North Carolina Utilities Commission

Transcription

North Carolina
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2009 REPORT - VOLUME XL
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UtilitiesCommission
LETTER OF TRANSMITTAL
December 6, 2010
The Honorable Beverly Perdue
The Governor of North Carolina
Raleigh, North Carolina
Dear Governor Perdue:
We hereby present for your consideration the 2009 Report of the North Carolina Utilities
Commission pursuant to Section 17 of the Public Utilities Act of 1963 as amended in
1977 (G.S. 62-17). The report covers the major activities of the Commission through
December 2009 with statistical and analytical data for the operations of the utilities
through 2008.
Respectfully submitted,
Edward S. Finley, Jr., Chairman
Lorinzo L. Joyner
William T. Culpepper, III
Bryan E. Beatty
Susan W. Rabon
ToNola D. Brown-Bland
Lucy T. Allen
Prepared by
North Carolina Utilities Commission
Division of Fiscal Management
4325 Mail Service Center
Raleigh, NC 27699-4325
Telephone No. 919-733-7680
TABLE OF CONTENTS
Chapter
Page
Letter of Transmittal
I.
Organization and History
A.
B.
C.
D.
E.
II.
III.
1
Commission Staff and Organization Chart
Biographical Sketch of Each Commissioner
Biographical Sketch of Executive Director
Public Staff and Organization Chart
Historical Sketch of Development
Selected Commission Activities Through December 2009
20
A.
B.
C.
D.
21
21
23
24
General
Electric
Consumer Pocketbook Issues
Regulatory Fees
Summary of the Commission Activities and Operations 2009 and Prior Years
A. Overview of Size, Operating Results, and Number of Companies
Regulated
B. Commission Case Load: Formal and Informal Hearings
C. General Impact of the Regulated Utilities on the Economy of
North Carolina in 2008
IV.
2
3
6
10
11
28
29
29
30
The Electric Power Industry
34
A. General Comments
B. Renewal Energy and Energy Efficiency
C. Retail Customer Growth--Comments
D. Annual Customer Usage
E. Comparisons of Average Residential Monthly Bills
F. Advanced Energy Corporation
G. Generating Capability -- Nuclear Power Impact and Cogeneration
H. Source and Disposition of the Electric Operating Revenue Dollar
I. Energy Sales
J. Statistical Summary Data
42
43
51
52
52
52
53
54
54
54
i
TABLE OF CONTENTS - Continued
Chapter
V.
VI.
VII.
VIII.
Page
The Natural Gas Industry
66
A. A Brief History of the Natural Gas Industry
B. Plant Investment and Expansion
C. Growth Trends--Customers, Revenues, Volume
D. Comparisons of Residential Bills, Usage, and Cost Per Dekatherm
E. Gas Trackings--Pass Ons--Special Situations, and General Rate Cases
F. Natural Gas Pipeline Safety
G. Source and Disposition of the Gas Revenue Dollar
H. Statistical Summary Data
69
70
70
71
71
73
74
74
The Communications Industry
90
A. Brief Review of the Telephone Industry--General
B. Customer Growth and Impact on Plant Investment
C. Demands and Quality of Service
D. Extended Area Service (EAS)
E. Telephone Rates--Comments
F. Source and Disposition of Revenues--Comments
G. Plant Investments--Comments
H. Statistical Summary Data
93
94
95
95
95
96
96
96
The Water and Sewer Industry
105
A.
B.
C.
D.
107
107
108
108
General Comments
Commission Activities
Regulated vs. Nonregulated Monthly Charges
Statistical Summary Data
The Transportation Industry--Household Goods Movers
136
A.
B.
C.
D.
E.
137
137
137
137
138
Classification of Motor Freight Carriers
Duties of the Transportation Division
Commission Activities
Summary of Operating Data
Legislative Action
ii
TABLE OF CONTENTS - Continued
Chapter
IX.
Page
The Transportation Industry--Motor Passenger Carriers
144
A.
B.
C.
D.
145
145
145
General Comments
Intercity Motor Passenger Carriers
Fare Increases Authorized--Intercity
Preemption of Regulation Over Motor Carriers of Passengers in
Charter Bus Transportation
iii
145
CHART OF TABLES, CHARTS, AND GRAPHS
Figure
No.
1-1
1-1A
1-1B
1-2
1-3
2-1
2-2
2-3
3-1
3-2
3-3
4-1
4-2
4-2A
4-3
4-4
4-5
4-6
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4-8
4-9
4-10
4-11
4-12
4-13
4-14
5-1
5-2
5-3
5-4
5-5
Title
Commission Staff--Organization Chart
Leadership of State Regulatory Activities 1891-1933
North Carolina Utilities Commissioners Listed in Order of Appointment
with Approximate Years of Service
Public Staff--Organization Chart
Summary of the Receipts and Expenditures--Fiscal Years Ended June 30, 2009
Ended June 30, 2009
North Carolina Utility Rates vs. Consumer Price Index (CPI)
Electric, Gas, and Telephone General Rate Case Data-Amounts Requested and Granted for Calendar
Years 2001-2009
Filings and Orders by Industry Group--- Calendar Year 2009
Highlights of Activities--Electric, Gas, and Telephone Utilities
Major Utilities Regulated and Reporting to the North Carolina Utilities
Commission
Gross Plant Allocated to Serve North Carolina Customers--Electric, Gas,
and Telephone for the Years 2003-2008
North Carolina Electric IOU Service Area Map
Map of North Carolina Electric Membership Corporations
Map of ElectriCiites North Carolina Membership
Major N.C. Electric Companies and Municipal Electric Systems
N.C. Electric Membership Corporations and Source of Power
Customer Growth for Major Electric Companies
Average Annual Residential Consumption (kWh/Customer)
Residential Electric Service -- Major Companies (Avg. Price per kWh)
General Rate Increases for Electric Companies for the year 2008
Comparative Typical Residential Electric Bills--2003-2009
Source and Disposition of the Operating Revenue Dollar--Pie Chart Form-Electric Companies (N.C. Operations
Source and Disposition of the Operating Revenue Dollar -Major Electric Companies--2003-2008
Fuel Costs--2003-2008
Energy Sales by Class--Major Electric Companies
Major Electric Companies--Income Statement, Balance Sheet, and
Other Statistical Items for 2002-2008
Map of Natural Gas Service Areas in North Carolina
North Carolina Gas Companies
North Carolina Municipal Gas Systems
Natural Gas Companies--Class A--Gross Plant Investments--1980-2008
Customers by Classification--Yearly Average 1980-2008
iv
Page
7
7
8
10
19
25
26
27
31
32
33
35
36
37
38
40
55
56
57
58
59
60
61
61
62
63
67
68
68
75
76
CHART OF TABLES, CHARTS, AND GRAPHS - Continued
Title
5-6
5-7
5-8
5-9
5-10
5-11
5-12
5-13
5-14
5-15
6-1
6-1A
6-2
6-3
6-4
6-5
6-6
6-7
6-8
7-1
7-2
7-2A
7-3
Gas Companies--Customer Growth by Class for 2002-2008
Gas Company Energy Sales by Classes
Summary of Natural Gas Deliveries by Dekatherms, Revenues, and
Customers by Classifications for 2003-2008
Regulated and Municipal Gas Systems--Number of Customers, Total Revenues
From Sales of Gas and Transportation of Gas, and Total Dekatherms Sold for
2007-2008
Residential Natural Gas Customers' Average Dekatherm Usage and
Cost Data--2003-2008
Gas Tracking Changes Approved--2008
General Rate Increases Approved--2008
Source and Disposition of the Gas Operating Revenue Dollar
Source and Disposition of the Revenue Doll--Gas Companies-Class A Gas Companies--Income Statement, Balance Sheet, and Customer
Statistics for Years 2003-2008
Local Exchange Telephone Companies and Shared Tennant Service
Providers Operating in North Carolina
Regulated Local Exchange Telephone Companies Operating in North
Carolina--1980, 1985, 1990, 1995, 2000 and 2005; Number of Total
Telephones/Access Lines in Service, Exchanges, and Density Data
Regulated Local Exchange Telephone Companies Operating in North
Carolina -- Number of Total Access Lines
Access Lines in Services as of December 31, 2007, 2008 and 2009
North Carolina Regulated Local Exchange Telephone Rates vs. U.S. Average
Monthly Telephone Rates
Source and Disposition of the Revenue Dollar--Regulated Telephone
Companies--Pie Chart for 2008
Regulated Local Exchange Telephone Companies' Plant Investment Per
Access Lines
Gross and Net Telephone Plant Allocated to North Carolina Operations
for the Years 2007 and 2008
Summary of Selected Data--Income Statement, Balance Sheet, and
Statistical Items for the Calendar Years 2007 and 2008
Map of Distribution of Customers Served by Regulated Water & Sewer
Utilities
Distribution Summary of Systems and Customers of All N.C. Regulated
Water and Sewer Utilities by Counties
Distribution of All N.C. Regulated Water and Sewer Utilities by Counties
Water and sewer Companies Regulated --Revenues, Customers, and
Number of Systems
v
Page
77
78
79
81
82
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85
86
87
91
97
98
99
100
101
102
103
104
106
109
112
127
CHART OF TABLES, CHARTS, AND GRAPHS - Continued
Figure
No.
7-4
7-5
7-6
8-1
8-2
9-1
9-2
9-3
9-4
Title
Noncurrent Data of Water and Sewer Companies Regulated
Plant, Revenue, and Customer Growth of all Regulated Water and Sewer
Companies in North Carolina for the years 2000, 2001, 2002, 2003, 2004, 2005
2006, 2007, and 2008
Comparative Monthly Charges for Residential Water and Sewer Service in
North Carolina at January 1, 2009
Household Goods Movers--All Classes Revenue, Employee Wages
Summary of HHG Operation Report Information -- 2008
Motor Passenger Carriers Franchised to Operating in North Carolina
Motor Passenger Brokers Franchised to Operate in North Carolina
Motor Passenger Carriers Regular Route -- Summary of Total Company
Revenues and Expenses
Motor Boat Commission Carriers as of December 31, 2008
vi
Page
133
134
135
139
143
147
148
149
150
I. ORGANIZATION AND HISTORY
1
A. COMMISSION STAFF AND ORGANIZATION CHART
There were seven Commissioners and 57 Commission Staff positions as of January 1,
2010. Commissioners are appointed by the Governor subject to the confirmation by the
General Assembly by joint resolution.
NORTH CAROLINA UTILITIES COMMISSION
COMMISSION STAFF
Commissioners and Division Personnel
as of January 1, 2010
Commissioners
Edward S. Finley, Jr., Chairman
Robert V. Owens, Jr.
Commissioner
Bryan E. Beatty
Commissioner
Lorinzo L. Joyner
Commissioner
Susan Warren Rabon
Commissioner
William T. Culpepper, III
Commissioner
ToNola D. Brown-Bland
Commissioner
Division Directors and Chief Clerk
Chief Clerk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administration Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operations Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiscal Management Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Renné C. Vance
Robert H. Bennink, Jr.
Donald R. Hoover
Mac Ellis
Baptist Church; United States Coast Guard;
assumed Commissionership on August 29,
1997.
Commissioner
Owens
was
reappointed for a second eight-year term
that began on July 1, 2005, and expires on
June 30, 2013, married (Sarah), two
children. Commissioner Owens resigned
effective March 1, 2010.
B. BIOGRAPHICAL SKETCH OF EACH
COMMISSIONER
Edward S. Finley, Jr., Chairman:
Commissioner Finley, 60, was born in North
Wilkesboro, North Carolina. He holds a
Batchelor of Arts degree in history from the
University of North Carolina at Chapel Hill
and a Juris Doctor from the University of
North Carolina School of Law.
Between 1974 and 2007 he
practiced law in Raleigh, North Carolina,
with the firm of Joyner & Howison from 1974
to 1980 and the firm of Hunton & Williams
from 1980 to 2007, after a merger of the two
firms. His primary area of practice was
public utility regulation.
Governor Easley appointed Finley to
the Commission on January 23, 2007, to fill
a term that expires June 30, 2011.
Governor Easley appointed Commissioner
Finley as Chairman of the Commission on
April 10, 2007.
Chairman Finley was
reappointed as Chairman for a second fouryear term effective July 1, 2009.
Chairman Finley is active in
community and civic affairs. He and his
wife, Ginger, have two sons.
Lorinzo Little Joyner, Commissioner:
Commissioner Joyner was born in
Wadesboro, North Carolina on May 8, 1948.
She attended public schools in Anson
County and graduated from West Ansonville
High School in 1965. She graduated with
high honors from NC A&T State University,
Greensboro, with a B.S. in English
Education, in 1969. Joyner became a high
school English teacher, working in the
public schools of Greensboro and Durham.
She left the teaching profession in 1978 to
enter the School of Law at the University of
North Carolina at Chapel Hill and received
her J.D. in 1981. Joyner was appointed to
the Commission by Governor Mike Easley
on January 22, 2001. She is a member of
the Telecommunications Committee of the
National Association of Regulatory Utility
Commissioners (NARUC), the Consumer
Affairs Committee, and the North American
Numbering Council (NANC). Joyner was
appointed to the Commission by Governor
Mike Easley on January 22, 2001. That
term as Commissioner expired on June 30,
2009. She was reappointed by Governor
Beverly Perdue for the term that began on
July 1, 2009 and ends on June 30, 2017.
Commissioner Joyner has held a
variety of positions during her 25 year
career as a government lawyer. She served
as an Assistant Appellate Defender in the
Office of the Appellate Defender from 1981
– 1983. She became a staff lawyer for the
Public Staff of the North Carolina Utilities
Commission in 1983, and continued her
work in public utilities law after joining the
Utilities Section of the North Carolina
Attorney General’s Office.
Joyner also
served as an adjunct professor at the North
Carolina Central University School of Law in
Durham. In 1991, she became a Special
Deputy Attorney General, supervising the
legal
assistance
provided
to
the
Commissioner
and
Department
of
Robert V. (Bobby) Owens, Jr.,
Commissioner: Born December 21, 1932,
in Manteo, North Carolina; Manteo High
School; East Carolina University. Co-owner
and manager of Owens’ Restaurant; Coowner of fast food franchise; Director of
Governor’s Eastern Office (1993-1997);
Dare County Board of Commissioners
(1970-1978); Chairman, Dare County Board
of Commissioners (1984-1997); North
Carolina Tax Study Commission (19861988); North Carolina State Banking
Commission (1982-1984); North Carolina
State Parks and Recreation Commission
(1980-1982); Member, Manteo Lions Club,
past President; Member, Manteo Masonic
Lodge; Member, Dare County Shrine Club,
past President; Leadership Award for
Promotion of Education and Technology in
Dare County Schools; Leadership Award for
Promotion of Dare County Babe Ruth World
Series; Dare County Citizens of the Year
Award; Town of Manteo Citizens of the Year
Award; Leadership Award for North Carolina
Mentally Handicapped; Member, Manteo
3
Authority, 1979-2005. Chairman, Chowan
County Democratic Party 1987-1991.
Member, Edenton Historical Commission,
1987-present.
President, First Judicial
District
Bar
Association,
1987-1988.
Recipient,
Perquimans
Restoration
Association Harvey Award for Distinguished
Public Service, 1997. Practicing attorney in
Edenton, N.C., 1973-2005.
County
Attorney, Chowan County, 1979-2005.
Member, Edenton Savings and Loan Board
of Directors, 1979-1993. Member, Branch
Banking and Trust Company, Edenton Local
Board of Directors, 1993-present. Member,
N.C. House of Representatives, 1993-2005.
Member,
N.C.
General
Statutes
Commission, 1995-2005. Member, N.C.
Courts Commission, 1995-2005. Chairman,
Committee on Rules, Calendar and
Operations of the House, 1999-2005. Cochairman, Appropriations Subcommittee on
Justice and Public Safety, 1999-2002.
Member, Joint Legislative Commission on
Government
Operations,
1999-2005.
Member, Legislative Services Commission,
1999-2005. Co-chairman, Joint Legislative
Ethics Commission, 2003-2005, Member,
UNC Wilmington Board of Visitors, 2005 –
present. Assumed Commissionership with
the North Carolina Utilities Commission:
January 1, 2006; expires June 30, 2013.
Insurance, the State Health Plan, the
Department of the Secretary of State, the
State
Auditor,
the
Department
of
Commerce, the North Carolina State Ports
Authority, and the North Carolina Rural
Electrification Authority.
Commissioner
Joyner has been active in various barrelated
and
community
service
organizations, including the North Carolina
Association of Black Lawyers, the Capital
City Lawyers Association, the Tenth Judicial
Bar, Race Study Circles, and Alpha Kappa
Alpha Sorority, Incorporated. She has also
served as a member of the Salvation Army
Advisory Board and the Board of Directors
for HopeLine, Inc., a crisis intervention
program.
Joyner is a member of Watts Chapel
Baptist Church. She and her husband,
Charles, have two children and three
grandchildren.
Howard N. Lee, Commissioner:
Howard Lee was appointed to the
Utilities Commission by Governor Mike
Easley to complete the eight-year term of
Mike
Wilkins.
Commissioner
Lee’s
commissionership began April 1, 2005.
Commissioner Lee resigned effective
March 31, 2009.
William
Thomas
Culpepper,
III,
Commissioner: Born Elizabeth City, North
Carolina January 23, 1947. Preparatory
education: Hampden-Sydney College (B.S.,
1968). Legal education: Wake Forest
University (J.D., 1973). Recipient: Edenton
Jaycees Distinguished Service Award,
1975.
Director, Edenton Chamber of
Commerce, 1974-1976. Chairman, Chowan
County Unit, American Cancer Society,
1974-1976.
Chairman, Chowan County
Chapter, American Red Cross, 1974-1977.
Advisor, Chowan County Teen-Dem Club,
1974-1978. Recipient: Most Outstanding
Teen-Dem Advisor in NC, 1976. Chairman,
Historic
Edenton,
Inc.,
1976-1977.
Chairman,
Edenton
Historic
District
Commission,
1976-1980.
President,
Chowan County Heart Fund, 1977.
President, Edenton Jaycees, 1980-1981.
President, Edenton Rotary Club 1986-1987.
Chairman, Chowan County Industrial
Facilities and Pollution Control Financing
Bryan E. Beatty, Commissioner:
Commissioner Beatty was appointed to the
North Carolina Utilities Commission by
Governor Mike Easley for a term that
commenced on January 7, 2009 and
expires on June 30, 2009.
Governor
Beverly Perdue reappointed him for the
term that commenced on July 1, 2009 and
ends on June 30, 2017.
Born March 10, 1958 in Englewood,
New Jersey and a graduate of Salisbury
High School in Salisbury, North Carolina, he
earned his B.A. in Political Science from the
State University of New York at Stony Brook
in 1980. Beatty received his Juris Doctorate
in 1987 from the University of North
Carolina School of Law and is a 1981
graduate of the N.C. State Bureau of
Investigation Academy at Salemburg.
Beatty served as the Secretary of
the N.C. Department of Crime Control and
Public Safety from 2001 until 2009 and was
4
She received her J.D. from the University of
Virginia School of Law in 1986.
Upon graduation from law school
and having been admitted to the North
Carolina State Bar in the summer of 1986,
she clerked for The Honorable Jack L.
Cozort, North Carolina Court of Appeals.
She entered private practice in 1987 with
the firm, Carr, Swails, Huffine & Crouch of
Wilmington, NC. In 1993, she joined the
staff of the Attorney General’s Office in
Raleigh as Special Counsel and in 1994
became Deputy Attorney General for
Administration. There she oversaw the dayto-day operation of the Department of
Justice as Chief of Staff.
In 2001, she moved to the
Governor’s Office with incoming Governor
Michael F. Easley. As Senior Assistant for
Administration she served as one of the
Governor’s top three advisors and oversaw
the day-to-day administrative operations of
the Governor’s Office. She provided the
Governor with advice in many areas of state
government but particularly in the areas of
budget, personnel and technology.
Commissioner Rabon was appointed
by Governor Mike Easley and assumed the
Commissionership on January 7, 2009. Her
term as Commissioner ends on June 30,
2015. She is a member of the North
Carolina State Bar and is a North Carolina
Certified Mediator.
She is an active
volunteer in the schools and in other
community affairs. She and her husband
Tom have one son.
in charge of the state’s homeland security
coordination. He also served as director of
the State Bureau of Investigation from
October 1999 to January 2001.
During his tenure at the Department
of Justice, he also served as an SBI agent,
an associate attorney general representing
the UNC Hospital System, an assistant
attorney general in the Motor Vehicles
section, the state’s first inspector general,
and deputy attorney general for policy and
planning.
Beatty is the immediate past chair of
the
State
Emergency
Response
Commission and served on the N.C. Lottery
Commission. He has also served as a
member
of
the
Governor’s
Crime
Commission, on the Board of Directors of
the Criminal Justice Information Network,
and as chair of the Governor’s Terrorism
Preparedness Task Force.
Beatty
received
the
National
Governors’
Association
Award
for
Distinguished Service to State Government
in August 2003 for his leadership in North
Carolina’s terrorism preparedness efforts.
In November 2002, he was honored by the
University of North Carolina at Chapel Hill
with the Harvey E. Beech Outstanding
Alumni Award, established to recognize
black alumni who are “stellar leaders within
the University community or in his or her
local community.” In 2005, Beatty received
the Charles Dick Medal of Merit Award from
the National Guard Association of the
United States. Also, in 2005 he received
the Distinguished Civilian Service Award
from the State of North Carolina.
In 2008, Governor Mike Easley
awarded Beatty the Order of the Long Leaf
Pine, the highest service award that can be
given to a North Carolina citizen.
Beatty and his wife Rhonda have
three children, Bryan Jr., Nicole and
Michael.
ToNola D. Brown-Bland, Commissioner:
Commissioner Brown-Bland was appointed
to the North Carolina Utilities Commission
by Governor Beverly Eaves Perdue for an
unexpired term ending on June 30, 2009
and for a full term beginning on July 1, 2009
and ending on June 30, 2017.
Born in Burlington, North Carolina,
Commissioner
Brown-Bland
attended
Eastern Alamance High School in Mebane,
graduating as valedictorian of her class.
She is a Phi Beta Kappa graduate of the
University of North Carolina at Chapel Hill,
and in 1987, she graduated from Duke
University School of Law.
Brown-Bland began her professional
career as federal Law Clerk to the
Susan Warren Rabon, Commissioner:
Susan Rabon was born in Onslow County,
North Carolina on May 6, 1960, and grew
up in Danville, Virginia, where she
graduated from George Washington High
School in 1978. In 1982, she graduated
from North Carolina State University with a
B.A. summa cum laude, in Political Science.
5
Allen
is
active
in
many
community, civic and public service
roles. She has three sons: Sonny, Hill
and Stuart; two daughters-in-law, Willa
and Julie; three grandsons: Felix, Henry
and Parker; and a dog named Hunter.
Governor
Beverly
Perdue
appointed Allen to the North Carolina
Utilities Commission on April 12, 2010,
to fill a term that expires on June 30,
2013.
Honorable Alexander B. Denson, United
States Magistrate Judge for the Eastern
District of North Carolina, and in 1989,
entered private practice in Greensboro, NC
with the law firm Hill Evans Jordan Beatty
(formerly Nicholas, Caffrey, Hill, Evans &
Murrelle). In 1995, she became in-house
attorney for AT&T Corp. (subsequently
Lucent Technologies), where she was
promoted to Senior Attorney and primarily
supported
the
company’s
federal
contracting
and
related
commercial
technology licensing and business lines in
Greensboro.
She joined the North Carolina
Department of the Secretary of State in
2001, serving as Director of the Business
License Information Office and of the
Charitable Solicitations Licensing Section.
In December 2002, Brown-Bland became a
member of the North Carolina Utilities
Commission staff, where she was an
attorney in the Administrative Division.
Since 2005, she has been Associate
General Counsel for the City of Greensboro.
Brown-Bland has a history of
community and civic service, having served
on several boards including the Greensboro
Bar Association, the Alamance County
Historical Museum, and Western Piedmont
Residential Services, a non-profit that
provided residential service to autistic
adults. She is presently a member of the
Board of Trustees of her church. She and
her husband, Andre, make their home in
Alamance County.
C.
BIOGRAPHICAL
EXECUTIVE DIRECTOR
SKETCH
OF
Robert P. Gruber, Executive Director,
Public Staff, Born April 22, 1943; B.A.
University of North Carolina, 1965; J.D.
University of North Carolina School of Law,
1968; private law practice in Raleigh, 19681973; Staff Attorney, North Carolina
Department of Justice, 1973-1975; Special
Deputy Attorney General, Utilities Section,
1975-1978;
General
Counsel,
North
Carolina Utilities Commission, 1978-1983;
appointed Executive Director, Public Staff of
the North Carolina Utilities Commission,
July 1, 1983 for six-year term; reappointed
July 1, 1989 for second six-year term,
reappointed for third six-year term July 19,
1995, reappointed for a fourth six-year term
on July 1, 2001, and reappointed for a fifth
six-year term on July 1, 2007.
Lucy T. Allen, Commissioner:
Commissioner Allen was born in
the Franklin County seat, Louisburg,
North Carolina. She graduated from
Meredith College with a B.A. in English
and attended Duke University. She
taught middle school language arts for
six years. Subsequently, she served
eight years on the Franklin County
Board of Education and sixteen years as
Mayor of Louisburg. She was elected to
the
North
Carolina
House
of
Representatives in 2002, the first of her
four terms.
6
FIGURE NO. 1-1
COMMISSION STAFF-ORGANIZATION CHART
January 1, 2010
Chair
Administrative
Secretary
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Administrative
Secretary
Administrative
Secretary
Administrative
Secretary
Administrative
Secretary
Administrative
Secretary
Administrative
Secretary
Operations
Division
Water, Sewer and
Transportation
Group
Electric and
Telecommunications
Group
Administrative
Division
Fiscal Management
Division
Natural Gas and
Pipeline Safety
Computer Support
Attorneys
Court Reporters
Office of the
Chief Clerk
FIGURE NO. 1-1A
LEADERSHIP OF STATE REGULATORY ACTIVITIES 1891-1933
1.
2.
3.*
4.
5.
6.
7.
8.
9.
*
10.
11.
12.
13.
14.
15.
James W. Wilson (1891-1896)**
Railroad Commission of N. C.
Thomas W. Mason (1891-1894)
E. C. Beddingfield (1891-1896)
S. Otho Wilson (1895-1896)
L. C. Caldwell (1897-1898)**
Jonathan H. Pearson (1897-1898)
D. H. Abbott (1897-1903)
Franklin McNeill (1899-1911)**
N. C. Corporation Commission
Sam L. Rogers (1899-1910)
E. C. Beddingfield (1904-1908)
Henry C. Brown (1910-1910)
William T. Lee (1911-1932)**
Edward L. Travis (1911-1916)**
George P. Pell (1912-1932)
A. J. Maxwell (1917-1928)
Stanley Winborne (1929-1932)**
(Mr. Winborne became Chairman of the N. C. Utilities Commission in 1933)
Note: The Utilities Commission was known as the Railroad Commission of North Carolina from
1891-1898, the North Carolina Corporation Commission from 1899-1932, becoming the North
Carolina Utilities Commission in 1933. See Section E (Historical Sketch of Development) for
additional information.
*Served at two separate times
**Served part of Commissionership as Chairman
7
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
FIGURE NO. 1-1B
COMMISSIONERS LISTED IN ORDER OF APPOINTMENT
APPROXIMATE YEARS OF SERVICE GIVEN IN PARENTHESES (PLEASE SEE NOTE)
1. Stanley Winborne (1933-1958)**
2. F. L. Seely (1933-1940)
3. Frank W. Hanft (1933-1940)
4. Fred C. Hunter (1941-1955)
5. Robert Grady Johnson (1941-1948)
6. Joshua S. James (1949-1953)
7. Edward R. McMahan (1949-1958)
8. Harry T. Westcott (1949-1972)**
9. Sam O. Worthington (1952-1966)
10. Ralph Moody (1955-1957)
11. R. Lee Whitmire (1957-1958)
12. Clarence H. Noah (1958-1966)
13. Richard G. Long (1958-1960)
14. Thomas R. Eller, Jr. (1958-1968)
15. R. Brookes Peters (1960-1966)
16. John Worth McDevitt (1966-1973)
17. M. Alexander Biggs, Jr. (1967-1969)
18. Clawson L. Williams, Jr. (1967-1970)
19. Marvin R. Wooten (1968-1976)**
20. Miles H. Rhyne (1970-1973)
21. Hugh A. Wells (1970-1974)
22. Ben E. Roney (1973-1979)
23. Tenney I. Deane, Jr. (1973-1977)**
24. George T. Clark, Jr. (1974-1976)
25. J. Ward Purrington (1975-1977)
26. W. Lester Teal, Jr. (1975-1977)
27. Barbara A. Simpson (1975-1977)
28. W. Scott Harvey (1976-1977)
29. Dr. Robert K. Koger (1977-1988)**
30. Dr. Leigh H. Hammond (1977-1984)
31. Sarah Lindsay Tate (1977-1993)
32. Dr. Robert Fischbach (1977-1979)
33. John W. Winters (1977-1983)
34. Edward B. Hipp (1977-1989)
35. A. Hartwell Campbell (1979-1986)
36. Douglas P. Leary (1980-1984)
37. Ruth E. Cook (1983-1991)
38. Charles E. Branford (1984-1985)
39. Hugh A. Crigler (1984-1985)
40. Julius A. Wright (1985-1993)
41. Robert O. Wells (1985-1993)**
42. William W. Redman, Jr. (1987-1995)**
43. Charles H. Hughes (1989-1997)
8
FIGURE NO. 1-1B CONTINUED
COMMISSIONERS LISTED IN ORDER OF APPOINTMENT
APPROXIMATE YEARS OF SERVICE GIVEN IN PARENTHESES (PLEASE SEE NOTE)
44.
45.
46.
47.
48.
* 49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
Laurence A. Cobb (1989-1997)
Allyson K. Duncan (1991-1998)
Judy F. Hunt (1993-2001)
Ralph A. Hunt (1993-2001)**
Dr. John E. Thomas (1993-1994)**
Hugh A. Wells (1994-1996)**
Jo Anne Sanford (1995-2005)**
William R. Pittman (1997-2001)
J. Richard Conder (1997-2005)
Robert V. Owens, Jr. (1997)
Dr. Robert K. Koger (1999-1999)
Sam J. Ervin, IV (1999-2009)**
Lorinzo L. Joyner (2001- )**
James Y. Kerr, II (2001-2008)**
Michael (Mike) S. Wilkins (2002-2005)
Howard N. Lee (2005-2009)
Dr. Robert K. Koger (2005-2005)
William T. Culpepper, III (2006- )
Edward S. Finley, Jr. (2007- )**
Bryan E. Beatty (2009- )
Susan Warren Rabon (2009- )
ToNola D. Brown-Bland (2009- )
* Deceased
**Served part of Commissionership as Chairman
NOTE: Appointments for Utilities Commissioners have never been on a calendar year basis;
therefore, the years of service given in parentheses represent the (a) year in which the
Commissioner was appointed, and (b) the year in which service ended.
9
D. PUBLIC STAFF AND ORGANIZATION CHART
As of January 1, 2010, there were 89 funded positions, including the Executive Director,
comprising the Public Staff of the North Carolina Utilities Commission.
PUBLIC STAFF
January 1, 2010
Executive Director
Robert P. Gruber
Administrative Officer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Communications Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consumer Services Division. . . . . . . . . . . . . . . . . . . . . . . . .. . . .
Economic Research Division . . . . . . . . . . . . . . . . . . . . . . . .. . . .
Electric Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gas Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Legal Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation Rates Division . . . . . . . . . . . . . . . . . . . . . . .. . . .
Water Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Carl Goolsby
Elise Cox
John Garrison
Carl Goolsby
Thomas W. Farmer, Jr.
James McLawhorn
Jeffrey L. Davis
Antoinette R. Wike
Carol Stahl
Ken Rudder
FIGURE NO. 1-2
PUBLIC STAFF - ORGANIZATION CHART
Executive Director
Administrative Assistant
Accounting
Communications
Consumer Services
Natural Gas
Transportation
Water
10
Legal
Economic Research
Electric
E.
HISTORICAL
DEVELOPMENT
SKETCH
OF
(b)
An Act to Repeal the Sunset
Provision for the Utility Regulatory Fee
Statute. Section 5, Chapter 787 of the 1989
Session Laws reads as rewritten: "This act
shall become effective July 1, 1989, and
shall apply to public utility North Carolina
jurisdictional revenues earned on or after
that date." This act was ratified and made
effective on June 28, 1991.
This act
repealed the sunset provision of the
regulatory fee originally scheduled to expire
July 1, 1991.
The present North Carolina Utilities
Commission evolved from the Railroad
Commission, which was created in 1891 by
the General Assembly and was given authority to determine charges made for
services rendered by railroads, steamboat,
canal companies, and express and
telegraph companies.
The major changes occurring in the
North Carolina regulatory field since 1891
are in chronological order in all copies of
this publication prior to the 1998 volume
which began with major changes since
1979. This volume will begin with major
changes from 1990 through 2009.
1990--Major legislation
regulation of utilities:
affecting
(c)
Exemption of cellular telephone
service. Chapter 82, Senate Bill 551, is an
act to permit the Utilities Commission to
exempt cellular telephone service from
regulation under Chapter 62. Nothing in this
section shall be construed to diminish any
other authority granted the Commission in
this Chapter. This act was ratified on May
13, 1991.
the
(a)
Regulation of Natural Gas Service
Agreements. Chapter 962, House Bill 2227,
G. S. 62-36(b), allows the Commission to
direct the franchised natural gas local
distribution companies to negotiate in good
faith to enter into lower cost service
agreements with their customers, when it
finds that additional natural gas service
agreements with interstate or intrastate
pipelines will provide increased competition
in North Carolina's natural gas industry and
will likely result in lower costs to consumers
along with the reduction in risk of service
interruptions. This bill was ratified and
made effective on July 18, 1990.
affecting
(d)
On July 8, 1991, the North Carolina
General Assembly ratified House Bill 1039
Chapter 568 which provided for "the
construction of facilities in and the extension
of natural gas service to unserved areas in
order to promote the public welfare
throughout the State and to that end to
authorize the creation of an expansion fund
for each natural gas local distribution
company (LDC) to be administered under
the supervision of the North Carolina
Utilities Commission." The expansion fund
is to be used by a Local Distribution
Company to construct natural gas facilities
in areas within the company's franchised
territory that otherwise would not be feasible
for the company to construct and the
sources of the funding will be: 1. refunds to
LDC's from the company's suppliers of
natural gas and transportation service, 2.
expansion surcharges by the LDC's charges
to customers purchasing natural gas or
transportation services, and 3. other
sources approved by the Commission.
the
(a)
Extended Expiration Date of Utility
Fuel Charge Adjustment. Chapter 129,
House Bill 407, G.S. 62-133.2 will be
repealed effective July 1, 1997. On July 1,
1983, and every two years thereafter, the
Utilities Commission shall provide a report
to the Joint Legislative Utility Review
Committee summarizing the procedures
conducted pursuant to G.S. 62-133.2 during
the preceding two years and recommending
whether this section should be continued,
repealed or amended. This act was ratified
on May 27, 1991.
(e)
House Bill 83, Chapter 689, G. S.
62-302 (b)(2) percentage rate changed to
0.09% of each public utility’s North Carolina
jurisdictional revenues earned during each
quarter. This bill was ratified on July 13,
11
(b)
On July 29,1995, the North Carolina
General Assembly ratified House Bill 941
Chapter 523 to make certain changes in
Chapter 62 to comply with the Federal
preemptive legislation. This enactment of
legislation necessitates the revision by the
Commission of certain of its Rules and
Regulations as set forth in Chapter 1.
Practice and Procedure, Chapter 2. Motor
Carriers, and Chapter 4. Filing of
Transportation Tariffs. This matter was
brought about due to the January 1, 1995,
Federal legislation which preempted the
intrastate regulation of prices, routes, and
services for the transportation of all property
except
household
goods
and
the
transportation of passengers.
1991, and made effective July 1, 1991.
affecting
the
Public Utilities Regulatory Fee Rate
Revised. Chapter 811, House Bill 945,
reduced the percentage rate to be used in
calculating the public utility regulatory fee
under G.S. 62-302(b)(2) to 0.085% of each
public utility's North Carolina jurisdictional
revenues earned during each quarter that
begins on or after July 1, 1992. This bill
was ratified on June 30, 1992, and made
effective July 1, 1992.
affecting
the
An Act to Exempt Campgrounds for
Transients and Marinas, Which Resell
Electricity From the Definition of a Public
Utility. The term "Public Utility" shall not
include electricity by campgrounds or
marinas provided that they charge no more
than the actual electricity supplied to it. The
electricity used is measured by an individual
metering device, with the rates prominently
displayed and electricity sales are for
occupants only.
This bill was ratified
and made effective on July 15, 1993.
affecting
the
(a)
Remains Same. Chapter 670, House Bill
1345 set the percentage rate for the public
utility regulatory fee at 0.10% of each public
utility’s
North
Carolina
jurisdictional
revenues.
This is the rate that was
established in 1995. This bill was ratified on
June 21, 1996.
On July 29, 1995, HB 941 was ratified
exempting mobile radio communication from
public utility definition and from Commission
jurisdiction.
(b)
Chapter 673, House Bill 1172 was
enacted to transfer the Rail Safety Section
from the Utilities Commission to the
Department of Transportation and directed
the Secretary of Transportation to study the
need for continuation of the rail safety
inspection program. This act was ratified on
June 21, 1996 and became effective July 1,
1996.
affecting
affecting
the
the
affecting
the
(a)
Senate Bill 727 was ratified on
August 26, 1997. Part III. Public Utility
Regulatory Fee sets the percentage rate to
be used in calculating the public utility
regulatory fee under G.S. 62-302(b)(2) as
nine-hundredths percent (0.09%) of each
public utility’s North Carolina jurisdictional
revenues each quarter that begins on or
after July 1, 1997.
(a)
Revised. Chapter 178, House Bill 993,
increased the percentage rate to be used in
calculating the public utility regulatory fee
under G.S. 62-302(b)(2) to 0.10% of each
public utility’s North Carolina jurisdictional
begins on or after July 1, 1995. This bill
was ratified on June 5, 1995, and made
12
General Statutes Affecting Railroads, to
Recodify Certain Railroad Statutes, and to
Make Conforming Changes and Clarifying
Changes.
Ratified August 26, 1998.
Approved September 4, 1998.
(b)
Senate Bill 38. An Act to Establish
the Study Commission on the Future of
Electric Service in North Carolina. The 23
member Study Commission on the Future of
Electric Service in North Carolina was
created. Ratified April 22, 1997.
(d)
Senate Bill 1354.
An Act to
Authorize the Issuance of General
Obligation Bonds of the State Subject to a
Vote of the Qualified Voters of the State, to
Address Statewide Critical Infrastructure
Needs By Providing Funds (1) for Grants
and Loans to Local Government Units for
Water Supply Treatment Works, and Water
Conservation and Water Reuse Projects
and (2) for Grants, Loans, or Other
Financing to Public or Private Entities for
Construction of Natural Gas Facilities.
(b)
Natural
Gas
Bonds.
$200,000,000 to provide grants, loans, or
other financing to natural gas local
distribution companies, persons seeking
natural gas distribution franchises, State or
local government agencies, or other entities
for construction of natural gas facilities.
Ratified September 3, 1998.
(c)
House Bill 990. An Act to Exempt
Certain Nonprofit and Consumer-Owned
Water or Sewer Utilities and Certain Small
Water or Sewer Utilities From Regulation by
the Utilities Commission. Ratified August
19, 1997.
(d)
House Bill 994. An Act to Allow Pay
Telephone Providers to Obtain Line Access
From Competitive Local Providers of
Telephone Service and to Eliminate the
Statutory Requirement That Line Access
Rates be Set on a Measured Rate Basis.
Ratified on June 9, 1997.
affecting
the
(a)
Senate Bill 1327.
An Act to
Preserve the Tax-Exempt Status for Piped
Natural Gas Sold by Municipalities, to Make
the Taxes on Other Sales of Piped Natural
Gas More Uniform, to Adjust the Cities’
Distribution of the Tax Proceeds Until
June 30, 2000, to Direct the Revenue Laws
Study Committee to Determine the Impact
of the Tax on the Distribution to Cities, and
to Direct the Utilities Commission to Study
the Issue of Transportation Rates. Section
15. The Utilities Commission shall study the
transportation rates charged by the local
distribution companies to transport piped
natural gas from the interstate pipeline to
the consumer. Ratified June 30, 1998.
(e)
Senate Bill 882. Section 126. G.S.
62-302(d) Unspecified Civil Penalty for
Violating Safety Standards for Gas Pipeline
Facilities. Maximum Amount of Penalty Not
to Exceed the Maximum Amount if Penalty
Had Been Imposed by Secretary of U.S.
Department of Transportation Under 49
U.S.C. Approximately § 1679 (a) Forfeiture
of $1,000 by Public Utilities for Providing
Unauthorized Services or For Failure to
Provide Services as Authorized. Ratified on
October 22, 1998. Approved October 31,
1998.
(b)
House Bill 1328. An Act to Provide
That a Franchised Natural Gas Distribution
Company That is Not Providing Service to
at Least Some Portion of Camden,
Currituck, Dare, or Tyrrell Counties by July
1, 1998, Shall Lose Its Exclusive Franchise
Rights to the County Not Being Served. This
act applies only to the above mentioned
counties and was ratified on June 16, 1998.
affecting
the
(a)
Senate DRS8542*-LL056(2.16) An
Act to Provide For Reimbursement of
Additional Expenses of the Commission of
the Future of Electric Service in North
Carolina From the Utilities Commission and
Public Staff Fund. Section 1. Section 10.1
of S.L. 1997-483 rewritten to add fiscal
years 1997-98, 1998-99, and 1999-2000.
This act became effective July 1, 1999.
(c)
House Bill 1094. An Act to Repeal
Obsolete or Preempted Provisions of the
13
(e)
House Bill 162. (Session Law 1999456) An Act to Make Technical Corrections
and Conforming Changes to the General
Statutes as Recommended by the General
Statutes Commission; and to Make Various
Other Changes to the General Statutes
and Session Laws. Section 17. G.S. 62159(a) reads as rewritten: (“a)” In order to
facilitate the construction of facilities in and
the extension of natural gas service to
unserved areas, the Commission may
provide funding through appropriations from
the General Assembly or the proceeds of
general obligation bonds as provided in this
section to enter (i) an existing natural gas
local distribution company; (ii) a person
awarded a new franchise; or (iii) a gas
district for the construction of natural gas
facilities that it otherwise would not be
economically feasible for the company,
person, or gas district to construct.”
(b)
Senate Bill 546. An Act to Authorize
the Establishment of a Telecommunications
Relay Service to Assist Deaf and Hearing
Impaired Persons, Including Those Who
Also Have Vision Impairment. Section 1.
