of a consumer to such premises, or a conductor from a linetap to such premises, and

b.         In the case of underground construction, a conductor fromthe transformer (or junction point, if there be one) nearest the premises of aconsumer to such premises.

(3)        "Electric supplier" means any public utilityfurnishing electric service or any electric membership corporation.

(b)        In areas outside of municipalities, electric suppliers shallhave rights and be subject to restrictions as follows:

(1)        Every electric supplier shall have the right to serve allpremises being served by it, or to which any of its facilities for service areattached, on April 20, 1965.

(2)        Every electric supplier shall have the right, subject tosubdivision (4) of this subsection, to serve all premises initially requiringelectric service after April 20, 1965, which are located wholly within 300 feetof such electric supplier's lines as such lines exist on April 20, 1965, exceptpremises which, on said date, are being served by another electric supplier orto which any of another electric supplier's facilities for service areattached.

(3)        Every electric supplier shall have the right, subject tosubdivision (4) of this subsection, to serve all premises initially requiringelectric service after April 20, 1965, which are located wholly within 300 feetof lines that such electric supplier constructs after April 20, 1965, to serveconsumers that it has the right to serve, except premises located wholly withina service area assigned to another electric supplier pursuant to subsection (c)hereof.

(4)        Any premises initially requiring electric service afterApril 20, 1965, which are located wholly or partially within 300 feet of thelines of one electric supplier and also wholly or partially within 300 feet ofthe lines of another electric supplier, as each of such supplier's lines existon April 20, 1965, or as extended to serve consumers that the supplier has theright to serve, may be served by such one of said electric suppliers which theconsumer chooses, and any electric supplier not so chosen by the consumer shallnot thereafter furnish service to such premises.

(5)        Any premises initially requiring electric service afterApril 20, 1965, which are not located wholly within 300 feet of the lines ofany electric supplier and are not located partially within 300 feet of thelines of two or more electric suppliers may be served by any electric supplierwhich the consumer chooses, unless such premises are located wholly or partiallywithin an area assigned to an electric supplier pursuant to subsection (c)hereof, and any electric supplier not so chosen by the consumer shall notthereafter furnish service to such premises.

(6)        Any premises initially requiring electric service afterApril 20, 1965, which are located partially within a service area assigned toone electric supplier and partially within a service area assigned to anotherelectric supplier pursuant to subsection (c) hereof, or are located partiallywithin a service area assigned to one electric supplier pursuant to subsection(c) hereof and partially within 300 feet of the lines of another electricsupplier, as such lines exist on April 20, 1965, or as extended to serveconsumers it has the right to serve, may be served by such one of said electricsuppliers which the consumer chooses, and the electric supplier not so chosenshall not thereafter furnish service to such premises.

(7)        Any premises initially requiring electric service afterApril 20, 1965, which are located only partially within a service area assignedto one electric supplier pursuant to subsection (c) hereof and are locatedwholly outside the service areas assigned to other electric suppliers and arelocated wholly more than 300 feet from other electric suppliers' lines, may beserved by any electric supplier which the consumer chooses, and any electricsupplier not so chosen by the consumer shall not thereafter furnish service tosuch premises.

(8)        Every electric supplier shall have the right to serve all premiseslocated wholly within the service area assigned to it pursuant to subsection(c) hereof.

(9)        No electric supplier shall furnish temporary electricservice for the construction of premises which it would not have the right toserve under this subsection if such premises were already constructed. Theconstruction of lines for, and the furnishing of, temporary service for theconstruction of premises which any other electric supplier, if chosen by theconsumer, would have the right to serve if such premises were alreadyconstructed, shall not impair the right of such other electric supplier tofurnish service to such premises after the construction thereof, if then chosenby the consumer; nor, unless the consumer chooses to have such premises servedby the supplier which furnished the temporary service, shall the furnishing ofsuch temporary service or the construction of a line therefor impair the rightof any other electric supplier to furnish service to any other premises which,without regard to the construction of such temporary service line, it has theright to serve.

(10)      No electric supplier shall furnish electric service to anypremises in this State outside the limits of any incorporated city or townexcept as permitted by this section; provided, that nothing in this sectionshall restrict the right of an electric supplier to furnish electric service toitself or to exchange or interchange electric energy with, purchase electricenergy from or sell electric energy to any other electric supplier.

(c)        (1)        In order to avoid unnecessaryduplication of electric facilities, the Commission is authorized and directedto assign, as soon as practicable after January 1, 1966, to electric suppliersall areas, by adequately defined boundaries, that are outside the corporatelimits of municipalities and that are more than 300 feet from the lines of allelectric suppliers as such lines exist on the dates of the assignments;provided, that the Commission may leave unassigned any area in which theCommission, in its discretion, determines that the existing lines of two ormore electric suppliers are in such close proximity that no substantialavoidance of duplication of facilities would be accomplished by assignment ofsuch area. The Commission shall make assignments of areas in accordance withpublic convenience and necessity, considering, among other things, the locationof existing lines and facilities of electric suppliers and the adequacy anddependability of the service of electric suppliers, but not considering ratedifferentials among electric suppliers.

(2)        The Commission, upon agreement of the affected electricsuppliers, is authorized to reassign to one electric supplier any area orportion thereof theretofore assigned to another; and the Commission, notwithstandingthe lack of such agreement, is authorized to reassign to one electric supplierany area or portion thereof theretofore assigned to another, except premisesbeing served by the other electric supplier or to which any of its facilitiesfor service are attached and except such portions of such area as are within300 feet of the other electric supplier's lines, upon finding that suchreassignment is required by public convenience and necessity. In determiningwhether public convenience and necessity requires such reassignment, theCommission shall consider, among other things, the adequacy and dependabilityof the service of the affected electric suppliers, but shall not consider ratedifferentials between such electric suppliers.

(d)        Notwithstanding the provisions of subsections (b) and (c) ofthis section:

(1)        Any electric supplier may furnish electric service to anyconsumer who desires service from such electric supplier at any premises beingserved by another electric supplier, or at premises which another electricsupplier has the right to serve pursuant to other provisions of this section,upon agreement of the affected electric suppliers; and

(2)        The Commission shall have the authority and jurisdiction,after notice to all affected electric suppliers and after hearing, if a hearingis requested by any affected electric supplier or any other interested party,to order any electric supplier which may reasonably do so to furnish electricservice to any consumer who desires service from such electric supplier at anypremises being served by another electric supplier, or at premises whichanother electric supplier has the right to serve pursuant to other provisionsof this section, and to order such other electric supplier to cease and desistfrom furnishing electric service to such premises, upon finding that service tosuch consumer by the electric supplier which is then furnishing service, orwhich has the right to furnish service, to such premises, is or will beinadequate or undependable, or that the rates, conditions of service or serviceregulations, applied to such consumer, are unreasonably discriminatory.

     (e) The furnishing of electric service in any area which becomes a part of anymunicipality after April 20, 1965, either by annexation or incorporation,(whether or not such area, or any portion thereof, shall have been assignedpursuant to subsection (c) of this section) shall be subject to the provisionsof Part 2, Article 16 of Chapter 160A of the General Statutes, and anyprovisions of this section inconsistent with said Article shall not beapplicable within such area after the effective date of such annexation orincorporation. (1965, c. 287, s.5; 1989 (Reg. Sess., 1990), c. 1024, s. 14.)