CHAPTER 27 - ELECTRIC UTILITIES AND ELECTRIC COOPERATIVES

SOUTH CAROLINA STATUTES AND CODES

CHAPTER 27 - ELECTRIC UTILITIES AND ELECTRIC COOPERATIVES

Title 58 - Public Utilities, Services and Carriers

CHAPTER 27.

ELECTRIC UTILITIES AND ELECTRIC COOPERATIVES

ARTICLE 1.

GENERAL PROVISIONS

SECTION 58-27-10. Definitions.

When used in this chapter:

(1) The term "commission" means the Public Service Commission of this State.

(2) The term "commissioner" means one of the members of the Public Service Commission of this State.

(3) The term "corporation" includes all bodies corporate, joint-stock companies or associations, domestic or foreign, their lessees, assignees, trustees, receivers, or other successors in interest, having any of the powers or privileges of corporations not possessed by individuals or partnerships; but it shall not include municipalities as hereinafter defined.

(4) The term "person" includes all individuals, partnerships, or associations other than corporations.

(5) The term "municipality" includes a city, town, county, township, or any other corporation existing, created, or organized as a governmental unit under the Constitution or laws of this State except a consolidated political subdivision.

(6) The term "public" means the public generally or any limited portion of the public, including a person, corporation, or municipality.

(7) The term "electrical utility" includes municipalities to the extent of their business, property, rates, transactions, and operations without the corporate limits of the municipality, persons and corporations, their lessees, assignees, trustees, receivers, or other successors in interest owning or operating in this State equipment or facilities for generating, transmitting, delivering, or furnishing electricity for street, railway, or other public uses or for the production of light, heat, or power to or for the public for compensation; but it shall not include an electric cooperative or a consolidated political subdivision and shall not include a person, corporation, or municipality furnishing electricity only to himself or itself, their residents, employees, or tenants when such current is not resold or used by others.

(8) The term "rate" means and includes every compensation, charge, toll, rental, and classification, or any of them, demanded, observed, charged, or collected by any electrical utility for any electric current or service offered by it to the public and any rules, regulations, practices, or contracts affecting any such compensation, charge, toll, rental, or classification.

(9) The term "securities" means and includes stock, stock certificates, bonds, notes, debentures, or other evidences of indebtedness and any assumption or guaranty thereof.

(10) The term "consolidated political subdivision" means a consolidated political subdivision existing pursuant to the Constitution of this State and shall not be deemed a city, town, county, or other governmental unit merged thereinto.

(11) The term "regulatory staff" means the executive director or the executive director and the employees of the Office of Regulatory Staff.

SECTION 58-27-20. Chapter inapplicable to certain areas.

The provisions of this chapter shall not apply to the areas within former municipal corporate limits, where such municipality becomes a part of a consolidated political subdivision whenever such municipality owns and operates its own electric system and so long as such system continues to be owned and operated by the consolidated political subdivision.

SECTION 58-27-30. Corporations subject to chapter even before commencing operations.

Corporations formed to acquire property or to transact business which would be subject to the provisions of this chapter and corporations possessing franchises, powers or privileges for any of the purposes contemplated by this chapter shall be deemed to be subject to the provisions of this chapter, although no property may have been acquired, business transacted or franchises, powers or privileges exercised.

SECTION 58-27-40. Compliance with orders, decisions, directions, rules and regulations.

Each electrical utility and, to the extent covered by this title, each electric cooperative and consolidated political subdivision must obey and comply with all requirements of every order, decision, direction, rule, or regulation made or prescribed by the Public Service Commission or every direction, rule, or regulation made or prescribed by the Office of Regulatory Staff pursuant to this chapter or in relation to any other matter relating to or affecting the business of the electrical utility, electric cooperative, or consolidated political subdivision and must do everything necessary or proper to comply with and observe every order, decision, direction, rule, or regulation by all of its officers, agents, and employees.

SECTION 58-27-50. Assessments on electric utilities to pay expenses of Commission.

All expenses and charges incurred by the commission in the administration of this chapter and in the performance of its duties thereunder shall be defrayed by assessments made by the Comptroller General against the electrical utilities regulated thereunder and based upon the gross revenues collected by such electrical utilities from their business done wholly within this State in the manner set out in Section 58-3-100 for other corporations.

The Public Service Commission must certify to the Comptroller General annually on or before May first the amounts to be assessed in the format approved by the Comptroller General.

SECTION 58-27-60. Repealed by 2006 Act No. 318, Section 233, eff May 24, 2006.

SECTION 58-27-70. Employment of staff; suits or actions arising under chapter.

The commission may employ such technical administrative and clerical staff as it may deem necessary to carry out the provisions of this chapter and to perform the duties and exercise the powers conferred upon it by law in relation to electrical utilities. The Office of Regulatory Staff shall be the legal head of suits or actions arising under this chapter.

SECTION 58-27-80. Annual report of Commission.

As a separate section or division of the annual report which it is now required by law to make the Commission annually shall file a report containing a full and complete account of its transactions and proceedings under this chapter for the preceding calendar year, together with such other pertinent facts, suggestions and recommendations as it may deem of value to the people of the State.

SECTION 58-27-90. Effect of chapter on constitutional rights and powers of municipalities.

Nothing contained in this chapter or in Title 33, Chapter 49 shall be construed as to modify, abridge, or impair any of the rights or powers granted to cities and towns under the provisions of Article VIII, Sections 15 and 16, or any other provisions of the Constitution of this State, and every right, power, or privilege conferred upon any city or town by the Constitution of this State otherwise appearing to be modified, abridged, or impaired by any provision of this chapter is to be deemed excepted from the operation thereof, it being the intention of this chapter to control and regulate the acts of cities and towns only to an extent consistent with the Constitution of this State.

SECTION 58-27-100. Effect of chapter on municipal police regulations and ordinances.