G.S. 62-157 was amended to include those
who also have vision impairment. Ratified
July 20, 1999.
(c)
House Bill 1289. Section 1. The
percentage rate to be used in calculating
the public utility regulatory fee under G.S.
62-302(b)(2) is nine-hundredths percent
(0.09%) of each public utility’s North
Carolina jurisdictional revenues earned
during each quarter that begins on or after
July 1, 1999. Section 2. The annual fee
imposed on the North Carolina Electric
Membership Corporation under G.S. 62302(b1), S.L. 1999-180, for the 1999-2000
fiscal year is two hundred thousand dollars
($200,000). Ratified July 20, 1999.
Approved August 5, 1999.
(f)
Section 18. G.S. 62A-25(d) reads
as rewritten: “(d) In no event shall any
invoice for reimbursement be approved for
payment of costs of any CMRS provider
exceeding one hundred twenty-five percent
(125%) of the service charges remitted by
such CMRS provider unless prior approval
of such expenditures is received from the
Board. If the total amount of invoices
submitted to the Board and approved for
payment exceeds the amount in the
Wireless Fund in any month, CMRS
providers that have invoices approved for
payment shall receive a pro rata share of
the Wireless Fund, based on the relative
amount of their approved invoices available
that month, and the balance of the
payments will be carried over to the
following month or months and shall include
interest at a rate equal to the rate earned by
the Wireless Fund until all of the approved
payments are made.” Ratified July 21,
1999. Approved August 13, 1999.
(d)
House Bill 613. Part VI.----Future of
Electric Service Funding Continuation (H.B.
777-McComas; S.B. 266-Hoyle) Section
6.1. Section10.1 of S.L. 1997-483 reads as
rewritten: Notwithstanding G.S. 62-302(d),
all expenses during the 1997-98, 1998-99,
and 1999-2000 fiscal years of the Study
Commission on the Future of Electric
Service in North Carolina, established in
S.L. 1997-40, shall be reimbursed from
funds in the Utilities Commission and Public
Staff Fund. There is allocated initially one
hundred thousand dollars ($100,000) from
the Utilities Commission and Public Staff
Fund to the General Assembly for the
purpose of enabling the Study Commission
on the Future of Electric Service in North
Carolina to organize and begin its work.
Under the certification of the need for
additional funds by the co-chairs of the
Study Commission on the Future of Electric
Service in North Carolina for the works of
the Commission, the Utilities Commission
shall transfer the additional funds from the
Utilities Commission and Public Staff Fund
to the General Assembly for that purpose.
Effective June 30, 1999. Ratified July 21,
1999.
2000 - Major legislation affecting the
House Bill 1493 (Session Law 2000-161) An
Act to Provide Consumers With Control
Over Telephone Solicitation Calls to Their
Homes. Ratified July 10, 2000. Approved
August 2, 2000.
14
Telecommunications Services.
May 19, 2003.
Ratified
House Bill 232. (Session Law 2001-427)
Regulatory Fee for Utilities Commission
Section 1.(a) The percentage rate to be
used in calculating the public utility
regulatory fee under G.S. 62-62-302(b)(2) is
one-tenth percent (0.1%) for each public
utility’s
North
Carolina
jurisdictional
begins on or after July 1, 2001. Section
2.(b) The electric membership corporation
regulatory fee imposed under G.S. 62302(b1) for the 2001-2002 fiscal year is two
hundred thousand dollars ($200,000).
Section 2.(c) This section becomes effective
July 1, 2001. Ratified September 20, 2001.
(c)
Senate Bill 939. An Act to Extend
the Surcharge for the Telecommunications
Relay Service to Include Wireless
Communications. Ratified July 10, 2003;
Effective January 1, 2004.
2004 – Major legislation affecting the
(a)
Senate Bill 641. (Session Law 200214) An Act Authorizing the North Carolina
Utilities Commission to Adopt Rules to
Expand the Definition of Universal Service
to Include Statewide Internet Access and
Other Technological Telecommunications
Advances. Ratified July 8, 2002.
(a)
House Bill 1430. Section 1.4. Part 2.
Regulatory Fee for Utilities Commission
Section 2.1. The percentage rate to
regulatory fee under G.S. 62-302(b)(2) is
twelve hundredths of one percent (0.12%)
for each public utility’s North Carolina
quarter that begins on or after July 1, 2004.
Section
2.2.
The
electric
membership corporation regulation fee
imposed under G.S. 62-302(b1) for the
2004-2005 fiscal year is two hundred
thousand dollars ($200,000).
(d)
House Bill 397. Regulatory Fee for
Utilities Commission. Section 32.1(a) The
62-302(b)(2) is twelve hundredths of a
percent (0.12%) for each public utility’s
North Carolina jurisdictional revenues
earned during each quarter that begins on
or after July 1, 2003.
(b)
Senate Bill 1078. (Session Law
2002-4) an Act to Improve Air Quality in the
State by Imposing Limits on the Emission of
Certain Pollutants From Certain Facilities
That Burn Coal to Generate Electricity and
to Provide for Recovery by Electric Utilities
of the Costs of Achieving Compliance With
Those Limits. Ratified June 19, 2002.
(a)
Senate Bill 494 An Act to Encourage
Deployment of Competitive Broadband
Service by Public Utilities. Ratified June 13,
2005.
(a)
House Bill 913 (Session Law 200399) An Act Authorizing the North Carolina
Utilities Commission to Determine a Time in
Which Final Rules Concerning the
Designation of a Universal Service Provider
for Telephone Service Shall Be Adopted.
Ratified May 22, 2003.
(b)
Senate Joint Resolution 426. A
Joint
Resolution
Providing
for
the
Confirmation of the Appointment of Howard
N. Lee to the Utilities Commission. Ratified
March 24, 2005.
(b)
Senate Bill 814 (Session law 200391) An Act to Clarify the Law Regarding
Competitive and Deregulated Offerings of
(c)
House Bill 1163 An Act to Provide
That Provisions in Motor Carrier Freight
15
Transportation
Contracts
That
Hold
Harmless the Shipper for the Shipper’s
Negligence or Intentional Acts are Void.
Ratified July 5, 2005. Effective October 1,
2005.
Senate Bill 680. Session Law 2007-157.
Section 1. G.S. 62-133.5. An Act to
Streamline
Regulation
of
Telecommunications Promotions. Ratified
June 25, 2007. Approved June 29, 2007.
(d)
Senate Bill 622 An Act to Make
Base Budget Appropriations for Current
Operations
of
State
Departments,
Institutions, and Agencies, and for Other
Purposes.
Regulatory Fee for Utilities
Commission Section 40.2.(a)
The
62-302(b)(2) is twelve-hundredths of one
percent (0.12%) for each public utility’s
North Carolina jurisdictional revenues
earned during each quarter that begins on
or after July 1, 2005.
House Bill 1473. Session Law 2007-323.
Set Regulatory Fee for Utilities Commission
Section 31.13.(a) The percentage rate to
twelve one-hundredths of one percent
(0.12%) for each public utility’s North
July 1, 2007.
Section 40.2.(b) The electric membership
corporation regulatory fee imposed under
G.S. 62-302(b1) for the 2005-2006 fiscal
year is two hundred thousand dollars
($200,000).
($200,000).
Ratified July 30, 2007.
Approved July 31, 2007.
Section 40.2.(c)
This section becomes
Senate Bill 3. Session Law 2007-397. An
Act To: (1) Promote the Development of
Renewable Energy and Energy Efficiency in
the State Through Implementations of a
Renewable Energy and Energy Efficiency
Portfolio Standard (REPS), (2) Allow
Recovery of Certain Nonfuel Utility Costs
Through the Fuel Charge Adjustment
Procedure, (3) Provide for Ongoing Review
of Construction Costs and for Recovery of
Costs in Rates in a General Rate Case, (4)
Adjust the Public Utility and Electric
Membership Corporation Regulatory Fees,
(5) Provide for the Phaseout of the Tax on
the Sale of Energy to North Carolina
Farmers and Manufacturers, and (6) Allow a
Tax Credit to Contributors to 501(C)(3)
Organizations for Renewable Energy
Property.
Senate Bill 1741. Section 29.3. Set the
annual salaries, payable monthly, for the
2006-2007 fiscal year for the certain
executive branch officials including the
Chairman of the Utilities Commission and
Members of the Utilities Commission.
Section 26.1.(a) The percentage rate to be
used in calculating the public utility
twelve-hundredths of one percent (0.12%)
for each public utility’s North Carolina
($200,000). Effective July 1, 2006. Ratified
July 6, 2006. Approved July 10, 2006.
House Bill 2415. Set Regulatory Fees for
2008. Provides that the percentage rate to
16
return regulation or subject to another form
of regulation authorized under this section
and whose territory is open to competition
from competing local providers may elect to
have its rates, terms, and conditions for its
services determined pursuant to the plan
described in this subsection by filing notice
of its intent to do so with the Commission.
The election is effective immediately upon
filing. A local exchange company shall not
be permitted to make the election under this
section unless it commits to provide standalone basic residential lines to rural
customers at rates comparable to those
rates charged to urban customers for the
same service. Ratified June 22, 2009.
0.12% for each public utility’s North Carolina
Provides
that
electric
membership
corporation regulatory fee under G.S. 62302(b1) is $200,000 for fiscal 2008-2009.
Effective July 1, 2008.
Senate Bill 661, Session Law 2009-279 An
Act Authorizing Lessors Of Contiguous
Premises To Allocate The Cost For Water
And Sewer Service To Each Tenant Using
Equipment That Measures Hot Water
Usage, Requiring Landlords To Improve
The Habitability Of Dwelling Units By
Repairing Certain Unsafe Conditions,
Staying The Execution Of A Judgment For
Summary Ejectment While A Motion For
Modification Of The Undertaking Is Pending,
Establishing Fees For Administrative
Services In Residential Tenancies, And
Establishing The Circumstances Under
Which A City May Order A Dwelling To Be
Vacated And Closed. Effective October 1,
2009. Ratified July 1, 2009.
House Bill 1330, Session Law 2009-302 An
Act Prohibiting Public Utilities, Electric
Membership
Corporations,
Telephone
Membership Corporations, And Cities And
Counties That Operate Public Enterprises
From Using Certain Debt Collection
Practices That Result In A Customer Being
Liable For The Past Due And Unpaid Debts
Of Another Person. Ratified July 7, 2009.
Senate Bill 202, Session Law 2009-451—
An
Act
To
Make
Base
Budget
Appropriations For Current Operations Of
State Departments, Institutions, And
Agencies, And For Other Purposes.
Senate Bill 889, Session Law 2009-202 An
Act Further Authorizing The Utilities
Commission To Determine The Universal
Service Provider In Certain Subdivisions
And Areas. Ratified June 17, 2009.
Section 9.14.(c) The North Carolina Utilities
Commission is directed to facilitate and
expedite wind energy pilot projects
developed pursuant to this act that come
within its jurisdiction to the extent allowed by
law and consistent with State statute.
Ratified August 7, 2009.
Act Permitting Certain Broadband Service
Providers That Provide Voice Grade
Communications Services Within A Defined
Service Territory Or Franchise Area To
Offer Such Voice Grade Service As An
Incident To Broadband Service In Areas
Contiguous
To The Providers’ Service
Territory Or Franchise Area. Ratified June
2, 2009.
Section 14.26.(a) Set Regulatory Fee for
Utilities Commission. The percentage rate
to be used in calculating the public utility
twelve one-hundredths of one percent
(0.12%) for each public utility’s North
July 1, 2009. Ratified August 7, 2009.
Act Establishing The Consumer Choice And
Investment Act of 2009. Section 1. G.S.
62-133.5 is amended by adding a new
subsection to read: “(h) Notwithstanding
any other provision of this Chapter, a local
exchange company that is subject to rate of
17
($200,000). Ratified August 7, 2009.
Section 14.19.e1)
Notwithstanding any
other provision of law, beginning in the
2009-2010 fiscal year, the cash balances
remaining in the following Fund codes on
June 30 of each fiscal year that is greater
than twenty percent (20%) of the operating
budget for each Fund shall revert to the
General Fund:…(4) 54600-5211 Utilities—
Commission
Staff;
(5)
54600-5217
Utilities—Gas Pipeline Safety; (6) 546005221
Utilities—Public Staff.
Ratified
August 7, 2009.
Senate Bill 1004, Session Law 2009-390
An Act To Provide For Retention Of Fuel
And Fuel-Related Cost Savings Associated
With The Purchase Or Construction Of A
Carbon Offset Facility, To Bring Certain
Dams Used In Connection With Electric
Generating Facilities Under The Dam Safety
Act, And to Make Other Changes To Laws
Governing The Generation Of Electricity.
Act To Transfer The State Energy Office
From The Department Of Administration To
The Department Of Commerce, To Transfer
The Residential Energy Conservation
Assistance Program From the Department
Of Health And Human Services To the
Energy Office Of The Department Of
Commerce, And To Make Various Changes
To The Energy Policy Act of 1975. Section
10. The Secretary of Commerce and the
Chair of the Utilities Commission shall jointly
prepare a report examining the respective
duties and functions of the Utilities
Commission and the Energy Policy Council
and shall recommend changes to address
any
duplicative
activities
and
responsibilities.
This report shall be
submitted to the Governor no later than
January 31, 2010. Ratified on July 28,
2009.
18
FIGURE NO. 1-3
RECEIPTS AND EXPENDITURES
Fiscal Year ending June 30, 2009
Source
Commission Staff Public Staff
Fees Collected by the Commission:
Regulatory Fee
Interest
Fines and Penalties
Office of Chief Clerk:
Duplicating Services
Filing Fees
Publication Sales
Miscellaneous Revenues
Sell of Surplus Property
Reimbursement of Contractual Expenses
Federal Funds:
US Gas Safety Program
TOTAL RECEIPTS
Expenditures:
Salaries and Wages
Fringe Benefits
Legal & Consulting Fees
Contractual Services
Repairs of Building & Equipment
Service & Maintenance Contracts
Rent - Building, Offices & Equipment
Travel
Registration Fees
Telephone, Postage, Printing & Copying
Data Processing Service
Insurance
Employee Educational Expenses
Materials and Supplies
Office Furniture, Equipment
Data Processing Equipment & Software
Library Resources
Dues & Subscriptions
Other Services and Expenses
Indirect Cost/Agency Administration Fees
Intragovernmental Transfer of Fines Collecte
TOTAL EXPENDITURES
FUNDED POSITIONS
716,039
0
13,964,181
463,100
716,039
16,424
38,786
495
728
227
95,356
108
0
0
0
0
0
16,532
38,786
495
728
227
95,356
224,723
0
224,723
$1,092,778
$108
$15,520,167
$4,310,809
923,078
79,441
14,589
3,272
53,526
310,479
130,710
13,315
79,482
4,954
498
4,400
24,606
10,961
32,726
31,250
94,057
4,117
126,176
703,319
$6,016,999
1,242,377
0
102,584
489
575
259,260
36,532
19,837
59,027
3,358
515
2,484
12,299
9,454
44,439
17,613
17,450
474
141,485
0
$10,327,808
2,165,455
79,441
117,173
3,761
54,101
569,739
167,242
33,152
138,509
8,312
1,013
6,884
36,905
20,415
77,165
48,863
111,507
4,591
267,661
703,319
$6,955,765
$7,987,251
$14,943,016
64
19
Total
89
153
II. SELECTED COMMISSION ACTIVITIES
THROUGH DECEMBER 2009
A. GENERAL
B. ELECTRIC
Public Involvement
The History of Integrated Resource Planning
(IRP)
The Commission continued to make all
activities open for participation by the public
and other interested parties. The table below
shows the number of formal hearings held in
Raleigh and in the service areas of the utilities
involved; many of these hearings were held in
the evening to accommodate those who could
not attend daytime hearings.
Total Formal
Hearings Held
Number of
Hearings Held
Away From
Raleigh, in
Utility Service
Areas
Percent of Total
Hearings Held
Away From
Raleigh
Integrated resource planning is an
overall planning strategy which examines
conservation, load management, and other
demand-side measures in addition to the use of
utility-owned generating plants, non-utility
generations, and other supply-side resources in
order to determine the least cost way of
providing electric service. The primary purpose
of integrated resource planning is to integrate
both demand-side and supply-wide resource
planning into one comprehensive procedure
that weighs the costs and benefits of all
reasonably available options in order to identify
those options which are most cost-effective for
the ratepayers consistent with the obligation to
provide adequate, reliable service.
By
Commission
Order
dated
December 8, 1988, in Docket No. E-100, Sub
54, Commission Rules R8-56 through R8-61
were adopted to define the framework within
which integrated resource planning takes place.
Those rules incorporated the analysis of
probable electric load growth with the
development of a long-range plan for ensuring
the availability of adequate electric generating
capacity in North Carolina as required by G.S.
62-110.1(c).
The initial IRPs were filed with the
Commission in April 1989. In May of 1990, the
Commission issued an Order in which it found
that the initial IRPs of Progress, Duke, and NC
Power were reasonable for purposes of that
proceeding and that NCEMC should be
required to participate in all future IRP
proceedings. By an Order issued in December
1992, Rule R8-62 was added. It covers the
construction of electric transmission lines.
The
Commission
subsequently
conducted a second and third full analysis and
investigation of utility IRP matters, resulting in
the issuance of Orders Adopting Least Cost
Integrated Resource Plans on June 29, 1993,
and on February 20, 1996. A subsequent
round
of
comments
included
general
endorsement of a proposal that the two/three
year IRP filing cycle, plus annual updates and
short-term action plans, be replaced by a single
annual filing. There was also general support
Year Ended December 31
2006 2007 2008 2009
67
15
22%
71
102
52
27
40
18
38%
40%
29%
The primary reason for holding
hearings in the service areas of the utilities
involved in the hearings is to make it easier for
the local consumers and general public to
attend and to offer testimony if they so choose.
Attendance at such hearings provides a
broader knowledge of the scope and
complexities of issues which the Commission,
the Public Staff, and all other participants must
deal with.
Advance public notice is given for all
hearings of general interest and especially rate
case hearings. News releases are made of
important
Commission decisions
and
activities. All Commission weekly conferences
(Monday mornings generally) are open to the
public as a spectator or participant and events
are now posted to the Commission’s web site.
For a summary of Commission filings
and orders for 2009 see Figure No. 2-3.
21
Further orders required that IRP filings
include a discussion of the adequacy of the
respective utility’s transmission system and
information concerning levelized costs for
various conventional, demonstrated, and
emerging generation technologies.
The 2005 IRP proceeding saw a marked
increase in public interest regarding issues of
energy efficiency and conservation.
The
Commission scheduled three public hearings in
different locations throughout the state, which
were well attended.
Over 100 individuals
testified or submitted written statements for
inclusion in the record.
A Commission Order issued on October
19, 2006, in Docket No. E-100, Sub 111,
opened a rulemaking proceeding to consider
revisions to the IRP process as provided for in
Commission Rule R8-60. On May 24, 2007,
the Public Staff filed a Motion for Adoption of
Proposed
Revised
Integrated
Resource
Planning Rules setting forth a proposed Rule
R8-60 as agreed to by the various parties in
that docket. The Public Staff asserted that the
proposed rule addressed many of the concerns
about the IRP process that were raised in the
2005 IRP proceeding and balanced the interest
of the utilities, the environmental intervenors,
the industrial intervenors, and the ratepayers.
Without detailing all of the changes
recommended in its filing, the Public Staff noted
that the proposed rule expressly required the
utilities to assess on an ongoing basis both the
potential benefits of reasonably available
supply-side energy resource options, as well as
programs
to
promote
demand-side
management.
The proposed rule also
substantially increased both the level of detail
and the amount of information required from the
utilities
regarding
those
assessments.
Additionally, the proposed rule extended the
planning horizon from 10 to 15 years, so the
need for additional generation would be
identified sooner. The information required by
the proposed rule would also indicate the
projected effects of demand response and
energy efficiency programs and activities on
forecasted annual energy and peak loads for
the 15-year period. The Public Staff also noted
that the proposed rule provided for a biennial,
as opposed to annual or triennial, filing of IRP
reports with an annual update of forecasts,
revisions, and amendments to the biennial
report. The Public Staff further noted that
for a shorter planning horizon than the fifteen
years required at that time.
In April 1998, the Commission issued an
Order in which it repealed Rules R8-56 through
R8-59 and revised Rules R8-60 through R8-62.
The new rules shortened the reported planning
horizon from 15 to ten years and streamlined
the IRP review process while retaining the
requirement that each utility file an annual plan
in sufficient detail to allow the Commission to
continue to meet its statutory responsibilities
under G.S. 62-110.1(c) and G.S. 62-2(3a).
These revised rules allowed the Public
Staff or any other intervenor to file a report,
evaluation, or comments concerning any utility’s
annual report within 90 days after the utility
filing. The new rules further allowed for the
filing of reply comments 14 days after any initial
comments had been filed and required that one
or more public hearings be held. An evidentiary
hearing to address issues raised by the Public
Staff or other intervenors could be scheduled at
the discretion of the Commission.
In September 1998, the first IRP filings
were made under the revised rules. The
Commission concluded as a part of its Order
ruling on these filings that the reserve margins
forecast by Progress, Duke and NC Power
indicated a much greater reliance upon offsystem purchases and interconnections with
neighboring systems to meet unforeseen
contingencies than had been the case in the
past. The Commission stated that it would
closely monitor this issue in future IRP reviews.
In June 2000, the Commission stated in
response to the IOUs’ 1999 IRP filings that it
did not believe that it was appropriate to
mandate the use of any particular reserve
margin for any jurisdictional electric utility at that
time. The Commission concluded that it would
be more prudent to monitor the situation
closely, to allow all parties the opportunity to
address this issue in future filings with the
Commission, and to consider this matter further
in subsequent integrated resource planning
proceedings. The Commission did, however,
want the record to clearly indicate its belief that
providing adequate service is a fundamental
obligation imposed upon all jurisdictional
electric utilities, that it would be actively
monitoring the adequacy of existing electric
utility reserve margins, and that it would take
appropriate action in the event that any
reliability problems developed.
22
relationships will continue into the future, and
that historical correlations give meaningful clues
to future usage patterns. As a result, any shift
in such correlations or relationships can
introduce significant error into the forecast.
Progress, Duke, and NC Power each utilize
generally accepted forecasting procedures.
Although their respective forecasting models
are different, the econometric techniques
employed by each utility are widely used for
projecting future trends. Each of the models
requires the analysis of large amounts of data,
the selection of a broad range of demographic
and economic variables, and the use of
advanced statistical techniques.
With the inception of integrated resource
planning, North Carolina’s electric utilities have
attempted to enhance forecasting accuracy by
performing end-use forecasts.
While this
approach also relies on historical information, it
includes information relating to specific
electrical usage and consumption patterns in
addition to general economic relationships.
North Carolina utility forecasts of future
peak demand growth rates are about the same
as forecasts for the nation as a whole. The
2008-2018 Reliability Assessment by the North
Carolina Electric Reliability Corporation (NERC)
indicates that the national forecast of average
annual growth in summer peak demand for the
period is 1.7%. This number is higher than the
0.2% shown on NERC’s prior year report.
adoption of the proposed Rule R8-60 would
necessitate revisions to Rule R8-61(b) to reflect
the change in the frequency of the filing of the
IRP reports.
With the addition of certain additional
provisions
and
understandings,
the
Commission ordered that revised Rules R8-60
and R8-61(b), attached to its Order as
Appendix A, should become effective as of the
date of its Order, which was entered on July 11,
2007. However, since the utilities might not
have been able to comply with the new
requirements set out in revised Rule R8-60 in
their 2007 IRP filings, revised Rule R8-60 was
ordered to be applied for the first time to the
2008 IRP proceedings in Docket No. E-100,
Sub 118. These new rules were further refined
in Docket No. E-100, Sub 113 to address the
implementation of Senate Bill 3 requirements.
Using the new format described above,
biennial reports on the 2008 IRPs (2008
biennial reports) were filed by Progress, Duke,
NC Power, NCEMC and the four independent
EMCs, i.e., Piedmont EMC (Piedmont), Blue
Ridge EMC (Blue Ridge), Rutherford EMC
(Rutherford), and Energy United EMC (Energy
United). REPS compliance plans, which are
now required as part of the IRP process, were
filed by Progress, Duke, NC Power, GreenCo
Solutions, Inc. (GreenCo), Halifax EMC
(Halifax), and Energy United.
Based on the fact that the 2009 update
reports had been filed, revising much of the
data contained in the 2008 biennial reports, the
Commission issued an Order on October 19,
2009, consolidating the 2008 and 2009 IRP
dockets for purposes of decision and
scheduling an evidentiary hearing for March 16,
2010 to consider the 2009 IRPs and REPS
compliance plans filed by Progress, Duke, and
NC Power. More detailed information on this
hearing can be found in the Annual Report of
the North Carolina Utilities Commission
Regarding Long Range Needs for Expansion of
Electric Generation Facilities for Service in
North Carolina dated December 15, 2009,
published on the Commission’s web page.
C. CONSUMER POCKETBOOK ISSUES
1. General Rate Case Decisions 2001 – 2009
A summary of the Commission
decisions in general rate cases for the years
2001 through December 31, 2009, for the
electric, gas, and telephone groups shows that
–47.5% of the amount requested has been
granted. Broken down by industry, the amounts
granted
were
electric—decrease
of
$233,000,000; gas—38.3%; and telephone—
0.0%. See Figure No. 2-2 for yearly totals and
the progression of amounts requested and
granted during this period.
Many factors such as interest rates,
quality of service, cost of fuel, availability of gas
supplies, future demands for utility service and
utility managerial efficiency contribute to the
final decisions reached by Commissioners in
general rate case decisions. All of these factors
Load Forecasts and Peak Demand
Forecasting electric load growth into the
future is, at best, an imprecise undertaking.
Virtually all forecasting tools commonly used
today assume that certain historical trends or
23
are thoroughly investigated and evaluated by
the Public Staff and the Commission for each
rate case and then presented to the
Commission for consideration as to treatment of
the case.
Additionally, the Company and
intervenors representing various groups and
viewpoints offer expert testimony and their
counsel
engages in extensive cross
examination of all pertinent testimony presented
during the hearings. Some facts; however, lie
beyond the control of the Commission and can
account for even larger increases than the rate
cases themselves. Cost of gas to the gas
companies from the State’s only major supplier,
Trancontinental Gas Pipeline Corporation
(TRANSCO) requires an adjustment to
consumers’ gas rates, but this type of
adjustment is made through a staff conference
rather than through a general rate case. Fuel
consumed for the generation of electricity was
adjusted at intervals through regular open
conference and modified several times over the
years until the current procedure of annual
filings for rate adjustments for fuel cost was
adopted on May 1, 1984.
For both gas
companies and electric companies, the price, or
cost adjustment to the ultimate consumer is not
necessarily the result of just general rate cases.
In fact, these cost adjustments can have as
much or an even greater effect on the cost of
services to the ultimate consumer than any
other aspect of the industry.
D. REGULATORY FEES
On August 12, 1989, the General
Assembly ratified Senate Bill 1320 entitled "An
Act to Establish Regulatory Fees for Public
Utilities to Defray the Cost to the Utilities
Commission and the Public Staff of Regulating
Public Utilities in the Interest of the Public."
Senate Bill 1320 amended Article 14 of Chapter
62 of the General Statutes by adding a new
Section, G.S. 62-302, entitled "Regulatory Fee."
This act became effective on July 1, 1989, and
applies to North Carolina jurisdictional revenues
earned by public utilities on and after that date.
The percentage rate may not exceed the
amount necessary to generate funds sufficient
to defray the estimated cost of the operations of
the Commission and the Public Staff for a
period of one fiscal year. The total fee
imposed on the public utilities may not exceed
0.25%. The fee is imposed on a quarterly basis
and is due approximately 45 days after the end
of each calendar quarter. As of December 31,
2009, the total amount of regulatory fee
collected was $206,152,301.13. The fee rate
for the fiscal year 2008-2009 was .0012% and
remained the same for the fiscal year 20092010.
2. N. C. Utility Rates vs. Consumer
Price Index (CPI)
The Consumer Price Index for All
Urban Consumers (CPI-U) reflects the average
change in the retail prices of a fairly broad but
select "market basket" of consumer goods and
services. It has been the most popular index
because it is reported monthly as opposed to
the quarterly publication of the Gross National
Product Deflator, and it is not revised after its
initial publication. The CPI-U increased 1.38%
from 621.1 in 2007 to 629.7 in 2008.
Figure No. 2-1 shows the electric, gas,
and telephone utility costs compared to the
CPI-U for the years of 1987 through 1997 and
1998 to 2008.
24
FIGURE NO. 2-1
North Carolina Utility Rates vs. Consumer Price Index (CPI)
Average
Monthly
Telephone
Bill For
Local Service
(All Customers)
($)
Year
Ended
December 31
Average
Residential
Electric
Rates
Per kWh
(Cents)
Average
Residential
Gas Rates
Per
Dekatherm
($)
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
7.31
7.30
7.41
7.55
7.58
7.71
7.74
7.58
7.61
7.55
7.61
$6.54
$6.14
$6.41
$6.00
$6.08
$6.32
$6.80
$7.10
$6.77
$7.35
$8.71
$21.94
$21.06
$21.61
$22.61
$23.00
$23.83
$23.40
$23.10
$24.35
$25.81
$29.01
340.4
354.3
371.3
386.1
408.0
420.3
432.7
444.0
456.5
469.9
480.9
1987-1997
% Change
4.10%
33.18%
32.22%
41.27%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
7.62
7.61
7.61
7.74
7.77
7.88
7.98
8.13
8.42
8.72
8.79
$8.48
$8.07
$9.23
$11.86
$8.93
$10.96
$12.21
$15.09
$16.06
$15.07
$15.96
$29.76
$31.19
$32.29
$33.37
$32.50
$30.94
$33.10
$33.09
$29.59
$30.54
$34.03
488.3
496.9
515.6
530.4
538.8
551.1
565.8
585.0
603.9
621.1
629.7
2007-2008
% Change
0.80%
11.43%
1.38%
5.91%
25
Consumer
Price
Index
All Urban
Customers
FIGURE NO. 2-2
ELECTRIC, GAS, AND TELEPHONE GENERAL RATE CASE DATA
AMOUNTS REQUESTED AND GRANTED (000'S) FOR THE CALENDAR YEARS 2001-2009
Thousands
ELECTRIC
$200
$150
$100
$50
$0
($50)
($100)
($150)
($200)
($250)
($300)
2001
2002
2003
2004
2005
GAS
2006
2007
2008
2009
$65,000
$60,000
$55,000
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
4,000
2,000
0
2001
Requested
TELEPHONE
Granted
2002
2003
2004
2005
Requested
2006
2007
2008
2009
Approved
2001
2002
2003
2004
2005
2006
Requested
$ Amount $ Amount
Electric Cases
Requested Granted
% Granted
2001
0
0
0.0
2002
0
0
0.0
2003
0
0
0.0
2004
0
0
0.0
2005
0
0
0.0
2006
0
0
0.0
2007
140,239
-233,000
0.0
2008
0
0
0.0
0.0
2009
0
0
Total
140,239
-233,000
0.0
$ Amount
Gas Cases Requested
2001
0
2002
28,182
2003
46,899
2004
0
2005
36,900
2006
20,902
2007
0
2008
60,958
2009
0
Total
193,841
$ Amount
Granted
% Granted
0
0.0
13,889
49.3
21,008
44.8
0
0.0
8,522
23.1
5,968
28.6
0
0.0
24,805
40.7
0
0.0
74,192
38.3
$ Amount $ Amount
Telephone Cases Requested Granted
% Granted
2001
0
0
0.0
2002
0
0
0.0
2003
0
0
0.0
2004
0
0
0.0
2005
0
0
0.0
2006
0
0
0.0
2007
0
0
0.0
2008
0
0
0.0
0.0
2009
0
0
Total
0
0
0.0
$ Amount
Total Cases Requested
2001
0
2002
28,182
2003
46,899
2004
0
2005
36,900
2006
20,902
2007
140,239
2008
60,958
2009
0
Total
334,080
$ Amount
Granted
% Granted
0
0.0
13,889
49.3
21,008
44.8
0
0.0
8,522
23.1
5,968
28.6
-233,000
0.0
24,805
40.7
0
0.0
-158,808
-47.5
26
2007
2008
Approved
2009
FIGURE NO. 2-3
FILINGS AND ORDERS BY INDUSTRY GROUP
Calendar Year 2009
Industry
Filings
Electric
Telephone
Natural Gas
Water/Wastewater
Household Goods Movers
Payphone Service Providers
Other (Bus/Broker, Electric Merchant Plant,
EMC, Ferry, Small Power Producer, & Misc.)
Total
27
Orders
1,695
5,186
486
880
72
26
430
368
96
243
61
25
1,691
943
10,036
2,166
III. SUMMARY OF THE COMMISSION
ACTIVITIES AND OPERATIONS –
2009 And Prior Years
The number of pages transcribed by the
court reporters for the years 1990 through 2009
are as follows:
No. of Pages
Transcribed By
Commission Outside
Year
Reporters Reporters
1990
18,803
1,216
1991
22,719
2,268
1992
15,589
198
1993
18,534
0
1994
17,317
0
1995
15,578
0
1996
12,222
6,555
1997
11,998
1,275
1998
13,566
2,855
1999
12,829
1,823
2000
11,858
0
2001
7,362
4,673
2002
7,214
370
2003
7,584
548
2004
7,020
922
2005
5,525
2,151
2006
3,658
1,870
2007
3,609
2,384
2008
4,662
3,265
2009
3,494
814
The number of full-time court reporters
varies. The Commission currently has two
court reporters on its staff.
A.
OVERVIEW OF SIZE, OPERATING
RESULTS, AND NUMBER OF COMPANIES
REGULATED
At December 31, 2009, there were
2,065 companies regulated by the North
Carolina Utilities Commission. In addition, 79
municipal utility systems, while not regulated by
the Commission, were required to file annual
reports, making a grand total of 2,144 utilities
regulated or required to file annual reports as of
December 31, 2009. Many changes take place
annually in various utility groups since new
companies are being certified and others are
being deleted because of sales, mergers,
cancellations, deregulation, and abandonments.
See Figure No. 3-2.
Figure No. 3-1 shows changes from
2007 to 2008 in the major regulated electric,
gas,
and
telephone
companies’
plant
investment, total capitalization, and total
customers served or access lines in service.
B. COMMISSION CASE LOAD:
AND INFORMAL HEARINGS
FORMAL
In addition to the multiplicity of decisions
made informally by the Commission in
conferences with its staff and interested parties,
the Commission maintains a full docket of
formal
and
semiformal
hearings
and
conferences. There are many small complaints
and inquiries disposed of daily by individual
Commissioners and individual staff heads (both
Commission and Public Staff).
These
complaints are handled through discussions
with
utility
customers,
executives,
representatives,
organizations,
and
associations.
During 2009 there were 52 formal
hearings. Of the 52 formal hearings, 18 were
held out of town and 27 of these were held at
night. The proceedings required extensive time
and effort by personnel of both the Commission
and Public Staff and even more time in actual
public hearings. The Commission received
10,036 filings and issued 2,166 orders in 2009.
Commission hearings continued to
generate keen public interest in 2009. The
Attorney General represented some segments
of the public sector who wished to intervene,
while others provided their own legal counsel.
In addition, the Public Staff intervened in most
cases and made their recommendations to the
Commissioners.
Complaint Activity
Another important facet of the
Commission and Public Staff workload involves
the handling of customer complaints dealing
with all aspects of utility operations and
services. The vast majority of these complaints
are settled without becoming a docketed item
and going into formal hearing proceedings. The
Public Staff's Consumer Services Division
investigated and resolved a majority of these
29
complaints. To illustrate the magnitude of this
phase of the Utilities Commission workload, the
number of complaints received and handled in
1997 was 8,505 complaints, and this volume
increased consistently in the following years.
The Consumer Services Division received
15,654 complaints in 2009.
C. GENERAL IMPACT OF THE REGULATED
UTILITIES ON THE ECONOMY OF NORTH
CAROLINA IN 2008
In 2008, gross operating revenues
increased for gas utilities and decreased for the
electric and telephone utilities. Figure No. 3-1
depicts this growth with the four Class A
electric companies showing an increase of
0.3% in 2008 compared to 2007. The gas
companies’ gross operating revenues increased
15.6%, and the telephone companies
decreased 3.4%.
Investment in gross plant allocated to
North Carolina by the electric, gas, and
telephone utility companies continued to
increase over the previous year. There was a
7.39% increase in the 2008 total gross plant
allocated to North Carolina compared to the
previous year, making a total of over $52 billion
as of December 31, 2008 ($52,454,471,000).
The increased plant investment will serve the
electric and gas customers which numbered
4,352,177 in 2008 compared to 4,284,906 in
2007. In 2007 there were 3,530,254 telephone
access lines reported compared to 3,216,625 in
2008 which will also be served by the increased
plant investment.
30
FIGURE NO. 3-1
HIGHLIGHTS OF ACTIVITIES
ELECTRIC, GAS & TELEPHONE UTILITIES
2008 VS. 2007
(Dollars in Thousands)
HIGHLIGHTS OF ACTIVITIES
Revenues and Expenses (N.C. Only):
Operating Revenues
Operating Expenses
Net Operating Income Including Taxes
Other Income (Deductions) Net (A)
Fixed Charges
Net Income
Plant (N.C. Only):
Gross Plant (B)
Accumulated Depreciation
Net Plant
Capital Structure:
Stockholders' Equity
Long-Term Debt
Total Capitalization
Long-Term Debt % of Total Capitalization
Other Statistics (N.C. Only):
Total Customers Yearly Average
Average Number of kWhs Per Residential Customer
Average Number of Dekatherms Per Residential Cust.
Average Revenue Per Residential Customer:
Electric Residential Customer (Cents Per kWh)
Gas Residential Customer ($ Per Dekatherm)
Total Access Lines in Service
ELECTRIC - MAJOR COMPANIES
2007
2008
% Change
GAS - MAJOR COMPANIES
2007
2008
% Change
$8,623,358
7,342,228
$1,281,130
30,963
380,350
$931,743
$8,595,750
7,329,080
$1,266,670
112,686
444,304
$935,052
(0.3) $1,550,562
(0.2) 1,401,679
(1.1) $148,883
263.9
26,056
16.8
69,720
0.4
$105,219
$1,792,019
1,637,199
$154,820
27,194
68,450
$113,564
15.6
16.8
4.0
4.4
(1.8)
7.9
$32,070,130
14,616,408
$17,453,722
$35,162,319
15,858,949
$19,303,370
9.6 $3,463,151
8.5
1,052,813
10.6 $2,410,338
$3,688,199
1,142,917
$2,545,282
6.5
8.6
5.6
$5,740,543
14,454,239
$20,194,782
71.6
$18,233,554
16,888,299
$35,121,853
48.1
217.6 $1,118,324
16.8
846,277
73.9 $1,964,601
(32.8)
43.1
$1,161,853
1,240,415
$2,402,268
51.6
3.9
46.6
22.3
19.9
3,171,093
13,996
3,220,391
13,584
1,113,813
1,131,786
1.6
56
61
8.9
8.13
8.79
$15.07
$15.96
5.9
1.6
(2.9)
8.1
(A) Includes all Allowance for Funds Used During Construction (AFUDC) and all Extraordinary and Delayed Items.
(B) Includes Plant in Service, Under Construction, Held for Future Use, and Leased to Others.
N/A - Not Available
31
TELEPHONE - ALL CLASSES
2007
2008
% Change
$3,107,088
1,488,268
$1,618,820
N/A
N/A
$1,618,820
$13,379,231
9,535,017
$3,844,214
N/A
N/A
N/A
N/A
3,530,254
$3,001,162
1,449,789
$1,551,373
N/A
N/A
$1,551,373
$13,657,991
10,041,617
$3,616,374
N/A
N/A
N/A
N/A
3,216,625
(3.4)
(2.6)
(4.2)
N/COMP
N/COMP
(4.2)
2.1
5.3
(5.9)
N/COMP
N/COMP
N/COMP
N/COMP
(8.9)
FIGURE NO. 3-2
MAJOR UTILITIES REGULATED AND REPORTING TO THE
AS OF DECEMBER 31, 2009
UTILITY
QTY
BUS / BROKER
ELECTRIC
ELECTRIC COOPERATIVES
FERRIES
NATURAL GAS:
LOCAL DISTRIBUTION COMPANIES
INTRASTATE PIPELINE
HOUSING AUTHORITIES
MOTOR CARRIERS OF HOUSEHOLD GOODS
SMALL POWER PRODUCERS
TELEPHONE:
COMPETING LOCAL PROVIDERS
INCUMBENT LOCAL PROVIDERS
LONG DISTANCE CARRIERS
PAYPHONE SERVICE PROVIDERS
SHARED TENANT SERVICES
WATER / WASTEWATER
MISCELLANEOUS
TOTAL
21
5
32
15
4
1
8
265
163
191
16
374
129
20
815
6
2,065
32
Figure No. 3-3
Gross Plant Allocated to Serve North Carolina Customers
Electric--Gas--Telephone (2003-2008)
37,000,000
36,000,000
35,000,000
34,000,000
33,000,000
32,000,000
31,000,000
30,000,000
29,000,000
28,000,000
27,000,000
26,000,000
25,000,000
24,000,000
23,000,000
22,000,000
21,000,000
20,000,000
19,000,000
18,000,000
17,000,000
16,000,000
15,000,000
14,000,000
13,000,000
12,000,000
11,000,000
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Electric
2003
Gas
2004
2005
33
Telephone
2006
2007
2008
IV. THE ELECTRIC POWER INDUSTRY
North Carolina Electric IOU Service Area Map
35
Johnston
6 Lee
Stanly
Gaston
Mecklenburg
Montgomery
Wayne
17
Greene
Union
Lenoir
Hyde
Cumberland
Sampson
Duplin
Jones
Onslow
Scotland
14
Robeson
TEMA Board District Map
6 Central EMC
11 Halifax EMC
14 Lumbee River EMC
15 Pee Dee EMC
16 Piedmont EMC
18 Randolph EMC
21 South River EMC
24 Tri-County EMC
26 Wake EMC
—Southside EC (Crewe, Va.)
