Potential NCUC Regulation for Sanitary Districts in North Carolina?


The North Carolina Utilities Commission (“NCUC”) could find itself regulating a host of new water and sewer providers if recently filed House Bill 464 is enacted into law. Filed on March 24, 2011, HB464 is sponsored by Representative Dockham and is entitled: An Act Providing That A Sanitary District Is A Public Utility Subject To Regulation By The North Carolina Utilities Commission.

HB464 applies only to sanitary districts that are created pursuant to North Carolina General Statute Chapter 130A, Article 2, Part 2. Pursuant to N.C. Gen. Stat. Chapter 130A, the Commission for Public Health may create sanitary districts for the purpose of providing water and sewer service within the district. Sanitary districts are governed by a board that is elected by the board or boards of county commissioners of the counties where the district is located. Sanitary districts have the authority to, among other things, levy taxes within the district, compel connection to the water and sewer system, establish fire departments, establish zoning units, make special assessments against benefited property, and condemn private property. Sanitary boards are responsible for setting service charges and rates pursuant to N.C. Gen. Stat. § 130A 64.

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