Nothing contained in this chapter or in Title 33, Chapter 49 shall be so construed as to limit or restrict the right of cities and towns to adopt and enforce reasonable police regulations and ordinances affecting electrical utilities and electric cooperatives, not inconsistent with the provisions of this chapter or the provisions of Title 33, Chapter 49, including the exercise of powers in relation to roads, streets, markets, law enforcement, health, and order in the municipality or respecting any subject which appears necessary and proper to the municipality for the security, general welfare, convenience, health, peace, order, and good government.

SECTION 58-27-110. Effect of chapter on interstate commerce.

Neither this chapter nor any provision thereof shall apply or be construed to apply to commerce with foreign nations or commerce among the several states of the United States, except in so far as the same may be permitted under the provisions of the Constitution of the United States and the acts of Congress.

SECTION 58-27-120. Effect of chapter on duties declared in Broad River case.

Nothing contained in this chapter, including any duty imposed, any right, power, or privilege granted, the exercise, receipt, or acceptance of any such right, privilege, or permit under the authority of this chapter nor any act done under the authority of this chapter shall be construed or given effect to abrogate, modify, or affect the duties and obligations of electrical or other public utilities as declared by the Supreme Court of South Carolina in the case of State ex rel. Daniel, Attorney General v Broad River Power Company, et al, 157 SC 1, 153 SE 537. However, if both a municipality and electrical or other public utility mutually agree, the electrical or other public utility may grant, transfer, abrogate, modify, sell, or impose upon the municipality the duty or obligation to provide a public transit system to the municipality. The terms of such a grant, transfer, abrogation, modification, sale, or imposition of the duty or obligation to provide a public transit system from an electrical or other public utility to a municipality shall take effect only upon the transfer of the public transit system from the public utility to the municipality or another governmental entity.

SECTION 58-27-130. Condemnation powers of electric companies, State authorities and electric cooperatives.

Subject to the same duties and liabilities, all the rights, powers, and privileges conferred upon telegraph and telephone companies to acquire rights-of-way for the construction, maintenance, and operation of lines under Sections 58-9-2020 to 58-9-2030 are granted unto electric lighting and power companies incorporated under the laws of this State, or to those companies incorporated under the laws of any other state which have complied with the laws of this State regulating foreign corporations doing business in this State, and to state authorities and electric cooperatives, and the right is also granted to those companies and authorities and electric cooperatives to acquire fee simple title or an easement in land by a condemnation action, for the construction of electric generating plants, substations, switching stations, and impounding of waters to be used in conjunction with electric generating plants. No property or rights used for the generation or transmission of electricity, or devoted to public use for such purposes, shall be condemned hereunder.

SECTION 58-27-140. General powers of Commission.

The commission may, upon petition:

(1) ascertain and fix just and reasonable standards, classifications, regulations, practices, or service to be furnished, imposed, observed, and followed by any or all electrical utilities;

(2) ascertain and fix by regulation adequate and reasonable standards for the measurement of quality, quantity, initial voltage, or other condition pertaining to the supply of the product, commodity, or service furnished or rendered by any or all electrical utilities;

(3) prescribe reasonable regulations for the examination and testing of such product, commodity, or service and for the measurement thereof; and

(4) establish or approve reasonable rules, regulations, specifications, and standards to secure the accuracy of all meters and appliances for measurement.

SECTION 58-27-150. Promulgation of rules and regulations.

The Commission may make such rules and regulations not inconsistent with law as may be proper in the exercise of its powers or for the performance of its duties under this chapter, all of which shall have the force of law.

SECTION 58-27-160. Investigation and examination of condition and management of utility.

The Office of Regulatory Staff may investigate and examine the condition and management of electrical utilities or any particular electrical utility.

SECTION 58-27-170. Joint hearings and joint or concurrent orders; joint investigations.

The commission may hold joint hearings and issue joint or concurrent orders in conjunction or concurrence with any official board or commission of any state or of the United States. The Office of Regulatory Staff may make joint investigations with any official board or commission of any state or of the United States.

SECTION 58-27-180. Valuations and revaluations of property of utilities.

The commission may, after hearing, ascertain and fix the value of the whole or any part of the property of any electrical utility insofar as the same is material to the exercise of the jurisdiction of the commission and may, after hearing, make revaluations from time to time and ascertain the value of all new construction, extensions, and additions to the property of every electrical utility.

SECTION 58-27-190. Inspection of property; audit of books; examination of employees of utilities.

The Office of Regulatory Staff has the right at any and all times to inspect the property, plant, and facilities of any electrical utility and to inspect or audit at reasonable times the accounts, books, papers, and documents of any electrical utility. For the purposes herein mentioned an employee or agent of the Office of Regulatory Staff may during all reasonable hours enter upon any premises occupied by or under the control of any electrical utility. An employee or agent of the Office of Regulatory Staff authorized to administer oaths has the power to examine under oath any officer, agent, or employee of the electrical utility in relation to the business and affairs of the electrical utility, but written record of the testimony or statement so given under oath must be made.

SECTION 58-27-200. Inspection of tax returns and other information.

In the performance of its duties under this chapter, an employee or agent of the Office of Regulatory Staff may inspect or make copies of all income, property, or other tax returns, reports, or other information filed by electrical utilities with or otherwise obtained by any other department, commission, board, or agency of the state government. All departments, commissions, boards, or agencies of the state government must permit an employee or agent of the Office of Regulatory Staff to inspect or make copies of all information filed by electrical utilities with or otherwise obtained by the department, commission, board, or agency of the state government.

SECTION 58-27-210. Actions to prevent or discontinue violations of law or orders of Commission.

Whenever it shall appear that any electrical utility, electric cooperative, or consolidated political subdivision is failing or omitting, or about to fail or omit, to do anything required of it by law or by order of the commission or is doing, or about to do anything or permitting or about to permit anything to be done contrary to or in violation of law or of any order of the commission, an action or proceeding shall be prosecuted in any court of competent jurisdiction in the name of the Office of Regulatory Staff for the purpose of having such violation or threatened violation discontinued or prevented, either by mandamus, injunction, or other appropriate relief, and in such action or proceeding, it shall be permissible to join such other persons, corporations, municipalities, or consolidated political subdivisions as parties thereto as may be reasonably necessary to make the order of the court in all respects effective. The commission must not be a party to any action.