5
New
Hanover
3 Brunswick
2 Blue Ridge EMC
8 EnergyUnited
10 French Broad EMC
12 Haywood EMC
20 Rutherford EMC
22 Surry-Yadkin EMC
25 Union Power
Carteret
Pender
Columbus
District II
13
9
Bladen
District I
4
Craven
Pamlico
21
Hoke
Anson 15
36
Dare
23
Harnett
Moore
Richmond
Beaufort
Pitt
24
25
ck
Tra
Cleveland
s
Polk
ania
nsylv
Tyrrell
Wilson
Wake
Chatham
Rowan
Cabarrus
Martin
Washington
Randolph
tu
Rutherford
7
Edgecombe
rri
Nash
an
Catawba
Bertie
k
8
Durham
Alamance
Davidson
1
uim
ll
Clay
Davie
18
Jackson
Macon
Mcdowell
Burke
20
Alexander Iredell
26
Lincoln
Henderson
Graham
Cherokee
Buncombe
Haywood
12
Caldwell
Hertford
Halifax
Franklin
en
an
che
Swain
Yancey
Orange
Guilford
an
ow
Forsyth
md
19
ot
16
Yadkin
Mit
Madison 10
Vance
Ca
Gates
qu
Wilkes
Northampton
Warren
11
Granville
Ch
2
Person
22
Watauga
Avery
Caswell
rq
Pe
Ashe
Rockingham
Stokes
s
Pa
Surry
Cu
Alleghany
District III
1 Albemarle EMC
3 Brunswick EMC
4 Cape Hatteras EC
5 Carteret-Craven EC
7 Edgecombe-Martin County EMC
9 Four County EMC
13 Jones-Onslow EMC
17 Pitt & Greene EMC
19 Roanoke EC
23 Tideland EMC
77
North Carolina Membership
Boone-New River
UNC-Greensboro
High Point
Granite Falls
Morganton
Lexington
Statesville
Drexel
Newton
40
Waynesville
Asheville
26
Cullowhee
Western Carolina
Maiden
Landis
Lincolnton Cornelius
Concord
Bostic Shelby
Cherryville Huntersville
Forest City
Dallas
Charlotte
Kings Mountain
Gastonia
Murphy
85
95
85
Albemarle
Pineville
Monroe
Hertford
Scotland Neck
Hobgood
40 85
Edenton
Wake Forest
Tarboro
Windsor
UNC-CH
Hamilton
Rocky Mount
Pinetops
Sharpsburg
Macclesfield Robersonville
Raleigh
Lucama
Wilson Fountain
Belhaven
Clayton
Apex
Farmville
Black
Stantonsburg
Washington
Creek
Greenville
Selma Walstonburg
ECU
Winterville
Smithfield Fremont
Ayden
Pikeville
Hookerton
Benson
La Grange
Kinston
New Bern
Fayetteville
Louisburg
Enfield
Laurinburg
Red Springs
Out-of-state Associate Members
VIRGINIA Bedford • Danville • Martinsville • Richlands
SOUTH CAROLINA Abbeville • Bamberg • Bennettsville
Camden • Clinton • Easley • Gaffney • Greer • Laurens
Newberry • Rock Hill • Union • Westminster
NCMPA1 Participants
95
Lumberton
NCEMPA Participants
40
Non-Power Agency Members
Major North Carolina Cities
LAST UPDATE 4/12/04 • LIH
37
Elizabeth City State Univ.
Elizabeth City
Wilmington
Southport
FIGURE NO. 4-3
SMALL ELECTRIC COMPANIES
At December 31, 2009
MAJOR ELECTRIC COMPANIES
At December 31, 2009
(Fully Regulated)
COMPANY
COUNTY SERVED***
New River Power & Light
Watauga County
Western Carolina University
Jackson County
***Entire County is not served by the
companies listed.
CAROLINA POWER & LIGHT COMPANY
DBA
PROGRESS ENERGY CAROLINAS
411 Fayetteville Street
RALEIGH, NORTH CAROLINA 27601-1748
(919) 546-6111
Organized: April 6, 1926
States Served: North Carolina and
South Carolina
MUNICIPAL ELECTRIC SYSTEMS
AND SOURCE OF POWER*
(Not Regulated)
MUNICIPALITY
Albemarle
Apex
Ayden
Belhaven
Benson
Black Creek
Bostic
Cherryville
Clayton
Concord
Cornelius
Dallas
Drexel
Edenton
Elizabeth City
Enfield
Farmville
Fayetteville
Forest City
Fountain
Fremont
Gastonia
Granite Falls
Greenville
Hamilton
Hertford
High Point
Highlands
Hobgood
Hookerton
Huntersville
Kings Mountain
Kinston
DUKE ENERGY CORPORATION DBA
DUKE ENERGY CAROLINAS, LLC
422 South Church Street
CHARLOTTE, NORTH CAROLINA 28201
(704) 594-0887
Organized: May 1917
States Served: North Carolina and
South Carolina
NANTAHALA POWER AND LIGHT
COMPANY
WHOLLY OWNED SUBSIDIARY OF
DUKE POWER COMPANY**
301 NP&L Loop
FRANKLIN, NORTH CAROLINA 28734
(828)369-4544
Organized: July 23, 1929
Acquired by Duke Power Company:
November 17, 1988
State Served: North Carolina
**Merged into Duke Power August 3, 1998
VIRGINIA ELECTRIC AND POWER
COMPANY DBA
DOMINION NORTH CAROLINA POWER
One James River Plaza
RICHMOND, VIRGINIA 23219
(804) 775-5813
Organized: June 29, 1909
States Served: North Carolina and Virginia
38
SOURCE OF POWER
NCMPA No. 1
NCEMPA
NCEMPA
NCEMPA
NCEMPA
City of Wilson
NCMPA No. 1
NCMPA No. 1
NCEMPA
Duke Energy
NCMPA No. 1
Duke Energy
NCMPA No. 1
NCEMPA
NCEMPA
NC Power
NCEMPA
CP&L
Duke Energy
Town of Farmville
NCEMPA
NCMPA No. 1
NCMPA No. 1
NCEMPA
NCEMPA
NCEMPA
NCMPA No. 1
Duke Energy
NCEMPA
NCEMPA
NCMPA No. 1
Duke Energy
NCEMPA
FIGURE NO. 4-3 CONTINUED
MUNICIPALITY
SOURCE OF POWER*
LaGrange
Landis
Laurinburg
Lexington
Lincolnton
Louisburg
Lucama
Lumberton
MacClesfield
Maiden
Monroe
Morganton
Murphy
New Bern
Newton
Oak City
Pikeville
Pinetops
Pineville
Red Springs
Robersonville
Rocky Mount
Scotland Neck
Selma
Sharpsburg
Shelby
Smithfield
Southport
Stantonsburg
Statesville
Tarboro
Wake Forest
Walstonburg
Washington
Waynesville
Wilson
Windsor
Winterville
NCEMPA
NCMPA No. 1
NCEMPA
NCMPA No. 1
NCMPA No. 1
NCEMPA
City of Wilson
NCEMPA
City of Wilson
NCMPA No. 1
NCMPA No. 1
NCMPA No. 1
TVA
NCEMPA
NCMPA No. 1
Edgecombe-Martin EMC
NCEMPA
City of Wilson
NCMPA No. 1
NCEMPA
NCEMPA
NCEMPA
NCEMPA
NCEMPA
City of Rocky Mount
NCMPA No. 1
NCEMPA
NCEMPA
City of Wilson
NCMPA No. 1
NCEMPA
NCEMPA
City of Wilson
NCEMPA
CP&L
NCEMPA
NC Power
Greenville Utilities
Total: 71
*NCMPA No. 1 = North Carolina Municipal
Power Agency Number 1
NCEMPA = North Carolina Eastern Municipal
Power Agency
39
FIGURE NO. 4-4
N. C. ELECTRIC MEMBERSHIP CORPORATION
AND SOURCE OF POWER
December 31, 2009
(Regulated as to Quality of Service Only)
ELECTRIC MEMBERSHIP CORPORATION
HEADQUARTERS
SOURCE OF POWER*
Albemarle
Blue Ridge
Brunswick
Cape Hatteras
Carteret-Craven
Central
Edgecombe-Martin County
EnergyUnited
Four County
French Broad
Halifax
Haywood
Jones-Onslow
Lumbee River
Pee Dee
Piedmont
Pitt & Greene
Randolph
Roanoke
Rutherford
South River
Surry-Yadkin
Tideland
Tri-County
Union
Wake
Hertford
Lenoir
Shallotte
Buxton
Morehead City
Sanford
Tarboro
Statesville
Burgaw
Marshall
Enfield
Waynesville
Jacksonville
Red Springs
Wadesboro
Hillsborough
Farmville
Asheboro
Rich Square
Forest City
Dunn
Dobson
Pantego
Dudley
Monroe
Wake Forest
NCEMC, SEPA
NCEMC, SEPA, IM
NCEMC, SEPA
NCEMC
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA, IM
NCEMC, SEPA
CP&L, SEPA
NCEMC, SEPA
NCEMC, SEPA, IM
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA, IM
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA, IM
NCEMC, SEPA
NCEMC
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA
NCEMC, SEPA
* NCEMC - North Carolina Electric Membership Corporation
SEPA - Southeastern Power Administration
IM – Independent Members of NCEMC**
** These EMCs independently purchase capacity and energy requirements, as needed, above
those provided by NCEMC and SEPA.
40
FOREIGN ELECTRIC MEMBERSHIP CORPORATIONS OPERATING IN N.C.
December 31, 2009
ELECTRIC MEMBERSHIP CORPORATION
HEADQUARTERS SOURCE OF POWER
Blue Ridge Mountain
Serves Cherokee and Clay Counties
Young Harris, GA.
TVA
Broad River Electric Cooperative, Inc.
Serves Cleveland County
Gaffney, S.C.
Saluda Electric
Corporation
Mecklenburg Electric Cooperative, Inc.
Serves Granville and Warren Counties
Chase City, VA.
SEPA, Old
Dominion
Tri-State
Serves Cherokee County
McCaysville, GA
TVA
Mountain Electric Cooperative, Inc.
Serves Avery, Burke, and Watauga Counties
Mountain City, TN
TVA
41
with Cinergy and the entity serving North and
South Carolina was renamed Duke Energy
Carolinas, LLC. In 2008 Duke’s service area
covered approximately 20,000 square miles
with an estimated population of about 4.8
million. Duke provided electricity to 1,827,491
North Carolina customers in 2008 and served
approximately
two
million
customers
systemwide. Duke owns three nuclear
generating plants (7 units), eight coal-fired
plants (30 units), and two pumped storage
hydroelectric plants (8 units) and combustion
turbine generation at eight plants (51 units) and
multiple conventional hydro facilities.
The
headquarters for Duke is in Charlotte, North
Carolina.
Virginia Electric and Power Company
(Vepco) is the principal subsidiary of Dominion
Resources, Inc., a publicly traded holding
company formed in 1983. Vepco provides
service to northeastern North Carolina, where it
serves 20 counties as Dominion North Carolina
Power. Vepco's service territory includes the
urban corridor stretching from the suburbs of
Washington, D.C., through Richmond to the
Hampton Roads and Norfolk area of Virginia to
North Carolina. NC Power provided electricity
to 118,288 North Carolina customers in 2008.
Vepco provides electricity to more than 2.3
million customers systemwide within a 30,000
square mile area. Vepco generates electricity
with two nuclear plants (4 units), eleven coalfired plants (23 units), two oil-fired plants (2
units), combustion turbines at ten plants (45
units); combustion turbines at eleven plants (50
units); combined cycle at five plants (7 units),
three conventional hydroelectric plants (13
units), one pumped storage hydroelectric plant
(6 units), and one wood burning plant.
Dominion Resources, Inc. is headquartered in
Richmond, Virginia.
The Commission does not regulate the
retail rates of municipally-owned electric
systems or electric membership corporations;
however, the Commission does have
jurisdiction over the licensing of all new electric
generating plants and large scale transmission
facilities built in North Carolina. Commission
Rule R8-60(b) specifies that the Integrated
Resource Planning (IRP) process is applicable
A. GENERAL COMMENTS
There are three regulated investorowned electric utilities (IOUs) operating under
the laws of the State of North Carolina and
subject to the jurisdiction of the Commission.
All three of the IOUs own generating facilities.
They are Carolina Power & Light Company,
doing business as Progress Energy Carolinas,
Inc. (Progress); Duke Energy Carolinas, LLC
(Duke); and Virginia Electric and Power
Company (VEPCO) which does business in
North Carolina under the name Dominion North
Carolina Power (NC Power).
Carolina Power & Light Company dba
Progress Energy Carolinas (Progress), an
investor-owned utility, operates nineteen coalfired units at eight plants, four nuclear units at
three plants, forty-one combustion turbine
generators
at
eleven
plants,
fifteen
hydroelectric units at four plants, and nine
combined cycle units at two locations. In 2008
Progress provided electricity to 1,274,612 North
Carolina customers. The service area of
Progress encompasses an area of 30,000
square miles with a population of more than
3.75 million including the Coastal Plains Section
of North Carolina, a section in western North
Carolina, and one-fourth of eastern South
Carolina.
The North and South Carolina
Commissions govern retail electric rates and
the Federal Energy Regulatory Commission
governs wholesale electric rates. Progress
Energy Carolinas is headquartered in Raleigh,
North Carolina.
Duke and Progress, the two largest
electric IOUs in North Carolina, together supply
about 96% of the utility-generated electricity
consumed in the state. Approximately 17% of
the IOUs’ total electric sales in North Carolina
were to the wholesale market, consisting
primarily of electric membership corporations
and municipally-owned electric systems.
Duke Energy Carolinas, LLC (Duke) is
one of the nation’s largest investor-owned
electric utilities in terms of kilowatt-hour sales.
Duke Power Company merged with PanEnergy
Corporation, headquartered in Houston, Texas,
effective April 22, 1997, to become Duke
Energy Corporation. In 2006, Duke merged
42
that those sources meet 12.5% of their needs in
2021. EMCs and municipal electric suppliers
are subject to a 10% REPS requirement. The
requirements under the law phase in over time.
In 2010, electric power suppliers must assure
that 0.02% of their retail electric sales in North
Carolina come from solar energy resources.
Additional requirements are effective in 2012
and subsequent years.
Since October 1, 2008, the Commission
has received more than 140 certificate of public
convenience and necessity applications or
reports of proposed construction.
As of
September 30, 2009, the Commission has
accepted registration statements filed by 72
facilities, totaling more than 220 MW of
renewable electric generating capacity in North
Carolina.
October 1, 2009, the Commission
submitted its second annual report to the
Governor,
the
Environmental
Review
Commission, and the Joint Legislative Utility
Review Committee regarding Commission
implementation of, and electric power supplier
compliance with, the REPS. In addition, on
October 1, 2009, the Commission filed its first
report to the same entities regarding cost
allocations as required by Senate Bill 3. That
report discusses allocations of utility costs for
renewable
energy,
demand-side
management/energy efficiency, and fuel and
fuel related charges. Both reports are available
on the Commission’s web site, www.ncuc.net.
Senate Bill 3 required the Commission
to monitor compliance with REPS and to
develop procedures for tracking and accounting
for renewable energy certificates (RECs). In
2008 the Commission opened Docket No. E100, Sub 121 and established a stakeholder
process to propose requirements for a North
Carolina Renewable Energy Tracking System
(NC-RETS).
On October 19, 2009, the
Commission issued a request for proposals via
which it seeks a vendor that would design,
build, and operate the tracking system.
Proposals were due to the Commission on
December 15, 2009. The Commission’s project
schedule would have NC-RETS operational by
July 1, 2010, consistent with requirements of
Session Law 2009-475.
to the North Carolina Electric Membership
Corporation (NCEMC), and any individual
electric membership corporation (EMC) to the
extent that it is responsible for procurement of
any or all of its individual power supply
resources.
EMCs are independent, non-profit
corporations. There are 31 EMCs serving
995,000 customers in North Carolina, including
26 that are headquartered in the state. The
other five are headquartered in adjacent states.
These EMCs serve customers in 96 of the
state’s 100 counties. Twenty-five of the EMCs
are members of NCEMC, an umbrella service
organization. NCEMC is a generation and
transmission services cooperative that provides
wholesale power and other services to its 25
members.
Six EMCs operating in the state are not
members of NCEMC. As noted above, five are
incorporated in contiguous states and provide
service in limited areas across the border into
North Carolina. The sixth is French Broad
EMC, which has agreed to provide appropriate
information to NCEMC for inclusion in
NCEMC’s IRP filings.
The two remaining electric utilities
subject to the Commission’s jurisdiction are
very small distribution companies wholly
located in North Carolina. Both are universityowned: New River Light and Power, located in
Boone, and Western Carolina University,
located in Cullowhee. New River Light is an allrequirements customer of Blue Ridge Electric
Membership Corporation, and Western Carolina
University is an all-requirements customer of
Duke.
B.
RENEWAL ENERGY AND ENERGY
EFFICIENCY
Renewable Energy and Energy Efficiency
Portfolio Standard
On August 20, 2007, with the signing of
Session Law 2007-397 (Senate Bill 3), North
Carolina became the first state in the Southeast
to adopt a Renewable Energy and Energy
Efficiency Portfolio Standard (REPS). Under
this law, investor-owned electric utilities are
required to increase their use of renewable
energy resources and/or energy efficiency such
43
block of 100 kilowatt-hours of green energy to
North Carolina’s power supply.
NC
GreenPower pays a premium to a generator for
renewable power supplied to the electric grid in
North Carolina, rather than from traditional
sources. Large-volume users may contribute
towards 100 or more blocks per month at a rate
of $2.50 per block with a different energy mix.
Carbon Offset product: A $4 monthly
contribution will mitigate 500 pounds of carbon
dioxide
or
carbon
dioxide
equivalent
(greenhouse gas emissions). NC GreenPower
pays a premium to a project owner or the
market for the mitigation of 500 pounds of
carbon dioxide or carbon dioxide equivalent.
Brokered Bid product: The Brokered
Bids option provides customers interested in
annually spending $15,000 or more on
Renewable Energy Credits or Carbon Offsets
with a more competitive North Carolina option.
NC GreenPower accepts bids for Renewable
Energy Credits on a continual basis. When
available, NC GreenPower offers them to
customers meeting the minimum spending
requirement.
NC GreenPower accepts renewable
energy bids on a continual basis. Generators
complete an application with pertinent project
information, a bid amount, and a date through
which the bid is available. These bids create a
portfolio of available renewable energy projects.
NC GreenPower recently finished a Carbon
Offset bid process and is currently negotiating
with a project owner to fulfill the Carbon Offset
demand. There is also an open, rolling bid
process for Carbon Offset producers.
As of November 2009, NC GreenPower
has contracts with the following green power
generators: 230 solar photovoltaic (PV), two
small hydroelectric, seven wind, two landfill
methane, and one wood waste.
As of
September 30, 2009, 12,775 North Carolina
electric consumers were subscribed to 24,888
100-kWh blocks of power per month –
representing 29,865,432 kWh of renewable
energy to be delivered to the electric grid in
North Carolina this year, which is enough to
power about 2,500 homes.
More than 45 utilities across North
Carolina assist NC GreenPower by providing
billing and collection of donations through
Energy Efficiency
Electric power suppliers in North
Carolina are required to implement DSM and
EE measures and use supply-side resources to
establish the least cost mix of demand
reduction and generation measures that meet
the electricity needs of their customers. Energy
reductions through the implementation of DSM
and EE measures may also be used by the
electric power suppliers to comply with REPS.
Both Duke and Progress have filed for the
approval of a number of energy efficiency
measures and cost recovery. EnergyUnited in
2009 also filed for and received approval of two
energy efficiency programs.
On September 1, 2009, the Commission
filed its first biennial report to the Governor and
the Joint Legislative Utility Review Committee
regarding proceedings for electric utilities
involving EE and DSM cost recovery and
incentives.
That
report
provides
a
comprehensive review of the Commission’s
activities regarding EE and DSM and is
available on the Commission’s web site.
NC GreenPower
NC GreenPower is an independent,
nonprofit organization and the first, statewide
multi-utility renewable energy program in the
nation. Established in 2003, this landmark
program launched an opportunity for North
Carolinians to voluntarily support the growth of
green power in North Carolina. As of 2008, NC
GreenPower also offered Carbon Offsets to
address growing concerns about the impact of
greenhouse gases on the environment.
NC GreenPower is a statewide program
designed to improve the quality of the
environment by encouraging the development
of renewable energy resources through
consumers’ voluntary funding of green power
purchases by electric utilities in North Carolina
and the mitigation of greenhouse gas emissions
through consumers’ voluntary funding of
Carbon Offsets. The program revenues help
provide financial incentives for generators of
electricity from renewable sources and for
developers of projects mitigating greenhouse
gas emissions.
Renewable Energy product: A typical
contribution of just $4 per month adds one
44
solutions to address not only reliability, but also
to increase access to alternative resource
supply options for load-serving entities, such as
municipal utilities.
The NCTPC’s most recent official report,
dated January 2009, states that 16 major
transmission projects are needed in North
Carolina by the end of 2018 at an estimated
cost of $520 million. However, in August 2009,
Duke and Progress submitted revised load
growth forecasts to the planning collaborative.
Due to the economic downturn, several of the
16 transmission projects are being pushed back
in time, but all will still be needed by June 2019.
Pursuant to G.S. 62-101, a certificate of
environmental
compatibility
and
public
convenience and necessity from the Utilities
Commission is needed before building a
transmission line of more than 161 kilovolts. No
such requests are currently pending before the
Commission.
In addition to their work within the
NCTPC, Duke and Progress are part of an
inter-regional transmission planning initiative
called the Southeast Interregional Participation
Process. This effort allows a transmission
customer, such as a municipal utility, to request
a study of the transmission that would be
required to be built to facilitate a hypothetical
request to transport electric power across
multiple regional planning areas.
Other
participating utilities include Alabama Electric
Cooperative, Santee Cooper, Dalton Utilities,
SCE&G, South Mississippi Electric Power
Association, Entergy, Georgia Transmission
Corporation,
the
Southern
Companies,
Municipal Electric Authority of Georgia, TVA,
and E. ON U.S.
Finally 2009 saw increased focus on
electric transmission planning on an even larger
scale, at the “interconnection wide” level. The
United
States
has
three
electric
interconnections. North Carolina is part of the
eastern interconnection, which is the region
east of the Rocky Mountains, minus Texas.
Largely due to increased interest in renewable
energy development, the federal government
launched an effort to develop coordinated, longterm transmission expansion plans on an
interconnection-wide basis. This effort received
funding in 2009 via the American Recovery and
consumers’ utility bills. Duke, Progress, and
NC Power also facilitate carbon offset
donations via direct billing.
STATE TRANSMISSION AND
INTERCONNECTION ISSUES
On April 2, 2004, the Commission
hosted the first of several transmission
stakeholder
meetings
to
facilitate
a
collaborative effort to identify any problems that
North Carolina consumers of transmission
service face and to allow North Carolina
stakeholders to implement potential solutions to
those specific problems without the risk of
federal intervention. These meetings led to the
establishment
of
the
North
Carolina
Transmission Planning Collaborative (NCTPC),
which issued its first report in January of 2007.
In that report, Participants (transmission-owning
utilities, such as Duke and Progress, and
transmission-dependent utilities, such as
municipal electric systems and EMCs) identified
transmission projects necessary for reliability
and the estimated costs for the upgrades that
would be required to support various options for
economic transfers of power and to assure
reliable grid operations.
The Participants
believe this collaborative effort has provided
valuable information about projected loads and
resources used in transmission planning. The
Participants further believe that the joint
planning effort has produced benefits that
would not otherwise have been realized,
including: (1) insight into the neighboring
system’s modeling approaches, including
resource assumptions, contingencies evaluated
and system dispatch assumptions; (2) higher
confidence in and understanding of data
provided by all participants, including more
detailed and timely sharing of information; (3)
improved understanding of the neighboring
transmission system, including its strengths and
weaknesses and the relationship between the
two transmission systems; (4) shared technical
and planning expertise that resulted in
improved modeling, more comprehensive
evaluation of the impact of generation and
transmission contingencies, and consideration
of more extensive sets of solutions; and (5) a
more comprehensive approach to developing
45
provided, however, that the Commission shall
adopt, if appropriate, federal interconnection
standards.”
On June 9, 2008, the Commission
issued an Order revising North Carolina’s
Interconnection Standard. The Commission
used the federal standard as the starting point
for all state-jurisdictional interconnections
(regardless of the size of the generator) and
made modifications to retain and improve upon
the policy decisions made in 2005.
The
Commission’s Order required regulated utilities
to update any affected rate schedules, tariffs,
riders, and service regulations to conform with
the revised standard.
On July 9, 2008, Duke filed a motion for
reconsideration regarding whether an external
disconnect switch should be required for
certified inverter-based generators up to 10 kW.
On December 16, 2008, the Commission
issued an Order in which it granted Duke’s
motion for reconsideration and gave electric
utilities the discretion to require external
disconnect switches for all interconnecting
generators. However, if a utility requires such a
switch for a certified, inverter-based generator
under 10 kW, the utility shall reimburse the
generator for all costs related to that
installation.
Reinvestment Act of 2009 (ARRA 2009).
Pursuant to ARRA 2009, the U.S. Department
of Energy (DOE) offered grants for transmission
planning, including funds for “Cooperation
Among States on Electric Resource Planning
and Priorities.” DOE sought proposals from
organizations that would facilitate dialogue and
collaboration among the states to enable them
to develop consistent and coordinated input and
guidance for transmission planning.
The
National Association of Regulatory Utility
Commissioners (NARUC), of which the North
Carolina Utilities Commission is a member,
worked with all of the states in the eastern
interconnection to develop and submit a DOE
funding request. Under the NARUC proposal, a
new entity would be established, the Eastern
Interconnection States Planning Council. Each
of the 39 states in the eastern interconnection,
as well as Washington, D.C. and the City of
New Orleans, would be represented in this
“unprecedented collaborative.” North Carolina
would be represented by the Chairman of the
Utilities
Commission
and
the
Deputy
Commissioner of Energy (Department of
Commerce).
NARUC’s grant request is
currently pending, but is expected to be
awarded by the end of 2009. Funds would be
used for a small staff and meetings and
research that would assist the states in
reaching consensus regarding future sources of
electric energy, and by extension, the new
electric transmission infrastructure needed to
move that energy to consumers.
Net Metering
“Net metering” refers to a billing
arrangement whereby a customer that owns
and operates an electric generating facility is
billed according to the difference over a billing
period between the amount of energy the
customer consumes and the amount of energy
it generates. In Senate Bill 3, codified at G.S.
62-133.8(i)(6), the General Assembly required
the Commission to consider whether it is in the
public interest to adopt rules for electric public
utilities for net metering of renewable energy
facilities with a generation capacity of one
megawatt or less. In its previous Orders, the
Commission has required utilities to offer net
metering to a customer that owns and operates
a solar photovoltaic (PV), wind-powered, mircohydro, or biomass-fueled electric generating
facility with a capacity of up to 20 kW for a
residential customer-generator and 100 kW for
a non-residential customer-generator.
The
State Generator Interconnection Standards
On June 4, 2004, in Docket No. E-100,
Sub 101, Progress, Duke, and NC Power jointly
filed a proposed model small generator
interconnection standard, application, and
agreement to be applicable in North Carolina.
In 2005, the Commission approved small
generator interconnection standards for North
Carolina.
In Session Law 2007-397, the General
Assembly, among other things, directed the
Commission to “[e]stablish standards for
interconnection of renewable energy facilities
and other nonutility-owned generation with a
generation capacity of 10 megawatts or less to
an electric public utility’s distribution system;
46
bill period shall be carried forward to the
following monthly billing period, but shall be
granted to the utility at no charge and the credit
balance reset to zero at the beginning of each
summer billing season. If the customer elects
to take retail electric service pursuant to any
TOU rate schedule, excess on-peak generation
shall first be applied to offset on-peak
consumption and excess off-peak generating to
offset off-peak consumption; any remaining onpeak generating shall then be applied against
any remaining off-peak consumption. If the
customer chooses to take retail electric service
pursuant to a TOU-demand rate schedule, it
shall retain ownership of all RECs associated
with its electric generation. If the customer
chooses to take retail electric service pursuant
to any other rate schedule, RECs associated
with all electric generation by the facility shall
be assigned to the utility as part of the net
metering arrangement.
Commission’s Orders specified that net
metering customers must be on a time-of-use
(TOU) demand rate schedule and that the
kilowatt-hour credit, if any, shall be reset to zero
at the beginning of each summer billing season.
Any RECs associated with this excess
generation shall also be granted to the utility
when the excess generation credit balance is
zeroed out.
On June 9, 2008, the Commission
issued an Order establishing a procedural
schedule to reconsider all aspects of its existing
net metering policy, including whether solar PV,
wind-powered, micro-hydro, or biomass-fueled
electric generating facilities up to one megawatt
or some smaller size should be allowed to net
meter; whether to allow additional types of
generating facilities to net meter; and whether
to otherwise change the terms and conditions
under which generating facilities currently are
allowed to net meter.
After receiving testimony from public
witnesses in Raleigh and Charlotte and from
expert witnesses for the parties, the
Commission issued an Order on March 31,
2009, amending its net metering policy. In its
Order, the Commission concluded that Duke,
NC Power, and Progress should file revised
riders or tariffs that allow net metering for any
customer that owns and operates a renewable
energy facility that generates electricity with a
capacity of up to one megawatt. The customer
shall be required to interconnect pursuant to the
approved generator interconnection standard,
which includes provisions regarding the study
and implementation of any improvements to the
utility’s
electric
system
required
to
accommodate the customer’s generation, and
to operate in parallel with the utility’s electric
distribution system. The customer may elect to
take retail electric service pursuant to any rate
schedule available to other customers in the
same rate class and may not be assessed any
standby, capacity, metering, or other fees other
than those approved for all customers on the
same rate schedule. Standby charges shall be
waived, however, for any net-metered
residential customer with electric generating
capacity up to 20 kW and any net-metered nonresidential customer up to 100 kW. Credit for
excess electricity generated during a monthly
FEDERAL ENERGY INITIATIVES
Vertically integrated electric utilities,
such as Duke and Progress produce their own
power at central generation facilities, transmit
that power over long distances at high voltage
from the generation facilities to load centers,
and finally distribute the power over lower
voltage lines for use by retail customers. Such
customers are referred to as “bundled,” since all
aspects of their delivered electrical service are
provided by a single energy supplier. Over the
past two decades, however, the federal
government has pursued a policy of
introducing, and subsequently encouraging,
competition in wholesale power markets. This
has led to attempts at the federal level to
remove an perceived barriers to competition,
including measures affecting the operation of
the high-voltage transmission system by
vertically integrated utilities who allegedly have
an incentive to stifle competition by
discriminating in favor of their own generation
resources.
Open Access Transmission Tariff
In April 1996, the FERC issued Order
Nos. 888 and 889, which established rules
governing open access to electric transmission
47
systems by wholesale customers and required
the construction and use of an Open Access
Same-time Information System (OASIS). In
Order No. 888, the FERC also required utilities
to file standard, non-discriminatory open access
transmission tariffs (OATTs) under which
service is provided to wholesale customers
such as electric cooperatives and municipal
electric providers. As part of this decision, the
FERC asserted federal jurisdiction over the
rates, terms, and conditions of the transmission
service provided to retail customers receiving
unbundled
service
while
leaving
the
transmission component of bundled retail
service subject to state control. The FERC rule
also permitted recovery of legitimate, prudent,
and verifiable stranded costs associated with
certain existing wholesale service contracts. In
New York v. FERC, 535 U.S. 1 (2002), the
Supreme Court of the United States upheld the
FERC’s decisions in Order No. 888. In Order
No. 889, the FERC required utilities to separate
their transmission and wholesale power
marketing functions and to obtain information
about their own transmission system for their
own wholesale transactions through the use of
an OASIS system on the Internet, just like their
competitors. The purpose of this rule was to
ensure that transmission owners do not have
an unfair advantage in wholesale generation
markets.
independent entity. In that role, the Midwest
ISO evaluates and approves transmission
service requests; calculates the amount of
transmission that is available for third party use;
operates and administers Duke’s OASIS; and
evaluates, processes, and approves generation
interconnection requests and coordinates
transmission planning. In addition, Duke has
retained Potomac Economics to act as its
independent market monitor. Duke forwards
Potomac Economics’ quarterly reports to the
Commission.
Dominion, NC Power’s parent, filed an
application with the Commission on April 2,
2004, in Docket No. E-22, Sub 418, seeking
authority to transfer operational control of its
transmission facilities located in North Carolina
to PJM Interconnection, an RTO headquartered
in Pennsylvania. The Commission approved
the transfer subject to conditions on April 19,
2005.
The Commission has continued to
provide oversight over NC Power and PJM by
using its own regulatory authority, engaging in
regional
cooperation
with
other
state
commissions, and participating in proceedings
before the FERC. Together with the other state
commissions with jurisdiction over utilities in the
PJM area, the Commission is involved in the
activities of the Organization of PJM States, Inc.
(OPSI).
Regional Transmission Organizations
In December 1999, the FERC issued
Order No. 2000 encouraging the formation of
regional transmission organizations (RTOs),
independent entities created to operate the
interconnected transmission assets of multiple
electric utilities on a regional basis.
In
compliance with Order No. 2000, Duke,
Progress, and SCEG filed a proposal to form
GridSouth Transco, LLC (GridSouth), a
Carolinas-based RTO. The utilities put their
GridSouth-related efforts on hold in June 2002,
citing regulatory uncertainty at the federal level.
The GridSouth organization was formally
dissolved in April 2005.
Subsequently, Duke received approval
from the FERC to engage an independent entity
to administer its OATT. Starting in January
2007, the Midwest ISO began acting as Duke’s
Open Access Transmission Tariff Reform
On February 16, 2007, the FERC issued
Order No. 890, adopting changes to the proforma OATT to be used by transmission
owners, including a new requirement for
process on both a local and regional level. The
FERC required each transmission provider to
file the details of its planning process, which
had to satisfy nine planning principles:
coordination,
openness,
transparency,
information exchange, comparability, dispute
resolution, regional coordination, economic
planning studies, and cost allocation. Duke and
Progress jointly filed “Attachment Ks” to their
transmission tariffs on December 7, 2007.
They both referred to the North Carolina
Transmission Planning Collaborative as their
mechanism and forum for assuring open
transparent planning with opportunity for
48
appropriate to implement such standards to
carry out the purposes of the Public Utilities
Regulatory Policies Act (PURPA). The law
required the Commission to commence its
consideration of the federal interconnection and
smart metering standards within one year of the
enactment of EPAct 2005 and to complete its
consideration of those standards within two
years of enactment. The law required the
Commission to commence its consideration of
the federal net metering, fuel diversity, and
fossil fuel generation efficiency standards within
two years of enactment of EPAct 2005 and to
complete its consideration of those standards
within three years of enactment. These time
limits did not apply, however, if the State had,
prior to the enactment of EPAct 2005,
considered or implemented the federal
standards or comparable standards.
On August 4, 2006, the Commission
issued an Order in Docket No. E-100, Sub 107,
preliminarily concluding that it had previously
considered or implemented the net metering
and interconnection standards as required by
Sections 1251 and 1254 and allowing
interested parties to file written comments
regarding this preliminary conclusion, including
whether the Commission is required to take any
further action with regard to the net metering
and interconnection standards enacted in
EPAct 2005. Also on August 8, 2006, the
Commission issued an Order in Docket No.
E-100, Sub 108 scheduling a hearing to
consider the federal smart metering, fuel
diversity, and fossil fuel generation efficiency
standards and requiring publication of notice. A
hearing was held, as scheduled, in Docket No.
E-100, Sub 108 on December 12, 2006.
On August 8, 2007, the Commission
issued an Order in Docket No. E-100, Sub 107
affirming its preliminary conclusion and
declining to adopt the federal net metering and
interconnection standards based on prior state
action.
Also on August 8, 2007, the
Commission issued an Order in Docket No.
E-100, Sub 108, declining to adopt the federal
smart metering, fuel diversity, and fossil fuel
generation efficiency standards on the grounds
that such action was not necessary to carry out
the purposes of PURPA.
involvement by stakeholders.
In order to
address the FERC’s requirements relative to
inter-regional coordination, Duke and Progress
cited their participation in the Southeast
Interregional Participation Process. The FERC
issued its order on September 18, 2008 finding
the geographic scope of Duke and Progress’s
joint regional planning to be sufficient, but
ordering Duke and Progress to file numerous
modifications within 90 days, including a
methodology for
allocating
transmission
construction costs for projects that involve
multiple utilities.
The FERC is soliciting comments as to
whether additional regulations are needed
relative to transmission planning. Many people
believe the FERC must address cost allocation
for large transmission projects in order to
encourage development of renewable energy.
Transmission Rate Filings
In 2008, NC Power sought permission
from the FERC to charge transmission
customers an incentive return on equity (ROE)
for specific transmission construction projects.
The Commission intervened in that case,
arguing that a higher ROE would be
inappropriate for some of NC Power’s proposed
projects and would unreasonably increase
electricity prices to customers. The FERC
rejected the Commission’s arguments and
granted NC Power’s full request on August 29,
2008. The Commission has filed a request for
reconsideration of this decision, which is
pending. While the Commission retains full
jurisdiction over NC Power’s retail prices in
North Carolina, NC Power’s proposal would
increase its wholesale transmission rates and,
thus impact the cost of importing power to other
electric consumers in North Carolina.
Energy Policy Act of 2005
Under the Energy Policy Act of 2005
(EPAct 2005), which became law on August 8,
2005, the Commission, with respect to each
electric utility for which it has ratemaking
authority, was required to consider new federal
standards
regarding
net
metering,
interconnection, smart metering, fuel diversity,
and fossil fuel generation efficiency and to
make a determination whether or not it is
49
Washington, DC. The Southwest Area National
Corridor includes portions of southern California
and western Arizona. DOE is required to
prepare a report to Congress every three years
on the status of congestion nationwide, and has
begun work on its 2009 consortia study.
Section 216 also authorizes the FERC
to site transmission facilities if a state withholds
approval of a project for more than one year.
The FERC interpreted this provision to include
instances where a state has denied a proposed
project. This issue is currently on appeal in the
United States Court of Appeals for the Fourth
Circuit.
EPAct 2005 required the FERC to
establish incentive-based wholesale rate
treatments for transmission facilities. Congress
specified that these incentives were “for the
purpose of benefitting consumers by ensuring
reliability and reducing the cost of delivered
power by reducing transmission congestion.” In
July 2006, FERC issued Order No. 679, which
allows utilities to seek wholesale rate incentives
such as (1) incentive rates of return on equity
for new investment in transmission facilities; (2)
full recovery of prudently incurred transmissionrelated construction work in progress costs in
rate base, and (3) full recovery of prudently
incurred pre-commercial operation costs. The
FERC allows these incentives based on a caseby-case analysis of individual transmission
projects. As discussed above, the Commission
has intervened in incentive proceedings before
the FERC in order to protect the interests of
North Carolina consumers.
EPAct 2005 gave the FERC responsibility to
oversee mandatory, enforceable reliability
standards for the bulk power system. In the
summer of 2006, it approved NERC as the
ERO responsible for proposing, for FERC
review and approval, standards to protect the
reliability of the bulk power system. The ERO
may delegate certain responsibilities to
“Regional Entities” subject to FERC approval.
In the southeast, those responsibilities,
including auditing for compliance, have been
delegated to SERC, headquartered in
Charlotte, North Carolina. In March 2007, the
FERC approved the first set of mandatory,
enforceable reliability standards. Violations can
result in monetary penalties of up to $1 million
per day per violation. The FERC, ERO and
SERC have focused especially on two
compliance areas that have been implicated in
large regional bulk power system outages: (1)
the need for more thorough vegetation
management below and near high-voltage
power lines and (2) the need for more rigorous
design and maintenance of the relays that
determine whether the electric grid “rides
through” disturbances or “separates,” potentially
contributing to cascading outages. In North
Carolina, more stringent requirements for
vegetation management have reduced the
flexibility utilities have traditionally exercised in
working with communities and landowners.
EPAct 2005 added a new section 216 to
the Federal Power Act, providing for federal
siting of interstate electric transmission facilities
under certain circumstances. States retain
primary jurisdiction to site transmission
facilities, and federal transmission siting
effectively supplements a state siting regime.
Section 216 requires the Secretary of the U.S.
Department of Energy (DOE) to study electric
transmission congestion and to designate, as a
national interest electric transmission corridor,
any geographic area experiencing electric
energy transmission capacity constraints or
congestion that adversely affects consumers.
In October 2007, DOE issued an order
designating two national interest electric
transmission corridors. The Mid-Atlantic Area
National Corridor includes portions of Delaware,
Maryland, New Jersey, New York, Ohio,
Pennsylvania, Virginia, West Virginia, and
Cyber Security
Federal regulators are increasingly
concerned about cyber security threats to the
nation’s bulk power system. Cyber security
threats may be posed by foreign nations or
others intent on undermining the United States’
electric grid.
North Carolina’s utilities are
working to comply with federal standards that
require them to identify critical components of
their infrastructure and install additional
protections from cyber attacks. The FERC
believes its legal authority is adequate to
address potential threats to the bulk power
system and has asked Congress to enact
legislation to address this deficiency.
50
American Recovery and Reinvestment Act
of 2009 (ARRA 2009)
The ARRA 2009 initiated numerous
efforts intended to stimulate the economy and
create jobs. Many of them relate to energy
infrastructure and energy policy. As authorized
by the ARRA, the DOE announced a funding
opportunity in mid-June of 2009 whereby it
solicited grant proposals for “State Electricity
Regulators Assistance.”
The intent of the
grants is to insure that state regulators can
meet the increased workload anticipated due to
other ARRA awards such as those related to
energy efficiency, renewable energy, energy
storage, smart grid, electric and hybrid-electric
vehicles, demand-response, coal with carbon
capture and storage, and electric transmission.
The Commission responded with a grant
request to DOE, which was approved in
September of 2009.
The Commission
requested funding for an electricity specialist
position, which would be a full-time position
limited to a four-year term of the grant. The
grant would also cover the cost of additional
training to prepare staff and Commissioners to
be address complex electric energy issues.
The DOE also made ARRA grant
awards to electric utilities for proposals related
to smart grid. Progress and Duke were both
grant recipients. ARRA 2009 also provided
grants for state involvement in transmission
planning.
Energy Independence and Security Act of
2007
The President signed the Energy
Independence and Security Act of 2007 into law
on December 19, 2007. The statute adds new
federal standards to PURPA section 111(d) for
state commissions and utilities to consider, and
an additional “standard” that is not labeled as a
PURPA standard, but is similar in some
respects.
In the area of integrated resource
planning, each electric utility shall integrate
energy efficiency resources into utility, state,
and regional plans, and adopt policies
establishing cost-effective energy efficiency as
a priority resource. This requirement has no
deadline.
The rates allowed to be charged by any
electric utility shall align utility incentives with
the delivery of cost-effective energy efficiency
and promote energy efficiency investments.
This requirement has no deadline.
Each state shall consider requiring that,
prior to undertaking investments in nonadvanced grid technologies, an electric utility
demonstrate
that
they
considered
an
investment in a smart grid system.
By
December 19, 2008, each state commission
must begin considering this issue, or set a
hearing date for its consideration. This review
must include whether to adopt a federal
standard that would provide each electricity
purchaser access to time-based prices and
updated pricing and usage information on not
less than a daily basis. Each state commission
is to finish its consideration of this issue by
December 19, 2009.
Utilities and state commissions must
consider whether an owner or operator of a
waste energy recovery project that generates
new excess power shall be eligible to benefit
from specific options for disposal of their net
excess power.
