NC S397

Authorizes the North Carolina Utilities Commission to adopt, implement, modify, or eliminate a rate adjustment mechanism for natural gas local distribution company rates in general rate case proceedings.

Allows the rate adjustment mechanism to enable companies to recover prudently incurred capital investments and associated costs of complying with federal gas pipeline safety requirements.

Permits recovery of a return on investment based on the company's then authorized return.

Requires the Commission to find that any rate adjustment mechanism is in the public interest before implementation.

Effective upon enactment.