SECTION 58-27-220. Enforcement and administration of chapter.

In addition to the foregoing expressly enumerated powers, the Office of Regulatory Staff must enforce, execute, administer, and carry out the provisions of this chapter relating to the powers, duties, limitations, and restrictions imposed upon electrical utilities by this chapter or any other provisions of the law of this State regulating electrical utilities.

SECTION 58-27-230. Exercise of other powers of Commission not excluded.

The enumeration of the powers of the Commission as herein set forth shall not be construed to exclude the exercise of any power which the Commission would otherwise have under the provisions of law.

SECTION 58-27-240. Construction of South Carolina Rural Development Act of 1996.

No provision of the South Carolina Rural Development Act of 1996 may be construed to alter, modify, amend, or repeal, directly or by implication, any provision of Chapter 27 of Title 58, Chapter 31 of Title 58, Chapter 33 of Title 58, Chapter 23 of Title 6, Chapter 7 of Title 5, and Chapter 31 of Title 5, governing, among other things, the retail and wholesale distribution and sale of electric energy in this State.

ARTICLE 3.

FRANCHISES AND PERMITS

SECTION 58-27-410. Procedure for granting of exclusive municipal franchises to furnish light.

All cities and towns of the State may grant the exclusive franchise of furnishing light to such cities and towns and the inhabitants thereof. But no such franchise shall be valid unless it shall first receive the vote of two thirds of the board of aldermen or common council of the city or town granting it and be subsequently confirmed by a vote of the majority of the qualified electors of the city or town, voting at an election called specially for the purpose. The ordinance or resolution granting such a franchise shall fix a maximum rate for furnishing light, both for public and private consumption and the person obtaining such exclusive franchise shall have no power to charge or receive any greater price for light thus furnished than the maximum rate so fixed. No such franchise shall affect any existing contractual rights.

SECTION 58-27-415. Franchise fee not to be paid or collected under "Stateline Accounts"; calculation of franchise fee.

(A) The State shall not pay, nor shall any person, including a municipality or utility, impose, pay, or collect a franchise fee with respect to electrical power provided to the State by a utility under the "Stateline Accounts". The "Stateline Accounts" referenced in this section are those state electrical power accounts that arose from the 1925 agreement validated, ratified, and approved in Act 440 of 1925 (34 Stats. 852).

(B) The utility shall exclude all gross sales revenue accrued from the Stateline Accounts when calculating any franchise fee owed to a municipality and shall therefore not include those Stateline Account gross sales revenues in the payment of the franchise fee to the municipality. The "Stateline Accounts" referenced in this section are those state electrical power accounts that arose from the 1925 agreement validated, ratified, and approved in Act 440 of 1925 (34 Stats. 852).

SECTION 58-27-420. Franchises and permits shall be indeterminate.

Every permit or franchise hereafter granted to any electrical utility, either by the State or any municipality thereof, shall have the effect of an indeterminate permit which shall continue in effect until terminated as provided by this chapter or by any lawful forfeiture of the right of such electrical utility to continue to conduct its business in this State.

SECTION 58-27-430. Exchange of old limited permit or franchise for indeterminate permit.

Any electrical utility operating under an existing permit or franchise heretofore granted by the State or any municipality thereof prescribing a definite period of years for the existence of such permit or franchise shall, upon (a) filing with the commission and providing to the Office of Regulatory Staff a written declaration that it surrenders such permit or franchise, (b) the consent of such municipality, and (c) proof of any consent that may be required by Article VIII, Section 15 of the Constitution of this State, receive an indeterminate permit which shall take the place of the surrendered permit or franchise, and such electrical utility or its successors or assigns shall hold such permit in accordance with the terms, conditions, and limitations of this chapter and any future regulatory acts. If, for any reason, any indeterminate permit held by a public utility is held to be invalid, the public utility shall, by operation of law and without further act, have reinstated in it any franchise or franchises surrendered by it in exchange for such indeterminate permit.

SECTION 58-27-440. Revocation of indeterminate permit for inadequacy of service.

Whenever the service rendered by any electrical utility operating under an indeterminate permit shall be found inadequate by order of the Commission after hearing and such electrical utility shall fail to remedy the same after having been given a reasonable opportunity to do so, the indeterminate permit enjoyed by such electrical utility in respect to the service so found to be inadequate may with the consent of such municipality be declared revoked by the Commission upon such terms as shall be reasonable and just. But no order of the Commission revoking any such permit shall have any force and effect until a final determination of any proceeding brought to review the same.

SECTION 58-27-450. Continuance of service on expiration of franchise.

Any electrical utility which has been furnishing electricity to a city or town or its inhabitants under a franchise that has expired shall, with such consent of the local authorities as may be required by article VIII, section 15, of the Constitution of this State, until a new permit for supplying electricity to such city or town or its inhabitants lawfully has been obtained, continue to furnish the same to such city or town or its inhabitants under such rates and upon such terms and conditions as may be approved by the Commission.

ARTICLE 5.

SERVICE RIGHTS OF ELECTRIC SUPPLIERS

SECTION 58-27-610. Definitions.

When used in this article:

(1) The term "electric supplier" means any electrical utility other than a municipality, any electric cooperative other than an electric cooperative engaged primarily in the business of furnishing electricity to other electric cooperatives for resale to other electric consumers, and any consolidated political subdivision owning or operating an electric plant or system for furnishing of electricity to the public for compensation.

(2) The term "premises" means the building, structure or facility to which electricity is being or is to be furnished; provided, that two or more buildings, structures or facilities which are located on one tract or contiguous tracts of land and are utilized by one electric consumer for farming, business, commercial, industrial, institutional or governmental purposes, shall together constitute one "premises," except that any such building, structure or facility shall not, together with any other building, structure or facility, constitute one "premises" if the electric service to it is separately metered and the charges for such service are calculated independently of charges for service to any other building, structure or facility.