On
November
25,
2008,
the
Commission issued an Order in Docket No. E100, Sub 123, which established a schedule for
testimony and hearings on these issues.
Numerous parties submitted comments and the
Commission’s order is pending.
C.
RETAIL
COMMENTS
CUSTOMER
GROWTH--
In 2008 the three major electric utilities
and Nantahala experienced a customer growth
rate between 1.0% and 2.0% for their North
Carolina operations.
The net customer
increase from December 31, 2007, to
December 31, 2008, for these companies was
49,298 bringing the total number of customers
in 2008, to 3,220,391 as shown in Figure No.
4-5.
51
applied building science, with state-of-the-art
laboratories in which to do testing and applied
research.
Advanced Energy is a non-profit
corporation that helps utility, industrial and
residential customers improve the return on
their energy investment. Offering consulting,
testing, and training, it develops innovative
solutions to unique problems. The primary
mission of Advanced Energy is to increase
efficiency and productivity in industries,
businesses, and homes as they transform
energy
into goods,
services, and
environmental conditioning.
Advanced Energy was originally known
as Alternative Energy Corporation, or AEC. It
was founded by the North Carolina Utilities
Commission in 1980--a time when electric rates
had been rising due to increased power plant
construction. The Utilities Commission saw
AEC as a way to help the utilities avoid building
new power plants by exploring alternative ways
of producing electricity and by getting more
work out of the electricity already available. On
June 1, 1997, the North Carolina Alternative
Energy Corporation or AEC, became Advanced
Energy, a name change approved in Docket
No. E-100, Sub 37.
With the cooperation of the state’s major
electric utilities, the Utilities Commission set up
funding to come from the electric ratepayers of
the state--an investment equivalent to about
$.39 per person per year. The money is
collected by member utilities and then passed
along to Advanced Energy. The members are
Progress Energy Carolinas, Duke Power
Company, Nantahala Power & Light Company,
North Carolina’s electric cooperatives, and
Dominion North Carolina.
The corporation is governed by a Board
of Directors with seven members appointed by
the governor of North Carolina and five
directors named by the member utilities.
In the years since 1980, Advanced
Energy has carried out hundreds of projects for
all sectors of the
economy, including
agriculture, industry, commercial, residential,
governments and nonprofits, education, and
utilities.
The emphasis on innovation and
efficiency has not changed as Advanced
Energy continues to build on a foundation of
D. ANNUAL CUSTOMER USE
The annual consumption of kilowatthours per residential customer in 2008 for the
three major companies was 13,584 kWhs. This
was a 2.4% decrease from 2007. The U.S.
average annual residential consumption of
kilowatt-hour for 2008 was 11,040. This is
23.0% lower than the North Carolina residential
average usage. The average cost per kilowatthour for North Carolina residential customers is
8.79 cents versus the national average of 11.26
cents.
The average monthly electricity use by
North Carolina residential customers of major
electric companies is 1,132 kilowatt-hours
compared to the U.S. average of
920.
Residential customers constitute about 85% of
the total electric customers in the State.
Figure No. 4-7 illustrates the residential
electric service for the three major companies,
breaking down the average kWh usage per
customer and cents per kWh and the N. C.
average price per kWh in cents by each
company for the years 1999-2008.
E.
COMPARISON
OF
RESIDENTIAL MONTHLY BILLS
AVERAGE
In Figure No. 4-9 a typical residential
electric bill as of January 1, 2009, from North
Carolina is compared to nine selected states
from across the country. These states include
Alabama, California, Florida, Indiana, Maine,
Michigan, Ohio, South Carolina, and Virginia.
For 2009 North Carolina is the second lowest at
the 500 kWh, 750 kWh, and the 1,000 kWh
levels. In 2008 North Carolina was second
lowest at the 500, 750 and 1,000 kWh levels.
In a comparison with the United States
average, North Carolina monthly bills are lower
for 500 kWh, 750 kWh and 1,000 kWh. The
electric utilities have service area-wide rates for
respective
residential,
commercial,
and
industrial customer classes in North Carolina.
F. ADVANCED ENERGY CORPORATION
Located in Raleigh, North Carolina,
Advanced Energy focuses on industrial process
technologies, motors and drives testing, and
52
Qualifying Facilities:
In 1978 the
Federal Public Utility Regulatory Policies Act
(PURPA) challenged the Federal Energy
Regulatory Commission and the State
regulatory authorities to encourage the
development of cogeneration and small power
production. The regulated electric utilities are
required to purchase the electricity generated
by these qualifying cogeneration and small
power production facilities, but are not required
to pay more than the avoided costs for
purchases.
Avoided cost means the
incremental costs to an electric utility of electric
energy or capacity or both which it would
generate itself or purchase from another
source.
At the present, the three largest power
companies in North Carolina are working with
customers who generate some of their own
needs for electrical power, thus lowering peak
loads.
Cogeneration facilities simultaneously
produce two forms of useful energy such as
electric power and steam. An example of
manufacturing cogeneration is a furniture
manufacturing plant which not only uses
process steam in its manufacturing activities but
also uses the same steam in order to generate
electricity.
Cogeneration
facilities
use
significantly less fuel to produce electricity and
steam (or other forms of energy) than would be
needed to produce the two separately. Thus by
using fuels more efficiently, cogeneration
facilities can make a significant contribution to
the nation's effort to conserve its energy
resources.
Small power production facilities may
use biomass, waste, and renewable resources
including wind, solar, and water to produce
electric power. These energy sources may
eventually have the potential of producing
cheaper electricity. For example, the sun's rays
or flowing water may have little or no fuel costs,
as contrasted with the generally increasing cost
of fossil fuels or nuclear fuel typically used by
regulated utilities in their generating plants.
The Commission's Order dated June 3,
1980, enumerated as part of its responsibilities
the determination of the rates, charges, and
conditions for the sale of electricity and
qualifying cogenerators or small power
expertise and achievement in applied building
science, motors and drive testing, and industrial
process technologies.
G. GENERATING CAPABILITY
Nuclear Power:
Progress Energy’s
three nuclear plants generated 24.1 million
megawatt-hours of electricity for Progress retail
customers during 2008, or 40% of Progress’
total energy resources. Duke’s three nuclear
plants generated 40.9 million megawatt-hours
of electricity for Duke retail customers during
2008, or 45% of Duke’s total energy resources.
Both Progress and Duke also generated
additional nuclear power for other North
Carolina based wholesale suppliers of
electricity. Dominion North Carolina Power’s
two nuclear plants generated 26.0 million
megawatt-hours of electricity during 2008, or
30% of its total energy resources. Overall,
about 43% of the electricity consumed by retail
utility customers in North Carolina during 2008
was generated by nuclear power.
Fossil Generation: Progress Energy
generated 28.3 million megawatt-hours of
electricity during 2008 using coal-fired steam
generation, or 47% of Progress’ total energy
resources. By contrast, Duke generated 45.5
million megawatt-hours, or 50% of its total
energy resources, using such generation.
Likewise, Dominion North Carolina Power
generated 28.8 million megawatt-hours, or 34%
of its total energy resources, using such
generation. Roughly 49% of the electricity
consumed by retail utility customers in North
Carolina during 2008 was generated by coalfired steam.
Other fossil fuel resources utilized by
the utilities include oil or natural gas-fired
combustion turbines and combined cycle
facilities. Such facilities usually contribute a
small amount, typically around 2% of the
electricity consumed in the State, although they
represent a much more significant percentage
of the generating capacity available to each
utility. Facilities such as combustion turbines
are used primarily for peak-load generation and
for standby capacity.
53
North Carolina operating expenses,
including taxes for the major companies,
decreased 0.2% in 2008 over 2007, and the net
operating income for 2008 decreased 1.1%
from the previous year.
Total company net income available for
common shareholders of the major companies
was $7,900,145,000 for 2008 compared to
$7,498,706,000 for 2007.
The number of
common shares outstanding at year-end was
369,441,000 in 2008. The earnings per share
(year-end outstanding) at December 31, 2008,
were $21.38.
Total salaries and wages paid North
Carolina employees by major companies for
2008 was $1,125,214,000, an increase of
14.6% from 2007. In 2008 the number of
employees residing in North Carolina was
12,511 compared to 12,003 in 2007.
producers in North Carolina. In addition the
Commission will determine the relative
responsibilities of utilities and qualifying
facilities with respect to system protection,
service reliability, and other matters affecting
such service. Every two years the Commission
reviews and updates the orders.
The
Commission determines separate avoided
cost rates to be paid by Progress, Duke, N.C.
Power (Vepco), and Western Carolina
University to their respective qualifying facilities
which are interconnected with them. Other
related matters involving terms and conditions
of service, contractual arrangements, and
interconnection charges have also been
reviewed and approved.
H. SOURCE AND DISPOSITION OF THE
ELECTRIC OPERATING REVENUE DOLLAR
Both the source and disposition of the
2008 electric operating revenue dollar are
shown by the pie charts on Figure No. 4-10. In
2008, fuel costs, (excluding purchased power)
required 29.7 cents while the remaining
operation and maintenance costs required 24.3
cents.
Shown in Figure No. 4-11
is
comparative data reflecting the components
percentage-wise for both the source and
disposition of the electric operating revenue
dollar for 2008. The chart in Figure No. 4-12
shows the fuel costs as a percent of total
operational and maintenance expenses for the
period 2003-2008.
I. ENERGY SALES
The major companies’ total energy sales
in North Carolina reflected an increase of 8.8%
in 2008 with more than 118 billion
kilowatt-hours sold. Figure No. 4-13 shows
energy sales by class of customer for the years
2003-2008.
J. STATISTICAL SUMMARY DATA
As shown in Figure No. 4-14, the total
operating revenues for North Carolina
operations for the major electric utilities
decreased 0.3% in 2008 compared to 2007.
54
Figure No. 4-5
Customer Growth for Major Electric Companies
2,000,000
1,500,000
1,000,000
500,000
0
CP&L
Duke
2004
2005
Nantahala
2006
2007
NC Power
2008
Nantahala information is now included with Duke Energy.
55
FIGURE NO. 4-6
Average Annual Residential Consumption (kWh/Customer)
2002, 2003, 2004, 2005, 2006, 2007 and 2008
(Four Privately Owned Major Utilities Only)
UTILITIES
N.C. Statewide Average
N.C. (Charlotte & Raleigh)(a)
S.C. (Columbia & Charleston)(b)
U. S. Average
2002
13,588
13,691
12,894
10,884
N.C. (Charlotte & Raleigh)
Higher/Lower(-) than S.C.
(Columbia & Charleston)
Higher than U.S. Average
2003
13,124
13,202
12,238
10,872
2004
13,629
13,699
12,492
10,896
2005
13,942
13,996
12,964
11,256
2006
13,318
13,365
12,420
11,040
2007
13,922
13,968
12,383
10,896
2008
13,584
13,560
11,939
11,040
6.2%
7.9%
9.7%
8.0%
7.6%
12.8%
13.6%
24.8%
20.7%
25.1%
23.9%
20.6%
27.8%
23.0%
(a) Charlotte--Served by Duke Power Co.
Raleigh--Served by CP&L
Simple average of the two used
(b) Columbia & Charleston
Served by S.C. Electric & Gas Co.
Simple average of the two used
SOURCES:
N.C. Statewide Average--Computed from FERC Form No. 1: Annual Report of Major Electric Utilities Data
N.C. (Charlotte & Raleigh)--Computed from FERC Form No. 1: Annual Report of Major Electric Utilities Data
S.C. (Columbia & Charleston)--S.C. Electric & Gas Co.
U.S. Average--Calculated From Table 5. U.S. Average Monthly Bill by Sector, Census Division and State, 2008,
The Energy Information Administration web site.
56
Figure No. 4-7
Residential Electric Service - Major Co
10.00
9.00
8.00
7.00
Cents
6.00
5.00
4.00
3.00
2.00
1.00
0.00
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Average kWh Usage Per Customer and Cents Per kWh
1999
2000
12,809 13,338
7.61
7.61
2001
12,706
7.74
2002
13,588
7.77
2003
13,124
7.88
2004
13,629
7.98
2005
13,942
8.13
2006
13,318
8.42
2007
13,922
8.72
2008
13,584
8.79
Average Price of One kWh in Cents by Company
CP&L
Duke
Nantahala
NC Power
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
7.93
7.34
7.54
8.24
7.90
7.36
7.39
8.35
8.04
7.47
7.64
8.46
8.13
7.46
7.65
8.51
8.26
7.55
7.74
8.59
8.32
7.66
7.83
8.83
8.55
7.77
7.95
8.78
9.03
7.94
8.30
8.82
9.41
8.18
8.65
9.27
9.57
8.22
*
8.94
*Nantahala data is included with Duke beginning with 2008.
57
FIGURE NO. 4-8
General Rate Increases Approved for Electric Companies
For the Year 2008
Company
Date
Filed
Docket
Number
Amount
Requested
(000s)
Amount
Approved
(000s)
% Approved
of Amount
Requested
None
$0
Total
58
$0
Date of
Final
Order
FIGURE NO. 4-9
COMPARATIVE TYPICAL RESIDENTIAL ELECTRIC BILLS
NINE SELECTED STATES, NORTH CAROLINA, AND U.S. AVERAGE
STATE AVERAGE MONTHLY BILLS-RESIDENTIAL SERVICE
(Cities of 2,500 Population and Over) Data as of January 1 of each year
STATE:
2003
500 kWh Assumed Consumption
2004
2005
2006
2007
2008
2009
2003
2004
2005
2006
2007
2008
2009
2003
2004
2005
2006
2007
2008
2009
North Carolina
Alabama
California
Florida
Indiana
Maine
Michigan
Ohio
South Carolina
Virginia
United States
$49.54
42.98
58.83
43.94
45.04
69.79
39.92
40.06
48.34
38.99
45.40
$44.85
43.79
58.31
47.82
43.16
67.55
41.93
46.01
45.07
39.82
46.83
$45.73
44.42
58.86
49.72
45.39
70.04
41.99
46.08
44.37
40.95
49.21
$45.89
51.49
60.27
56.61
48.24
72.15
45.42
50.62
47.51
41.54
54.64
$47.87
54.62
64.22
57.86
50.14
77.49
48.87
52.00
48.77
46.72
56.91
$47.73
57.50
64.56
59.31
53.70
84.07
50.70
54.96
50.60
46.80
59.74
$51.59
69.37
65.45
66.58
57.18
88.12
53.44
57.13
53.58
47.97
62.10
$69.78
60.07
95.77
61.88
60.84
104.69
58.23
59.26
69.20
54.85
65.02
$63.74
61.30
93.19
67.69
57.25
101.33
60.97
68.19
64.24
56.06
67.06
$63.74
61.30
93.19
67.69
57.25
101.33
60.97
68.19
64.24
56.06
70.56
$65.23
71.61
101.64
80.84
64.54
108.21
66.37
75.30
67.90
58.64
79.83
$68.16
76.27
111.60
82.71
68.23
116.22
71.51
77.37
68.79
66.25
82.19
$67.77
82.15
109.22
84.18
73.38
126.11
74.10
81.56
72.46
66.03
86.03
$73.46
96.47
116.17
95.79
78.60
132.17
77.54
84.87
76.92
68.68
89.94
$90.02
74.21
129.91
80.40
76.64
139.58
76.56
74.19
89.40
69.62
83.93
$82.62
75.83
128.20
88.16
71.36
135.11
80.13
88.62
82.74
71.41
86.77
$82.62
75.83
128.20
88.16
71.36
135.11
80.13
88.62
82.74
71.41
91.50
$84.57
88.76
141.90
105.07
80.82
144.29
87.33
96.69
87.34
74.85
106.19
$88.47
94.95
152.85
107.57
86.32
154.96
94.15
99.31
90.14
85.04
106.58
$95.34
106.80
148.74
106.07
93.07
168.15
97.52
104.53
93.39
84.72
111.54
$87.80
120.58
164.65
124.99
100.03
176.23
101.73
108.77
99.34
88.46
116.83
N. C. Rank
(Low to High)
(10 States Listed)
8th
lowest
5th
lowest
5th
lowest
3rd
lowest
2nd
lowest
2nd
lowest
2nd
lowest
8th
lowest
5th
lowest
5th
lowest
3rd
lowest
2nd
lowest
2nd
lowest
2nd
lowest
8th
lowest
5th
lowest
5th
lowest
3rd
lowest
3rd
lowest
2nd
lowest
2nd
lowest
N. C. Rank
(Low to High)
(50 States & DC)
36th
lowest
28th
lowest
28th
lowest
21st
lowest
20th
lowest
18th
lowest
19th
lowest
37th
lowest
27th
lowest
27th
lowest
20th
lowest
20th
lowest
16th
lowest
20th
lowest
37th
lowest
30th
lowest
30th
lowest
19th
lowest
21st
lowest
17th
lowest
20th
lowest
% U.S. Average
Higher/Lower(-)
Than NC Average
-9.12%
4.23%
7.07% 16.01% 15.88% 20.10% 16.92%
-7.32%
4.95%
9.67% 18.29% 17.07% 21.23% 18.32%
Source:
"Typical Electric Bills" for applicable years--Edison Electric Institute
59
-7.26%
4.78%
9.70% 20.36% 16.99% 14.52% 24.85%
FIGURE NO. 4-10
Source and Disposition of the Operating Revenue Dollar
2008 Electric Companies (N. C. Operations Only)
SOURCE:
Other, 5.5%
Sales for Resale, 13.3%
Residential, 38.1%
Industrial, 14.8%
Commercial, 28.3%
DISPOSITION:
Preferred Dividends,
Common Stock
0.1%
Earnings, 10.1%
Interest, 4.6%
Fuel Costs, 29.7%
General Taxes, 5.1%
Income Taxes, 6.9%
Depreciation, 11.4%
Purchased Power , 8.0%
Other Oper. & Maint.,
24.3%
60
FIGURE NO. 4-11
2008
SOURCE AND DISPOSITION OF THE OPERATING REVENUE DOLLAR
MAJOR ELECTRIC COMPANIES
NORTH CAROLINA OPERATIONS ONLY
(DOLLARS IN 000s)
SOURCE:
Residential
Commercial
Industrial
Sales for Resale
Other
Total
REVENUE
$3,274,752
2,429,739
1,274,304
1,146,495
470,460
$8,595,750
DISPOSITION:
Fuel Costs
Purchased Power
Other Oper. & Maint.
Depreciation
Income Taxes
General Taxes
Interest
Common Stock Earnings
Preferred Dividends
Total
$2,552,066
684,805
2,085,869
977,372
590,757
438,210
395,920
868,166
2,585
$8,595,750
% OF TOTAL
38.1%
28.3%
14.8%
13.3%
5.5%
100.0%
29.7%
8.0%
24.3%
11.4%
6.9%
5.1%
4.6%
10.1%
0.1%
100.0%
FIGURE NO. 4-12
FUEL COSTS
(DOLLARS IN 000s)
ITEM
Fuel Costs (1)
Purchased Power Costs (Fuel and Nonfuel)
Other Operating & Maintenance Expenses
Total Operating & Maintenance Expenses
Fuel Costs as a % of Total Operating &
Maintenance Expenses (2)
2003
$889,562
446,791
2,328,822
$3,665,175
24.3%
2004
2005
2006
2007
2008
$1,561,358 $1,988,374 $2,107,888 $2,373,410 $2,552,066
433,017
488,146
508,902
531,536
684,805
2,327,929
1,838,670
1,977,886
2,177,335
2,085,869
$4,322,304 $4,315,190 $4,594,676 $5,082,281 $5,322,740
36.1%
46.1%
45.9%
46.7%
47.9%
(1) Source: FERC Form No. 1: Annual Report of Major Electric Utilities
(2) Fuel Costs percentage does not include Purchased Power
61
Figure No. 4-13
Energy Sales by Class-Major Companies
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Residential
Commercial
2003
2004
Industrial
2005
2006
62
2007
2008
Other
FIGURE NO. 4-14A
MAJOR ELECTRIC COMPANIES--NORTH CAROLINA DATA AND SELECTED SYSTEMWIDE DATA
Income Statement, Balance Sheet, and Other Statistical Items (Dollars in 000s)
For the Years 2002, 2003, 2004, 2005, 2006, 2007 and 2008
Item
No. of Companies Regulated and Included in this Data
INCOME STATEMENT (NC ONLY):
Income Items:
Residential Sales
Commercial Sales
Industrial Sales
Sales for Resale
All Other Operating Revenue
Total Operating Revenue
Expense Items:
Power Production Expense
Transmission Expense
Distribution Expense
Customer Accounts Expense
Customer Service & Informational Expense
Sales Expense
Administrative & General Expense
Depreciation Expense
Total Expenses Before Taxes
State Taxes:
Income Tax
Gross Receipts Tax
Property Tax
Other Operating Taxes
Total State Taxes
Federal Taxes:
Income Tax
Provision for Deferred Income Tax
Income Tax Deferred in Prior Years
Investment Tax Credit
Payroll, Unemployment, & Other Federal Taxes
Total Federal Taxes
Total State & Federal Taxes
Other Operating Expenses
Total Operating Expenses
Net Operating Income
Other Income & Expenses:
Other Income
Allowance for Funds Used During Construction
Deductions From Income
Taxes on Other Income
Net Other Income & Expense
N/COMP = Not Comparable
2002
2003
4
2004
4
2005
4
2006
4
2007
4
% Change
2007-2008
2008
4
3
$2,605,954
1,890,080
1,261,053
952,126
307,480
$7,016,693
$2,600,014
1,935,826
1,230,988
1,027,427
212,721
$7,006,976
$2,755,030
2,020,426
1,280,413
869,139
343,967
$7,268,975
$2,937,881
2,116,027
1,306,167
1,221,376
359,365
$7,940,816
$2,961,784
2,217,942
1,303,702
1,034,655
457,138
$7,975,221
$3,276,683
2,436,484
1,337,112
1,160,637
412,442
$8,623,358
$3,274,752
2,429,739
1,274,304
1,146,495
470,460
$8,595,750
(0.1)
(0.3)
(4.7)
(1.2)
14.1
(0.3)
$2,603,359
80,265
247,215
114,125
26,834
10,982
600,968
1,111,005
$4,794,753
$2,630,575
84,282
251,806
117,155
25,271
9,432
546,654
1,193,347
$4,858,522
$2,710,123
73,285
215,278
105,340
31,609
5,381
526,995
799,928
$4,467,939
$3,218,462
72,338
251,005
99,932
37,803
3,733
631,917
883,930
$5,199,120
$3,503,942
69,022
208,082
96,836
32,059
3,641
681,094
923,752
$5,518,428
$3,999,573
83,408
224,113
98,158
26,008
4,067
646,954
1,314,463
$6,396,744
$4,147,793
98,004
240,181
97,042
25,625
2,865
664,689
977,372
$6,253,571
3.7
17.5
7.2
(1.1)
(1.5)
(29.6)
2.7
(25.6)
(2.2)
(58.7)
(0.3)
(4.8)
8.9
(6.5)
$77,234
194,798
91,649
133,738
$497,419
$79,559
191,993
93,898
(97,553)
$267,897
$71,639
206,823
98,650
23,081
$400,193
$106,012
212,218
98,767
104,947
$521,944
$67,520
217,088
106,132
135,603
$526,343
$61,895
232,792
109,529
102,655
$506,871
$25,569
232,179
104,297
111,780
$473,825
$533,876
(138,548)
(36,417)
(19,309)
82,718
$422,320
$919,739
$463,887
80,515
0
(22,644)
80,932
$602,690
$870,587
$396,826
94,136
0
(15,160)
2,985
$478,787
$878,980
$654,293
$6,001,212
$1,267,763
$660,743
(210,346)
0
(14,920)
3,314
$438,791
$960,735
$422,270
$6,582,125
$1,358,691
$504,161
(90,116)
(39,204)
(12,351)
3,344
$365,834
$892,177
$326,192
$6,736,797
$1,238,424
$503,142
8,143
0
(11,837)
4,194
$503,642
$1,010,513
($65,029)
$7,342,228
$1,281,130
$88,640
476,548
0
(11,460)
1,414
$555,142
$1,028,967
$46,542
$7,329,080
$1,266,670
(82.4)
N/COMP
N/COMP
(3.2)
(66.3)
10.2
1.8
(171.6)
(0.2)
(1.1)
$670,679
15,283
154,872
(90,431)
$621,521
$896,383
18,711
126,794
(74,236)
$862,536
$237,414
25,374
85,389
(1,903)
$179,302
$68,106
43,035
91,754
(11,576)
$30,963
$51,363
96,448
57,023
(21,898)
$112,686
(24.6)
124.1
(37.9)
89.2
263.9
$5,714,492
$1,302,201
$5,729,109
$1,277,867
$458,829 ($1,213,000)
37,283
31,628
210,607
284,802
(23,036)
(95,144)
$308,541 ($1,371,030)
63
FIGURE NO. 4-14B
For the Years 2002, 2003, 2004, 2005, 2006, 2007 and 2008
Item
Fixed Charges:
Interest on Funded Debt
Other Fixed Charges
AFUDC
Total Fixed Charges
Extraordinary Income:
Net Income
BALANCE SHEET:
Assets:
Utility Plant
Depreciation Reserve
Net Plant
Nonutility Property
Other Investments
Cash
Temporary Cash Investments
Customer Accounts Receivable
Plant Material & Operating Supplies
Prepayments
Interest & Dividends Receivable
Other Current & Accrued Assets
Unamortized Debt Expense
Miscellaneous Deferred Debits
Accumulated Deferred Income Taxes
Other Deferred Debits
Total Assets
Liabilities & Stockholder's Equity:
Liabilities:
Accounts Payable
Notes Payable
Total Long-Term Debt
Taxes Accrued
Miscellaneous & Accrued Liabilities
Other Current & Accrued Liabilities
Accumulated Deferred Investment Tax Credit
Accumulated Deferred Income Tax
Other Deferred Credits
Total Liabilities
2002
$385,963
31,476
35,880
$381,559
0
$1,229,183
2003
2004
$392,933
38,683
12,363
$419,253
(225,280)
($737,696)
$372,949
26,673
6,759
$392,863
0
$1,496,421
2005
$379,833
25,797
11,470
$394,160
(2,193)
$1,824,874
2006
$395,756
11,806
12,373
$395,189
0
$1,022,537
2007
$403,452
(1,917)
21,185
$380,350
(5,270)
$926,473
2008
% Change
2007-2008
$454,401
35,248
45,345
$444,304
0
$935,052
12.6
N/COMP
114.0
16.8
N/COMP
0.9
$25,636,068 $26,264,182 $27,151,348 $28,470,284 $29,552,672
11,581,528 11,551,909
11,793,527 12,422,667 12,986,859
$14,054,540 $14,712,273 $15,357,821 $16,047,617 $16,565,813
54,872
81,674
79,095
86,606
86,248
10,780,554 10,271,096
11,327,616 11,252,034
2,369,665
32,870
15,964
23,746
22,762
41,335
3,264
302,595
204,706
339,496
212,208
699,144
409,834
602,505
850,825
679,754
370,647
380,255
414,791
438,384
459,853
313,722
409,653
579,059
165,080
108,747
40,772
307
296
1,243
742
1,752,817
2,337,781
2,403,096
2,661,995
2,726,854
18,397
16,935
37,267
32,249
27,010
207,596
67,393
862,263
892,563
853,287
1,523,471
1,572,992
1,774,064
2,196,488
1,952,642
158,548
155,171
174,984
176,060
144,223
$30,011,214 $30,733,923 $33,841,309 $35,163,402 $26,228,381
$32,070,130
14,616,408
$17,453,722
104,019
2,560,675
30,149
7,304
918,482
517,620
44,069
9,370
2,927,940
31,678
861,831
2,010,129
141,757
$27,618,745
$35,162,319
15,858,949
$19,303,370
97,678
1,913,367
26,903
284,190
1,179,647
577,800
75,991
23,711
4,187,464
42,999
846,554
2,144,888
130,633
$30,835,195
9.6
8.5
10.6
(6.1)
(25.3)
(10.8)
N/COMP
28.4
11.6
72.4
N/COMP
43.0
35.7
(1.8)
6.7
(7.8)
11.6
$715,525
$572,786
$640,914
$761,711 $1,075,141
562,175
109,577
307,696
116,105
38,141
6,761,933
8,074,681
7,238,148
7,594,163
7,163,552
167,363
(71,265)
(14,741)
191,194
119,797
1,168,985
3,207,039
3,844,759
4,196,472
4,029,398
176,585
142,795
498,328
468,619
535,453
269,705
246,444
233,728
223,159
209,179
3,908,112
3,878,077
4,095,190
4,611,751
4,216,080
1,697,098
1,320,940
1,898,553
1,532,430
1,233,880
$15,427,481 $17,481,074 $18,742,575 $19,695,604 $18,620,621
$1,008,385
260,190
7,223,902
254,614
4,066,651
571,569
201,074
4,391,599
984,258
$18,962,242
$904,183
115,304
8,797,002
29,472
5,217,168
139,935
192,507
5,110,272
693,587
$21,199,430
(10.3)
(55.7)
21.8
(88.4)
28.3
(75.5)
(4.3)
16.4
(29.5)
11.8
N/COMP= Not Comparable
64
FIGURE NO. 4-14C
For the Years 2002, 2003, 2004, 2005, 2006, 2007 and 2008
Item
Stockholder's Equity:
Preferred Stock
Common Stock
Other Paid in Capital
Retained Earnings
Other
Total Stockholder's Equity
Total Liabilities & Stockholder's Equity
STATISTICAL INFORMATION (N.C. ONLY):
Systems Sales to Ultimate Consumer (kWh in 000s)
System Sales for Resale (kWh in 000s)
Total Sales to Ultimate Customers & For Resale (000s)
Total Customers--Yearly Average
Average Number kWhs Used per Residential Customer
Average Revenue per kWh--Residential Customer (cents)
Number of Employees Residing in N. C.
Wages & Salaries Paid N. C. Employees
SYSTEMWIDE DATA:
Operating Revenues
Operating Expenses
Net Other Income (Expense)
Net Income
Preferred Dividends
Net Income for Common Shareholders
STATISTICAL INFORMATION (SYSTEMWIDE):
Long-Term Debt
Long-Term Debt % of Total Capitalization
Shares of Common Stock Outstanding-Year End (000s)
Average Earnings Per Share--Shares at Year
End (After Preferred Stock Dividends)
2002
2003
2004
2005
2006
2007
2008
180,354
156,412
156,609
59,093
59,349
60,885
61,539
8,668,051
8,533,753
9,807,902
9,443,024
1,615,503
1,662,739
1,688,158
197,666
191,059
226,864
318,992
2,697,522
2,750,187
2,835,894
2,450,838
2,102,493
1,754,565
3,057,387
3,508,663
4,358,150
5,374,170
3,086,824
2,269,132
3,152,794
2,589,302
(273,277)
(175,458)
(323,996)
$14,583,733 $13,252,849 $15,098,734 $15,467,798 $7,607,760
$8,656,503
$9,635,765
$30,011,214 $30,733,923 $33,841,309 $35,163,402 $26,228,381 $27,618,745 $30,835,195
% Change
2007-2008
1.1
1.5
3.1
23.3
84.7
11.3
11.6
100,274,950 91,758,912 94,891,449 96,636,387 95,317,418
99,015,592
23,995,215 24,204,526 19,482,314 22,229,808 20,415,452
22,881,235
124,270,165 115,963,438 114,373,763 118,866,195 115,732,870 121,896,827
3,064,431
2,953,236
2,979,660
3,043,072
3,107,726
3,171,093
13,588
13,124
13,629
13,942
13,318
13,996
7.77
7.88
7.98
8.13
8.42
8.13
13,771
12,884
12,330
12,228
12,003
12,003
$1,015,842
$996,293 $1,041,595
$979,657 $1,042,404
$982,230
97,207,479
20,493,767
117,701,246
3,220,391
13,584
8.79
12,511
$1,125,214
(1.8)
(10.4)
(3.4)
1.6
(2.9)
8.1
4.2
14.6
$13,440,187 $13,496,765 $14,011,400 $15,098,100 $15,107,293 $16,371,448
10,782,259 10,919,510
9,436,369
8,138,946
9,663,529
8,968,839
$2,657,928 $2,577,255 $4,575,031 $6,959,154 $5,443,764
$7,402,609
(114,304) (2,287,535)
450,898
625,163
285,473
77,412
$2,543,624
$289,720 $5,025,929 $7,584,317 $5,729,237
$7,480,021
$17,213,609
9,569,164
$7,644,445
236,077
$7,880,522
5.1
6.7
3.3
205.0
5.4
31,150
$2,574,774
(28,313)
$318,033
$12,900,997 $15,028,367
25,485,365 23,076,142
50.6
65.1
(27,693)
$5,053,622
(31,042)
$7,615,359
(18,685)
$5,747,922
(18,685)
(19,623)
5.0
$7,498,706
$7,900,145
5.4
$1,388,796 $13,543,005 $13,432,296 $14,454,239
26,632,247 27,417,484 18,110,804
20,194,782
51.8
49.4
74.2
71.6
$16,888,299
35,121,853
48.1
16.8
73.9
(32.8)
1,270,398
1,286,400
1,352,840
1,323,740
395,857
395,857
369,441
(6.7)
$2.03
$0.25
$3.74
$5.75
$14.52
$18.94
$21.38
12.9
N/COMP = Not Comparable
65
V. THE NATURAL GAS INDUSTRY
67
FIGURE NO. 5-2
NORTH CAROLINA GAS COMPANIES
As of December 31, 2009
CARDINAL PIPELINE COMPANY, LLC
c/o Public Service Gas Company of NC, Inc.
P. O. Box 1398
GASTONIA, NORTH CAROLINA 28053-1398
(704)834-6466
FRONTIER ENERGY, LLC
1927 BRIDGE STREET
ELKIN, NORTH CAROLINA 28621-2105
(910)526-2690
PIEDMONT NATURAL GAS COMPANY, INC.
P. O. BOX 33068
CHARLOTTE, NORTH CAROLINA 28233-3068
(704)731-4286
PUBLIC SERVICE COMPANY OF
NORTH CAROLINA, INC.
P. O. BOX 1398
GASTONIA, NORTH CAROLINA 28053-1398
(704)834-6556
MUNICIPAL GAS AUTHORITY OF GEORGIA/CITY
OF TOCCOA, GEORGIA
CITY OF TOCCOA
P. O. BOX 579
203 N. ALEXANDER STREET
TOCCOA, GEORGIA 30577
(706)886-8451
FIGURE NO. 5-3
N. C. MUNICIPAL GAS SYSTEMS
As of December 31, 2009
Bessemer City, City of
132 West Virginia Avenue
Bessemer City, North Carolina 28016-2399
Monroe, City of
P. O. Box 69
Monroe, North Carolina 28111-0069
Greenville Utilities Commission
P. O. Box 1847
Greenville, North Carolina 27835-1847
Rocky Mount, City of
P. O. Drawer 1180
Rocky Mount, North Carolina 27802-1180
Kings Mountain, City of
P. O. Box 429
Kings Mountain, North Carolina 28086-0429
Shelby, City of
P. O. Box 207
Shelby, North Carolina 28151-0207
Lexington, City of
P. O. Box 649
Lexington, North Carolina 27293-0649
Wilson, City of
P. O. Box 10
Wilson, North Carolina 27894-0010
68
transportation of natural gas supplies, in oil
and gas exploration and development, and
in the sale of propane and associated
products, commercial and industrial coal
and fuel oil, and residential and commercial
gas appliances.
Piedmont is headquartered in
Charlotte, North Carolina.
Frontier Energy LLC, (Frontier)
was granted a Certificate of Public
Convenience and Necessity to construct,
own, and operate an intrastate pipeline and
local distribution system to serve Surry,
Wilkes, Yadkin, and Watauga Counties on
January 30, 1996. Ashe and Alleghany
Counties were added to Frontier Utilities’
certificated territory on August 16, 1996.
Frontier received certification to construct
and operate a natural gas transmission and
distribution system in Warren County in
Docket No. G-38, Sub 1, on March 27,
1997. Frontier’s North Carolina operations
serve an estimated 2,798 square miles and
757 customers.
On September 13, 2007, the
Commission issued an order (1) approving
the purchase of all shares of stock of
Frontier Utilities of North Carolina, Inc.
(FUNC), the immediate parent company of
Frontier Energy, by Energy West, Inc., (2)
authorizing the transfer of control of all of
Frontier Energy’s rights and obligations
under all certificates of public convenience
and necessity issued by the Commission to
Frontier Energy, (3) terminating any and all
rights and obligations of Sempra Energy,
the parent company of FUNC, regarding its
financing and ownership of Frontier Energy,
and (4) approving the financing and
ownership of Frontier Energy by Energy
West.
Frontier is headquartered in Elkin,
North Carolina.
Toccoa Natural Gas (Toccoa)
provided service to 460 customers in and
around Franklin in Macon County, North
Carolina in 2008. Toccoa is a municipal
corporation in the state of Georgia and
serves nearly 7,000 customers, most of
them in Georgia. Toccoa was granted
certification in December of 1998.
THE NATURAL GAS INDUSTRY
A. A BRIEF HISTORY OF THE NATURAL
GAS INDUSTRY
The
North
Carolina
Utilities
Commission regulated four natural gas local
distribution companies (LDCs) in 2008.
They were as follows: Piedmont Natural
Gas Company, Inc.; PSNC Energy; Frontier
Energy, LLC; and Toccoa Natural Gas.
Figure No. 5-1 is a map illustration of
natural gas service areas in North Carolina.
Figure No. 5-2 is a list of the regulated
companies and Figure No. 5-3 is a list of the
North Carolina Municipal Gas Systems.
PSNC
Energy
(PSNC)
was
incorporated
in
1938,
and
served
approximately
467,862
natural
gas
customers in 26 counties in the piedmont
and mountain areas of North Carolina in
2008. Public Service Company of North
Carolina became a wholly owned subsidiary
of SCANA Corporation to become PSNC
Energy as approved by Commission Order
dated December 7, 1999, in Docket No.
G-5, Sub 400. PSNC continues to maintain
and issue its own debt and remains a
separate entity from SCANA with its own
Commission approved capital structure. The
31-county service area is approximately
10,000 square miles with a population of
more than 2,300,000.
PSNC delivers
natural gas products and services to
residential,
commercial,
industrial,
transportation,
and
electric
power
generation customers as well as to other
local distribution companies. Public Service
is headquartered in Gastonia, North
Carolina.
Piedmont Natural Gas Company,
Inc. (Piedmont) is a diversified energy and
services company primarily engaged in the
purchase, distribution, and sale of natural
and propane gas to more than one million
residential, commercial, and industrial
customers in North Carolina, South
Carolina, and Tennessee.
Of these,
663,924 are North Carolina customers.
Piedmont and its subsidiaries are also
engaged in the acquisition, marketing, and
69
of ultimate consumers in millions of
dekatherms by the North Carolina regulated
natural gas companies for the years 20032008 by major customer classification.
Figure No. 5-8 is a summary of
natural gas sales of
dekatherms and
revenues, by customer classification for the
years 2003-2008.
In 2008 industrial sales totaled more
than 13 million dekatherms. This reflects a
7.0% increase from the 2007 sales. Total
industrial sales of dekatherms accounted for
5.8% of total natural gas sales in North
Carolina by the regulated natural gas
companies. Residential sales accounted for
26.4% of the total dekatherm sales; an
increase of 10.0%.
Figure No. 5-9 shows total customer
growth, total revenues from the dekatherms
of gas sold and transported by the LDCs,
and the municipal gas systems for the years
2007 and 2008.
The municipals experienced a .2%
decrease in the number of customers in
2008 over 2007, while the regulated gas
utilities increased by 1.6%. Revenues from
the sales of gas in 2008 increased at a rate
of 15.6% for the regulated gas companies
and increased at a rate of 4.8% for the
municipals. The quantity of gas sold and
transported in terms of dekatherms in 2008
increased 4.2% for the regulated companies
and increased 3.4% for the municipals, for a
combined increase of 4.1%.
In addition to natural gas sold to
customers, the LDCs also transport gas for
end users. This transported gas is neither
bought nor sold by the LDCs, but is
transported to the ultimate consumer at a
rate that will not reduce margin to the LDC.
Since 1983 when gas transported for
others was about 1.4% of all gas delivered
to ultimate consumers, this portion at 2008
constituted 120,230,000 dekatherms or
51.1% of all gas delivered to ultimate
consumers. See Figure No. 5-8A.
PSNC and Piedmont Natural Gas
Company, Inc., formed Cardinal Pipeline
Company, LLC in March 1994 to construct
an intrastate transmission pipeline. This 24inch diameter natural gas pipeline was
placed into service on December 31, 1994,
and extends 37.5 miles from a connection
with
Transcontinental
Gas
Pipeline
Corporation (TRANSCO) near Reidsville to
Burlington where it connects to pipelines of
PSNC and Piedmont. A second project is a
65-mile extension of the pipeline to a point
southeast of Raleigh.
Pine Needle LNG Company, LLC
(Pine Needle), was formed by Transco,
Piedmont, NCNG, Amerada Hess, PSNC,
and the Municipal Gas Authority of Georgia
to own and operate a liquefied natural gas
storage facility with a capacity of four billion
cubic feet. The Federal Energy Regulatory
Commission issued an order granting a
certificate on November 27, 1996,
authorizing construction.
B.
PLANT
EXPANSION
INVESTMENT
AND
The LDCs continued expansion of
services by investing in the plant facilities
for the 2008
calendar year.
As of
December 31, 2008, their combined North
Carolina total gross investment for the year
was $3,634,161,000. This represents an
increase of 7.0% from the preceding year.
Figure No. 5-4 shows the gross plant
investment for the natural gas companies
for the period 1978-2008.
C.
GROWTH TRENDS--CUSTOMERS,
REVENUES, VOLUME
In 2008 the annual average number
of natural gas utility customers increased
1.6% from the previous year. Figure No. 5-5
shows numerically
the customers by
classification for the years 1980-2008.
Figure No. 5-6 shows graphically the
customer growth for the years 2002-2008 by
major customer classification.
Figure No. 5-7 shows graphically the
sales volume of natural gas to the classes
70
D.
COMPARISONS OF RESIDENTIAL
BILLS, USAGE, AND COST PER
DEKATHERM
MECHANISMS FOR TRACKING
MARGIN FLUCTUATIONS, GAS COST
CHANGES, AND OTHER REVENUE
CHANGES: Following is a list of trackers
and mechanisms authorized by the North
Carolina Utilities Commission to allow
recovery of changes in gas costs,
exploration, and margin fluctuations for the
natural gas utilities.
Rider D: The Rider D mechanism
was approved by the Commission in 1986
and gave companies an opportunity to
offset losses resulting from customers
negotiating lower gas prices in lieu of
purchasing alternate fuel.
PSNC and
Piedmont made proposals and were
granted the Rider D mechanism. In 1988
Piedmont dropped the mechanism and
implemented its Purchased Gas Adjustment
Procedures.
