§ 62-110.7. Project development cost review for a nuclear facility. - North Carolina Statutes

§ 62‑110.7.  Projectdevelopment cost review for a nuclear facility.

(a)        For purposes ofthis section, "project development costs" mean all capital costsassociated with a potential nuclear electric generating facility incurredbefore (i) issuance of a certificate under G.S. 62‑110.1 for a facilitylocated in North Carolina or (ii) issuance of a certificate by the host statefor an out‑of‑state facility to serve North Carolina retailcustomers, including, without limitation, the costs of evaluation, design,engineering, environmental analysis and permitting, early site permitting,combined operating license permitting, initial site preparation costs, andallowance for funds used during construction associated with such costs.

(b)        At any time priorto the filing of an application for a certificate to construct a potentialnuclear electric generating facility, either under G.S. 62‑110.1 or inanother state for a facility to serve North Carolina retail customers, a publicutility may request that the Commission review the public utility's decision toincur project development costs. The public utility shall include with itsrequest such information and documentation as is necessary to support approvalof the decision to incur proposed project development costs. The Commissionshall hold a hearing regarding the request. The Commission shall issue an orderwithin 180 days after the public utility files its request. The Commissionshall approve the public utility's decision to incur project development costsif the public utility demonstrates by a preponderance of evidence that thedecision to incur project development costs is reasonable and prudent;provided, however, the Commission shall not rule on the reasonableness orprudence of specific project development activities or recoverability ofspecific items of cost.

(c)        All reasonable andprudent project development costs, as determined by the Commission, incurredfor the potential nuclear electric generating facility shall be included in thepublic utility's rate base and shall be fully recoverable through rates in ageneral rate case proceeding pursuant to G.S. 62‑133.

(d)        If the publicutility is allowed to cancel the project, the Commission shall permit thepublic utility to recover all reasonable and prudently incurred projectdevelopment costs in a general rate case proceeding pursuant to G.S. 62‑133amortized over a period equal to the period during which the costs wereincurred, or five years, whichever is greater. (2007‑397, s. 7.)