(3) The term "line" means any electric conductor operating at a nominal voltage level of 25 KV or less, measured phase-to-phase, except (a) in the case of overhead construction, a conductor from the pole or tower nearest the premises of a consumer to such premises, or a conductor from a line tap to such premises, and (b) in the case of underground construction, a conductor from the transformer (or junction point, if there be one) nearest, on or in the premises of the consumer to such premises; provided, the term "line" shall include any electric conductor operating at a nominal voltage level in excess of 25 KV and less than 48 KV where it is established to the satisfaction of the other electric suppliers in the county or counties where such conductor is located, or in the absence of such agreement, to the satisfaction of the Public Service Commission, that the primary purpose and use of such conductor is for the distribution of electric power and not for the transmission of bulk power from one area to another; and, provided, further, that the term "line" shall include any other electric conductor operating at a nominal voltage level in excess of 25 KV and less than 48 KV, except that, until it is determined that such conductor is a distribution line in accordance with the preceding proviso, the service rights with respect to premises located wholly within three hundred feet of such conductor shall not be exclusive.

(4) The term "industrial premises" means the premises of a person, firm or corporation engaged in the business of manufacture, processing, assembling, fabrication or related work.

(5) As used in this article the term "corridor rights" means those rights an electric supplier has to serve customers which rights arise from the provisions of Section 58-27-620(1)(b), (c), and (d).

SECTION 58-27-620. Service rights of and restrictions on electric suppliers.

With respect to service in all areas outside the corporate limits of municipalities, electric suppliers shall have rights and be subject to restrictions as follows:

(1) Every electric supplier shall have the right to serve:

(a) all premises being served by it, or to which any of its facilities for service are attached on July 1, 1969;

(b) subject to paragraph (d)(i) of this subsection, all premises initially requiring electric service after July 1, 1969, which are located wholly within three hundred feet of the electric supplier's lines as the lines exist on July 1, 1969;

(c) subject to paragraph (d)(i) of this subsection, all premises initially requiring electric service after July 1, 1969, which are located wholly within three hundred feet of lines that the electric supplier constructs to serve consumers that it has the right to serve or acquires after July 1, 1969; provided, however, that an electric supplier shall not have the right to serve premises wholly within a service area assigned to another electric supplier pursuant to Section 58-27-640 from a line constructed after the date of the assignment;

(d) if chosen by the consumer, any premises initially requiring electric service after July 1, 1969, which are:

(i) located wholly or partially within three hundred feet of the lines of the electric supplier and also wholly or partially within three hundred feet of the lines of another electric supplier, as each of the supplier's lines exist on July 1, 1969, or as extended to serve consumers that the supplier has the right to serve or as acquired after July 1, 1969;

(ii) not located wholly within three hundred feet of the lines of any electric supplier and are not located partially within three hundred feet of the lines of two or more electric suppliers, unless the premises are located wholly or partially within an area assigned to an electric supplier pursuant to Section 58-27-640;

(iii) located partially within a service area assigned to the electric supplier and partially within a service area assigned to another electric supplier pursuant to Section 58-27-640 or are located partially within a service area assigned to the electric supplier pursuant to Section 58-27-640 and partially within three hundred feet of the lines of another electric supplier, or are located partially within three hundred feet of the lines of the electric supplier, as the lines exist on July 1, 1969, or as extended to serve consumers it has the right to serve or as acquired after that date, and partially within a service area assigned to another electric supplier pursuant to Section 58-27-640; and

(iv) located only partially within a service area assigned to one electric supplier pursuant to Section 58-27-640 and are located wholly outside the service area assigned to other electric suppliers and are located wholly more than three hundred feet from other electric suppliers' lines, and any electric supplier not so chosen by the consumer in any of the situations described in this paragraph (d) shall not thereafter furnish service to the premises. The choice of the consumer in the situations described in this paragraph (d) must be controlling, and the Public Service Commission shall have no authority to order any other supplier to serve the consumer, except as provided in Section 58-27-660;

(e) with respect to the above provisions of Section 58-27-620(1)(d), a premises consisting of multiple buildings, structures, or facilities, is deemed to be located partially within three hundred feet of a supplier's line having service rights if:

(i) at least twenty percent of the total connected electric load of the premises, as determined by the final site plan submitted for construction permits, is due to a single building, structure, or facility located wholly or partially within three hundred feet of the line having service rights;

(ii) a minimum of eighty percent of the total connected electric load of the premises, as determined by the final site plan submitted for construction permits, is to be served to buildings, structures, or facilities located wholly within two thousand feet of the line having service rights;

(iii) service is rendered through only one meter to all buildings, structures, or facilities constituting the premises;

(f) with respect to the above provisions of Section 58-27-620(1)(d)(iii), a premises consisting of multiple buildings, structures, or facilities is deemed to be located partially within a supplier's territory if:

(iii) service is rendered through only one meter to all buildings, structures, or facilities constituting the premises;

(g) all premises located wholly within the service area assigned to it pursuant to Section 58-27-640; and

(h) all premises being served by it pursuant to the provisions of Section 58-27-620(2) as it existed before the effective date of Article 4, Chapter 33 of Title 58.

(2) Any electric supplier or electric utility shall have the right to furnish electric service to any industrial premises initially requiring electric service after the effective date of Article 4, Chapter 33 of Title 58 provided that the total connected load of the premises, as determined by the final site plan submitted for construction permits, is 7.5 megawatts or larger, and the premises is located entirely within one of the following parcels:

(a) the parcel shown on Map 101 filed in the Office of Regulatory Staff;

(b) the parcel shown on Map 102 filed in the Office of Regulatory Staff;

(d) the parcel shown on Map 104 filed in the Office of Regulatory Staff;

(e) the parcel shown on Map 105 filed in the Office of Regulatory Staff;

The provisions of this item (2) may apply to additional parcels upon agreement of the affected electric suppliers and approval of the Public Service Commission after notice and an opportunity for hearing is given to all interested parties.