Under the Rider D, the
purchased gas adjustment procedure
enables the LDC to negotiate lower rates
with customers and to recover any margin
losses resulting thereof by spot market
purchases. In summary the Rider D allows
losses in margin, resulting from negotiating
prices downward, to be offset by savings
achieved through the company purchasing
lower cost spot gas. In 1991, G.S. 62-133.4
was amended which led to Commission
Rule R1-17(k)3 which in effect establishes
all LDCs with a “Rider D” type mechanism.
Weather
Normalization
Adjustment (WNA) was approved by the
Commission in the 1991 general rate cases
of Piedmont and NCNG and began in the
1991-1992 winter heating season. The
mechanism
adjusts
heat-sensitive
customers’ bills to reflect normal weather
during the winter heating season. Monthly
credits or surcharges are made to
customers’ bills based on the deviation of
actual heating degree days from that of
long-term
normal
weather.
The
adjustments surcharged to heat-sensitive
The average annual usages and
cost data for the North Carolina natural gas
companies are shown in Figure No. 5-10.
E.
GAS
SITUATIONS,
CASES
TRACKINGS, SPECIAL
AND GENERAL RATE
Wholesale
Price
Changes:
Pursuant to authority granted to the Utilities
Commission in G.S. 62-133 by the 1971
General Assembly, the Commission, in
Docket No. G-100, Sub 14, established
procedures under which gas companies in
North Carolina could pass on to their
customers wholesale increases in the cost
of gas to them by their pipeline suppliers.
This tracking authority has reduced the
amount and number of general rate cases
filed with the Commission during the years
since 1972. It has also reduced the lag time
the companies would have experienced in
recouping the increased gas costs which
have a direct impact on the companies’
level of earnings. Figure No. 5-11 shows
the gas tracking changes approved by the
Commission for the calendar year 2008.
Special Situations: These gas
trackings can be both increases and
decreases in the cost of wholesale gas from
pipeline suppliers.
The distributing
companies maintain a “deferred” account in
which the changes in cost of gas from the
filed tariff rate are accounted for, and at an
appropriate time applications to receive or
refund the net effect are made with the
Commission.
The tracking proceedings
under which these pass-ons are allowed
involves filing of data by gas utilities
essentially in the same format as filing for
general rate proceedings. This data is
reviewed and analyzed by both the
Commission and Public Staff’s Engineering
and Accounting Divisions.
71
customers by the LDCs for the fiscal years’
heating season were as follows:
The Company’s previous rate
structure created a conflict between the
interests of the Company and its customers
when it came to conservation.
While
conservation
benefits
customers
by
reducing the amount of gas they use,
conservation has the potential to harm the
Company and its shareholders because it
reduces the ability of the Company to
recover it approved margin and to provide
the return reasonably expected by the
Company’s shareholders.
This conflict,
which is due to the highly volumetric rate
structure, is not in the public interest.
In past rate cases, the Commission
has approved increases in the monthly fixed
charge component of Piedmont’s rates for
its residential and commercial customers in
order to partially address risks from a
predominantly volumetric rate structure,
even though such increases are not popular
with some, if not most, customers.
On October 24, 2008, in Docket No.
G-5, Sub 311, the Commission issued an
Order Approving Partial Rate Increase and
Requiring
Conservation
Filing
and
Reporting in Docket No. G-5, Sub 495.
That order approved the establishment of
the CUT for PSNC and a corresponding
termination of the WNA rider in PSNC’s
tariffs.
The implementation of the CUT
allows the Company to earn the margin the
Commission determined it should earn in
the last general rate case without the use of
higher monthly charges. When customers
use more gas than determined in the rate
case, there is a credit (reduction) in the CUT
account, which is held separate by
Piedmont. Similarly, when customers use
less gas than determined in the rate case,
there is a surcharge (increase) in
customers’ CUT account. Twice a year, in
April and November, the Company is
permitted to adjust rates to either collect
shortfalls or refund overcharges depending
on the CUT balance.
In
addition,
declining
margin
recovery resulting from declining per
customer usage creates pressure to file for
more frequent and larger rate increases.
1991-1992
$14,349,016
1992-1993
$ 1,471,616
1993-1994
$ 1,082,904
1994-1995
$13,761,829
1995-1996
($16,846,280)*
1996-1997
$14,334,699
1997-1998
$ 7,452,870
1998-1999
$22,624,110
1999-2000
$17,095,698
2000-2001
($11,395,880)
2001-2002
$26,171,684
2002-2003
($12,694,637)
2003-2004
($ 3,531,406)
2004-2005
$ 9,586,007
2005-2006
$ 6,106,235
2006-2007
$ 9,709,726
2007-2008
$ 9,880,436
*Colder than normal weather for the 19951996 winter resulted in this first time net
credit to gas customers.
In 2005 Piedmont was allowed to
discontinue the WNA and substitute it with a
Customer Utilization Tracker Mechanism
(CUT). PSNC’s WNA was discontinued by
Order in Order No.
G-5, Sub 311, dated
October 24, 2008, and replaced with a
Customer Utilization Tracker mechanism.
Customer Utilization Tracker: The
Customer Utilization Tracker (CUT) was
approved in Piedmont Natural Gas
Company, Inc.’s (Piedmont’s) last general
rate case, which became effective
November 1, 2005. The reasoning behind
the implementation of the CUT was to
recognize that residential customer usage of
natural gas is declining, while the cost of
each unit (therm) of gas has increased. By
North Carolina Law, a public utility like
Piedmont is allowed to recover its costs plus
a reasonable profit (called margin). Since
the vast majority of Piedmont’s costs are
fixed in nature and do not vary with
customer usage, its ability to recover those
cost is highly dependent on customer usage
and the charge per therm.
72
amendment was added to Section 62-50 of
the General Statutes which authorized the
North Carolina Utilities Commission to
administer a state program pertaining to the
design, installation, inspection, testing,
construction,
extension,
operation,
replacement, and maintenance of pipeline
facilities used to transport natural gas in
North Carolina.
The procedures and standards
adopted by the North Carolina Utilities
Commission as authorized under Section
62-50 is known as the North Carolina Gas
Pipeline Safety Code. This code is a
mandatory requirement under state law and
noncompliance by any persons engaged in
the transportation of gas or persons who
own or operate pipeline facilities are subject
to a civil penalty not to exceed $25,000 per
violation for each day that such violations
persist, except that the maximum civil
penalty shall not exceed $500,000 for any
related series of violations. The law also
provides authority for the Commission to file
suit to restrain violations of the Code,
including the restraint of transportation of
gas for the operation of the pipeline
facilities. The North Carolina Gas Pipeline
Safety Code is comprised of five basic
sections: Part 191 (Report of Leaks), Part
192 (Minimum Federal Safety Standards),
Part 193 (Liquefied Natural Gas Facilities)
Part 198 (Grants), and Part 199 (Drug
Enforcement). In order to comply with the
certification
of
the
Secretary
of
Transportation, the Commission must adopt
as part of its Code all minimum federal
safety standards.
There are five major gas utilities,
eight municipal gas systems, three landfill
gas systems, one intrastate transmission
system, three LNG facilities and seven cities
or towns which have Public Housing
Authorities gas systems in North Carolina.
These systems comprise 81 inspection units
which are inspected on an annual basis for
compliance with the North Carolina Gas
Pipeline Safety Code.
These systems
include 3,337 miles of transmission mains
and 27,703 miles of distribution mains
Rate cases are substantial, lengthy and
expensive undertakings ultimately paid for
by ratepayers. The CUT helps alleviate the
frequency of rate cases.
Benefits and results from the CUT
mechanism include: customer savings from
utilization of smaller amounts of natural gas;
a credit to customer in the event of colder
than normal weather
(higher than
anticipated usage); the creation of
downward
pressure
on
short-term
wholesale gas rates from lower demand;
enhanced opportunities for utilities to
recover their fixed costs and a better
opportunity to earn their allowed return;
enhancement of state policies to increase
economic development; enhanced abilities
for state public utility commissioners to
support larger state policy objectives (such
as
conservation);
and
finally,
the
implementation of the CUT allowed the
companies to discontinue the Weather
Normalization Adjustment (WNA) that has
been in Piedmont’s and PSNC’s rates.
Rate Cases:
There were two
general rate cases filed in 2008. See Figure
No. 5-12.
F. NATURAL GAS PIPELINE SAFETY
History and Overview: Public Law
90-481, better known as the Natural Gas
Pipeline Safety Act of 1968 was passed on
August 12, 1968, by the United States
Congress.
This Act authorized the
Secretary of Transportation to administer
this law, develop standards, and regulate
enforcement of such standards for the
design, installation, inspection, testing,
construction,
extension,
operation,
replacement, and maintenance of pipeline
facilities.
Section 60105A of this Act
authorized each state to regulate these
minimum standards through certification
by the Secretary of Transportation providing
certain provisions are met. Section 62-50
(Safety Standards of Interstate and
Intrastate Natural Gas Pipelines) was
enacted as Chapter 1134 of the 1967
Session Laws and became effective on
January 1, 1968. In the 1969 Legislature an
73
serving 1,320,173 customers in North
Carolina.
Enforcement Activity: Taking into
consideration the fact that there were
multiple inspectors working on the same
day on different inspections during 2008,
the Gas Pipeline Safety Section of the
Commission spent the equivalent of 460
days inspecting 39 natural gas operators.
Of the 81 units inspected, 12 violations were
detected. By the end of the year, all of the
violations had been corrected. The cost of
conducting the pipeline program for 2008
was $528,430 of which $320,583 was
refunded
to the State from the US
Department of Transportation.
G. SOURCE AND DISPOSITION OF THE
GAS REVENUE DOLLAR
Shown in Figure No. 5-13 is a
comparison chart reflecting both the source
and disposition of the gas revenue dollar for
the years 2000 through 2008. In Figure No.
5-14 this same information is illustrated in
pie charts for both the source and
disposition of the gas revenue dollar for
2008.
H. STATISTICAL SUMMARY DATA
The total gross operating revenues
for the Class A natural gas North Carolina
companies was almost $1.8 billion in 2008.
Operating
expenses
including
taxes
increased 16.8% in 2008.
The average number of full-time
employees in 2008 totaled 2,168, a
decrease of 16 people or .7% from 2007.
The total wages paid these employees
equaled $132,518,000, an 8.8% increase
from the previous year. Figure No. 5-15C
has additional financial and operating
statistical data for the years 2003 through
2008.
74
FIGURE NO. 5-4
NATURAL GAS COMPANIES--CLASS A
GROSS PLANT INVESTMENTS--YEAR-END DATA ($000s)
(N.C. Data Only)
1978-2008
Year
North Carolina
Piedmont
Public
United
Natural
NUI North
Natural
Service Co.
Cities
Gas Company Carolina Gas Gas Company of N. C. Gas Company
1978
1979
1980
1981
1982
66,859
70,393
76,058
82,091
87,482
5,595
5,826
6,284
6,406
6,660
125,140
132,120
147,546
160,032
174,280
129,207
137,009
151,932
165,475
184,661
1983
1984
1985
1986
1987
92,729
98,956
113,096
128,428
134,465
6,834
7,061
7,439
7,828
8,114
189,714
206,014
224,957
245,324
272,499
1988
1989
1990
1991
1992
144,351
154,895
170,993
191,473
215,178
8,697
9,634
11,218
12,676
13,586
1993
1994
1995
1996
1997
230,135
251,709
269,313
287,838
316,087
14,628
19,451
20,663
22,380
23,350
1998
1999
2000
2001
2002
351,157
388,398
483,800
552,897
572,865
24,544
27,075
28,049
28,590
**
2003
2004
2005
2006
2007
2008
Percent
Change
2008 over
2007
565,314
585,512
***
329,811
348,559
385,762
418,354
453,083
5.0
5.7
10.7
8.4
8.3
%
%
%
%
%
199,101
219,625
239,663
257,193
284,795
488,378
531,656
585,155
638,773
699,873
7.8
8.9
10.1
9.2
9.6
%
%
%
%
%
315,292
351,261
390,001
426,338
466,994
319,834
359,734
394,597
421,091
448,345
788,174
875,524
966,809
1,051,578
1,144,103
12.6
11.1
10.4
8.8
8.8
%
%
%
%
%
515,571
578,395
625,004
682,364
725,366
485,634
516,390
567,478
624,195
680,505
1,245,968
1,365,945
1,482,458
1,616,777
1,745,308
8.9
9.6
8.5
9.1
7.9
%
%
%
%
%
774,695
836,974
915,736
964,298
1,052,018
737,629
768,285
1,253,297
1,319,641
1,131,321
1,888,025
2,020,732
2,680,882
2,865,426
2,756,204
8.2
7.0
32.7
6.9
(3.8)
%
%
%
%
%
1,053,101
1,085,849
1,789,038
1,868,977
2,008,432
2,165,606
1,153,381
1,178,486
1,228,979
1,314,920
1,389,014
1,468,555
2,771,796
2,849,847
3,018,017
3,183,897
3,397,446
3,634,161
0.6
2.8
5.9
5.5
6.7
7.0
%
%
%
%
%
%
7.8
5.7
7.0
* Public Service Company of N.C., Inc., purchased United Cities Gas Co. in 1982.
** NUI was transferred to Piedmont in 2002.
*** N.C. Natural Gas was purchased by Piedmont.
75
3,010
3,211
3,942
4,350
*
Totals
% Change
From
Prior Year
%
FIGURE NO. 5-5
CUSTOMERS BY CLASSIFICATION (YEARLY AVERAGE)
(N.C. Data Only)
1980-2008
Other
Classes
15,140
14,979
14,962
15,095
15,532
Totals
349,298
360,151
371,720
384,154
397,032
% Change
From
Prior Year
4.9 %
3.1 %
3.2 %
3.3 %
3.4 %
Year
1980
1981
1982
1983
1984
Residential
294,343
304,072
314,108
324,569
335,249
Commercial
37,904
39,108
40,624
42,364
44,147
Industrial
1,911
1,992
2,026
2,126
2,104
1985
1986
1987
1988
1989
348,331
367,393
399,056
413,519
448,928
45,770
48,605
52,465
55,176
59,453
2,535
2,913
2,938
2,988
2,724
15,222
15,099
15,098
14,346
14,210
411,858
434,010
469,557
486,029
525,315
3.7
5.4
8.2
3.5
8.1
%
%
%
%
%
1990
1991
1992
1993
1994
474,592
501,729
532,458
561,391
582,563
63,470
66,201
68,445
70,839
72,275
2,637
2,679
3,206
3,317
3,716
14,024
13,534
12,937
12,076
12,298
554,723
584,143
617,046
647,623
670,852
5.6
5.3
5.6
5.0
3.6
%
%
%
%
%
1995
1996
1997
1998
1999
614,539
637,024
700,643
731,530
770,320
75,036
86,898
92,956
94,252
98,402
4,609
3,204
4,684
6,070
4,361
11,018
10,976
10,654
59,057
59,953
705,202
738,102
808,937
890,909
933,036
5.1
4.7
9.6
10.1
4.7
%
%
%
%
%
2000
2001
2002
2003
2004
801,241
818,992
838,461
882,829
910,642
100,684
92,968
93,754
97,257
99,434
3,781
1,902
1,953
2,000
1,966
53,014
58,996
61,016
1,797
1,734
958,720
972,858
995,184
983,883
1,013,776
2.8
1.5
2.3
(1.1)
3.0
%
%
%
%
%
944,085
977,768
1,006,986
1,024,439
101,203
102,317
103,326
104,554
1,803
1,969
1,937
1,361
1,524
1,548
1,564
1,432
1,048,615
1,083,602
1,113,813
1,131,786
3.4
3.3
2.8
1.6
%
%
%
%
2005
2006
2007
2008
Percent
Change
2008 over
2007
1.7 %
1.2 %
(29.7) %
76
(8.4) %
1.6 %
Figure No. 5-6
Gas Companies--Customer Growth By Classes
Annual Average for Years 2002- 2008
1,100,000
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2002
2003
Residential
2004
2005
Commercial
77
2006
Industrial
2007
Other
2008
Figure No. 5-7
Gas Company Energy Sales by Classes
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Residential
Commercial
2003
2004
Industrial
2005
78
2006
Other
2007
Total
2008
FIGURE NO. 5-8 A
Summary of Natural Gas Deliveries of Dekatherms
Revenues and Customers by Classification with Percent of Totals Shown
Calendar Years 2003, 2004, 2005, 2006, 2007 and 2008
Sales--DTs (000s)
Residential
Commercial
Industrial
Other
Total Sales
Gas Transported for Others
Total Throughput of Gas
Revenues: ($000s)
Residential
Commercial
Industrial
Other Sales
Total Sales of Gas
Other Operating Revenues
Total Revenues
Customers: (Annual Average)
Residential
Commercial
Industrial
Other
Total Customers
Sales--DTs (000s)
Residential
Commercial
Industrial
Other
Total Sales
Revenues: ($000s)
Residential
Commercial
Industrial
Other Sales
Total Sales of Gas
Total Revenues
Customers: (Annual Average)
Residential
Commercial
Industrial
Other
Total Customers
2006
53,727
35,547
12,121
2,057
103,452
108,704
212,156
% of
Total
25.3 %
16.8
5.7
1.0
48.8
51.2
100.0 %
2007
56,638
35,438
14,540
2,066
108,682
117,099
225,781
% of
Total
25.1 %
15.7
6.4
0.9
48.1
51.9
100.0 %
2008
62,216
38,663
13,553
574
115,006
120,230
235,236
% of
Total
26.4 %
16.4
5.8
0.2
48.9 %
51.1
100.0 %
$862,978
463,684
125,825
16,110
1,468,597
96,153
7,600
$1,572,350
54.9 %
29.5
8.0
1.0
93.4
6.1
0.5
100.0 %
$853,810
432,783
140,268
15,958
1,442,819
97,129
10,614
$1,550,562
55.1 %
27.9
9.0
1.0
93.0
6.3
0.7
100.0 %
$992,864
526,779
156,903
6,662
1,683,208
95,823
12,988
$1,792,019
55.4 %
29.4
8.8
0.4
94.0
5.3
0.7
100.0 %
977,768
102,317
1,969
2,086
1,084,140
90.2 %
9.4
0.2
0.2
100.0 %
1,006,986
103,326
1,937
1,564
1,113,813
90.4 %
9.3
0.2
0.1
100.0 %
1,024,439
104,554
1,361
1,432
1,131,786
90.5 %
9.3
0.1
0.1
100.0 %
2003
67,153
41,599
16,317
10,634
135,703
77,085
212,788
% of
Total
31.6 %
19.5
7.7
5.0
63.8
36.2
100.0 %
2004
60,586
38,696
14,729
10,377
124,388
91,587
215,975
% of
Total
28.1 %
17.9
6.8
4.8
57.6
42.4
100.0 %
2005
61,883
39,461
14,320
4,243
119,907
102,570
222,477
% of
Total
27.8 %
17.7
6.5
1.9
53.9
46.1
100.0 %
$735,767
393,817
130,079
64,876
1,324,539
71,365
84,347
$1,480,251
49.7 %
26.6
8.8
4.4
89.5
4.8
5.7
100.0 %
$739,824
394,629
122,630
70,034
1,327,117
86,874
2,442
$1,416,433
52.2 %
27.9
8.7
4.9
93.7
6.1
0.2
100.0 %
$934,100
512,000
162,642
45,495
1,654,237
95,392
14,495
$1,764,124
53.0 %
29.0
9.2
2.6
93.8
5.4
0.8
100.0 %
882,829
97,257
2,000
1,797
983,883
89.7 %
9.9
0.2
0.2
100.0 %
910,642
99,434
1,966
1,734
1,013,776
89.8 %
9.8
0.2
0.2
100.0 %
944,085
101,203
1,803
1,524
1,048,615
90.0 %
9.7
0.2
0.1
100.0 %
79
FIGURE NO. 5-8 B
Percent Change in Deliveries of Gas: (Dekatherms)
Sales--DTs (000s)
Residential
Commercial
Industrial
Other
Total Sales
Sales--DTs (000s)
Residential
Commercial
Industrial
Other
Total Sales
2006
53,727
35,547
12,121
2,057
103,452
108,704
212,156
2003
67,153
41,599
16,317
10,634
135,703
77,085
212,788
2007
56,638
35,438
14,540
2,066
108,682
117,099
225,781
2006-2007
% Change
5.4 %
(0.3)
20.0
0.4
5.1 %
7.7
6.4 %
2004
60,586
38,696
14,729
10,377
124,388
91,587
215,975
2003-2004
% Change
(9.8) %
(7.0)
(9.7)
(2.4)
(8.3) %
18.8
1.5 %
80
2008
62,216
38,663
13,553
574
115,006
120,230
235,236
2007-2008
% Change
9.8 %
9.1
(6.8)
(72.2)
5.8 %
2.7
4.2 %
2005
61,883
39,461
14,320
4,243
119,907
102,570
222,477
2004-2005
% Change
2.1 %
2.0
(2.8)
(59.1)
(3.6) %
12.0
3.0 %
2006
53,727
35,547
12,121
2,057
103,452
108,704
212,156
2005-2006
% Change
(13.2) %
(9.9)
(15.4)
(51.5)
(13.7) %
6.0
(4.6) %
FIGURE NO. 5-9
REGULATED AND MUNICIPAL GAS SYSTEMS
Total Number of Customers, Total Revenue from Sales and Transportation of Gas, and Total Dekatherms Sold
($, Dekatherms in 000s)
COMPANY
Total Number of Customers
Yearly Average
% Change
2007
2008
2007-2008
Total Revenues From Sales and
Transportation of Gas (000's)
% Change
2007
2008
2007-2008
Total Dekatherms of Gas Sold
and Transported (000's)
% Change
2007
2008
2007-2008
Class A:
Piedmont Natural Gas
Public Service Co. of N.C.
Total--Regulated Utilities
656,538
663,924
457,275
467,862
1,113,813 1,131,786
1.1 %
970,654 1,121,743
2.3
579,908
670,276
1.6 % $1,550,562 $1,792,019
15.6 %
15.6
15.6 %
156,451
69,330
225,781
163,595
71,631
235,226
4.6 %
3.3
4.2 %
Municipals:
Bessemer City
Greenville, City of
Kings Mountain, City of
Lexington, City of
Monroe, City of
Rocky Mount, City of
Shelby, City of
Wilson, City of
Total--Municipals
GRAND TOTALS--ALL GAS SYSTEMS
1,383
1,351
26,709
27,376
3,797
3,834
12,044
12,405
11,856
12,180
18,113
17,052
10,418
10,432
14,196
13,649
98,516
98,279
1,212,329 1,230,065
(2.3) %
$1,414
$1,538
2.5
46,278
53,462
1.0
7,007
8,094
3.0
25,790
25,489
2.7
19,286
19,940
(5.9)
29,526
28,531
0.1
18,759
20,017
(3.9)
22,336
21,491
(0.2) %
$170,396
$178,562
1.5 % $1,720,958 $1,970,581
8.8 %
15.5
15.5
(1.2)
3.4
(3.4)
6.7
(3.8)
4.8 %
14.5 %
147
2,794
698
3,792
3,095
1,858
2,931
1,386
16,704
242,485
77
3,732
690
3,686
3,066
1,764
2,880
1,373
17,269
252,495
(47.6) %
33.5
(1.2)
(2.8)
(0.9)
(5.0)
(1.8)
(1.0)
3.4 %
4.1 %
Municipal data for fiscal years ended June 30.
NA = Not Available N/COMP = Not Comparable
81
FIGURE NO. 5-10
RESIDENTIAL NATURAL GAS CUSTOMERS' AVERAGE DEKATHERM USAGE AND COST DATA
North Carolina and Selected Gas Companies Outside North Carolina
For the Years 2003, 2004, 2005, 2006, 2007 and 2008
Company
N. C. Gas Companies:
(N.C. Data Only)
2003
Annual Dekatherm Use*
2004 2005 2006 2007
2008
2003
Rate per Dekatherm
2004
2005
2006
2007
Piedmont Natural Gas Co., Inc.
81
68
66
55
56
61
10.46
11.82 14.96
Public Service Co. of N.C., Inc.
71
66
65
55
56
60
11.78
12.52 15.29
Average
76
67
66
55
56
61 $10.96 $12.21 $15.09
* Note: Dekatherm use figures have been rounded, therefore, the total annual cost is not exact.
NA - Not Available
82
16.45
15.49
$16.06
15.13
15.00
$15.07
2008
2003
2004
15.78
16.21
$15.99
847.26
836.39
$832.70
803.96
826.26
$818.15
TOTAL ANNUAL COST
2005
2006
2007
987.56
993.74
$996.26
905.00
852.21
$883.43
832.16
824.85
$829.12
2008
962.62
972.84
$829.12
FIGURE NO. 5-11
GAS TRACKING CHANGES APPROVED
2008
Date
Filed
Docket No.
Piedmont Natural Gas Company, Inc.
04/01/08
06/01/08
10/01/08
G-9, Sub 551
G-9, Sub 553
G-9, Sub 555
$80,236,814
$200,592,035
($220,655,176)
$1.0190
$2.5475
($2.8023)
Public Service Company of NC, Inc.
06/01/08
07/01/08
10/01/08
11/01/08
G-5, Sub 496
G-5, Sub 498
G-5, Sub 500
G-5, Sub 501
$84,187,532
$94,713,056
($105,234,415)
($42,093,766)
$2.0220
$2.2748
($2.5275)
($1.0110)
Company
Total
Increase/
(Decrease)
Increase/
(Decrease)
Per Dekatherm
$91,746,080
83
FIGURE NO. 5-12
GENERAL RATE INCREASES APPROVED
GAS COMPANIES
2008
Amount
Requested
($)
Amount
Approved
($)
% Approved
Of Amount
Requested
Date of
Final
Order
Company
Date
Filed
Docket No.
Piedmont Natural Gas Company, Inc.
03/31/08
G-9, Sub 550
$40,516,128
$15,680,886
38.70%
10/24/08
Public Service Company of NC, Inc.
03/31/08
G-5, Sub 495
$20,441,501
$728,277
3.56%
10/24/08
$60,957,629
$16,409,163
26.92%
Total
84
FIGURE NO. 5-13
SOURCE AND DISPOSITION OF THE OPERATING REVENUE DOLLAR
(N.C. DATA ONLY)
For the Years 2000-2008
Source
Residential
Commercial
Industrial
Other
Total
2000
43%
23%
19%
15%
100%
2001
49%
26%
9%
16%
100%
2002
47%
23%
13%
17%
100%
2003
50%
27%
9%
14%
100%
2004
52%
28%
9%
11%
100%
2005
53%
29%
9%
9%
100%
2006
55%
30%
8%
7%
100%
2007
55%
28%
9%
8%
100%
2008
55%
29%
9%
7%
100%
Disposition
Cost of Purchased Gas
Other Operating Expenses
Depreciation & Amortization
Income Taxes
General Taxes
Interest & Preferred Dividends
Common Stock Earnings
Total
2000
66%
14%
7%
3%
2%
3%
5%
100%
2001
81%
3%
7%
3%
2%
2%
2%
100%
2002
84%
2%
12%
4%
1%
2%
-5%
100%
2003
67%
14%
6%
4%
1%
3%
5%
100%
2004
65%
16%
6%
3%
1%
1%
8%
100%
2005
72%
13%
5%
3%
1%
1%
5%
100%
2006
65%
15%
6%
3%
2%
0%
9%
100%
2007
64%
15%
6%
3%
2%
-2%
12%
100%
2008
78%
0%
6%
4%
2%
-1%
11%
100%
85
Figure No. 5-14
Source and Disposition of the Revenue Dollar
Gas Companies (North Carolina Data Only) for 2008
SOURCE:
Other Sales, 1.1%
Industrial, 8.8%
Commercial, 29.4%
Residential, 55.4%
Gas Transported for
Others, 5.3%
DISPOSITION:
Common Stock
Earnings, -1.1%
Interest, 11.0%
General Taxes, 1.7%
Income Taxes, 3.7%
Other Operating
Expenses, 0.0%
Depreciation &
Amortization, 6.3%
Cost of Purchased
Gas, 78.4%
86
FIGURE NO. 5-15A
CLASS A GAS COMPANIES
INCOME STATEMENT, BALANCE SHEET, AND CUSTOMER STATISTICS
For the Years 2003, 2004, 2005, 2006, 2007 and 2008
ITEM
Number of Companies Regulated
Number Included in This Data
INCOME STATEMENT (000s):
Sales--Residential
Commercial
Industrial
Other Sales
Total Sales of Gas
Total Gas Operating Revenues
Expense Items:
Production Expense
Transmission Expense
Distribution Expense
Customer Accounts Expense
Sales Expense
Administrative & General Expense
Depreciation Expense
Natural Gas Storage
Customer Service & Informational Expense
Other Expense
Total Operating Expenses Before Taxes
State Taxes:
Income Tax
Gross Receipts Tax
Property Tax
Total State Taxes
Federal Taxes:
Income Tax
Provision for Deferred Taxes
Investment Tax Credit
Payroll, Unemployment & Other Federal Taxes
Total Federal Taxes
Total State & Federal Taxes
Total Operating Expenses
Other Income & Expenses
Other Income
Allowance for Funds Used During Construction
Deductions from Income
Taxes on Other Income & Deductions
Total Other Income & Expense
Fixed Charges
Interest on Funded Debt
Other Fixed Charges
Allow. for Borrowed Funds Used During Construction
Total Fixed Charges
Extraordinary Items
Net Income
N/C = Not Comparable
2003
2004
7
3
2005
6
3
2006
5
2
2007
4
2
% Change
2007-2008
2008
4
2
4
2
$735,767
393,817
130,079
64,876
1,324,539
71,365
84,347
$1,480,251
$739,824
394,629
122,630
70,034
1,327,117
86,874
2,442
$1,416,433
$934,100
512,000
162,642
45,495
1,654,237
95,392
14,495
$1,764,124
$862,978
463,684
125,825
16,110
1,468,597
96,153
7,600
$1,572,350
$853,810
432,783
140,268
15,958
1,442,819
97,129
10,614
$1,550,562
$992,864
526,779
156,903
6,662
1,683,208
95,823
12,988
$1,792,019
16.3 %
21.7
11.9
(58.3)
16.7
(1.3)
22.4
15.6 %
$990,467
7,071
50,780
38,878
7,543
104,343
88,473
3,034
454
708
$1,291,751
$924,976
7,328
53,352
38,185
6,595
111,786
88,160
2,783
650
15
$1,233,830
$1,242,351
6,295
55,915
37,351
6,847
114,670
90,297
3,057
923
292
$1,557,998
$1,022,300
6,376
56,671
34,943
6,471
120,356
94,351
2,674
1,957
146
$1,346,245
$1,002,048
7,828
58,378
30,032
7,316
122,085
94,765
2,452
3,916
185
$1,329,005
$1,219,822
9,285
60,608
27,847
8,858
124,064
98,756
2,584
2,393
(328)
$1,553,889
21.7 %
18.6
3.8
(7.3)
21.1
1.6
4.2
5.4
(38.9)
(277.3)
16.9 %
$5,662
N/A
N/A
$5,662
$8,328
N/A
N/A
$8,328
47.1 %
N/C
N/C
47.1 %
$33,892
7,750
(550)
25,920
$67,012
$72,674
$1,401,679
$148,883
$36,633
12,344
(482)
26,487
$74,982
$83,310
$1,637,199
$154,820
$10,371
N/A
N/A
$10,371
$7,292
N/A
N/A
$7,292
$7,330
N/A
4,960
$12,290
$40,417
3,949
(662)
22,278
$65,982
$76,353
$1,368,104
$112,147
$26,267
7,715
(656)
21,796
$55,122
$62,414
$1,296,244
$120,189
$38,576
6,519
(632)
18,343
$62,806
$75,096
$1,633,094
$131,030
$9,398
128
5,274
$14,800
$46,307
(1,943)
(561)
20,098
$63,901
$78,701
$1,424,946
$147,404
8.1
N/C
(12.4)
2.2
11.9
14.6
16.8
4.0
%
%
%
%
%
$25,850
2,386
1,736
6,263
$20,237
$26,538
2,307
7,515
7,448
$13,882
$28,475
2,536
3,034
8,762
$19,215
$31,276
3,373
2,103
11,526
$21,020
$37,889
3,217
1,013
14,037
$26,056
$42,702
3,289
2,606
16,191
$27,194
12.7 %
2.2
157.3
15.3
4.4 %
$52,528
6,239
209
$58,976
0
$73,408
$51,204
4,713
193
$55,724
0
$78,347
$51,424
4,181
205
$55,400
0
$94,845
$54,771
10,028
276
$64,523
0
$103,901
$57,334
12,788
402
$69,720
0
$105,219
$59,131
9,759
440
$68,450
0
$113,564
3.1 %
(23.7)
9.5
(1.8) %
N/C
7.9 %
87
FIGURE NO. 5-15B
For the Years 2003, 2004, 2005, 2006, 2007 and 2008
2003
BALANCE SHEET (000s):
Utility Plant in Service
Construction Work in Progress
Acquisition Adjustments
Total Utility Plant
Net Utility Plant
$2,771,796
54,008
0
$2,825,804
943,002
$1,882,802
$2,849,847
63,240
0
$2,913,087
1,004,209
$1,908,878
$3,018,017
81,024
0
$3,099,041
940,578
$2,158,463
$3,183,897
80,124
0
$3,264,021
983,635
$2,280,386
$3,397,446
65,705
0
$3,463,151
1,052,813
$2,410,338
$3,634,161
54,038
0
$3,688,199
1,142,917
$2,545,282
7.0 %
(17.8)
N/C
6.5 %
8.6
5.6 %
$759
0
49,762
$50,521
$5,761
8,073
(24)
320,328
5,860
8,480
(86)
24,796
61,798
73,302
0
2,976
2,186
91,219
$2,526,272
$658
0
2,842
$3,500
$8,380
8,282
60
304,043
4,758
8,355
(20)
8,444
55,839
89,026
0
21,703
54,864
97,119
$2,563,715
$512
0
(22,084)
($21,572)
$14,044
1,484
53
466,977
4,232
9,731
43
10,308
81,844
119,114
0
32,765
74,440
90,987
$3,034,449
$413
0
(35,022)
($34,609)
$8,855
567
202
282,233
3,054
11,400
(179)
5,297
103,285
119,310
0
4,483
31,128
170,361
$2,979,665
$340
0
(27,490)
($27,150)
$24,310
67
547
310,926
2,292
11,244
(85)
1,425
104,333
115,565
0
4,818
38,751
163,561
$3,156,358
$259
0
(61,360)
($61,101)
$31,706
68
197
372,140
2,337
10,794
320
0
154,342
147,892
0
4,666
58,641
146,618
$3,409,228
(23.8)
N/C
123.2
N/C
30.4 %
1.5
(64.0)
19.7
2.0
(4.0)
N/C
(100.0)
47.9
28.0
N/C
(3.2)
51.3
(10.4)
8.0 %
261,675
670,228
0
1,361
$933,264
$737,859
313,815
138,393
19,857
7,115
8,539
36,837
5,059
231,275
1,404
92,854
$1,593,007
$2,526,271
393,099
657,445
0
31,199
$1,081,743
$734,454
174,748
192,202
22,784
7,886
8,531
37,618
4,359
248,198
1,192
50,000
$1,481,972
$2,563,715
396,224
645,936
0
66,836
$1,108,996
$710,380
315,455
287,869
24,167
10,170
21,951
225,603
3,704
261,388
59,203
5,563
$1,925,453
$3,034,449
355,131
629,612
0
92,855
$1,077,598
$840,565
264,984
190,828
27,081
8,296
23,070
224,267
3,061
278,387
28,489
13,039
$1,902,067
$2,979,665
335,397
649,985
(629)
133,571
$1,118,324
$846,277
359,381
188,369
27,913
23,725
23,816
212,702
2,571
298,646
61,726
(7,092)
$2,038,034
$3,156,358
342,277
628,658
0
190,918
$1,161,853
$1,010,293
366,503
176,898
28,557
30,021
24,209
270,030
2,174
336,704
(76,289)
78,275
$2,247,375
$3,409,228
Other Property & Investments:
Nonutility Property - Net
Investments in Associated Companies
Other Investments
Total Other Property & Investments
Cash
Special Deposits
Working Funds
Customer Accounts Receivable
Less Accum. Prov. for Uncollectible Acct. Credit
Materials, Supplies, Merchandise
Stores Expense Undistributed
Temporary Cash Investments
Gas Stored Underground
Liquified Natural Gas Stored
Deferred Cost of Purchased Gas
Prepayments
Miscellaneous Current & Accrued Assets
Other Assets
Total Assets
Liabilities & Stockholder's Equity :
Common Stock
Other Paid-in Capital
Premium on Capital Stock
Retained Earnings
Total Stockholder's Equity
Total Long-Term Debt
Notes Payable
Accounts Payable
Customer Deposits
Taxes Accrued
Interest Accrued
Other Current and Accrued Liabilities
Accumulated Deferred Investment Tax Credits
Accumulated Deferred Income Taxes
Miscellaneous Noncurrent
Other Liabilities
Total Liabilities
Total Liabilities & Stockholder's Equity
2004
88
2005
2006
2007
2008
% Change
2007-2008
ITEM
2.1
(3.3)
N/C
42.9
3.9
19.4
2.0
(6.1)
2.3
26.5
1.7
27.0
(15.4)
12.7
(223.6)
(1,203.7)
10.3
8.0
%
%
%
%
FIGURE NO. 5-15C
For the Years 2003, 2004, 2005, 2006, 2007 and 2008
ITEM
SYSTEMWIDE DATA:
BALANCE SHEET ITEMS (000s):
Long-Term Debt
Retained Earnings
Long-Term Debt % of Total Captialization
Average Number of Common Shares Outstanding (Actual)
Earnings Per Average Common Shares Outstanding
(After Preferred Dividends)
CUSTOMER AND MISCELLANEOUS DATA (NC DATA):
Average Annual Use--Residential Customers (DTs)
Total Residential Customers
Grand Total--All Type Customers
Average Number Full-Time Employees
Total Salaries and Wages Paid Employees ($000s)
Average Annual Compensation Per Employee
2003
2004
$737,859
$1,361
$1,671,123
44.2%
34,176
$734,454
$31,199
$1,816,198
40.4%
34,176
2005
$710,380
$66,836
$1,819,376
39.0%
54,336
2006
$840,565
$92,855
$1,918,163
43.8%
52,940
2007
$846,277
$133,571
$1,964,601
43.1%
52,940
2008
$1,240,415
$270,638
$2,402,268
51.6%
74,354
$2.17
$2.29
$1.75
$1.96
$1.99
$1.53
76
882,829
983,883
2,024
$98,189
$48,512
67
910,642
1,013,776
2,374
$121,712
$51,269
66
944,085
1,048,615
2,296
$88,912
$38,725
55
977,768
1,083,605
2,266
$126,299
$55,737
56
1,006,986
1,113,813
2,184
$121,759
$55,750
61
1,024,439
1,131,786
2,168
$132,518
$61,125
N/C = Not Comparable
89
% Change
2007-2008
46.6
102.6
22.3
19.7
40.4
%
%
%
%
%
(23.1) %
8.9
1.7
1.6
(0.7)
8.8
9.6
%
%
%
%
%
%
VI. THE COMMUNICATIONS INDUSTRY
FIGURE NO. 6-1
LOCAL EXCHANGE TELEPHONE COMPANIES UNDER THE JURISDICTION OF
THE NORTH CAROLINA UTILITIES COMMISSION AS OF JANUARY 1, 2010
Barnardsville Telephone Company
P. O. Box 22995
Knoxville, TN 37933-0995
Saluda Mountain Telephone Company
P. O. Box 22995
BellSouth Telecommunications, Inc.
P. O. Box 30188
Charlotte, NC 28230-0188
Service Telephone Company
P. O. Box 22995
(BellSouth i s now under S ubsection (h) price
plan. N CUC c annot regulate r ates, t erms,
conditions, or av ailability of r etail s ervices
(exception for basic and residential service)
Verizon South, Inc.
P. O. Box 1412 NC 103107
Durham, NC 27702
Windstream Concord Telephone Inc.
68 Cabarrus Avenue E
Concord, NC 28025-3452
Carolina Telephone and Telegraph Co.
Mailstop NCWKFR0233
14111 Capital Boulevard
Wake Forest, NC 27587-5900
Windstream LEXCOM
P. O. Box 808
Lexington, NC 27293-0808
Central Telephone Company
Mailstop NCWKFR0233
14111 Capital Boulevard
Wake Forest, NC 27587-5900
Windstream North Carolina, Inc.
236 W. Center Avenue
Mooresville, NC 28115-3119
Citizens Telephone Company
P. O. Box 1137
Brevard, NC 28712
Ellerbe Telephone Company
Drawer 220
Ellerbe, NC 28338-0220
MEBTEL, Inc. dba MEBTEL Communications
c/o Centurytel
19812 Underwood Road
Foley, AL 27302
North State Telephone Company
P. O. Box 2326
High Point, NC 27261
Pineville Telephone Company
P. O. Box 249
Pineville, NC 28134
Randolph Telephone Company
3733 Old Cox Road
Asheboro, NC 27205
91
SHARED TENANT SERVICE PROVIDERS UNDER THE JURISDICTION OF THE
NORTH CAROLINA UTILITIES COMMISSION AS OF JANUARY 1, 2010
Peace College of Raleigh North Carolina
15 East Peace Street
Raleigh, NC 27604-1194
Appalachian State University
Business Affairs/Special Projects
Administration Building - 3rd Floor
Boone, NC 28608
Smart City Networks
28 W. Grand Avenue
Montvale, NJ 07645
Duke University
Box 90215
Durham, NC 27708
UNC at Pembroke
P. O. Box 1510
Pembroke, NC 28372-1510
East Carolina University
Joyner Library
Greenville, NC 27858-4353
Elizabeth City State University
P. O. Box 760
Elizabeth City, NC 27909
University of NC at Chapel Hill
CB # 1810
Giles Horney Building - Room 104
Chapel Hill, NC 27599-1810
Fayetteville State University
1200 Murchison Road
Fayetteville, NC 28301-4298
University of NC at Greensboro
1000 Spring Garden Street
Greensboro, NC 27412
Guilford College
5800 West Friendly Avenue
University of NC at Charlotte
9201 University City Boulevard
Charlotte, NC 28223-0001
High Point University
833 Montlieu Avenue
High Point, NC 27262-3598
University of NC at Wilmington
601 S. College Road
Wilmington, NC 28043
International Business Machines
12195 Cornwallis Road
Durham, NC 27709
University of NC School of Arts
P. O. Box 12189
Winston Salem, NC 27127-2189
North Carolina A & T State University
1601 East Market Street
Western Carolina University
HFR 330
Cullowhee, NC 28723
North Carolina Central University
1801 Fayetteville Street
Durham, NC 27707
Winston Salem State University
P. O. Box 19394
Winston Salem, NC 27110
North Carolina State University Tel.
