NC H117

Applies only to the towns of Clayton, Selma, and Smithfield in North Carolina.

Requires municipalities to use electric service rate revenue for operating costs, debt service on electric system bonds, and capital improvements.

Permits transfer of funds representing a rate of return on electric system investment, limited to the lesser of 3% of gross capital assets or 5% of gross annual revenues.

Allows remaining revenue after required uses to reduce electric rates or make additional debt service payments, prohibits transfers to other municipal funds for unrelated purposes.

Becomes effective July 1, 2011.