The Office of Regulatory Staff shall maintain these maps as public records. If any additional parcels are added pursuant to this item (2), maps must be prepared by, or at the direction of, the Office of Regulatory Staff and maintained by the Office of Regulatory Staff as public records.

(3) No electric supplier shall furnish temporary electric service for the construction of premises which it would not have the right to serve under this section if such premises were already constructed. The construction of lines for, and the furnishing of, temporary service for the construction of premises which any other electric supplier, if chosen by the consumer, would have the right to serve if such premises were already constructed, shall not impair the right of such other electric supplier to furnish service to such premises after the construction thereof, if then chosen by the consumer; nor, unless the consumer chooses to have such premises served by the supplier which furnished the temporary service, shall the furnishing of such temporary service or the construction of a line therefor impair the right of any other electric supplier to furnish service to any other premises which, without regard to the construction of such temporary service line, it has the right to serve.

(4) No electric supplier shall furnish electric service to any premises in this State outside the limits of any incorporated city or town except as permitted by this section; provided, that nothing in this section shall restrict the right of an electric supplier to furnish electric service to its own premises or to exchange or interchange electric energy with, purchase electric energy from or sell electric energy to any other electric supplier.

(5) In extending electric service to a consumer an electric supplier will, insofar as possible, construct its facilities in accordance with good utility practices.

(6) Any electric cooperative which is engaged primarily in the furnishing of electricity for resale to other electric cooperatives shall have the right to furnish such electricity for resale to all electric cooperatives but shall not furnish electric service to any other customers or premises.

(7) Upon consolidation of the units of government within any county, pursuant to the Constitution of this State, existing municipal electric plants or systems within such county may continue in operation under the consolidated political subdivision and shall be subject to this chapter except within those areas as provided for in Section 58-27-20. For the purposes of this chapter a consolidated political subdivision shall not be deemed a municipality and the corporate limits of municipalities merged into the consolidated political subdivision shall be deemed to cease to exist upon consolidation except for the purposes of Sections 58-27-20 and 58-27-630.

(8) In addition to the authority granted to the commission in the preceding provisions of this section, the commission shall have the authority to approve agreements between electric suppliers concerning corridor rights. This additional authority only shall apply in situations where all affected electric suppliers have reached an agreement concerning corridor rights. With respect to the agreements, the commission shall approve the agreements if, after giving notice and an opportunity for hearing to interested parties, it finds the agreements to be fair and reasonable, but the commission shall not have the authority to alter or amend any such agreement unless all affected electric suppliers agree to the alteration or amendment.

SECTION 58-27-630. Service rights and restrictions in areas within consolidated political subdivisions.

Whenever there is a consolidation of government as authorized under the Constitution of this State, the rights of and restrictions on electric suppliers as provided for in Section 58-27-620 shall apply to areas within the corporate limits of a municipality being merged into a consolidated political subdivision except a municipality owning and operating a municipal electric system and shall be established as of the date of consolidation rather than on July 1, 1969, as provided for in Section 58-27-620. On the date of such consolidations the same rights granted to and restrictions imposed upon other electric suppliers shall be granted to and imposed upon existing municipal systems as to areas within the consolidated political subdivision but outside the previously existing corporate limits of the municipality owning and operating such a system.

SECTION 58-27-640. Assignment of service areas.

The Public Service Commission shall assign, beginning as soon as practicable after January 1, 1970, to electric suppliers, all areas, by adequately defined boundaries which may be by reference to boundaries drawn on maps or otherwise, that are outside the corporate limits of municipalities, and that are more than three hundred feet from the lines of all electric suppliers as such lines exist on the dates of the assignments; provided, that the Commission may leave unassigned any area in which the Commission, in its discretion, determines the absence of assignment is justified by public convenience and necessity. The Commission shall make assignments of areas in accordance with public convenience and necessity considering, among other things, the location of existing lines and facilities of electric suppliers and the adequacy and dependability of the service of electric suppliers, but not considering rate differentials among electric suppliers.

Upon consolidation of the units of government within any county pursuant to the Constitution of this State, the Commission shall initially assign the areas that were within the corporate limits of the municipality merged into the consolidated political subdivision and that are more than three hundred feet from the lines of all electric suppliers as such lines exist on the date of the consolidation to the electric supplier including any existing municipal systems then serving within such areas, subject to the power of the Commission to leave any area unassigned or to reassign any area and subject to Sections 58-27-20, 58-27-630 and 58-27-650.

SECTION 58-27-650. Reassignment of service areas or portions thereof.

(A) The Public Service Commission, upon agreement of the affected electric suppliers, is authorized to reassign to one electric supplier any area or portion of the area assigned to another and, notwithstanding the lack of an agreement, the commission upon petition by any electric supplier or county or consolidated political subdivision within this State, after notice to all affected electric suppliers and after hearing, if a hearing is requested by any affected electric supplier, the Office of Regulatory Staff, or any other interested party, is authorized to reassign to one electric supplier any area or portion of the area assigned to another, except premises being served by the other electric supplier or to which any of its facilities for service are attached and except the portions of the area as are within three hundred feet of the other electric supplier's lines, upon a finding that the reassignment is required by public convenience and necessity. In determining whether public convenience and necessity require the reassignment, the commission shall consider among other things the adequacy and dependability of the service of the affected electric suppliers, but may not consider rate differentials between the electric suppliers.

(B) The Public Service Commission has the authority and jurisdiction, if a hearing is requested by any affected electric supplier, the Office of Regulatory Staff, or municipality, to order any electric supplier to cease and desist from furnishing electric service inside an assigned area which has been annexed into a municipality upon a finding that service to existing consumers by the electric supplier which is then furnishing service, or which has the right to furnish service to the premises, is or will be inadequate or undependable, and cannot or will not be made adequate or dependable within a reasonable time, or that the rates, conditions of service, or service regulations, applied to the consumers, are unreasonably discriminatory. In determining the adequacy and dependability of service or whether rates, conditions of service, or service regulations are unreasonably discriminatory, the commission may not consider rate differentials between the affected electric suppliers or municipality or differences in the provisions of utility service other than electrical services. Upon a finding of inadequate, undependable, or unreasonably discriminatory service, the commission shall order necessary improvements or corrections or the sale of the facilities in accordance with Section 58-27-1360.