Box 7217 West Dunn Building
Raleigh, NC 27695
92
promulgating interim rules for certification and
regulation of competitive local service
providers and posed questions for comments
on the appropriate regulatory structure for
competitive local providers, resale of local
service, and interconnection and scheduled a
hearing on universal service issues.
Commission rulings can be found in P-100,
Sub 133.
A. BRIEF REVIEW OF THE TELEPHONE
INDUSTRY--GENERAL
At December 31, 2008, there were
sixteen (16) local exchange telephone
companies, three hundred seventy-seven
(377) interexchange long distance carriers,
and one hundred seventy three (173)
competing local providers under the
jurisdiction of the North Carolina Utilities
Commission.
Figure No. 6-1 lists the sixteen LECs
and the twenty shared tenant service
providers authorized to operate by the Utilities
Commission as of January 1, 2010. An
updated list of local exchange companies,
interexchange long distance carriers, and
competing local providers can be found on
the
Commission’s
web
page
at
www.ncuc.net. The statistical comparisons of
the regulated local exchange telephone
companies are shown in the schedules
following the narrative section of this chapter,
with data through 2008. However, more
recent data was available and utilized for
various schedules. The schedule headlines
identify the time period covered.
Price Regulation Plans
Since House Bill 161 became effective
on July 1, 1995, the Utilities Commission has
authorized Price Regulation Plans for the
following thirteen regulated local exchange
companies:
Barnardsville
Telephone
Company
(Barnardsville),
BellSouth
Telecommunications, Inc. (d/b/a AT&T of
North Carolina), Carolina Telephone and
Telegraph Company (Carolina), Central
Telephone Company (Central), Concord
Telephone Company (now Windstream
Concord), LEXCOM Telephone Company
(Now Windstream LEXCOM), MEBTEL, Inc.
(MEBTEL), North State Telephone Company
(North State), Randolph Telephone Company
(Randolph), Saluda Mountain Telephone
Company
(Saluda
Mountain),
Service
Telephone Company (Service), Verizon
South, Inc. (Verizon), and Windstream, Inc.
(Windstream, f/k/a ALLTEL). The only ILECs
that remain under rate-of-return regulation
include
Citizens
Telephone
Company
(Citizens), Ellerbe Telephone Company
(Ellerbe), and Pineville Telephone Company
(Pineville).
In 2004-2005, the Commission
conducted comprehensive price plan reviews
for BellSouth, Carolina, Central, Verizon, and
Concord and approved modified plans for
each of those companies. In 2006, the
Commission approved modified price plans
for ALLTEL and MEBTEL. The modified
plans allow those ILECs to exercise much
greater pricing flexibility as a result of the
extent and intensity of competitive activity in
their respective service territories than was
allowed under their initial plans, which were
approved in 1996 and 1997. For each review,
the Commission required that public notice be
given to the affected subscribers and held
public hearings. In authorizing the modified
plans, the Commission specifically found that
Long Distance Competition
On May 30, 2003, Senate Bill 814 was
signed into law. Senate Bill 814 declared that
interLATA and intraLATA long distance
service and long distance operator services
are sufficiently competitive and shall no
longer be regulated by the Commission.
However, the Commission does continue to
maintain certification authority and authority to
hear and resolve complaints against providers
of such services alleged to have made
changes to the services of customers or
imposed
charges
without
appropriate
authorization. At the end of 2008, three
hundred seventy-seven (377) IXCs were
certified to operate in North Carolina.
Local Exchange Competition
The General Assembly enacted House
Bill 161 on April 6, 1995, which authorized
local telephone exchange service competition
and price or alternative regulation for local
exchange companies.
This bill became
effective on July 1, 1995. On July 19, 1995,
the
Commission
issued
an
Order
93
Commission to adopt procedures for allowing
shared use and/or resale of any telephone
service provided to persons who occupy the
same adjoining premises. Due to legislation
enacted by the General Assembly in 1989,
the Commission established rules for sharing
and resale by nonprofit colleges and
universities and their affiliated medical
centers. The legislation required that rates for
lines or trunks being shared or resold be on a
measured basis where available or otherwise
on a message basis.
The Commission order adopting
procedures requires all telephone companies
to charge rates to resellers which are 80% of
the comparable flat rate, plus five cents for
each additional minute with a 50% off-peak
discount. The alternative message rates are
80% of the comparable flat rate, plus 12 cents
per message. Entities which provide service
exclusively to the exception group, as
identified by the Legislature, are exempted
from the measured or message rates as long
as they only share service.
There were twenty-two shared tenant
service (STS) providers operating in North
Carolina at the end of 2008. A list of these
providers can be found in Figure No. 6-1.
each met the following four major
requirements set out in G.S. 62-133.5(c):
(i) Protects the affordability of basic
local exchange service, as such service is
defined by the Commission; (ii) reasonably
assures the continuation of basic local
exchange service that meets reasonable
service standards that the Commission may
adopt; (iii) will not unreasonably prejudice any
class of telephone customers, including
telecommunications companies; and (iv) is
otherwise consistent with the public interest.
House Bill 1180
The General Assembly enacted House
Bill 1180 on June 22, 2009.
HB 1180
authorizes ILECs and CLPs to elect a new,
streamlined regulation plan – a Subsection (h)
price plan (See N.C.G.S. 62-133.5(h)). Under
this new plan, with limited exceptions, the
Commission cannot impose any requirements
related to the terms, conditions, rates, or
availability of any of the LEC’s retail services
or otherwise regulate any of the LEC’s retail
services. A company must file a notice with
the Commission of its election of a
Subsection (h) price plans, companies must
commit to provide stand-alone basic
residential lines to rural customers at rates
comparable to those rates charged to urban
customers for the same service. In addition,
companies must continue to offer stand-alone
basic residential lines to all customers who
choose to subscribe to that service and may
only increase rates for all service annually by
a percentage that does not exceed the
percentage increase over the prior year in the
Gross Domestic Product Price Index as
reported by the United States Department of
Labor, Bureau of Labor Statistics, unless
otherwise authorized by the Commission.
This bill was signed into law by the Governor
on June 30, 2009 and became effective on
that date.
As of May 3, 2010, three
companies have elected subsection (h) price
plans: BellSouth Telecommunications, Inc.,
d/b/a AT&T North Carolina (ILEC); AT&T
Communications of the Southern States
(CLP); and TCG of the Carolinas, Inc. (CLP).
Payphone Service Provider (PSP)
A Payphone Service Provider is a
subscriber to a Public Telephone Access
Service (PTAS) line, offering telephone
service to the public by means of a coin,
coinless or key-operated PTAS instrument.
Over the years the total number of special
certificates issued is 1803, with 127 of these
still certified at December 31, 2010. Anyone
can own and operate a payphone with a
special certificate.
B. CUSTOMER GROWTH AND IMPACT ON
PLANT INVESTMENT
The
regulated
local
exchange
companies had a total of 3,024,706 access
lines in service at December 31, 2009,
3,216,625 as of December 31, 2008, and
3,530,254 as of December 31, 2007. This is
a decrease of 6% from 2008 to 2009. Figure
No. 6-1A shows total telephones by
companies for the years 1980, 1985, 1990,
1995, 2000 and 2005. Figure No. 6-2 shows
Shared Use and Resale
The North Carolina General Assembly
ratified a bill in 1987 authorizing the
94
circumstances. At the end of 2007, sixty-two
(62) counties in North Carolina had countywide EAS. Only nine (9) exchanges (out of a
total of 425 in North Carolina) primarily
located in seven different counties do not
have EAS to their county seat. Of these nine
exchanges, only one does not have zerorated calling to its county seat, resulting from
the zero-rating of applicable expanded local
calling routes. These statistics assume that
each exchange is assigned only to the county
it primarily serves. Many exchanges provide
telephone service in more than one county.
Even though an exchange may have EAS to
the county seat in which it is primarily located,
some subscribers in that exchange may
actually be located in an adjacent county,
and therefore, may not have EAS to their
county seat.
the access lines for the past five years. In
1982 the telephone industry changed its
system of reporting the number of telephones
served by each company to the number of
access lines. For a definition of access line
see Figure No. 6-3. In 2009 BellSouth served
48% and Carolina Telephone and Telegraph
Company served 27% of the total customers
in North Carolina.
C. DEMANDS AND QUALITY OF SERVICE
The telephone companies in North
Carolina for several years have been meeting
demands for service. However, as more and
more telephone service is extended
throughout the State, the overall problem
changes somewhat from satisfying demands
for service, on which the Commission and the
companies have placed special emphasis, to
satisfying demands for better quality and
upgraded service. In 1988 the Commission
decided to establish uniform quality of service
objectives to be used in evaluating the
adequacy of the service being provided by the
telephone
companies.
In
2000,
the
Commission began re-examining its uniform
quality of service objectives. After compiling
an extensive record, the Commission revised
its service quality standards, as outlined in
Commission Rule R9-8, effective July 1,
2004.
Companies are required to file
quarterly reports with the Commission which
detail monthly results on certain service
quality measures.
In addition, the
Commission posts on its website a service
quality report which provides, in a pass/fail
format, the 12-month average results of
telephone companies in complying with the
standards outlined in Rule R9-8.
E. TELEPHONE RATES--COMMENTS
Local Exchange Rates
These are the monthly charges for
basic telephone service as fixed by price
plans or rate of return for ILECs. CLP rates
are not regulated by the Commission. These
rates are divided between residential and
commercial telephones and are graduated
upward from four-party to single-party service.
Local exchange rates for a particular
company are fixed on a company-wide basis
according to the calling
scope of the
particular exchange; i.e., the number which a
subscriber may call without a toll charge.
These rate groupings are not standard among
the companies.
The practical result of the foregoing
"value of service principle" is that a
company's subscribers in an urban area will
pay a higher monthly local exchange rate
than the same company's subscribers in a
community having a substantially smaller
number of access lines that can be called
without a toll charge. Thus unlike electric and
natural gas utilities which have standard rates
applicable to a customer classification
company-wide, the telephone companies
have different rates for basic service
depending upon the population or calling
scope of the
particular exchange.
Telephone rates also vary substantially
between companies and states.
D. EXTENDED AREA SERVICE (EAS)
Extended Area Service (EAS) is the
industry term applied to the extension of
local calling from one telephone exchange to
and from another exchange without a toll
charge being levied. During 2007, there was
one (1) two-way, non-optional interLATA
request brought before the Commission. The
Commission approved the request in early
2007 after waiving its moratorium on
interLATA EAS requests based on special
95
periods beginning with calendar year 2003.
The April 16, 2004 Order approved the
Annual Report Proposal submitted on
March 4, 2004, by the major price regulated
telephone companies. Therefore, some data
previously compiled for this report is no longer
available.
The total operating revenues for the
lLECs for the year ended December 31, 2008,
was $3,001,162,000. The total operating
expenses including depreciation and taxes
was $2,505,560,000. See Figure No. 6-8.
Figure No. 6-4 shows a twenty-four year
history of average North Carolina telephone
bills for local service.
F.
SOURCE AND DISPOSITION
REVENUES--COMMENTS
OF
The
regulated
local
exchange
telephone companies derived 43.7% of their
revenues from local charges, 1.5% from toll
charges, 33.1% from access charges, and
21.7% from miscellaneous services in 2008
compared to 45.1%, 1.4%, 32.0%, and 21.5%
in 2007.
The components of the disposition of
the revenue dollar for the year ended
December 31, 2008, as shown in Figure No.
6-5 indicates Operating Expenses were
45.1%, Income Taxes 8.5%, Other Taxes
2.1%, Depreciation Expense 22.2%, and
Other Expenses 22.1%.
G. PLANT INVESTMENTS--COMMENTS
The
regulated
local
exchange
telephone companies increased gross plant
investment in North Carolina 8.2% in 2005,
7.6% in 2006 and .3% in 2007. These
increases represent investments of $452
million in 2002, $359 million in 2003, $278
million in 2004, $272 million in 2005, $268
million in 2006, $65 million in 2007 and $279
million in 2008 bringing the total gross plant
investment at December 31, 2008, to
$13,657,991,000.
Figure No. 6-6 shows investment per
regulated local exchange access line for 2007
and 2008 on a North Carolina industry-wide
basis.
H. STATISTICAL SUMMARY
Reporting requirement changes for the major
price regulated telephone companies were
implemented in response to passage of
Senate Bill 814 by Commission Orders dated
January 2, and April 16, 2004, in Docket No.
P-100, Sub 72b, effective for reporting
96
FIGURE NO. 6-1A
TELEPHONE COMPANIES OPERATING IN NORTH CAROLINA
NUMBER OF TOTAL TELEPHONE/ACCESS LINES IN SERVICE/EXCHANGES AND DENSITY DATA
AT YEAR END 1980, 1985, 1990, 1995, 2000 AND 2005
Class A & B
ALLTEL-Carolina, Inc.
BellSouth (3)
Carolina Telephone Co. (1, 5)
Central Telephone Co.
Citizens Telephone Co.
Concord Telephone Co.
Contel of North Carolina (9, 11)
Ellerbe Telephone Co.
Heins Telephone Co. (8)
LEXCOM Telephone Co.
MEBTEL, Inc.
Mid Carolina Tel. Co. (2, 7)
North State Telephone Co.
Pineville Telephone Co. (4)
Randolph Telephone Co.
Sandhill Telephone Co.
Verizon South, Inc. (11)
Westco Telephone Co. (6)
Western Carolina Telephone (6)
Total Class A & B
Class C & D
Barnardsville Tel. Co.
Contel of Virginia (9, 11)
Saluda Mountain Tel. Co. (10)
Service Telephone Co.
Total Class C & D
Grand Total All Classes:
*
**
Number of Total Leased Telephones in Service (1980)
Number of Total Access Lines in Serivce (1985-2005)
1980
1985
1990
1995
2000
-77,878
101,733
170,528
233,534
2,246,942
1,368,279
1,705,828
2,100,503
2,505,310
982,532
541,430
789,966
1,017,700
1,226,732
241,597
137,299
202,483
237,754
314,403
15,968
9,293
13,981
16,493
21,021
93,740
79,498
76,945
91,602
117,719
-75,247
91,453
--2,003
1,421
1,693
1,940
2,453
30,087
20,565
25,235
--28,825
18,998
24,866
29,749
35,150
6,877
6,507
6,197
7,866
12,078
108,747
----113,740
87,661
89,566
104,628
135,921
2,177
1,641
2,235
2,042
2,606
3,773
2,719
3,266
3,728
4,873
5,225
4,983
4,202
--162,054
148,090
155,428
337,824
384,699
34,019
----57,578
----4,135,884
2,581,509
3,295,077
4,122,357
4,996,499
Number of Exchanges
2005
1980 1985 1990 1995 2000
222,165
-26
26
31
31
1,802,545
95
93
92
92
92
1,065,288
146
145
145
145
144
250,031
43
43
42
42
42
21,124
4
1
1
1
1
105,737
9
9
9
9
9
--26
26
N/A
-2,391
1
1
1
1
1
-3
3
3
--29,912
3
3
3
3
3
15,055
1
1
1
1
1
-26
----116,288
3
3
3
3
3
1,921
1
1
1
1
1
4,641
1
1
1
1
1
-2
2
2
--286,820
5
5
5
32
32
-15
-----11
----3,923,918
369
363
361
362
361
876
452
1,320
1,461
4,109
4,139,993
1,564
-1,785
1,305
4,654
3,928,572
931
381
1,660
1,249
4,221
2,585,730
937
475
1,183
987
3,582
3,298,659
1,186
-1,496
1,132
3,814
4,126,171
1,571
-1,849
1,291
4,711
5,001,210
1
1
1
1
4
373
1
1
1
1
4
367
1
1
1
1
4
365
1
-1
1
3
365
1
-1
1
3
364
2005
31
90
144
42
1
9
-1
-3
3
-3
1
1
-32
--361
1
-1
1
3
364
Number Phones/
Number Phones/
% Households
Access Lines Per
Access Lines Per
in Area Served
Average Number
100 Population*
Square Mile Area*
Housing Phones**
Employees
1995* 2000* 2005 1995* 2000* 2005 1995** 2000** 2005** 1995
2000
2005
36
66
N/A
72
100
N/A
N/A
N/A
N/A
494
246
N/A
59
66
N/A
174
209
N/A
95
95
N/A 5,634
5,163
N/A
31
60
N/A
53
58
N/A
93
91
N/A 3,226
2,731
N/A
18
61
N/A
76
92
N/A
93
93
N/A
646
480
N/A
61
72
70
44
55
56
95
95
95
75
75
71
51
57
N/A
130
57
N/A
98
99
N/A
281
411
N/A
------------40
49
47
8
10
9
91
94
89
14
17
12
-----N/A
------31
35
29
143
169
144
93
93
87
122
136
105
47
43
N/A
53
80
N/A
95
95
N/A
41
58
N/A
------------60
75
N/A
182
226
N/A
95
95
N/A
387
420
N/A
102
130
30 2,042 1,303
961
99
99
99
10
17
12
49
61
N/A
45
30
N/A
95
95
N/A
14
14
N/A
------------65
68
N/A
68
80
N/A
97
97
N/A 1,502
1,579
N/A
------------------------42
53
11
94
154
73
95
95
31 12,446 13,347
2,205
24
-100
94
50
42
31
-116
92
80
68
12
-41
22
25
N/A
12
-36
16
18
93
27
-49
12
29
197
27
-47
13
29
N/A
85
-95
90
68
93
95
-95
95
71
95
17
5
5
-N/A
-78
5
2
46
6
3
35
16
10
N/A 12,462 13,357
United States Totals
180,180,000 117,434,802 134,743,029 158,219,924
188,626,589 143,773,101
Special Service &
Private Lines
36,753
N/A
N/A
N/A
N/A
N/A
Weighted Average - Companies under price plan regulation are not required to file this information.
Simple Average - Companies under price plan regulation are not required to file this information.
(1) United Telephone Company of the Carolinas, Inc. merged with Carolina Telephone and Telegraph Company November 1, 1978. All figures for United for the period 1960-1978 are included in Carolina Telephone (Docket No. P-7, Sub 625).
(2) Eastern Rowan, Mid-Carolina, Mooresville and Thermal Belt Telephone companies merged into Mid-Carolina Telephone Company December 10, 1973 (Docket No. P-50, Sub 41). All figures for merged companies are included in Mid-Carolina Telephone
Company. North Carolina Telephone Company and Old Town Telephone Systems, Inc. were merged into Mid-Carolina Telephone Company September 30, 1977 (Docket No. P-118, Sub 9). All figures for merged companies prior to 1977
are included in Mid-Carolina.
(3) Chapel Hill Telephone Company came under Commission jurisdiction on January 1, 1973 (Docket No. P-114) and was sold to Southern Bell Telephone and Telegraph Company April 1, 1977 (Docket No. P-55, Sub 758). All figures for 1976
and prior years are included in BellSouth.
(4) Pineville Telephone Company came under Commission jurisdiction January 1, 1976 (Docket No. P-120, Sub 1).
(5) Norfolk and Carolina Telephone and Telegraph Co. merged into Carolina Telephone and Telegraph Co. December 27, 1979 (Docket No. P-7, Sub 645). All figures for Norfolk and Carolina prior to 1980 are included in Carolina Telephone.
(6) Westco Telephone Company and Western Carolina Telephone Company were merged into Continental Telephone of North Carolina in November 1982 (Docket No. P-128).
(7) Mid Carolina Telephone Company changed its name to ALLTEL-Carolina, Inc. February 13, 1984 (Docket No. P-118, Sub 32).
(8) Heins Telephone Company merged with ALLTEL Corporation June 26, 1986 (Docket No. P-26, Sub 94).
(9) Continental Telephone of North Carolina (Docket No. P-128) and Continental Telephone of Virginia (P-28) changed their names to Contel of North Carolina and Contel of Virginia in 1988.
(10) Saluda Mountain Telephone Company capital stock sold to Telephone Data Systems, Inc. January 2, 1990 (Docket No. P-75), Sub 24).
(11) GTE South (Verizon) took over operations of Contel of North Carolina (July 15, 1991) and Contel of Virginia (August 1, 1991).
(12) ALLTEL-Carolina, Inc. merged with Heins Telephone Company and Sandhill Telephone Company effective September 14, 1994. ALLTEL-Carolina, Inc. was the surviving corporation.
97
5
-2
2
9
N/A
FIGURE NO. 6-2
REGULATED LOCAL EXCHANGE TELEPHONE COMPANIES OPERATING IN NORTH CAROLINA
NUMBER OF TOTAL ACCESS LINES
AT THE YEAR END FOR THE YEARS 2005 THROUGH 2009
Telephone Companies
2005
Class A & B:
BellSouth
Carolina Telephone Co.
MEBTEL, Inc.
Pineville Telephone Co.
Verizon South, Inc.
Windstream Concord
Windstream Lexcom
Windstream NC
Totals: Class A & B
Class C & D:
Barnardsville Telephone Co.
Saluda Mountain Tel. Co.
Totals: Class C & D
Grand Totals *
United States Totals**
North Carolina as % of
United States Total
1,802,545
1,065,288
250,031
21,124
2,391
15,055
116,288
1,921
4,641
286,820
105,737
29,912
222,165
3,923,918
Number of Access Lines
2006
2007
2008
1,714,943
1,011,712
235,598
20,994
2,321
14,622
107,623
1,907
4,536
268,073
101,992
28,480
212,059
3,724,860
1,564
1,489
1,785
1,749
1,305
1,277
4,654
4,515
3,928,572
3,729,375
143,773,101 138,833,928
2.7%
2.7%
1,620,957
965,474
221,246
20,694
2,193
14,075
100,379
1,890
4,377
250,868
95,514
26,249
202,190
3,526,106
2009
1,461,471
882,781
200,053
19,937
2,069
13,119
93,185
1,764
4,183
226,918
92,631
24,062
190,567
3,212,740
1,425,543
802,779
182,624
18,599
1,949
12,504
85,858
1,687
3,992
202,581
86,647
21,808
174,496
3,021,067
1,322
1,243
1,652
1,555
1,174
1,087
4,148
3,885
3,530,254
3,216,625
129,692,836 124,605,542
1,146
1,506
987
3,639
3,024,706
NA
2.7%
2.6%
N/A
*Access Lines were revised using the Public Staff Phone Development Report for the appropriate year.
** United States Totals from FCC's Industry Analysis and Technology Division, Wireline Competition
Bureau: Local Telephone Competition: Status as of June 30, 2008 Table 10. The total for 2008 is as
of June 2008 and the total for 2007 was amended in Table 10 from 134,458,920.
N/A - Not Available
98
FIGURE NO. 6-3
Access Lines in Service December 31
North Carolina Data Only
4,000,000
3,530,254
3,500,000
3,216,625
3,024,706
3,000,000
2,500,000
2007
2008
99
2009
FIGURE NO. 6-4
NORTH CAROLINA REGULATED LOCAL EXCHANGE TELEPHONE RATES VS.
U. S. AVERAGE MONTHLY TELEPHONE RATES
At December 31
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
1985-2008
% Change
2007-2008
% Change
1/
2/
3/
North Carolina
Average Monthly
Telephone Bills For
All Customers
Local Telephone Service 1/
$22.25
$22.30
$21.94
$21.07
$21.67
$22.61
$21.99
$23.83
$23.40
$23.10
$24.35
$25.81
$29.01
$29.76
$31.19
$32.29
$33.37
$32.52
$33.13
$33.10
$33.09
$29.59
$30.54
$34.03
U. S. Average Monthly
Telephone Bills For
All Customers
Local Telephone Service 2/
$23.81
$22.34
$23.45
$23.02
$22.84
$23.08
$23.59
$23.95
$24.14
$23.84
$24.42
$25.17
$31.58
$33.17
$25.98 3/
$26.49
$27.00
$26.61
$26.29
$25.67
$25.39
$25.89
N/A
N/A
52.9%
N/A
11.4%
N/A
Average local service revenue per access line.
This number was calculated with information obtained from Moody's Public Utility Manual
and the United States Telephone Association Telephone Statistics Book for 1986 and previous
years. The United States Telephone Association Telephone Statistics Books (1988-1996)
were used to calculate the 1987 through 1996 numbers. The figure for 1997 was provided by
personnel of United States Telephone Association. The source for 1998 was the USTA
publication "Phone Facts" for the respective year.
1999-2006 U.S. Average Monthly Telephone Bills were calculated from Tables 4.1 and 7.1
FCC's Industry Analysis and Technology Division, Wireline Competition Bureau: Local
Telephone Competition: Status as of June 30, 2007, (March 2008)
100
FIGURE NO. 6-5
SOURCE AND DISPOSITION OF THE REVENUE DOLLAR
Regulated Local Exchange Telephone Companies (N. C. Data Only) for 2008
SOURCE:
Miscellaneous
21.7%
Toll Service
1.5%
Local Service
43.7%
Access Revenues
33.1%
DISPOSITION:
DISPOSITION:
Other
1.5%
Taxes-Other
than Income
2.2%
Depreciation
28.1%
Operating
Expenses
Operating Expenses
57.5
Income Taxes
10.7%
Depreciation
Expenses
Income Taxes
Taxes - Other
101
FIGURE NO. 6-6
Regulated Local Exchange Telephone Companies' Plant Investment/Access Line With Percent
Change 2008 over 2007
(North Carolina Data Only)
12.0%
3,760
15.5%
Thousands (Dollars)
3.3%
1
Gross Plant
Net Plant
2007
102
2008
FIGURE NO. 6-7
GROSS AND NET TELEPHONE PLANT ALLOCATED TO NORTH CAROLINA OPERATIONS*
For the Years Ended December 31, 2007 and 2008
COMPANY
Class A & B Local Exchange:
AT&T
Carolina Telephone Co.
Concord Telephone Co.
LEXCOM
MEBTEL, Inc.
Pineville Telephone Co.
Verizon South, Inc.
Windstream
Total: Class A & B
Class C & D Local Exchange:
Barnardsville Telephone Co.
Saluda Mountain Tel. Co.
Total: Class C & D
Grand Totals
2007
Total Plant (000's)
Gross
Net
2008
Total Plant (000's)
Gross
Net
2007
Per Access Line
Gross
Net
2008
Per Access Line
Gross
Net
2007 vs. 2008
%Change Per Access Line
Gross
Net
6,936,481
3,006,350
642,969
82,971
333,173
8,215
109,007
53,936
375,667
5,935
11,838
1,188,761
$608,166
$13,363,469
1,886,528
855,670
213,679
39,456
69,460
3,340
41,460
19,381
133,116
2,463
3,382
324,977
$244,381
$3,837,293
7,063,019
3,093,091
659,275
84,584
338,137
8,318
111,386
55,287
390,051
5,279
12,309
1,199,824
$621,141
$13,641,701
1,739,174
842,224
198,568
39,289
55,804
5,172
40,075
17,403
133,317
2,483
3,353
298,761
$234,089
$3,609,712
4,279.25
3,113.86
2,906.13
4,009.42
3,488.21
3,746.01
4,152.81
3,832.04
3,742.49
3,140.21
2,704.59
4,738.59
$3,007.89
$3,789.87
1,163.84
886.27
965.80
1,906.64
727.22
1,523.03
1,579.49
1,376.98
1,326.13
1,303.17
772.68
1,295.41
$1,208.67
$1,088.25
4,832.82
3,503.80
3,295.50
4,242.56
3,650.37
4,020.30
4,629.12
4,214.27
4,185.77
2,992.63
2,942.62
5,287.48
$3,259.44
$4,246.13
1,190.02
954.06
992.58
1,970.66
602.43
2,499.76
1,665.49
1,326.55
1,430.67
1,407.60
801.58
1,316.60
$1,228.38
$1,123.56
12.9
12.5
13.4
5.8
4.6
7.3
11.5
10.0
11.8
(4.7)
8.8
11.6
8.4
12.0
2.2
7.6
2.8
3.4
(17.2)
64.1
5.4
(3.7)
7.9
8.0
3.7
1.6
1.6
3.2
$5,805
6,117
3,840
$15,762
$13,379,231
$2,518
2,984
1,418
$6,920
$3,844,213
$5,971
6,331
3,988
$16,290
$13,657,991
$2,389
2,939
1,334
$6,662
$3,616,374
$4,391.07
3,702.78
3,270.87
$3,799.90
$3,789.88
$1,904.69
1,806.30
1,207.84
$1,668.27
$1,088.93
$4,803.70
4,071.38
3,668.81
$4,193.05
$4,246.06
$1,921.96
1,890.03
1,227.23
$1,714.80
$1,124.28
9.4
10.0
12.2
10.3
12.0
0.9
4.6
1.6
2.8
3.2
*Gross plant includes plant under construction and held for future telephone use.
103
FIGURE NO. 6-8
REGULATED LOCAL EXCHANGE TELEPHONE COMPANIES
SUMMARY OF SELECTED DATA--INCOME STATEMENT, BALANCE SHEET, AND STATISTICAL ITEMS
For the Calendar Years 2007 and 2008
Item
Income statement items:
Operating revenues
Basic local service revenue
Network access revenue
Long distance message revenue (toll service)
Miscellaneous revenue less uncollectible
Total operating revenue
2007
$
$
1,400,323
994,293
42,828
669,644
3,107,088
2008
$
% Change
2007-2008
$
1,312,553
994,377
43,971
650,261
3,001,162
-6.3%
0.0%
2.7%
-2.9%
-3.4%
5,162 $
114,933
53,549
3,130
61,915
100,408
244,963
(1,259)
155,930
58,376
391,501
299,660
1,488,268 $
759,812
331
60,664
271,877
2,580,952 $
84,514
2,859
124,447
50,311
1,527
60,119
89,404
220,856
4,672
177,098
51,848
331,613
335,035
1,449,789
714,746
172
67,426
273,427
2,505,560
37,489
-44.6%
8.3%
-6.0%
-51.2%
-2.9%
-11.0%
-9.8%
N/COMP
13.6%
-11.2%
-15.3%
11.8%
-2.6%
-5.9%
-48.0%
11.1%
0.6%
-2.9%
-55.6%
$ 13,615,576
42,415
10,041,617
$ 3,616,374
496,249
2.3%
-39.8%
5.3%
-5.9%
-30.5%
Operating expenses, excluding D&A
Network support
General support
Central office switching
Operator systems
Central office transmission
Information origination/termination
Cable and wire facilities
Other property plant and equipment
Network operations
Access
Customer operations
Corporate operations
Total operating expenses, excluding D&A
Depreciation and amortization
Interest on customer deposits
Taxes other than income taxes
Income taxes
Total operating expenses & taxes
Interest charges
Balance sheet items:
Telecommunications plant in service
Telecommunications plant under construction
Depreciation and amoritization reserve
Net telecommunications plant
Accumulated deferred income taxes
$
$
$
$
$
104
13,308,728
70,503
9,535,017
3,844,214
714,333
VII. THE WATER AND SEWER INDUSTRY
FIGURE NO. 7-1
DISTRIBUTION OF CUSTOMERS SERVED BY
REGULATED WATER & SEWER UTILITIES
Harnett
Pitt
Greene
Wayne
Lenoir
Craven
er
Pamlico
Cu
y
Mecklenburg
Duplin
nd
Union
Onslow
Scotland
Robeson
Bladen
Pender
Columbus
LEGEND: NUMBER OF CUSTOMERS
New
Hanover
Brunswick
0
1 - 1000
1001 -5000
Over 5000
Jones
rla
be
Hoke
m
Anson Richmond
Sampson
106
ck
Moore
m
go
Stanly
t
on
Transylvania
Cabarrus
Cleveland
Lee
M
Gaston
Polk
Dare
Washington
Beaufort
Johnston
Lincoln
itu
Wilson
r
Tyrrell
Martin
n
Henderson
Rutherford
Ca
m
Pa den
Pe
s
rq quo
ui
m tan
k
an
s
Edgecombe
Chatham
so
Rowan
Bertie
Nash
Wake
Randolph
d
vi
Catawba
Da
Jackson
Macon
Clay
McDowell
Davie
Franklin
d
oo
Graham
Cherokee
Iredell
Caldwell
Alexander
Burke
Hertford
Halifax
Durham
y
yw
Swain
Guilford
Orange
ll
he
e
nc
Ya
Ha
Buncombe
Forsyth
Alamance
itc
M
Madison
Yadkin
Avery
Gates
Chowan
Wilkes
Watauga
Northampton
Warren
Cu
Stokes Rockingham Caswell Person
Surry
Vance
Alleghany
Granville
Ashe
Carteret
Hyde
rate cases involving water and sewer
companies during 2008. These cases affected
23,083 water customers and 5,434 sewer
customers. Of the cases decided, the total
requested increase in water revenues was
$3,894,196 and the Commission approved
$2,599,279. The requested increase in sewer
revenues was $1,245,893; the Commission
approved $854,586. The Commission also
required numerous service improvements.
The
Commission
approved
tariff
revisions affecting 103,940 customers that
increased water and sewer revenues by
$4,626,683. There were 338 other cases filed
with the Commission regarding regulated water
and sewer utilities. There were 52 applications
for new franchises or notifications of contiguous
extensions; one application for transfer of
franchises between utilities involving 290 water
customers and 290 sewer customers resulting
in increased revenues of $9,326; two
applications to transfer systems to owners
exempt from Commission regulation; seven
franchises canceled; 156 applications for resale
authority involving 33,922 customers; 61
applications to transfer resale authority
involving 15,669 customers and resulting in
increased revenues of $521,292; 40 resale
authority cancellations; an application to merge
six operating subsidiaries into Aqua North
Carolina, Inc.; an application to merge two
additional operating subsidiaries into Aqua
North Carolina, Inc.; three formal complaints;
various issues regarding five emergency
operators; and 14 other miscellaneous filings.
In 1987, legislation required all water
and sewer utility plants to furnish a bond
secured in an amount not less than $10,000
and no more than $200,000. On April 15, 1995,
G.S. 62-100.3 was amended eliminating the
$200,000 cap on the bond. This amendment
also eliminated the statutory section which
provided exceptions for those franchises that
already had bonds posted with other state
agencies or having bonds posted with the
Commission totaling $200,000.
Acceptable
securities are obligations of the United States,
obligations of the State of North Carolina,
certificates of deposit, and irrevocable letters of
credit.
They are posted for use by the
Commission in the event that an emergency
operator is needed to take over a system and
A. GENERAL COMMENTS
As of December 31, 2008, there were
approximately 1,615 regulated water and sewer
systems in North Carolina owned by 162
companies as reported on the 2008 annual
reports. These are comprised of 1,287 water
and 328 sewer systems. The Commission also
regulated 629 water and sewer resellers.
Water and sewer resellers were not required to
file 2008 annual reports. The General Statutes
of North Carolina provide in part that anyone
owning or operating facilities for furnishing
water and sewer service to the public for
compensation is a public utility, except when
such person's sole operation consists of selling
water to fewer than fifteen residential
customers.
Figure Nos. 7-1 and 7-2 provide a map
and a listing of the locations of all of the
regulated water and
sewer systems by
counties with the number of systems and
customers in each county.
One of the major problems encountered
in regulating small water and sewer utilities is
their lack of keeping adequate records. As a
result, of the 162 water and sewer companies
franchised to operate in 2008, current statistical
and operating data is available for 145
companies. This data is found in Figure No.
7-2. For the other 17 companies, the most
recent statistical data received by the
Commission is presented in Figure No. 7-4.
This noncurrent statistical data for the years
1995 through 2007 is included to illustrate the
total scope of the regulated water and sewer
industry in North Carolina. Some of the 17
noncurrent companies are under emergency
operators and although required to file financial
information, it is not always in the form of an
annual report.
The Commission adopted a simplified
annual report which should encourage small
utilities to maintain minimum records of their
revenues and expenses. This should enable
them to keep accurate records and provide
them with the required information needed for
general rate cases.
B. COMMISSION ACTIVITIES
The Commission decided nine general
107
$1,541,049. Refer to Figure No. 7-3 for current
companies, 7-4 for noncurrent and 7-5 for a
graphic presentation.
also to provide
an incentive for
utility
companies to properly operate and maintain
their systems. (See G.S. 62-110.3, Rules R737 and R10-24 for the details regarding the use
of bonds as security.) This requirement is
applicable to all applications for franchises filed
on or after October 1, 1987. At the end of
2008, the amount of bonds posted for new
water
and
sewer
franchises
totaled
$20,907,559 consisting of Letters of Credit,
surety bonds, certificates of deposit and money
market funds.
The General Assembly enacted G.S.
62-110(g) authorizing the Utilities Commission
to adopt procedures for the purpose of allowing
resale of water and sewer service in
apartments, condominiums, and other places at
a rate or charge which does not exceed the
actual purchase price of such service to the
provider, plus a reasonable administrative fee.
The Commission adopted rules and established
procedures for regulating these resellers. As of
the end of 2008, the Commission had granted
certificates of authority for resale of water
and/or sewer service for approximately 899
apartment complexes or mobile home parks.
C. REGULATED VS. NONREGULATED
MONTHLY CHARGES
Comparative monthly charges for
residential
water
service
of
selected
nonregulated municipal systems and regulated
water systems in North Carolina are shown in
Figure No. 7-6.
D. STATISTICAL SUMMARY DATA
The number of regulated utility
companies furnishing water and sewer service
in North Carolina was 162, a decrease of seven
companies from 2007, however, 17 of these
companies did not file 2008 annual reports.
The current companies operated 1,263 water
systems and 312 sewer systems within the
State, with the noncurrent companies’ most
recent data showing 24 water systems and 16
sewer systems. The current companies served
172,115 water and sewer customers and
received $73,204,958 in annual revenues, with
the noncurrent companies serving 4,662
customers and receiving annual revenues of
108
FIGURE NO. 7-2
DISTRIBUTION SUMMARY OF SYSTEMS AND CUSTOMERS OF ALL
N. C. REGULATED WATER AND SEWER UTILITIES BY COUNTIES
COUNTY
ALAMANCE
ALEXANDER
ALLEGHANY
ANSON
ASHE
AVERY
BEAUFORT
BERTIE
BLADEN
BRUNSWICK
BUNCOMBE
BURKE
CABARRUS
CALDWELL
CAMDEN
CARTERET
CASWELL
CATAWBA
CHATHAM
CHEROKEE
CHOWAN
CLAY
CLEVELAND
COLUMBUS
CRAVEN
CUMBERLAND
CURRITUCK
DARE
DAVIDSON
DAVIE
DUPLIN
DURHAM
EDGECOMBE
FORSYTH
FRANKLIN
NUMBER OF
CUSTOMERS
WATER
SEWER
136
0
186
0
402
73
0
0
654
215
2,740
1,777
NUMBER OF
SYSTEMS
WATER
SEWER
4
0
7
0
2
1
0
0
6
2
8
3
0
0
149
110
2,362
135
0
0
151
1,244
1,762
0
0
0
2
1
31
2
0
0
1
3
25
0
3,065
126
0
1,030
44
3,312
728
371
0
0
0
0
1,931
14,948
1,756
1,444
0
0
1,588
0
142
3,124
70
0
0
0
0
2,216
176
2,201
28
1
0
3
1
75
11
2
0
0
0
0
2
21
5
3
0
0
24
0
4
11
1
0
0
0
0
2
3
6
0
284
31
0
1,387
370
523
0
0
143
0
1
1
0
20
4
5
0
0
2
0
0
0
0
1,391
1,715
1,184
0
19
6
10
0
109
COUNTY
GASTON
GATES
GRAHAM
GRANVILLE
GREENE
GUILFORD
NUMBER OF
CUSTOMERS
WATER
SEWER
6,517
247
0
0
24
0
22
0
33
0
3,446
228
NUMBER OF
SYSTEMS
WATER
SEWER
126
3
0
0
1
0
1
0
1
0
67
4
HALIFAX
HARNETT
HAYWOOD
HENDERSON
HERTFORD
HOKE
HYDE
0
0
955
1,541
0
37
0
0
0
842
932
0
0
0
0
0
2
17
0
1
0
0
0
2
8
0
0
0
IREDELL
4,730
744
63
18
JACKSON
JOHNSTON
JONES
1,143
3,710
0
392
1,538
0
6
48
0
1
23
0
LEE
LENOIR
LINCOLN
1,769
0
386
1,464
0
0
3
0
8
1
0
0
MACON
MADISON
MARTIN
McDOWELL
MECKLENBURG
MITCHELL
MONTGOMERY
MOORE
171
343
0
150
7,313
66
665
2,492
0
40
0
0
6,609
0
24
517
3
0
0
3
45
1
2
8
1
0
0
0
28
0
1
3
NASH
NEW HANOVER
NORTHAMPTON
103
4,790
52
0
2,664
0
3
34
1
0
26
0
ONSLOW
ORANGE
1,635
649
7,743
0
5
11
17
0
PAMLICO
PASQUOTANK
PENDER
0
0
1,667
0
0
1,183
0
0
3
0
0
3
110
COUNTY
PERQUIMANS
PERSON
PITT
POLK
NUMBER OF
CUSTOMERS
WATER
SEWER
99
519
47
0
26
151
50
27
NUMBER OF
SYSTEMS
WATER
SEWER
1
2
1
0
1
1
2
1
RANDOLPH
RICHMOND
ROBESON
ROCKINGHAM
ROWAN
RUTHERFORD
585
0
0
410
1,337
1,219
68
0
0
1
44
445
13
0
0
12
27
3
2
0
0
1
1
1
SAMPSON
SCOTLAND
STANLY
STOKES
SURRY
SWAIN
0
0
0
38
1,698
173
0
0
39
112
0
173
0
0
0
1
47
1
0
0
1
1
0
1
TRANSYLVANIA
TYRRELL
2,737
0
1,446
0
4
0
2
0
UNION
212
1,335
1
8
VANCE
78
0
2
0
27,712
360
0
1,512
0
0
0
4,452
0
0
1,025
0
0
0
424
9
0
9
0
0
0
48
0
0
7
0
0
0
150
1,066
122,911
0
459
53,866
4
3
1,287
0
2
328
WAKE
WARREN
WASHINGTON
WATAUGA
WAYNE
WILKES
WILSON
YADKIN
YANCEY
GRAND TOTAL
111
FIGURE NO. 7-2A
DISTRIBUTION OF WATER AND SEWER UTILITIES BY COUNTIES
COUNTY/COMPANY NAME
ALAMANCE
Aqua North Carolina, Inc.
Heater Utilities, Inc.
Water Works of Alamance County, Inc.
ALEXANDER
ALLEGHANY
Carolina Water Service of N.C.
NUMBER OF
CUSTOMERS
WATER
SEWER
45
48
43
136
135
51
186
144
258
402
NUMBER OF
SYSTEMS
WATER
SEWER
0
1
2
1
4
0
0
5
2
7
0
73
73
1
1
2
39
176
215
1
3
1
1
6
1
1
ANSON
None
ASHE
Cross-State Development Company
Culligan Operating Services
Jefferson Landing Water and Sewer
AVERY
Elk River Utilities, Inc.
GGCC Utility Inc.