SECTION 58-27-660. Supplier may furnish service in area served by another.

Notwithstanding the provisions of Sections 58-27-620 and 58-27-640:

(1) Any electric supplier may furnish electric service to any consumer who desires service from such electric supplier at any premises being served by another electric supplier, or at premises which another electric supplier has the right to serve pursuant to other provisions of this article, upon agreement of the affected electric suppliers.

(2) The Public Service Commission shall have the authority and jurisdiction, after notice to all affected electric suppliers and the Office of Regulatory Staff and after hearing, if a hearing is requested by any affected electric supplier, the Office of Regulatory Staff, or any other interested party, to order any electric supplier which may reasonably do so to furnish electric service to any consumer who desires service from the electric supplier at any premises being served by another electric supplier, including service being provided under the provisions of Section 58-27-620(2) as it existed before the effective date of Article 4, Chapter 33 of Title 58 or at premises which another electric supplier has the right to serve pursuant to other provisions of this article, and to order the other electric supplier to cease and desist from furnishing electric service to the premises, upon a finding that service to the consumer by the electric supplier which is then furnishing service, or which has the right to furnish service, to the premises, is or will be inadequate or undependable, and cannot or will not be made adequate and dependable within a reasonable time, or that the rates, conditions of service, or service regulations, applied to the consumer, are unreasonably discriminatory.

SECTION 58-27-670. Service in area becoming part of municipality; premises located within boundaries of electric cooperative or corridor.

(1) The furnishing of electric service in any area which becomes a part of any municipality after the effective date of this subsection, either by annexation or incorporation, whether or not the area, or any portion of the area has been assigned pursuant to Section 58-27-640, is subject to the provisions of Sections 58-27-1360 and 33-49-250, and any provisions of this article. No poles, wires, or other facilities of electric suppliers using the streets, alleys, or other public ways within the corporate limits of a municipality may be constructed by an electric supplier, unless the consent of the municipal governing body is first obtained. Annexation may not be construed to increase, decrease, or affect any other right or responsibility a municipality, electric cooperative, or electrical utility may have with regard to supplying electric service in areas assigned by the Public Service Commission in accordance with Chapter 27 of Title 58.

(2) No electrical utility, except the annexing or incorporating municipality or its board or commission of public works, shall furnish electrical service to any premises first requiring service in an area annexed by a municipality or incorporated after the effective date of this subsection where such premises is located (a) in an area assigned by the commission prior to annexation or incorporation to an electric cooperative or (b) in an electric supplier's corridor, as described in this chapter, lying within the boundaries of such area assigned by the commission prior to annexation or incorporation to an electric cooperative; however, nothing in this subsection limits the power of an electric cooperative to serve in such areas, as provided in Section 33-49-250.

SECTION 58-27-680. Effect of continuation of service.

The continuation of electric service under Section 58-27-670 must not be construed as affecting the authority of an electric supplier pursuant to Section 58-27-620 to serve premises which are already receiving electric service from a municipal electric system, whether inside or outside municipal boundaries.

SECTION 58-27-690. Act 431 of 1984 not affected by Act 173 of 1987.

Nothing in Title 28, Chapter 2 (Sections 28-2-10 et seq.), and Sections 1-11-110, 3-5-50, 3-5-100, 3-5-330, 4-17-20, 5-27-150, 5-31-420, 5-31-430, 5-31-440, 5-31-610, 5-35-10, 6-11-130, 6-23-290, 13-1-350, 13-11-80, 24-1-230, 28-3-20, 28-3-30, 28-3-140, 28-3-460, 46-19-130, 48-11-110, 48-15-30, 48-15-50, 48-17-30, 48-17-50, 49-17-1050, 49-19-1060, 49-19-1440, 50-13-1920, 50-19-1320, 51-1-560, 54-3-150, 55-9-80, 55-11-10, 57-3-700, 57-5-370, 57-5-380, 57-21-200, 57-25-190, 57-25-470, 57-25-680, 57-27-70, 58-9-2030, 58-15-410, 58-17-1200, 13-1-1330, 58-27-130, 58-31-50, 59-19-200, 59-105-40, 59-117-70, 59-123-90 shall modify, abridge, or repeal Sections 58-27-650, 58-27-670, 58-27-680, 58-27-1280, or 58-27-1360.

ARTICLE 7.

RATES AND CHARGES

SECTION 58-27-810. Rates shall be just and reasonable.

Every rate made, demanded or received by any electrical utility or by any two or more electrical utilities jointly shall be just and reasonable.

SECTION 58-27-820. Schedule of rates, service rules and regulations and service contracts shall be filed with Commission.

Under rules and regulations prescribed by the commission, every electrical utility must file with the commission and provide to the Office of Regulatory Staff, within such time and in such form as the commission may designate, schedules showing all rates, service rules and regulations, and forms of service contracts established by the electrical utility and collected or enforced or to be collected or enforced within the jurisdiction of the commission. Under rules and regulations prescribed by the commission, every distribution electric cooperative and consolidated political subdivision must file with the commission and provide to the Office of Regulatory Staff, for information purposes, within such time and in such form as the commission may designate, schedules showing all rates, service rules and regulations, and forms of service contracts established by the distribution electric cooperative or consolidated political subdivision. Each electrical utility, distribution electric cooperative, and consolidated political subdivision must keep copies of the schedules open to public inspection under rules and regulations prescribed by the commission.

SECTION 58-27-830. Utility shall not charge rates different from those in schedule.

No electrical utility shall directly or indirectly, by any device whatsoever or in any way, charge, demand, collect or receive from any person, corporation or municipality a greater or less compensation for any electric current or service rendered or supplied or to be rendered or supplied by such electrical utility than that prescribed in the schedules of such electrical utility applicable thereto then on file in the manner provided in this chapter, nor shall any person, corporation or municipality receive or accept any service, electric current, product or commodity from an electric utility for a compensation greater or less than that prescribed in such schedules.