Linville Heights
Linville Ridge
184
215
40
215
654
1,771
273
258
1
13
424
2,740
149
149
1,477
109
191
1
1
2
1,777
2
1
2
1
1
1
8
1
1
1
3
151
151
2
2
1
1
BEAUFORT
None
BERTIE
None
BLADEN
Bay Tree Utility Company
112
FIGURE NO. 7-2A CONTINUED
COUNTY/COMPANY NAME
BRUNSWICK
904 Georgetown Treatment Plant, LLC
B & C Development, Inc.
CTC Brick Landing, LLC
Sea Trail Utility Company dba ST Utility Co.
BUNCOMBE
ABC & D Properties
Chapman, Roy and Betty, Twin Willows MHP
Christmount Christian Assembly, Inc.
Cogdill, Greg *
Duckett, Gordon F. and Susan C.
Earth Environmental Services
Flat Creek Utilities, LLC
Hawk Run Development of Asheville*
Indian Creek Mobile Home Park
Jactaw Properties LLC
Laurel Wood Mobile Home Park
Lifeway Ridgecrest Water Utility
Locust Grove Mobile Home Park
M Realty LLC
Meadows, Ted and Virginia
Metro Water System, Inc.
Mountain View Park, LLC
Parks Bank
Pine Valley Mobile Home Park, Inc.
Rumfelt, Mark and Fred Luther
South Asheville Water Works
Town and Country
Twin Creeks Utilities
Viewmont Acres Water System *
Woodland Heights MHP
BURKE
NUMBER OF
CUSTOMERS
WATER
SEWER
110
110
80
421
26
99
50
48
24
32
170
52
54
42
31
331
50
296
67
59
29
142
48
22
53
36
25
45
30
2,362
135
135
113
795
282
167
1,244
80
304
26
99
NUMBER OF
SYSTEMS
WATER
SEWER
1
1
1
1
1
3
30
1,762
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
3
1
1
2
1
1
1
1
1
1
1
31
1
25
0
2
2
0
48
24
170
52
54
42
31
50
296
67
59
29
142
48
22
53
36
1
1
1
1
1
1
1
1
1
1
1
1
1
3
1
1
2
1
1
1
1
COUNTY/COMPANY NAME
CABARRUS
Cook, William E. *
Corriher Water Service, Inc.
Pace Utilities Group, Inc.
Rayco Utilities, Inc.
Silver Maples Mobile Estates
Water Resources
CALDWELL
Joyceton Water Works, Inc.
NUMBER OF
CUSTOMERS
WATER
SEWER
28
1,631
16
205
959
60
37
13
116
3,065
126
126
NUMBER OF
SYSTEMS
WATER
SEWER
1,444
1
2
1
3
17
1
1
1
1
28
3
0
1
1
0
1,349
60
35
1
1
1
CAMDEN
None
CARTERET
Beacon's Reach Master Association
C & P Enterprises, Inc.
Deerfield Shores Utility Co., Inc.
Emerald Plantation Utility Company
Enviracon Utilities, Inc.
Sugarloaf Utility, Inc.
CASWELL
CATAWBA
Cardinal Estates Water System
Corriher Water Service
168
2
1,030
511
89
773
30
63
2
120
1,588
3
12
2
2
1
1
2
4
24
44
44
0
1
1
0
862
1,751
8
37
114
1
35
1
1
COUNTY/COMPANY NAME
CATAWBA Continued
Setzer Brothers Inc.*
CHATHAM
Fearington Utilities
CHEROKEE
Pied Piper Water Association Inc.
NUMBER OF
CUSTOMERS
WATER
SEWER
1,242
274
3,312
142
564
1,448
1,143
533
3,124
164
728
142
334
37
371
70
1,877
1,845
371
70
NUMBER OF
SYSTEMS
WATER
SEWER
34
4
75
4
8
5
1
5
11
3
11
4
1
1
2
1
1
1
1
1
CHOWAN
None
CLAY
None
CLEVELAND
None
COLUMBUS
None
CRAVEN
CWS Systems, Inc.
Carolina Pines Utility Company
Greenfield Heights Development Co., Inc.
CUMBERLAND
54
1,931
14,132
320
115
2,216
1
2
13
3
2
COUNTY/COMPANY NAME
CUMBERLAND Continued
Maxwell Water Company
Old North Utility Services, Inc.
Overhills Water Company
Whispering Pines Village
CURRITUCK
Enviro-Tech of North Carolina Inc.
Pine Island Currituck, LLC
Ponderosa Enterprises, Inc.
Sandler Utilities at Mill Run, LLC
Turnpike Properties
NUMBER OF
CUSTOMERS
WATER
SEWER
35
2
285
174
14,948
1,359
112
DAVIE
174
176
925
194
674
408
285
1,756
2,201
0
38
183
146
3
370
DARE
Ginguite Woods Water Reclamation
KDHWWTP LLC
Outer Banks Kinnakeet Associates, LLC
Pine Island Currituck, LLC
DAVIDSON
Meadowlands Development, LLC
2
284
140
131
252
523
31
31
0
284
NUMBER OF
SYSTEMS
WATER
SEWER
1
2
1
1
21
3
1
1
5
0
2
1
3
2
1
2
1
6
1
1
1
1
4
1
1
3
1
5
1
1
0
1
DUPLIN
None
DURHAM
CWS Systems, Inc.
Harrco Utility Corporation *
North State Utilities, Inc. *
Shaw Hill 22 Investors
343
103
914
N/R
27
1,387
116
46
97
N/R
143
5
1
13
N/R
1
20
1
1
N/R
2
COUNTY/COMPANY NAME
EDGECOMBE
None
FORSYTH
Heater Utilities
FRANKLIN
CWS Systems, Inc.
Total Environmental Solutions, Inc.
GASTON
Culligan Operating Systems
Honeycutt, Wayne M., Water System
NUMBER OF
CUSTOMERS
WATER
SEWER
545
802
44
1,391
50
101
1,564
1,715
1,249
609
62
4,511
86
6,517
GATES
None
117
NUMBER OF
SYSTEMS
WATER
SEWER
14
4
586
412
186
1,184
1
19
1
6
3
10
0
1
4
1
6
0
247
247
20
7
1
95
3
126
3
3
COUNTY/COMPANY NAME
GRAHAM
Santeetlah Shores Water System
GRANVILLE
GREENE
H & H Development Corporation
GUILFORD
ARC AF Utilities, LLC
ARCGE, LLC
JPC Utilities, LLC
North Carolina Water Utility
NUMBER OF
CUSTOMERS
WATER
SEWER
NUMBER OF
SYSTEMS
WATER
SEWER
24
24
0
1
1
0
22
22
0
1
1
0
33
33
0
1
1
0
2,488
111
66
634
40
107
3,446
11
111
66
1
1
1
228
53
1
1
8
1
3
67
843
112
955
794
48
842
1
1
2
1
1
2
522
195
116
235
4
2
1
2
40
1
4
HALIFAX
None
HARNETT
None
HAYWOOD
Lake Junaluska Assembly
Springdale Water Company
HENDERSON
A & D Water Company
Crestview Estates, LLC
Environmental Maintenance Systems, Inc. *
Etowah Sewer Company
Fairfield Water Company
Kenmure Utilities
Parks Banks
150
12
476
0
70
1,541
118
116
110
401
0
70
932
2
1
6
0
1
17
1
2
2
0
1
8
COUNTY/COMPANY NAME
HERTFORD
None
HOKE
NUMBER OF
CUSTOMERS
WATER
SEWER
37
37
0
NUMBER OF
SYSTEMS
WATER
SEWER
1
1
0
HYDE
None
IREDELL
Jenkins, Perry W.
Watercrest Estates
JACKSON
CWS Systems, Inc.
Cowan Valley Estates Water System*
Environmental Maintenance Systems, Inc. *
High Hampton, Inc.
University Heights
JOHNSTON
1,316
1,531
234
1,544
23
82
4,730
24
638
82
744
864
22
24
191
42
1,143
392
24
3
1
33
1
1
63
1
16
1
18
1
392
2
1
1
1
1
6
819
2,891
3,710
304
1,234
1,538
4
44
48
1
22
23
1,536
171
62
1,769
1,464
1
1
1
3
1
1
JONES
None
LEE
Carolina Trace Corporation
Farm Water Works
119
1,464
1
COUNTY/COMPANY NAME
LENOIR
None
LINCOLN
MACON
Environmental Maintenance Systems
Holly Springs Golf & Country Club, Ltd.*
Riverbend Estates Water Systems, Inc.
MADISON
NUMBER OF
CUSTOMERS
WATER
SEWER
160
226
386
NUMBER OF
SYSTEMS
WATER
SEWER
0
3
5
8
131
171
0
1
1
1
3
1
343
343
40
40
0
0
0
1
1
1
3
0
40
0
1
MARTIN
None
McDOWELL
Bear Den Acres Development, Inc.
MECKLENBURG
Bradfield Farms Water Co.
Clear Meadow Water, Inc.
Mauney, William K.
Mountain Point Utility Co., Inc.
Rayco, Inc.
TRG Charlotte LLC
64
37
49
150
127
1,132
4,685
62
809
45
29
N/R
274
150
120
1,504
3,284
1,033
N/R
547
150
2
2
19
1
13
2
1
N/R
3
1
2
6
15
N/R
3
1
COUNTY/COMPANY NAME
MECKLENBURG Continued
Water Resources, Inc.
Willowbrook Utility Co.
MITCHELL
MONTGOMERY
Baytree Waterfront Properties
MOORE
Old North Utility Services, Inc.
Vila Pump Company *
NASH
CWS Systems, Inc.
NEW HANOVER
CWS Systems, Inc.
Fairways Utilities, Inc.
Glynnwood Water Systems, Inc.
Mayfaire, LLC
Porters Neck Company, Inc.
Royal Palms Water & Sewer Systems
NORTHAMPTON
Fox Run Water Company
NUMBER OF
CUSTOMERS
WATER
SEWER
0
NUMBER OF
SYSTEMS
WATER
SEWER
1
7,313
91
6,609
45
1
28
66
66
0
1
1
0
665
665
128
1,576
722
1
65
2,492
49
54
103
953
301
2,440
86
67
765
178
4,790
52
52
121
24
24
2
2
517
2
2
2
1
1
8
0
1
2
3
516
1
830
1
1
2
1
3
0
178
2,664
7
1
22
1
1
1
1
34
1
26
0
1
1
0
1,589
67
5
19
1
COUNTY/COMPANY NAME
ONSLOW
Blue Creek Utilities, Inc.
Horse Creek Farms Utilities Corporation
North Topsail Water & Sewer, Inc.
Pines Utilities, Inc.
Rock Creek Environmental Company
Scientific Water & Sewerage Co., Inc.
Webb Creek Water & Sewer, Inc.
ORANGE
NUMBER OF
CUSTOMERS
WATER
SEWER
NUMBER OF
SYSTEMS
WATER
SEWER
176
210
400
3,704
204
229
1,620
1,200
7,743
5
1
3
1
1
1
1
6
3
17
66
583
649
0
3
8
11
0
263
1,404
1,667
249
934
1,183
1
2
3
1
2
3
99
99
420
99
519
1
1
1
1
2
0
1
1
0
1,635
1,635
5
PAMLICO
None
PASQUOTANK
None
PENDER
PERQUIMANS
Albermarle Plantation Utility Co.
Holiday Island Property Owners Association
PERSON
PITT
Homestead Community Water
Riverhills, Inc.
47
47
26
26
122
151
151
1
1
1
1
COUNTY/COMPANY NAME
POLK
RANDOLPH
North Carolina Water Utility
NUMBER OF
CUSTOMERS
WATER
SEWER
50
50
385
52
8
140
585
NUMBER OF
SYSTEMS
WATER
SEWER
27
27
2
2
1
1
68
68
8
1
1
3
13
2
2
RICHMOND
None
ROBESON
None
ROCKINGHAM
Billingsley, J.T.
Britthaven Utilities
ROWAN
South Rowan Investment Corporation *
RUTHERFORD
CWS Systems, Inc.
268
33
109
410
377
413
195
333
19
1,337
1,089
130
1,219
SAMPSON
None
SCOTLAND
None
123
1
1
44
44
445
445
9
1
2
12
11
8
4
3
1
27
1
2
3
1
1
1
1
1
1
COUNTY/COMPANY NAME
STANLY
Pfeiffer University
STOKES
SURRY
Forest Hills Water System *
Woods Water Works, Inc.
SWAIN
Conleys Creek Limited Partnership
TRANSYLVANIA
CWS Systems Inc.
Knob Creek Property, Inc. (Big, Inc.) *
Transylvania Utility Company
NUMBER OF
CUSTOMERS
WATER
SEWER
0
38
38
39
39
112
112
NUMBER OF
SYSTEMS
WATER
SEWER
0
1
1
1
1
0
1
1
81
10
1,563
44
1,698
0
1
1
43
2
47
173
173
173
173
1
1
249
738
78
171
1,501
2,737
391
1,055
1,446
1
1
1
1
1
1
4
1
1
2
TYRELL
None
UNION
Goose Creek Utility Company
JAARS, Inc.
212
212
124
194
1,141
1,335
1
1
1
7
8
COUNTY/COMPANY NAME
VANCE
WAKE
ARCIV GV, Inc.
ARCSBN LLC
Chatham Utilities, Inc.
Clarke Utilities, LLC
Crosby Utilities, Inc.
CWS Systems, Inc.
Dutchman Creek, Inc.
Gensinger, John (Pineview Water System)
Harrco Utility Corporation *
KRJ Utilities, Inc.
McCullers Pines Water System *
MECO Utilities, Inc.
Mill Run Utilities LLC
Mobile Hill Estates Water System
Nero Utility Services, Inc.
Prior Construction Company
River Walk Utilities LLC
Rolesville MHP LLC
Sedgefield Development Corp. *
WARREN
Fox Run Water Company, Inc.
NUMBER OF
CUSTOMERS
WATER
SEWER
31
47
78
307
304
169
347
142
367
208
1,841
71
35
22,967
249
14
254
35
128
N/R
212
0
62
N/R
27,712
360
360
125
0
74
304
169
166
142
307
287
260
2,239
60
254
128
N/R
0
62
N/R
4,452
0
NUMBER OF
SYSTEMS
WATER
SEWER
1
1
2
4
1
1
5
1
4
1
14
1
1
380
2
1
1
1
1
1
N/R
2
1
1
N/R
424
9
9
0
1
1
1
1
1
3
2
6
26
1
1
1
1
N/R
1
1
N/R
48
0
COUNTY/COMPANY NAME
WASHINGTON
None
WATAUGA
Hawknest Utilities, Inc.
Mountain Ridge Estates Water
Water Quality Services, Inc.
Water Quality Utilities
Water Resource Management, Inc.
NUMBER OF
CUSTOMERS
WATER
SEWER
1,233
65
194
1
NUMBER OF
SYSTEMS
WATER
SEWER
7
1
1
1
237
450
143
1,025
1
9
2
2
1
7
150
150
0
4
4
0
594
472
1,066
40
419
459
2
1
3
1
1
2
122,911
53,866
1,287
328
214
1,512
WAYNE
None
WILKES
None
WILSON
None
YADKIN
YANCEY
Mountain Air Utilities Corporation
GRAND TOTAL
* Companies do not have 2008 annual report on file. The most recent report on file was used to obtain
figures.
126
FIGURE NO. 7-3
WATER AND SEWER COMPANIES REGULATED BY THE NORTH CAROLINA UTILITIES COMMISSION
REVENUES, CUSTOMERS, AND NUMBER OF SYSTEMS
Data As Of December 31, 2008
Company
904 Georgetown Treatment Plant LLC
A & D Water Service, Inc.
ABC & D Properties
Albemarle Plantation Utility Company
ARC AF Utilities, LLC
ARCGE LLC
ARCIV GV Inc.
ARCSBN LLC
County
Brunswick
Henderson
Buncombe
Perquimans
(1)
Guilford
Guilford
Wake
Wake
Docket
Number
W-1141
W-1049
W-1191
W-1189
W-218
W-1252
W-178
W-1133
W-1179
Annual Revenues
Number of Customers
Water
Sewer
Water
Sewer
$253,093
795
$148,655
109,600
522
235
14,293
14,293
80
80
245,519
420
8,492,232
1,643,223
26,388
3,071
17,314
38,536
111
111
20,030
20,848
66
66
105,084
73,024
304
304
25,856
31,602
169
169
Number of Systems
Water
Sewer
4
1
239
1
1
1
1
B & C Development
Brunswick
W-924
15,380
110
1
Bay Tree Utility Company
Bladen
W-1080
36,763
71,520
149
151
2
Baytree Waterfront Properties
Montgomery
W-938
11,762
24
Beacon's Reach Master Assoc., Inc.
Carteret
W-966
176,616
511
Bear Den Acres Development, Inc.
McDowell
W-1040
28,756
64
1
Billingsley, J.T., Dogwood Acres
Rockingham
W-632
5,069
33
1
Blue Creek Utilities
Onslow
W-857
95,279
210
Bradfield Farms Water Co.
Mecklenburg
W-1044
153,820
277,030
1,132
1,504
2
Britthaven Utilities
Rockingham
W-1015
1
(1) Alamance, Alexander, Alleghany, Ashe, Burke, Cabarrus, Carteret, Caswell, Catawba, Chatham, Davidson, Durham, Forsyth, Gaston, Granville, Guilford, Iredell, Lincoln,
Mecklenburg, Moore, New Hanover, Orange, Pender, Person, Randolph, Rockingham, Rowan, Surry, Vance, and Wake.
127
1
2
1
1
18
1
1
1
1
1
1
12
3
2
1
FIGURE NO. 7-3
Company
C & P Enterprises, Inc.
Cardinal Estates Water System
Carolina Pines Utilities
Carolina Trace Utilities, Inc.
Carolina Water Service of North Carolina
Chapman, Roy and Betty, Twin Willows MHP
Chatham Utilities, Inc.
Christmount Christian Assembly, Inc.
Clarke Utilities, LLC
Clear Meadow Water
Conleys Creek L.P. (Smokey Mountain CC)
Crestview Estates, LLC
Crosby Utilities, Inc.
Cross-State Development
CTC Brick Landing, LLC
CWS Systems, Inc.
Deerfield Shores Utility Co., Inc.
Duckett, Gordon F. and Susan C.
Dutchman Creek, Inc.
County
Carteret
Catawba
Craven
Lee
(1)
Buncombe
Wake
Buncombe
Wake
Mecklenburg
Swain
(2)
Henderson
Wake
Ashe
Brunswick
(3)
(4)
Carteret
Buncombe
Wake
Annual Revenues
Number of Customers
Water
Sewer
Water
Sewer
$47,686
89
$2,503
8
146,968
371
413,986
484,172
1,536
1,464
9,080,876
7,187,303
22,216
10,693
6,109
6,109
26
26
40,278
46,412
142
142
42,123
35,707
99
99
107,947
170,871
367
307
9,285
62
29,796
36,690
173
173
277,963
889
30,966
30,966
116
116
43,446
135,622
208
287
78,439
215
97,015
282
34,760
64,078
152
149
1,785,633
1,194,085
6,912
3,073
Docket
Number
W-1063
W-701
W-1151
W-1013
W-354
W-1247
W-1240
W-1079
W-1205
W-715
W-1120
W-233
W-1096
W-992
W-408
W-1273
W-988
W-778
W-925
W-1237
W-1082
6,618
16,968
28,649
6,618
24
71
Earth Environmental Services
Buncombe
W-1129
0
32
Elk River Utilities
Avery
W-1058
117,319
51,486
273
Emerald Plantation Utility Co.
Carteret
W-843
120,454
Enviracon Utilities, Inc.
Carteret
W-1236
105,780
Enviro-Tech of North Carolina, Inc.
Currituck
W-1165
113,676
Etowah Sewer Company
Henderson
W-933
133,724
(1) Alleghany, Avery, Buncombe, Cabarrus, Carteret, Cherokee, Cumberland, Currituck, Dare, Forsyth, Gaston, Henderson, Iredell, Johnston, Lee,
Madison, McDowell, Mecklenburg, Montgomery, Moore, Pender, Transylvania, Union, Wake, Watauga, and Yancey.
(2) Cabarrus, Catawba, Iredell, and Rowan Counties.
(3) Ashe, Buncombe, Henderson, and Gaston Counties.
(4) Craven, Durham, Franklin, Jackson, Nash, New Hanover, Rutherford, Transylvania, and Wake Counties.
128
30
24
109
63
2
194
401
Number of Systems
Water
Sewer
2
1
1
75
1
1
1
4
1
1
13
1
1
3
4
22
1
1
1
1
1
1
24
1
1
1
3
1
1
2
1
3
4
1
1
1
1
2
1
2
FIGURE NO. 7-3
Company
Fairfield Water Company
Fairways Utilities, Inc.
Farm Water Works
Fearrington Utilities
Flat Creek Utilities, LLC
Fox Run Water Company, Inc.
Gensinger, John W. (Pineview Estates)
GGCC Utility Inc.
Ginguite Woods Water Reclamation Assoc.
Glynnwood Water System, Inc.
Goose Creek Utility Company
Greenfield Heights Development Co., Inc.
County
Henderson
New Hanover
Lee
Chatham
Buncombe
Warren/Northampton
Annual Revenues
Number of Customers
Water
Sewer
Water
Sewer
$17,619
12
508,489
$381,811
2,440
1,589
28,275
62
282,134
1,143
23,064
36,137
170
170
54,644
412
Docket
Number
W-1226
W-787
W-844
W-661
W-1272
W-959
Wake
Avery
Dare
New Hanover
Union
Craven
W-549
W-755
W-1139
W-1032
W-369
W-205
H & H Development
Hawknest Utilities, Inc.
High Hampton Inn Water Service
Holiday Island Water and Sewer
Homestead Community Water
Honeycutt, Wayne M., Water System
Horse Creek Farms Utilities Corporation
Greene
Watauga
(1)
Jackson
Perquimans
Pitt
Gaston
Onslow
W-315
W-1077
W-274
W-574
W-386
W-452
W-472
W-888
Indian Creek Mobile Home Park
Buncombe
W-1116
9,458
92,016
66,851
28,080
22,771
35
258
86
82,434
19,213
40,501
41,874
191
99
26
86
71,536
17,114
17,114
1
1
1
1
8,046
99
740
1
1
1
3
400
54
1
1
1
33
7,920
5,380,559
1
2
194
54
2,401
18,003,780
50,886
27,709
11,041
35,295
191
38
Number of Systems
Water
Sewer
1
22
19
1
1
1
1
10
54
1
107
1
1
1
1
JAARS, Inc.
Union
W-1136
12,725
212
1
Jactaw Properties, LLC
Buncombe
W-1209
9,671
9,671
42
42
1
1
Jefferson Landing Water and Sewer
Ashe
W-1019
40,405
45,619
215
176
1
1
Jenkins, Perry W.
Iredell
W-1084
6,828
23
1
Joyceton Water Works, Inc.
Caldwell
W-4
69,787
126
1
JPC Utilities, LLC
Guilford
W-1263
33,904
32,006
40
40
1
1
(1) Alamance, Alexander, Avery, Burke, Cabarrus, Catawba,Chatham, Davidson, Davie, Durham, Forsyth, Franklin, Gaston, Guilford, Henderson, Iredell, Johnston, Lincoln, McDowell
Mecklenburg, Mitchell, Moore, Nash, Orange, Polk, Randolph, Rockingham, Rowan, Rutherford, Stokes, Surry, Transylvania, Union, Vance, Wake, and Yadkin Counties.
129
FIGURE NO. 7-3
KDHWWTP LLC
Kenmure Utilities
KRJ Utilities
County
Dare
Henderson
Wake
Docket
Number
W-1160
W-904
W-1075
Lake Junaluska Assembly
Laurel Wood Mobile Home Park
Lifeway Ridgecrest Water Utility
Linville Heights, L.P.
Linville Ridge
Locust Grove Mobile Home Park
Haywood
Buncombe
Buncombe
Avery
Avery
Buncombe
W-1274
W-1155
W-71
W-1137
W-766
W-1106
207,515
18,528
54,206
3,120
79,668
18,248
186,469
18,528
Buncombe
Mecklenburg
Cumberland
New Hanover
Davidson
Buncombe
Wake
Buncombe
Wake
Wake
Yancey
Mecklenburg
Watauga
Buncombe
W-1281
W-560
W-339
W-1249
W-1259
W-1197
W-1166
W-1109
W-1245
W-515
W-1148
W-989
W-975
W-1089
31,088
16,242
20,650
22,388
39,567
Nero Utility Services, Inc.
North Carolina Water Utility & Assoc.
North Topsail Water & Sewer Inc.
Wake
Guilford/Randolph
Onslow
W-1152
W-1204
W-1143
36,073
64,893
Old North Utility Services
Outer Banks Kinnakeet Associates, LLC
Overhills Water Company
Cumberland/Moore
Dare
Cumberland
W-1279
W-1125
W-175
1,857,020
Cabarrus
Henderson/Buncombe
Stanly
Cherokee
Currituck/Dare
Currituck
Buncombe
Onslow
W-1046
W-1244
W-1207
W-893
W-1072
W-999
W-1131
W-822
22,901
43,249
Company
M Realty LLC
Mauney, William K., Jr.
Maxwell Water Company
Mayfaire I, LLC
Meadowlands Development, LLC
Meadows, Ted and Virginia
MECO Utilities, Inc.
Metro Water System, Inc.
Mill Run Utilities, LLC
Mobile Hills Estates Water System
Mountain Air Utilities
Mountain Point Utility Co.
Mountain Ridge Estates Water
Mountain View Park, LLC
Pace Utilities Group, Inc.
Parks Banks
Pfeiffer University
Pied Piper Water Association, Inc.
Pine Island - Currituck, LLC
Pine Island Utilities, Turnpike Properties dba
Pine Valley Mobile Home Park, Inc.
Pines Utilities, Inc.
Annual Revenues
Number of Customers
Water
Sewer
Water
Sewer
$422,220
183
0
0
0
0
$95,443.00
48,918
249
60
20,878
89,514
26,179
0
9,052
177,185
7,817
23,021
6,417
18,248
35,996
112,458
20,878
102,975
26,179
0
253,436
6,417
65,094
843
31
331
13
424
50
794
31
296
45
35
67
296
67
254
59
0
35
472
29
65
29
128
115
1,173,716
1,996,590
158,802
51,204
419
29
128
24,172
43,249
8,432
3
3
146
60
212
1
1
1
1
1
1
1
1
1
2
1
1
1
3
1
1
1
1
1
1
1
1
1
4
1
1
1
3
1
1
1
1
1
1
1
3
60
212
39
1
3
3
1
1
3
1
1
677
285
48
1
0
1
1
37
16,012
52,256
0
2
3,704
429,993
130
67
252
67
254
59
0
285
11,851
241,902
16,012
50
Number of Systems
Water
Sewer
48
204
3
1
1
1
1
FIGURE NO. 7-3
Company
Ponderosa Mobile Home Park
Porters Neck Company, Inc.
Prior Construction Co., Inc.
County
Currituck
New Hanover
Wake
Docket
Number
W-1086
W-1059
W-567
River Walk Utilities, LLC
Riverbend Estates Water Systems, Inc.
Riverhills Inc.
Rock Creek Environmental Company
Rolesville MHP LLC
Royal Palms Water and Sewer
Rumfelt, Mark and Fred Luther
(1)
Wake
Macon
Pitt
Onslow
Wake
New Hanover
Buncombe
W-899
W-1239
W-390
W-461
W-830
W-1270
W-1105
W-1254
Brunswick
S T Utility Company
Sandler Utilities at Mill Run, L. C.
Currituck
Santeetlah Shores Water System
Graham
Shaw Hill 22 Investors
Durham
Silver Maples Mobile Estates
Cabarrus
(1) Cabarrus, Forsyth, Mecklenburg, Randolph, Rowan, and Stokes Counties.
Annual Revenues
Water
Sewer
$23,381
162,147
60,458
221,592
8,624
37,548
20,042
24,748
6,696
W-984
W-1130
W-577
W-943
W-776
$394,773
10,501
66,204
49,670
26,899
32,805
7,259
Number of Customers
Water
Sewer
112
765
212
828
0
131
62
178
22
46,927
179,725
11,705
1,892
1,598
131
5,285
Number of Systems
Water
Sewer
1
1
2
957
0
151
229
62
178
22
11
1
1
1
1
1
167
408
24
27
13
35
10
1
1
1
1
1
1
1
1
1
1
1
1
FIGURE NO. 7-3
Company
South Asheville Water Works
Springdale Water Company
Sugarloaf Utility, Inc.
Total Environmental Solutions, Inc.
Town & Country
Transylvania Utilities
TRG Charlotte LLC
Twin Creeks Utilities
University Heights
Water Quality Services, Inc.
Water Quality Utilities
Water Resources Inc.
Water Resource Management, Inc.
Water Works of Alamance, Inc.
Watercrest Estates
Webb Creek Water and Sewer, Inc.
Whispering Pines Village
Willowbrook Utility Co.
Woodland Heights MHP
Woods Water Works, Inc.
TOTAL (145)
County
Buncombe
Haywood
Carteret
Annual Revenues
Number of Customers
Water
Sewer
Water
Sewer
$11,960
$11,960
53
53
21,465
13,936
112
48
93,528
120
Docket
Number
W-1104
W-406
W-1154
Franklin
Buncombe
Transylvania
Mecklenburg
Buncombe
W-1146
W-1193
W-1012
W-1257
W-1035
Jackson
W-760
Watauga
Watauga
Cabarrus/Mecklenburg
Watauga
Alamance
Iredell
Onslow
Cumberland
Mecklenburg
Buncombe
Surry
W-1099
W-1264
W-1034
W-1073
W-1149
W-1021
W-864
W-1042
W-981
W-1161
W-735
846,277
11,926
604,400
60,861
9,813
11,926
388,326
69,223
5,040
1,564
36
1,501
150
25
42
97,122
209,953
39,100
47,520
18,926
23,253
20,351
23,869
14,335
$45,897,153
N/A--Not Available
Total Number of Current Companies--145
132
36
1,055
150
51,360
36,112
360,205
34,676
36,567
23,869
$27,307,805
Number of Systems
Water
Sewer
1
1
1
1
4
1
1
1
1
1
1
237
450
116
214
43
82
174
30
44
120,326
1
1
1
143
82
1,200
174
91
30
51,789
2
2
2
1
1
1
1
1
2
1,263
1
1
3
1
1
1
312
FIGURE NO. 7-4
NONCURRENT DATA OF WATER AND SEWER COMPANIES REGULATED
BY THE NORTH CAROLINA UTILITIES COMMISSION
Data Range 1994 - 2006
Company
Cogdill, Greg S.*
Cook, William E. (Green Oaks Drive)
Cowan Valley Estates Water System**
Environmental Maintenance Systems, Inc.
Forest Hills Water System
Harrco Utility Corporation
Hawk Run Development of Asheville
Holly Springs Golf and Country Club
Knob Creek Properties, Inc.
McCullers Pines Water System
North State Utilities, Inc.
Scientific Water and Sewerage Company, Inc.
Sedgefield Development Corp.
Setzer Brothers Inc.
South Rowan Investment Corp.
Viewmont Acres Water System
Vila Pump Co.
County
Buncombe
Cabarrus
Jackson
Docket
Number
W-1171
W-1262
W-829
Date of
Data
2007
2007
2007
Annual Revenues
Water
Sewer
$20,535
$19,476
9,424
9,797
Number of Customers
Water
Sewer
48
48
16
22
Number of Systems
Water
Sewer
1
1
1
1
(1)
W-1054
2005
63,694
214
4
Surry
W-935
2001
1,440
10
1
Wake/Durham
Buncombe
Macon
W-796
W-1238
W-944
1995
2007
2007
7,594
0
Transylvania
W-486
2005
19,995
171
1
Wake
W-727
2001
3,410
14
1
(2)
W-848
N/R
Onslow
Wake
Catawba
Rowan
W-176
W-1036
W-360
W-807
2007
N/R
2007
2001
525,025
47,650
3,401
274
19
4
1
Buncombe
Moore
W-856
W-945
2002
2005
6,703
24,883
45
65
1
1
TOTAL (17)
$743,551
* Canceled August 18, 2009
** Canceled February 5, 2009
Total Number of Noncurrent Companies--17
(1) This Company Serves Henderson, Jackson, and Macon Counties.
(2) This Company Serves Durham, Mecklenburg, and Wake Counties.
133
184,631
8,814
0
584,577
$797,498
52
0
1,635
2,585
357
52
0
1,620
2,077
1
1
5
24
7
1
1
6
16
FIGURE NO. 7-5
PLANT, REVENUE AND CUSTOMER GROWTH OF ALL REGULATED
WATER & SEWER COMPANIES IN NORTH CAROLINA
For the Years 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007 and 2008
Thousands
PLANT GROWTH
REVENUE GROWTH
$75,000,000
$70,000,000
$65,000,000
$60,000,000
$55,000,000
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
$600,000
$575,000
$550,000
$525,000
$500,000
$475,000
$450,000
$425,000
$400,000
$375,000
$350,000
$325,000
$300,000
$275,000
$250,000
$225,000
$200,000
$175,000
$150,000
$125,000
$100,000
$75,000
$50,000
$25,000
$0
2000
2001
2002
2003
2004
Water
2005
2006
Sewer:
Plant
Revenues
Customers
Total Number of Companies
2008
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2000
2001
2002
2003
2004
Water
Sewer
2000
Water:
Plant
Revenues
Customers
2007
CUSTOMER GROWTH
2001
2005
2006
2007
2007
2000
2001
2002
Sewer
2003
2004
Water
2005
2006
2007
2007
Sewer
2002
2003
2004
2005
2006
2007
2008
$189,498,760 $189,765,012
$34,081,498 $36,288,535
123,868
114,745
$199,008,495
$35,655,021
112,864
$212,700,057
$34,426,236
113,931
$227,343,946
$36,205,660
113,756
$236,859,797
$40,098,539
118,031
$266,420,852
$41,632,942
120,203
$313,502,658
$46,429,096
124,195
$349,828,546
$46,640,704
122,911
$109,455,677 $118,734,887
$16,306,333 $18,509,972
47,983
50,229
$120,865,174
$18,312,651
51,288
$131,550,911
$19,275,552
51,398
$138,160,026
$20,249,091
53,847
$134,276,719
$22,114,460
53,436
$157,139,802
$25,627,284
53,136
$174,099,904
$24,676,219
55,925
$204,435,583
$28,105,303
53,866
208
213
208
191
175
169
162
225
233
134
FIGURE NO. 7-6
COMPARATIVE MONTHLY CHARGES FOR RESIDENTIAL
WATER & SEWER SERVICE IN NORTH CAROLINA
As of January 2009
Publicly Owned Systems
Asheville
Charlotte
Greensboro
Raleigh
Wilmington
Winston-Salem
Average-(Simple)
WATER
Nonregulated Systems - Inside City Limits
3,000 gal.
6,000 gal.
9,000 gal.
$22.13
$35.93
$49.73
7.32
13.56
23.80
10.05
19.25
29.65
11.73
19.57
27.41
13.45
21.30
30.15
7.36
14.73
22.09
$12.01
$20.72
$30.47
Privately Owned Systems Regulated by Commission *
(Class B or Larger)
Aqua
Corriher Water Service
Joyceton Water Works
Total Environment Solutions
Average-(Simple)
WATER
Regulated Systems - Inside Service Area
3,000 gal.
6,000 gal.
9,000 gal.
$19.95
$26.70
$33.45
26.13
37.26
48.39
10.05
17.70
25.35
46.50
63.69
80.80
$25.66
$36.34
$47.00
Publicly Owned Systems
Asheville
Charlotte
Greensboro
Raleigh
Wilmington
Winston-Salem
Average-(Simple)
SEWER
Nonregulated Systems - Inside City Limits
3,000 gal.
6,000 gal.
9,000 gal.
$21.50
$35.54
$49.58
16.92
32.04
47.16
14.35
25.75
37.15
10.40
17.68
24.96
16.50
24.75
33.00
6.99
13.98
20.98
$14.44
$24.96
$35.47
SEWER
Regulated Systems - Inside Service Area
Privately Owned Systems Regulated by Commission *
(Class B or Larger)
Aqua America, Inc.
CWS Systems
Carolina Water Service of North Carolina
Average-(Simple)
3,000 gal.
$33.02
40.98
29.30
48.81
$38.03
6,000 gal.
$46.04
40.98
46.10
48.81
$45.48
9,000 gal.
$59.06
40.98
62.90
48.81
$52.94
* These rates may vary depending on area served and if the residence includes water and sewer or just one
type of service.
135
VIII. THE TRANSPORTATION INDUSTRY
Household Goods Movers
transfers
of
existing
certificates,
and
cancellations of certificates are handled through
this Division.
The Public Staff Transportation Rates
Division has the responsibility for maintaining
and reviewing annual reports of all household
goods movers and auditing records and freight
bills.
The Public Staff offers technical
assistance to the Commission and the general
public in dealing with transportation matters,
including damage claims.
MOTOR FREIGHT CARRIERS
A. CLASSIFICATION OF MOTOR FREIGHT
CARRIERS
Motor freight carriers are divided into
three groups according to annual operating
revenues. Effective January 1, 1994, the ICC
eliminated the Uniform System of Accounts for
common and contract motor carriers of
property.
This revised the classification
threshold levels for Classes I, II, and III motor
carriers. These levels are as follows: carriers
having annual carrier operating revenues of
$10 million or more are Class I carriers. Class
II carriers have annual carrier operating
revenues of at least $3 million but less than $10
million.
Carriers having annual carrier
operating revenues of less than $3 million are
considered Class III carriers. This revision is
intended to reduce regulatory and accounting
burdens on the motor carrier industry.
All household goods movers that have
certificates to operate in North Carolina are
required to file an annual report with the North
Carolina Utilities Commission. Failure to file
this report could be grounds for the cancellation
of their certificates by the Commission.
Enforcement and compliance with the filing of
annual reports on a timely basis requires a
continuing effort by Commission personnel. On
December 31, 2008, there were 269 household
goods movers with certificates to operate in
North Carolina. There were 245 annual reports
filed with the North Carolina Utilities
Commission for the year ended December 31,
2008 and 24 companies’ certificates were
cancelled in 2009 and 2010.
C. COMMISSION ACTIVITIES
An amendment to the Public Utilities Act
provides that if no protests are filed in
opposition to the truck application, the hearing
may be canceled with the matter decided on
sworn shipper affidavits. The majority of truck
applications are decided in this manner. The
Commission sometimes settles tariff filings and
other filings based on Public Staff and
Commission Staff recommendations and
studies presented at Monday morning
conference sessions.
The Operations Division, Transportation
Section, and Public Staff, Transportation Rates
Division, hold monthly, day-long seminars
throughout
the
state
regarding
the
Commission’s Maximum Rate Tariff (MRT),
which governs all household moves within
North Carolina. During the MRT Seminars, the
tariff is thoroughly reviewed, and a hands-on
training session is held in which participants
rate sample moves.
In 2008, 151
representatives from the moving industry
attended these seminars.
D. SUMMARY OF OPERATING DATA
B. DUTIES OF THE OPERATIONS DIVISION,
TRANSPORTATION SECTION (See Part E for
Current Legislative Action)
A list of the household goods movers
with selected operating financial data is shown
in Figure No. 8-1. Figure 8-2 is a summary of
household goods operations annual report
information for 2008. It should be noted that
the operating revenues for North Carolina are
from freight moved on intrastate tariffs
regulated by the North Carolina Utilities
Commission only; therefore, they account for a
very small percentage of the total revenues
generated by this group of carriers.
The Commission Staff Transportation
Division is responsible for the administration of
motor freight carriers of household goods
operating within the borders of North Carolina.
Authority for this activity is found in North
Carolina General Statute Article 12 - Sections
G.S. 62-259 through 289 and Commission
Orders in Docket No. T-100, Sub 49. All
applications for certificates of exemption,
137
E. LEGISLATIVE ACTION
As of January 1, 1995 the ICC
(Interstate Commerce Commission) preempted
states over jurisdiction of the trucking industry.
The North Carolina Utilities Commission has
jurisdiction over Household Goods Movers only
and; therefore, requires annual reports be filed
by those transporters.
138
FIGURE NO. 8-1
HOUSEHOLD GOODS MOVERS
COMPANY NAME
A & A Moving
A & D Relocation, Inc.
A & L Movers
A Magic Mover
A+ Moving & Storage
A-1 Cleanup & Movers, Inc.
AAA Moving, LLC.
AAA Moving and Storage, Inc.
AAA Reed's Moving Service
AAA Storage Company, Inc.
ABC Moving and Storage, Inc.
Absolute Moving & Storage, Inc.
Accredited Relocation Systems, Inc.
Ace Movers
Acme Movers and Storage Co., Inc.
Act of Class Relocation, Inc.
Advance Moving & Storage, Inc.
Affordable Movers
Airway Moving & Storage, Inc.
All American Moving & Storage of Fayetteville, Inc.
All American Relocation, Inc.
All My Sons Moving & Storage (Charlotte)
All My Sons Moving & Storage of Raleigh
All The Right Moves, Inc.
Allen's Moving Service of Fayetteville, Inc
Allstar Moving and Storage Co., Inc.
All-States Moving and Storage Company
American Moving & Hauling, Inc
American Moving Systems & Storage, Inc
Anderson Moving Co.
Andy Anderson Moving Company
Antiques Abroad, Ltd.
Anytime Movers
Appalachian Moving Company LLC
Ark Moving and Storage
Armor Bearer Discount Movers
Armstrong Relocation - Raleigh
Armstrong Trans & Storage Co. Inc.
Paul Arpin Van Lines, Inc.
ASE Moving Services
Atlantic Moving Systems
Berger Charlotte, Inc.
Bill Scott Trucking
Black's Moving & Storage (Gayla)
Blue Ridge Movers, Inc.
Bright's Moving (d/b/a for Susan Bright Melton)
Brooks Coast to Coast Transport
B's Moving
Bruce's Transfer, Inc.
Bulldog Moving, LLC
Burnham Service Co., Inc.
Byers, Sam A. & Sons Moving Service
Campbell's Transfer & Storage
Caraway Moving, Inc.
Cardinal Moving & Storage, Inc.
Carey Moving & Storage of Asheville, Inc.
Carolina Classic Transport, LLC
Carolina Transportation Systems, Inc.
Central Moving & Storage, Inc.
Chapel Hill Moving Company, Inc.
Charlotte Van and Storage Co., Inc.
China Grove & Landis Moving
City Transfer & Storage Co.
Citywide Moving Systems. Inc.
Class Action Movers
Coastal Carriers Moving & Storage
Coastal Moving Co., Inc.
Coleman American Moving Service, Inc.
Covan World Wide Moving, Inc.
Crofutt & Smith Storage Warehouse of NC
Crown Moving & Storage, Inc.
Custom Moving & Storage, Inc.
DC Movers, LLC
Dawson-Joyce Moving & Storage, Inc.
Dedmon, A V Trucking, Inc.