SECTION 58-27-840. Preferences and unreasonable differences in rates shall not be made; classifications may be established.

No electrical utility, distribution electric cooperative or consolidated political subdivision shall, as to rates or services, make or grant any unreasonable preference or advantage to any person, corporation, municipality or consolidated political subdivision to its unreasonable prejudice or disadvantage. No electrical utility, distribution electric cooperative or consolidated political subdivision shall establish or maintain any unreasonable difference as to rates or service as between localities or as between classes of service. Subject to the approval of the Commission, however, electrical utilities, distribution electric cooperatives and consolidated political subdivisions may establish classifications of rates and services and such classifications may take into account the conditions and circumstances surrounding the service, such as the time when used, the purpose for which used, the demand upon plant facilities, the value of the service rendered and any other reasonable consideration. The Commission may determine any question of fact arising under this section. The Commission shall not fix any rates charged by electric cooperatives or consolidated political subdivisions.

SECTION 58-27-850. Investigation and change of rates by commission.

Whenever the commission after a hearing finds that the existing rates in effect and collected by any electrical utility for any service, product, or commodity are unjust, unreasonable, insufficient, unreasonably discriminatory, or in any way in violation of any provision of law, the commission shall determine the just, reasonable, and sufficient rates to be thereafter observed and in force and shall fix the rates by its order.

SECTION 58-27-860. Proposed rate changes; prior approval.

Whenever an electrical utility desires to put into operation a new rate, it must give not less than thirty days' notice of its intention to file with the commission and the Office of Regulatory Staff and must, after the expiration of the notice period, file with the commission and provide to the Office of Regulatory Staff a schedule setting forth the proposed changes. Copies of the schedule also must be given to other parties as the commission directs. Subject to the provisions of subsections (C) and (D) of Section 58-27-870, the proposed changes may not be put into effect in full or in part until approved by the commission. Nothing contained in this section affects the existing provisions of Act 1293 of 1966.

SECTION 58-27-865. "Fuel cost" defined; estimated fuel costs; rebuttable presumption; duties of commission.

(A)(1) The term "fuel cost" as used in this section includes the cost of fuel, the cost of fuel transportation, and fuel costs related to purchased power. "Fuel cost" also shall include the following variable environmental costs: (a) the cost of ammonia, lime, limestone, urea, dibasic acid, and catalysts consumed in reducing or treating emissions, and (b) the cost of emission allowances, as used, including allowance for SO2, NOx, mercury, and particulates. Upon application of the utility, and after a hearing at which all interested parties may appear and present evidence, the commission may, if it determines such action to be just and reasonable, allow the variable costs of other environmental reagents, other environmental allowances or emissions-related taxes to be recovered as a component of fuel costs, but only to the extent these variable environmental costs are required to be incurred in relation to the consumption of fuel and the air emissions caused thereby. Alternatively, the commission may decide that the costs related to these other variable environmental costs may only be recovered through base rates established under Sections 58-27-860 and 58-27-870. All variable environmental costs included in fuel costs shall be recovered from each class of customers as a separate environmental component of the overall fuel factor. The specific environmental component for each class of customers shall be determined by allocating such variable environmental costs among customer classes based on the utility's South Carolina firm peak demand data from the prior year. Fuel costs must be reduced by the net proceeds of any sales of emission allowances by the utility.

(2) In order to clarify the intent of this section, "fuel costs related to purchased power", as used in subsection (A)(1) shall include:

(a) costs of "firm generation capacity purchases", which are defined as purchases made to cure a capacity deficiency or to maintain adequate reserve levels; costs of firm generation capacity purchases include the total delivered costs of firm generation capacity purchased and shall exclude generation capacity reservation charges, generation capacity option charges, and any other capacity charges;

(b) the total delivered cost of economy purchases of electric power including, but not limited to, transmission charges; "economy purchases" are defined as purchases made to displace higher cost generation, at a price which is less than the purchasing utility's avoided variable costs for the generation of an equivalent quantity of electric power.

(B) The commission shall direct each electrical utility which incurs fuel cost for the sale of electricity to submit to the commission and to the Office of Regulatory Staff, within such time and in such form as the commission may designate, its estimates of fuel costs for the next twelve months. The commission may hold a public hearing at any time between the twelve-month reviews to determine whether an increase or decrease in the base rate amount designed to recover fuel cost should be granted. Upon conducting public hearings in accordance with law, the commission shall direct each company to place in effect in its base rate an amount designed to recover, during the succeeding twelve months, the fuel costs determined by the commission to be appropriate for that period, adjusted for the over-recovery or under-recovery from the preceding twelve-month period. The commission shall direct the electrical utilities to send notice to the utility customers with the antecedent billing of the time and place of the public hearings to be held every twelve months, and the commission shall again direct the electrical utilities to send notice to the utility customers with the next billing if the utility is granted a rate increase by the commission.

(C) The commission shall direct the electrical utilities to account monthly for the differences between the recovery of fuel costs through base rates and the actual fuel costs experienced, by booking the difference to unbilled revenues with a corresponding deferred debit or credit, the balance of which will be included in the projected fuel cost component of the base rates for the succeeding period. The commission shall direct the electrical utilities to submit to the Office of Regulatory Staff monthly reports of fuel costs and monthly reports of all scheduled and unscheduled outages of generating units with a capacity of one hundred megawatts or greater.

(D) Upon request by the regulatory staff or the electrical utilities, a public hearing must be held by the commission at any time between the twelve-month reviews to determine whether an increase or decrease in the base rate amount designed to recover fuel costs should be granted. If the request is by an electrical utility for a rate increase, the commission shall direct the utility to send notice of the request and hearing to all customers with the next billing, and if the commission grants the rate request subsequent to the request and hearing, the commission shall direct the utility to send notice of the amount of the increase or decrease to all customers with the next billing.

(E) The commission may offset, to the extent considered appropriate, the cost of fuel recovered through sales of power pursuant to interconnection agreements with neighboring electrical utilities against fuel costs to be recovered.