Dedmon Moving and Storage, Inc
PACKING &
ACCESSORIAL
REVENUE
$0.00
$5,414.34
$0.00
LINE HAUL
HOURLY
REVENUE
REVENUE
$0.00
$25,705.00
$6,524.88
$2,271.60
$0.00
$32,235.60
Canceled 4/13/2009
$8,350.00
$57,348.00
$8,635.00
$0.00
$95,209.00
$0.00
$10,900.00
$46,569.75
$3,381.05
$148,950.00
$390,392.62
$82,080.35
$0.00
$29,642.00
$0.00
$0.00
$0.00
$0.00
$142,226.34
$101,370.64
$69,016.49
$30,971.92
$105,459.16
$15,924.46
Canceled 01/29/10 FAILURE TO FILE AR - SUB 76
$18,210.00
$58,162.00
$3,000.00
$104,321.00
$112,142.00
$20,109.00
$59,687.00
$448,963.00
$43,359.00
$83,499.00
$171,860.00
$14,312.00
Canceled 02/17/09
FAILURE - REG FEE - SUB 74
$37,718.84
$15,445.30
$16,258.06
$0.00
$0.00
$0.00
$222,471.26
$242,417.49
$175,827.53
$152,038.66
$1,313,497.00
$86,570.44
$255,103.00
$1,575,512.00
$319,520.00
$45,891.00
$333,773.00
$36,130.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$39,067.39
$180,135.60
$19,287.53
$0.00
$1,450.00
$0.00
$0.00
$0.00
$0.00
$20,575.00
$99,800.60
$7,891.70
$0.00
$0.00
$0.00
$0.00
$53,253.00
$0.00
$8,696.00
$36,307.00
$2,082.76
Canceled 03/26/09
$0.00
$43,200.00
$2,825.00
$140,635.00
$101,580.00
$115,015.58
$187,029.00
$62,017.00
$227,093.00
$522.00
$1,760.00
$1,408.81
$0.00
$0.00
$0.00
$12,125.00
$6,922.00
$3,565.00
$102,760.00
$139,480.00
$156,064.00
$0.00
$31,171.00
$0.00
$0.00
$48,550.00
$2,112.00
$5,200.00
$53,083.28
$0.00
$30,425.50
$59,057.00
$0.00
$0.00
$8,288.00
$0.00
Canceled 12/23/09
FAILURE - REG FEES - SUB 78
$0.00
$123,484.00
$550.00
$0.00
$257,307.00
$0.00
Canceled 05/22/09
$13,332.48
$43,640.25
$9,971.37
$0.00
$65,441.00
$905.00
$4,335.00
$10,960.75
$98,586.75
Canceled 03/16/09
$100,914.26
$70,392.88
$62,260.55
$0.00
$56,910.69
$0.00
$0.00
$7,937.00
$0.00
$62,850.00
$48,350.00
$10,171.81
$0.00
$122,868.00
$0.00
$14,259.00
$69,550.00
$73,143.00
$6,887.11
$71,669.25
$0.00
$238,136.00
$449,813.00
$194,038.00
$65,051.00
$804,973.00
$85,054.00
$16,349.00
$33,831.00
$0.00
$84,137.00
$239,158.00
$73,865.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$1,804.00
$0.00
$0.00
$316,273.00
$98,569.00
$160,200.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$291,691.60
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$3,841.00
$11,163.00
$3,275.00
139
NC INTRASTATE
NUMBER OF
HOUSEHOLD GOODS FULL-TIME
OPERATING REVENUE EMPLOYEES
$25,705.00
0
$14,210.82
0
$32,235.60
0
$0.00
$74,333.00
4
$95,209.00
3
$60,850.80
2
$621,422.97
37
$29,642.00
0
$0.00
0
$312,613.47
27
$152,355.54
3
$0.00
$79,372.00
0
$236,572.00
27
$552,009.00
11
$269,671.00
10
$0.00
$69,422.20
28
$0.00
2
$640,716.28
135
$1,552,106.10
61
$2,150,135.00
105
$415,794.00
27
$0.00
0
$0.00
9
$0.00
6
$238,490.52
3
$1,450.00
1
$0.00
0
$128,267.30
9
$0.00
0
$53,253.00
0
$47,085.76
3
$0.00
$46,025.00
7
$357,230.58
45
$476,139.00
35
$3,690.81
6
$0.00
0
$22,612.00
3
$398,304.00
17
$31,171.00
0
$50,662.00
2
$58,283.28
4
$89,482.50
0
$8,288.00
7
$0.00
$124,034.00
3
$257,307.00
22
$0.00
$66,944.10
12
$66,346.00
0
$113,882.50
6
$0.00
$233,567.69
37
$56,910.69
8
$7,937.00
20
$121,371.81
7
$122,868.00
3
$156,952.00
25
$78,556.36
3
$881,987.00
125
$955,078.00
20
$50,180.00
0
$397,160.00
13
$0.00
41
$0.00
2
$1,804.00
134
$575,042.00
6
$0.00
20
$0.00
0
$291,691.60
4
$0.00
7
$0.00
0
$18,279.00
1
TOTAL SALARIES
AND WAGES PAID
FULL-TIME
EMPLOYEES
$0.00
$0.00
$0.00
$40,403.00
$44,872.00
$43,408.99
$298,704.59
$0.00
$0.00
$548,164.15
$40,992.26
$0.00
$96,300.00
$304,437.00
$234,890.00
$533,597.50
$32,683.18
$5,990,393.58
$766,483.94
$1,026,393.00
$247,094.35
$0.00
$259,762.00
$74,623.00
$42,290.25
$0.00
$0.00
$110,062.00
$0.00
$0.00
$12,490.00
$31,880.00
$3,777,945.50
$3,401,007.00
$1,572,738.19
$0.00
$61,480.00
$1,175,726.56
$0.00
$15,426.00
$9,090.86
$0.00
$1,656.00
$58,145.00
$111,250.00
$71,863.42
$0.00
$52,496.35
$860,017.23
$21,086.04
$351,443.82
$50,182.00
$112,215.00
$908,138.00
$19,214.50
$2,713,915.00
$621,558.00
$0.00
$186,282.00
$569,921.00
$10,076.07
$1,537,860.99
$285,775.00
$344,260.00
$0.00
$103,260.80
$125,238.00
$0.00
$5,000.00
FIGURE NO. 8-1
COMPANY NAME
DeHaven's Transfer & Storage, Inc.
DeHaven's Transfer & Storage of Greensboro, Inc.
DeHaven's Transfer & Storage of Raleigh, Inc.
DeHaven's Transfer & Storage of Wilson, Inc.
Delancey Street Moving & Transportation
Denham Moving Service
Doma Moving and Storage LLC
Duke, D. R. Moving, Inc.
Dunmar Moving Systems
Dunnagan's Moving & Storage
East Coast Moving, LLC
Eastern Moving & Storage, Inc.
Easy Movers, Inc.
Excel Moving & Storage of Greensboro, Inc.
Excel Moving & Storage, Inc.
Exodus Works
Express Movers, The
E-Z Move, Inc.
Fayetteville Moving & Storage, Inc.
Ferguson, Gene, Moving Co Inc
Fidelity Moving & Storage Co., Inc.
First Choice Moving & Storage, Inc.
Fleming-Shaw Transfer & Storage, Inc.
Fox Brothers of Boone, Inc.
Gasperson Transfer
Gentle Giant Moving Co. (NC), LLC
Goldsboro Van & Storage, Inc.
Graebel/North Carolina Movers, Inc.
GT Moving, Inc.
Handy Help Moving LLC
Hardy Moving & Storage
Harrison's Moving & Storage Co. Inc
Hart Moving & Packing Service
Harvel's, Cliff Moving Company
Helms, RD, Transfer Company
Helpful Movers, Inc.
Highland Moving & Storage Co. (City Transfer)
Hilldrup Moving & Storage
Holloway Moving & Storage, Inc.
Home 2 Home Moving, Pickup & Delivery Co., Inc.
Homeward Bound Moving, Inc.
Hood's Movers
Horne Moving Systems, Inc.
Humphrey, Troy, Moving & Storage, Inc.
I Will Move It Today
I. H. Hill Transfer & Storage, Inc.
International Moving & Storage, Inc
Jack Bartlett Moving Company
Jackson Moving & Storage Co.
Jeff's Express. LLC
John's Moving & Storage
John's Service Co. of New Bern
Keever Moving Service
Kelly Moving, Inc
Kepley Moving and Storage, Inc.
Ladd, J.E. & Son Transfer
LaFayette Moving & Storage, Inc.
Lake Norman Moving Services
Lawrence Transportation Systems, Inc.
Lentz Transfer & Storage Co.
Lil John Movers
Little Lloyd Moving & Transit
Long Transfer, Inc.
Lytle's Transfer & Storage, Inc.
Maddox Moving Services
Markethouse Moving & Storage, Inc.
Marrin's Moving Systems, Ltd.
Mather Brothers Moving Co., LLC
Matthews Moving Systems, Inc.
MBM Moving Systems. LLC
McCollister's Transportation Systems, Inc.
Men on the Move, Inc.
Merchants Moving & Storage, Inc
Miscellaneous Plus, Inc.
Mitchell Movers
LINE HAUL
REVENUE
$83,043.00
$54,002.75
$0.00
$15,862.00
$21,307.61
$14,775.17
$1,774.00
$0.00
$1,660.00
$11,836.00
$49,650.00
$12,681.34
$112,571.00
$142,284.00
$134,243.00
$0.00
Canceled 02/03/09
$19,230.24
$13,706.00
$0.00
$21,587.00
$0.00
$3,708.71
$36,343.00
$132,073.00
$0.00
$0.00
$359,957.00
$0.00
$2,989.00
$48,173.00
$11,349.87
Canceled 12/23/09
$81,663.81
$0.00
Canceled 12/23/09
$0.00
$613,040.66
$37,493.00
$0.00
$20,260.44
$0.00
$34,255.60
$21,535.00
Canceled 02/17/09
$0.00
$0.00
$16,224.00
$65,067.00
$0.00
$55,179.00
$58,520.00
$0.00
$0.00
$12,025.72
$0.00
$0.00
$0.00
$181,938.00
$149,483.00
$11,017.00
$0.00
$17,863.00
$166,752.00
$0.00
$0.00
$36,164.00
$26,858.32
$91,554.00
$119,262.00
$47,743.91
$0.00
$0.00
$0.00
$0.00
PACKING &
HOURLY
ACCESSORIAL
REVENUE
REVENUE
$145,971.00
$90,718.00
$30,438.98
$55,431.13
$0.00
$0.00
$6,079.00
$16,236.00
$200,433.64
$44,505.80
$12,335.41
$4,860.53
$23,562.00
$2,189.00
$151,661.42
$0.00
$0.00
$440.00
$26,220.00
$2,630.00
$50,942.24
$5,186.40
$3,909.60
$4,027.05
$632,785.00
$68,736.00
$149,691.00
$151,546.00
$158,501.00
$234,418.00
$10,973.00
$0.00
FAILURE - CARGO & AUTO
$106,165.90
$18,282.09
$36,190.00
$8,153.00
$44,023.26
$0.00
$21,569.00
$13,795.00
$0.00
$0.00
$0.00
$1,632.90
$49,854.00
$37,846.00
$362,671.00
$72,438.00
$371,364.70
$15,011.00
$0.00
$0.00
$91,017.00
$420,921.00
$71,936.25
$5,243.00
$145,320.00
$2,338.00
$138,843.00
$55,320.00
$3,253.50
$0.00
$325,456.17
$69,905.04
$997.50
$0.00
$36,384.05
$0.00
$331,373.33
$712,452.65
$372,425.00
$30,196.00
$0.00
$0.00
$98,063.75
$8,074.07
$18,586.00
$0.00
$43,125.07
$44,374.38
$48,108.00
$17,064.00
$0.00
$0.00
$0.00
$0.00
$88,782.00
$15,651.00
$28,396.00
$41,201.00
$0.00
$0.00
$454,839.00
$214,699.00
$113,068.50
$19,109.50
$28,592.00
$0.00
$16,477.50
$0.00
$13,382.40
$2,931.25
$61,037.00
$0.00
$0.00
$0.00
$0.00
$0.00
$75,556.00
$188,994.00
$150,913.00
$183,672.00
$30,941.50
$0.00
$41,123.00
$0.00
$94,413.00
$17,875.00
$5,798.00
$179,590.00
$14,937.50
$0.00
$0.00
$0.00
$293,205.00
$56,166.00
$83,618.00
$28,881.91
$477,627.86
$358,367.00
$234,762.00
$61,069.00
$41,596.54
$32,445.28
$0.00
$0.00
$0.00
$0.00
$35,493.00
$319.00
$47,000.00
$0.00
140
NC INTRASTATE
NUMBER OF
$319,732.00
125
$139,872.86
47
$0.00
0
$38,177.00
16
$266,247.05
0
$31,971.11
0
$27,525.00
12
$151,661.42
3
$2,100.00
0
$40,686.00
8
$105,778.64
23
$20,617.99
13
$814,092.00
13
$443,521.00
73
$527,162.00
79
$10,973.00
1
$0.00
$143,678.23
15
$58,049.00
87
$44,023.26
5
$56,951.00
25
$0.00
0
$5,341.61
17
$124,043.00
5
$567,182.00
26
$386,375.70
15
$0.00
4
$871,895.00
60
$77,179.25
0
$150,647.00
13
$242,336.00
22
$14,603.37
0
$0.00
$477,025.02
16
$997.50
0
$0.00
$36,384.05
44
$1,656,866.64
102
$440,114.00
6
$0.00
0
$126,398.26
7
$18,586.00
2
$121,755.05
44
$86,707.00
18
$0.00
$0.00
0
$0.00
0
$120,657.00
22
$134,664.00
18
$0.00
0
$724,717.00
42
$190,698.00
8
$28,592.00
3
$16,477.50
0
$28,339.37
4
$61,037.00
2
$0.00
0
$0.00
0
$446,488.00
75
$484,068.00
38
$41,958.50
0
$41,123.00
0
$130,151.00
13
$352,140.00
1
$14,937.50
0
$0.00
0
$385,535.00
34
$139,358.23
19
$927,548.86
60
$415,093.00
86
$121,785.73
44
$0.00
0
$0.00
21
$35,812.00
2
$47,000.00
0
TOTAL SALARIES
AND WAGES PAID
FULL-TIME
EMPLOYEES
$2,225,608.58
$566,625.12
$0.00
$156,800.00
$0.00
$0.00
$44,460.00
$39,591.00
$0.00
$15,188.00
$110,152.65
$292,435.14
$374,797.00
$2,504,359.00
$3,032,835.00
$23,094.50
$81,172.80
$2,002,375.00
$39,043.07
$944,515.00
$0.00
$321,270.72
$133,270.00
$959,782.00
$232,841.00
$60,096.83
$5,702,598.00
$0.00
$71,080.00
$367,870.51
$0.00
$283,523.00
$0.00
$535,043.00
$9,069,975.03
$151,504.00
$0.00
$121,093.40
$8,000.00
$1,605,879.77
$425,000.00
$0.00
$0.00
$125,512.00
$475,054.00
$0.00
$510,383.00
$120,643.00
$9,309.00
$0.00
$55,276.00
$29,209.00
$0.00
$0.00
$1,404,822.00
$1,294,840.00
$0.00
$0.00
$287,236.65
$40,000.00
$0.00
$0.00
$241,546.00
$658,974.24
$1,120,221.42
$1,724,575.00
$1,687,842.17
$0.00
$430,827.00
$27,101.00
$0.00
FIGURE NO. 8-1
COMPANY NAME
Modern Moving & Storage, Inc.
Moody Movers, Inc.
Morehead Moving and Storage, Inc.
Move It Now
Move It Now of Raleigh
Move Makers, Inc. (The)
Movemart Relocation, Inc
Movers at Demand, Inc. (MAD)
Movers Not Shakers
Movin' On Movers, Inc.
Moving Company, The
Moving Men
Mungro's Moving
Murphy Movers
Murray Transfer & Storage Co., Inc.
Muscle Movers, Inc.
Nelson's Delivery Service
New Beginnings Moving & Storage, Inc.
New Bell Storage
New Hanover Moving & Storage
New World Van Lines, Inc.
Nilson Van & Storage, Inc
North American Van Lines, Inc.
North Star Movers
Old Farm Rd. Moving & Storage
Omni Moving and Storage, Inc.
Owens, Randy Moving Service. LLC
Parks Moving & Storage, Inc.
Parks Transfer
Patterson Storage Warehouse Co., Inc
Paxton Van Lines of NC, Inc.
Peach Movers of North Carolina, Inc.
Piedmont Van & Storage Co.
Pilot Van Lines, Inc.
Port City Transfer & Storage Company
Premium Moving, Inc.
Prestige Moving
Pro Movers, LLC
Quality Moving & Storage, Inc.
Ray Moving & Storage, Inc.
Redi-Care Movers, LLC
Reliable Moving Co. LLC
Reliable Van & Storage, Inc.
RM Moving & Storage
Rockingham Movers
Roller Mill Moving & Storage
Salisbury Moving & Storage
Sandhills Moving & Storage Co.
Sawyers EZ Move
Seaboard Moving & Storage, Inc.
Security Storage Company, Inc. (Goldsboro)
Security Storage Company of Charlotte, Inc
Security Storage Company of Raleigh, Inc
Sells Service, Inc
Sheets Transfer & Storage Co, Inc
Shore to Shore Moving & Storage
Small Moves
Smart Move, LLC
Smith Dray Line & Storage Co., Inc
Smith, M.M. Storage Warehouse, Inc
Smith, W.E. Moving Co. (City Transfer)
Smoky Mountain Moving Co, Inc.
Smooth Movin' Services, Inc.
South End Moving Co.
Southern Moving
Southpark Moving Consultants
Southport Furniture Delivery
Staley's Moving Vans
Stanley's Transfer Co.
State Moving & Storage, Inc
Steele & Vaughn Moving
Stevens Van Lines, Inc
Stor-Trans, Inc.
Suddath Relocation Systems of Charlotte, LLC
Superior Moving Systems, Inc.
LINE HAUL
REVENUE
$0.00
$0.00
Canceled 03/26/09
$31,623.80
Canceled 02/17/09
Canceled 12/23/09
$0.00
$0.00
$0.00
$24,416.00
$0.00
$26,466.30
$0.00
$2,000.00
$46,145.00
$0.00
$0.00
$0.00
$4,014.55
$0.00
$40,597.00
$8,721.00
$0.00
$0.00
$0.00
$4,204.00
$0.00
$14,616.37
$0.00
$27,870.00
$112,965.00
Canceled 02/17/09
$1,220.00
$0.00
$41,367.00
$94,527.00
$167,485.50
$0.00
$0.00
$230,217.00
$112,436.00
$0.00
$0.00
$0.00
Canceled 08/12/09
$0.00
$57,831.54
$74,795.00
$1,100.00
$0.00
Canceled 01/29/10
Canceled 12/23/09
Canceled 01/29/10
$18,542.00
$109,533.00
$2,379.00
$0.00
Canceled 01/29/10
$84,450.00
$0.00
$0.00
$25,587.00
$0.00
$1,995.00
$0.00
$0.00
$0.00
$22,328.00
Canceled 03/26/09
$0.00
$26,119.81
$25,516.00
$20,176.25
$95,996.00
$41,113.67
HOURLY
REVENUE
$0.00
$0.00
PACKING &
ACCESSORIAL
REVENUE
$0.00
$0.00
$105,583.70
$1,498.50
$0.00
$0.00
$33,329.00
$1,096.00
$0.00
$0.00
$193,611.00
$8,539.00
$2,232.00
$0.00
$116,451.00
$33,524.67
$8,800.00
$0.00
$30,335.00
$1,825.00
$45,303.00
$41,822.00
$53,500.00
$0.00
$0.00
$0.00
$51,874.25
$4,205.50
$6,852.45
$6,949.83
$40,565.00
$0.00
$0.00
$64,919.00
$0.00
$2,401.00
$0.00
$0.00
$58,897.00
$0.00
$22,631.00
$0.00
$48,757.00
$9,218.00
$38,952.00
$0.00
$12,461.55
$9,213.77
$47,910.00
$0.00
$20,379.00
$29,234.00
$91,532.00
$149,514.00
$0.00
$474.00
$0.00
$0.00
$259,406.00
$14,048.35
$206,503.00
$20,529.00
$184,360.83
$8,880.20
$50,440.00
$2,350.00
$0.00
$0.00
$366,730.00
$385,985.00
$140,045.50
$0.00
$255.00
$0.00
$0.00
$0.00
$19,985.78
$0.00
$16,447.00
$1,178.70
$75,334.52
$90,151.79
$94,205.00
$46,290.00
$39,731.00
$2,010.00
$0.00
$0.00
FAILURE TO FILE AR - SUB 76
FAILURE TO FILE AR - SBU 76
$17,405.00
$10,181.00
$119,885.00
$98,639.00
$1,700.00
$148.50
$173,989.32
$1,855.00
$87,250.00
$242,679.00
$0.00
$0.00
$5,865.01
$0.00
$85,840.00
$14,738.00
$1,045.00
$0.00
$46,287.00
$80.00
$472,759.67
$0.00
$62,468.00
$0.00
$0.00
$0.00
$60,974.00
$0.00
$0.00
$144,817.43
$0.00
$14,400.00
$112,800.00
$134,226.98
141
$0.00
$218.62
$1,347.00
$8,200.00
$464,676.00
$76,014.15
NC INTRASTATE
NUMBER OF
$0.00
16
$0.00
0
$0.00
$138,706.00
2
$0.00
$0.00
$0.00
0
$34,425.00
0
$0.00
1
$226,566.00
31
$2,232.00
0
$176,441.97
3
$8,800.00
0
$34,160.00
1
$133,270.00
34
$53,500.00
2
$0.00
2
$56,079.75
8
$17,816.83
0
$40,565.00
2
$105,516.00
0
$11,122.00
58
$0.00
0
$58,897.00
2
$22,631.00
4
$62,179.00
63
$38,952.00
0
$36,291.69
19
$47,910.00
0
$77,483.00
36
$354,011.00
46
$0.00
$1,694.00
10
$0.00
0
$314,821.35
12
$321,559.00
16
$360,726.53
0
$52,790.00
6
$0.00
3
$982,932.00
44
$252,481.50
0
$255.00
0
$0.00
0
$19,985.78
1
$0.00
$17,625.70
0
$223,317.85
8
$215,290.00
11
$42,841.00
6
$0.00
0
$0.00
$0.00
$0.00
$46,128.00
19
$328,057.00
15
$4,227.50
1
$175,844.32
11
$0.00
$414,379.00
19
$0.00
14
$5,865.01
4
$126,165.00
3
$1,045.00
3
$48,362.00
4
$472,759.67
28
$62,468.00
4
$0.00
0
$83,302.00
0
$0.00
$0.00
0
$171,155.86
0
$26,863.00
0
$42,776.25
5
$673,472.00
28
$251,354.80
16
TOTAL SALARIES
AND WAGES PAID
FULL-TIME
EMPLOYEES
$430,658.00
$0.00
$30,450.00
$0.00
$0.00
$4,990.00
$361,611.00
$0.00
$102,876.00
$0.00
$13,341.00
$900,181.00
$6,155.00
$44,200.00
$21,710.00
$0.00
$18,600.97
$0.00
$593,899.00
$0.00
$14,698.25
$58,219.84
$836,913.00
$0.00
$564,930.99
$0.00
$1,113,095.00
$2,856,738.00
$351,766.00
$0.00
$413,835.00
$209,346.00
$0.00
$25,590.00
$80,408.00
$1,152,931.00
$0.00
$145.00
$0.00
$3,034.30
$0.00
$282,927.96
$481,200.00
$6,480.00
$0.00
$217,420.00
$463,643.00
$34,260.00
$59,594.05
$1,146,259.00
$471,638.00
$38,433.00
$83,095.00
$37,100.00
$23,340.00
$258,646.14
$58,230.00
$0.00
$0.00
$0.00
$0.00
$0.00
$43,687.00
$296,429.00
$222,833.02
FIGURE NO. 8-1
COMPANY NAME
T & J Movers (Tyrone Lamont Levan)
Taylor's Moving Company
Terminal Storage Company, Inc
Thomas, J. E., & Sons Moving
T-N-T Moving Systems, Inc.
Todd's Easy Moves
Trading Post, Inc. The
Triad Moving & Storage
Triangle Mobile Storage & Moving, LLC
Triangle Moving Service, Inc.
Tri-City Movers
Triple A Moving & Storage, Inc.
TROSA Moving
Truckin' Movers Corporation
Tru-Pak Moving Systems, Inc.
Tryon Moving & Storage, Inc.
Turners Moving Inc
Two Men & a Truck (Greensboro)
Two Men & a Truck of Asheville
Two Men & a Truck of Charlotte
Two Men & a Truck of Charleston/Mrytle Beach
Two Men & a Truck of Durham
Two Men & a Truck of Eastern NC
Two Men & a Truck of Fayetteville
Two Men & a Truck of Raleigh
Two Men & a Truck of Wilmington
Two Men & a Truck of Winston Salem
Two Strong Dudes Moving Company LLC
VIP Transport Services
Umstead Brothers, Inc.
Union Transfer & Storage Co., Inc.
Unity Moving and Storage, Inc.
Wainwright Transfer Co. of Fayetteville, Inc
Weathers Brothers Moving & Storage Co., Inc
Weathers Moving & Distribution
The Webb Company, Inc
West Furniture Inc
Whitaker Moving & Express
Wile Transfer & Storage Co., Inc
Willis Moving & Storage, Inc
Woodruff Trucking, Inc.
Worldwide Relocation Services, Inc
Yarbrough Transfer Company
TOTALS:
LINE HAUL
REVENUE
$950.00
$0.00
$0.00
$22,850.37
$3,627.00
$49,663.97
$0.00
$0.00
$0.00
$78,261.80
$0.00
$11,350.00
$226,036.64
$35,545.34
$34,696.00
Canceled 03/16/09
$0.00
$167,494.23
$72,209.29
$169,747.00
Canceled 01/29/10
$146,240.12
$110,538.00
$58,990.00
$132,437.00
$164,680.00
$120,520.87
$0.00
$0.00
$0.00
$94,187.47
$16,987.00
$0.00
$0.00
$13,134.00
$5,375.00
Canceled 01/29/10
$0.00
$54,886.34
$0.00
$0.00
$37,692.54
$0.00
HOURLY
REVENUE
$47,008.00
$136,425.00
$0.00
$37,776.00
$125,000.00
$118,072.88
$29,470.00
$0.00
$0.00
$279,158.17
$0.00
$0.00
$1,408,074.66
$101,259.40
$43,691.00
$9,397,226.56
$31,101,945.98
PACKING &
ACCESSORIAL
REVENUE
$0.00
$0.00
$0.00
$9,846.13
$4,248.00
$24,764.30
$6,162.00
$0.00
$0.00
$28,605.92
$0.00
$0.00
$287,694.66
$29,826.58
$18,689.00
$1,800.00
$0.00
$898,897.14
$114,673.85
$716,361.43
$34,442.92
$2,015,883.00
$119,011.00
$946,684.42
$140,858.06
$128,673.00
$41,974.00
$346,471.00
$39,141.00
$1,404,016.24
$24,120.08
$729,868.00
$60,010.00
$592,634.58
$68,104.59
$71,210.00
$0.00
$7,582.50
$1,106.00
$16,287.96
$0.00
$243,082.21
$74,174.46
$76,107.00
$2,358.00
$0.00
$0.00
$0.00
$0.00
$13,852.00
$17,095.00
$602,863.00
$192,812.00
$0.00
$0.00
$78,649.44
$103,374.52
$0.00
$0.00
$49,366.20
$1,240.43
$9,456.13
$33,409.56
$0.00
$0.00
142
$9,068,594.20
NC INTRASTATE
NUMBER OF
$47,958.00
2
$136,425.00
2
$0.00
31
$70,472.50
3
$132,875.00
6
$192,501.15
18
$35,632.00
2
$0.00
0
$0.00
0
$386,025.89
9
$0.00
0
$11,350.00
0
$1,921,805.96
9
$166,631.32
17
$97,076.00
31
$0.00
$1,800.00
0
$1,181,065.22
186
$823,013.64
3
$2,304,641.00
237
$0.00
$1,233,782.60
57
$281,185.00
13
$444,602.00
12
$1,560,573.32
86
$954,558.00
26
$781,260.04
123
$71,210.00
3
$8,688.50
13
$16,287.96
0
$411,444.14
37
$95,452.00
4
$0.00
0
$0.00
0
$44,081.00
74
$801,050.00
32
$0.00
$0.00
0
$236,910.30
4
$0.00
0
$50,606.63
1
$80,558.23
59
$0.00
0
$49,567,766.74
4,317
TOTAL SALARIES
AND WAGES PAID
FULL-TIME
EMPLOYEES
$7,050.00
$34,650.00
$1,039,610.00
$44,762.00
$67,485.00
$82,385.29
$26,692.92
$0.00
$0.00
$177,799.26
$0.00
$0.00
$271,314.00
$296,892.47
$826,013.00
$0.00
$706,598.23
$12,600.00
$1,371,731.00
$591,101.43
$131,266.00
$147,180.00
$774,973.82
$435,964.00
$428,122.63
$38,250.00
$134,743.53
$0.00
$1,104,424.30
$44,718.00
$0.00
$0.00
$1,131,804.72
$875,804.00
$0.00
$115,916.74
$0.00
$24,910.00
$1,802,612.09
$0.00
$99,842,355.67
Figure No. 8-2
SUMMARY OF HHG OPERATIONS ANNUAL REPORT INFORMATION - 2008
Section I.
1.
2.
3.
4.
JURISDICTIONAL INTRASTATE HHG OPERATING REVENUE
Line Haul (MRT Section III)
Hourly (MRT Section II)
Packing and Accessorial (MRT Sections I & IV/Valuation)
Total NC Jurisdictional Revenue:
Section II.
$ 9,407,504.81
$ 31,199,721.88
$ 9,078,098.80
$ 49,685,325.49
OPERATING STATISTICS
5.
6.
7.
Number of regulated weight/distance moves performed
Total bill of lading miles
Total bill of lading weight (in pounds)
8.
9.
Number of regulated hourly moves performed
Total hours billed
10.
TOTAL NUMBER OF REGULATED MOVES PERFORMED
11.
Number of each type of estimate for moves performed:
4,981
713,201
34,329,674
49,357
274,459
54,338
a) Non-binding (written):
b) Binding (Not-to-Exceed and Guaranteed) (written):
c) No written estimate:
12.
17,196
4,585
32,557
Number of each type of valuation applicable for moves performed:
a) Basic: ($0.60/lb/article – No charge)
b) Depreciated: (Customer charged $0.50 /$100 of value)
c) Full Value: (Customer charged $0.75/$100 of value)
48,103
1,299
4,936
Section III. JURISDICTIONAL REVENUES
13.
14.
15.
16.
17.
Quarter ended March 31, 2008:
Quarter ended June 30, 2008:
Quarter ended September 30, 2008:
Quarter ended December 31, 2008:
Total for 2008:
$
$
$
$
$
10,095,673.07
14,399,569.93
14,872,663.31
10,317,421.13
49,685,327.44
Section IV. CARGO CLAIMS INFORMATION
18.
19.
Number of loss and damage claims filed
Total dollar amount of claims filed
Section V.
20.
22.
1,892
$ 489,394.76
NC EMPLOYEE DATA
Number of full-time NC employees (W-2’s & Contract)
Total salaries/wages paid to full-time NC employees (W-2’s & 1099’s)
143
4,350
$100,017,054.21
IX. THE TRANSPORTATION INDUSTRY Motor Passenger Carriers
B.
REGULAR
CARRIERS
MOTOR PASSENGER CARRIERS
A. GENERAL COMMENTS
ROUTE
PASSENGER
Financial data is presented for the
three regulated regular route passenger carriers
having separate operations during 2008 who
filed annual reports with the North Carolina
Utilities Commission.
The carriers have
franchise and operating rights to serve two or
more points (from one city to another city) and
are further classed and operate as common
carriers over intrastate routes as regulated by
the Commission.
For the purpose of filing annual reports,
both the Federal Motor Carrier Safety
Administration (FMCSA) (formerly the Interstate
Commerce Commission) and the North
Carolina Utilities Commission (NCUC) in R2-48
authorized the following classifications effective
January 1, 1980, for the motor passenger
carriers:
CLASSIFICATION REQUIREMENTS:
Class I
$3,000,000
C.
FARE
INTERCITY
or more annual
operating revenues
Class II
$500,000--$3,000,000 annual
operating revenues
Class III
Under $500,000 annual
operating revenues
INCREASES
AUTHORIZED--
The FMCSA basically regulates the rate
level of regular route bus fares.
The
Commission does receive tariff sheets for these
companies as notification of rate changes.
D. PREEMPTION OF REGULATION OVER
MOTOR CARRIERS OF PASSENGERS IN
CHARTER BUS TRANSPORTATION
As of December 31, 2008, there were
39 motor passenger carriers franchised to
operate under the regulation of the North
Carolina Utilities Commission. See Figure Nos.
9-1 and 9-2 for a list of the companies. These
companies include 21 transportation brokers,
15 motor boat (ferry) passenger carriers, and
three motor passenger carriers. Transportation
brokers, as herein used, means any person not
a bona fide employee or agent of a motor
carrier who engages in the business of selling
or offering for sale any transportation of
passengers by motor carriers for compensation,
either directly or indirectly. A transportation
broker does not own or operate the vehicles
used to transport passengers to whom he sells
or arranges for this type of service. The 21
brokers involved in this report are not required
to file annual reports; therefore, there is no
operating data shown in this report. Operating
data is included for the eighteen motor
passenger carriers who filed 2008 annual
reports with the Commission.
In June 1998, Federal legislation was
enacted which preempted the economic
regulation of charter bus transportation on an
intrastate and interstate basis. In summary the
legislation allows a state to continue safety
regulatory authority with respect to motor
vehicles and to continue to regulate carriers
with regard to minimum amounts of financial
responsibility relating to insurance requirements
and self-insurance authorization. Preemption
also does not apply to intrastate commuter bus
operations nor does it apply to intrastate regular
route passenger transportation. The certificates
issued to charter bus transportation companies
were canceled by Commission Order dated
September 9, 1998.
145
REGULAR ROUTE PASSENGER CARRIERS
REGULATED BY THE COMMISSION AS OF
DECEMBER 31, 2008
American Charters, Ltd.
1251 W. Craighead Road
Charlotte, North Carolina 28206
B-366
Carolina Coach Company
P. O. Box 660362
Dallas, Texas 75201
B-15
Greyhound Lines, Inc.
P. O. Box 660362
Dallas, Texas 75201
B-7
146
FIGURE NO. 9-1
MOTOR PASSENGER CARRIERS FRANCHISED TO OPERATE IN NORTH CAROLINA
Class I Carriers
Greyhound Lines
Total Class I Carriers--2
Class II Carriers:
America Charters, Ltd.
Total Class II Carriers--1
Motor Boat Common Carriers:
Bald Head Island Transportation
Barrier Island Transportation Service, Inc.
Calico Jack's Ferry
Cape Lookout Cabins & Camps Ferry Serv.
Core Sound Kayaks & Touring Co., Inc.
Davis Shore Ferry Service
Island Ferry Adventures
Johnny's Goodtime Fishing Charters
Local Yokel Ferry & Tours, The
Morris Marina, Kabin Kamps & Ferry Service
Mystery Tours, Inc.
Ocean Isle Fishing Center, Inc.
Outer Banks Ferry Service
Portsmouth Island Boat Tours
Waterfront Ferry Service, Inc.
Total Motor Boat Carriers--15
Docket #
B-15
B-7
B-366
A-41
A-37
A-46
A-66
A-59
A-65
A-52
A-60
A-54
A-26
A-51
A-56
A-40
A-30
A-55
GRAND TOTAL CARRIERS--18
*All carriers have intracity authority pursuant to Commission Rule R2-69.
147
FIGURE NO. 9-2
MOTOR PASSENGER BROKERS FRANCHISED TO OPERATE IN NORTH CAROLINA (All Intercity)
Transportation Brokers
Docket #
Docket #
Docket #
A & B Tours
Route 4, Box 585
Louisburg, N. C. 27549
B-524
Creation Tours
7 Timberline Road
Canton, N. C. 28716
B-512
Kahl's, Wayne, Tours
Route One, Box 261
Union Grove, N. C. 28689
B-523
Albertson, Charles W.
Route 2, Box 141E
Beaulaville, N. C. 28518
B-332
Davis Tours, Incorporated
118 Grandview Lane
Hendersonville, N. C. 28739
B-342
Kay, Hazel, Tours
910 Alice Drive
Thomasville, N. C. 27360
B-330
Caro-Lan Tours, Inc.
4 Barksdale Drive
Jacksonville, N. C. 28540
B-464
*
Daybreak Tour
1314 Winfield Drive
Winston Salem, N. C. 27105
B-434
Per-Flo Tours, Inc.
339 Bryan Blvd., Hwy. 117 & 13 South
Goldsboro, N. C. 27530
B-321
Carolina Tours, Inc.
30 Cherry Grove Road
Asheville, N. C. 28805
B-326
*
4 Wynnes, Inc. Tours and Travels
Route 1, Box 463A
Winterville, N. C. 28590
B-482
Scurlock's Travel & Tours
P.O. Box 424
Pittsboro, N. C. 27312
B-413
Charlotte Arrangements
1409 E. Boulevard, Suite 231
Charlotte, N. C. 28203
B-615
*
Fun Tours
P. O. Box 4058
Hickory, N. C. 28603
B-675
Southern States Tours & Conventions
117 Hollyberry Lane
Lexington, N. C. 27292
B-600
Christian Tours, Inc.
4643 Highway 16 South
Maiden, N. C. 28650
B-689
J & J Tours
P. O. Box 121
Murfreesboro, N. C. 27855
B-564
USA Luxury Tours, Inc.
4210 Amesbury Lane
Durham, N. C. 27707
B-673
Convenient Tours
Route 1, Box 336-A
Ash, N. C. 28420
B-410
JA-DE Tours & Charter
1224 Broad Street
New Bern, N. C. 28560
B-573
Word, Ken, Tours
P. O. Box 956
Edenton, N. C. 27932
B-644
TOTAL BROKERS--21
*Daybreak Tour, 4 Wynnes, Inc. Tours and Travel, and Fun Tours were all cancelled in 2009.
148
FIGURE NO. 9-3
REGULAR ROUTE PASSENGER CARRIERS
Summary of Total Revenues and Expenses
For the Calendar Years 2007 and 2008
Carrier
America Charters, Ltd.
Greyhound Lines, Inc.
TOTAL (3)
Docket
Number
B-366
B-15
B-7
Total Company
Total Company
Operating Revenues
Operating Expenses
2007
2008
2007
2008
$11,175,357 $12,480,866 $10,595,892
$11,756,045
24,723,281
4,963,396
20,433,736
5,060,290
750,343,459 821,454,151 717,440,178
721,784,182
$786,242,097 $838,898,413 $748,469,806 $738,600,517
149
Total Company
Operating Ratio
2007
2008
94.8%
94.2%
82.6% 102.0%
95.6%
87.9%
95.2%
88.0%
FIGURE NO. 9-4
MOTOR BOAT COMMON CARRIERS
Bald Head Island Transportation, Inc. (A-41)
P. O. Box 3069
Bald Head Island, North Carolina 28461
Davis Shore Ferry Service (A-65)
148 Willis Road
Davis, North Carolina 28524
Mystery Tours, Inc. (A-51)
1227 Creek Road
Morehead City, North Carolina 28557
Barrier Island Transportation Service, Inc. (A-37)
P. O. Box 400
Harkers Island, North Carolina 28531
Island Ferry Adventures (A-52)
131-A Old Causeway Road
Atlantic Beach, North Carolina 28512
Ocean Isle Fishing Center, Inc. (A-56)
65 Causeway Drive
Ocean Isle Beach, North Carolina 28969
Calico Jack's Ferry (A-46)
1698 Island Road
Johnny's Goodtime Fishing Charters (A-60)
P. O. Box 214
Outer Banks Ferry Service, Barrier Island, Inc., d/b/a (A-40)
328 Front Street
Beaufort, North Carolina 28516
Cape Lookout Cabins & Camps Ferry Service (A-66)
P. O. Box 251
Local Yokel Ferry & Tours, The (A-54)
516 Island Road
Portsmouth Island Boat Tours (A-30)
P. O. Box 375
Ocracoke, North Carolina 27960
Core Sound Kayaks & Touring Co., Inc. (A-59)
1545 Harkers Island Road
Beaufort, North Carolina 28516
Morris Marina Kabin Kamps & Ferry Service Inc. (A-26)
1000 Morris Marina Road
Atlantic, North Carolina 28511
Waterfront Ferry Service, In (A-55)
P. O. Box 207
Company
Bald Head Island Transportation, Inc.
Barrier Island Transportation Service, Inc.
Calico Jack's Ferry
Cape Lookout Cabins & Camps Ferry Service
Core Sound Kayaks & Touring Co., Inc.
Davis Short Ferry Service
Island Ferry Adventures
Johnny's Goodtime Fishing Charters
Local Yokel Ferry and Tours, The
Morris Marina Kabin Kamps & Ferry Service Inc.
Mystery Tours, Inc.
Ocean Isle Fishing Center, Inc.
Outer Banks Ferry Service
Portsmouth Island Boat Tours
Waterfront Ferry Service, Inc.
Scope of Operation
From Southport to Bald Head Island Via Water and Return
From Harkers Island to Cape Lookout Bight Area on Cape Lookout and Return
From Harkers Island to Shackleford Banks and Cape Lookout and Return
From Davis, NC to Core Banks and Return
From Harkers Island to Shackleford Banks and Core Banks and Return
From Davis, NC to Core Banks and Return
From Atlantic Beach to Shackleford Banks, Carrot Island, Cape Lookout, Morehead City & Beaufort
From Davis, NC to Cape Lookout National Seashore and Return
From Harkers Island to Shackleford Banks and Cape Lookout and Return
Statewide in North Carolina Via Water
From Morehead City and Beaufort to Shackleford Banks and Cape Lookout and Return
Ocean Isle Fishing Center to Bird Island and a Sandbar Island in Shallotte Inlet and Return
Beaufort to Carrot Island/Shackleford Banks/Cape Lookout
Ocracoke to Portsmouth Island Via Water and Return
From Morehead City to Shackleford Banks and Return
N/R - No Report Filed
150
Operating
Revenues
Operating
Expenses
$ 3,824,494
21,483
158,985
0
0
366,763
263,252
0
47,427
814,292
121,460
0
207,705
45,975
2,917
$ 3,707,152
33,417
11,793
0
0
314,926
217,084
0
45,301
289,359
98,031
0
197,955
22,125
3,750
No. of Tariffed
Passengers
318,621
2,099
15,608
0
0
8,019
17,589
0
4,683
6,396
180
0
12,472
2,546
782

North Carolina Utilities Commission

Transcription

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