(F) The commission shall disallow recovery of any fuel costs that it finds without just cause to be the result of failure of the utility to make every reasonable effort to minimize fuel costs or any decision of the utility resulting in unreasonable fuel costs, giving due regard to reliability of service, economical generation mix, generating experience of comparable facilities, and minimization of the total cost of providing service. There shall be a rebuttable presumption that an electrical utility made every reasonable effort to minimize cost associated with the operation of its nuclear generation facility or system, as applicable, if the utility achieved a net capacity factor of ninety-two and one-half percent or higher during the period under review. The calculation of the net capacity factor shall exclude reasonable outage time associated with reasonable refueling, reasonable maintenance, reasonable repair, and reasonable equipment replacement outages; the reasonable reduced power generation experienced by nuclear units as they approach a refueling outage; the reasonable reduced power generation experienced by nuclear units associated with bringing a unit back to full power after an outage; Nuclear Regulatory Commission required testing outages unless due to the unreasonable acts of the utility; outages found by the commission not to be within the reasonable control of the utility; and acts of God. The calculation also shall exclude reasonable reduced power operations resulting from the demand for electricity being less than the full power output of the utility's nuclear generation system. If the net capacity factor is below ninety-two and one-half percent after reflecting the above specified outage time, then the utility shall have the burden of demonstrating the reasonableness of its nuclear operations during the period under review.

(G) The commission is authorized to promulgate, in accordance with the provisions of this section, all regulations necessary to allow the recovery by electrical utilities of all their prudently incurred fuel costs as precisely and promptly as possible, in a manner that tends to assure public confidence and minimize abrupt changes in charges to consumers.

SECTION 58-27-870. Commission action on proposed rate changes; refund of excessive charges.

(A) After a schedule setting forth the proposed changes in its rates or tariffs has been filed with the commission and provided to the Office of Regulatory Staff, the commission must hold a public hearing concerning the lawfulness or reasonableness of the proposed changes.

(B) When the proposed changes relate to rates or tariffs, the commission must rule and issue its order approving or disapproving the changes within six months after the date the schedule is filed.

(C) Should the commission fail to issue an order within the period prescribed in this section, then upon written notice by any party to the commission of that fact, the commission shall have an additional ten days from the receipt of the notice to issue the required order. If the commission rules and issues its order within the time aforesaid, and the utility shall appeal from the order, by filing with the commission a petition for rehearing, the utility may put the rates requested in its schedule into effect under bond only during the appeal and until final disposition of the case. Such bond must be in a reasonable amount approved by the commission, with sureties approved by the commission, conditioned upon the refund, in a manner to be prescribed by order of the commission, to the persons, corporations, or municipalities respectively entitled to the amount of the excess, if the rate or rates put into effect are finally determined to be excessive; or there may be substituted for the bond other arrangements satisfactory to the commission for the protection of parties interested. During any period in which a utility charges increased rates under bond, it must provide records or other evidence of payments made by its subscribers or patrons under the rate or rates which the utility has put into operation in excess of the rate or rates in effect immediately prior to the filing of the schedule. All increases in rates put into effect under the provisions of this section which are not approved and for which a refund is required shall bear interest at a rate of twelve percent per annum. The interest shall commence on the date the disallowed increase is paid and continue until the date the refund is made. In all cases in which a refund is due, the commission must order a total refund of the difference between the amount collected under bond and the amount finally approved.

(D) If the commission fails to rule or issue its order within the time prescribed in subsections (B) or (C) of this section, the utility may put into effect the change in rates it requested in its schedule. The change is to be treated as an approval of the new rate schedule by the commission.

(E) After the date the schedule is filed with the commission, no further rate change request under this section may be filed until twelve months have elapsed from the date of the filing of the schedule; provided, however, this section shall not apply to a request for rate reduction.

(F) Notwithstanding the provisions of Sections 58-27-860 and 58-27-870, the commission may allow rates or tariffs to be put into effect without notice and hearing upon order of the commission when such rates or tariffs do not require a determination of the entire rate structure and overall rate of return, or when the rates or tariffs do not result in any rate increase to the electrical utility, or when the rates or tariffs are for experimental purposes, or when the rates or tariffs so filed are otherwise necessary to obtain an orderly rate administration.

(G) The commission's determination of a fair rate of return must be documented fully in its findings of fact and based exclusively on reliable, probative, and substantial evidence on the whole record.

SECTION 58-27-880. Repealed by 1983 Act No. 138, Section 21, eff June 15, 1983.

SECTIONS 58-27-890 to 58-27-910. Repealed by 1983 Act No. 138 Section 21, eff June 15, 1983.

SECTION 58-27-920. Schedule of rates put into effect after preliminary investigation.

The commission may, after a preliminary investigation by the Office of Regulatory Staff and upon such evidence as to the commission seems sufficient, order any electrical utility to put into effect a schedule of rates as shall be deemed fair and reasonable, within such time as may be prescribed by order of the commission, which shall be not less than fifteen days, and an attested copy of the order must be served upon the utility and the Office of Regulatory Staff by registered mail or otherwise as provided by law.

SECTION 58-27-930. Petition for hearing on change in rates; suspension of new rates pending hearing.

If any utility affected thereby objects to an order issued pursuant to Section 58-27-920, it may, within ten days after service upon it of the copy of the order, file a petition with the commission stating the grounds of any such objection and demand a hearing thereon and it may require, if it so requests in the petition, that such schedule of rates be suspended pending the hearing. The utility also must provide a copy of the petition to the Office of Regulatory Staff. Any member of the public adversely affected by any such order of the commission shall also have all the rights herein conferred on the utility affected.

SECTION 58-27-940. Order confirming, modifying or vacating former order; service; effective date of rate changes.

After a hearing provided by Section 58-27-930, the commission by its order must either confirm, modify, or vacate its former order, in conformity with what is found to be just and reasonable, and an attested copy of the order of the commission must be immediately served on the utility affected and the Off