NC S305

Authorizes the North Carolina Utilities Commission to approve annual rate riders allowing electric utilities to recover costs of acquiring ownership interests in generating facilities from joint municipal power agencies, with acquisition costs levelized over the useful life of assets.

Permits municipalities that are members of joint agencies to enter into support contracts to pay proportionate shares of refinanced bonds when the joint agency sells facilities, including collateral posting requirements for replacement power arrangements, with obligations extending up to 30 years.

Allows joint agencies to issue bonds to refinance debt incurred for facility acquisitions being sold or disposed of, with bonds secured by pledges of revenues from projects, power sales, or support contract payments from member municipalities.

Requires municipalities to include support contract payments in their rate-setting obligations to ensure sufficient revenues for debt service and contractual obligations, with willful or negligent failure to comply subject to Local Government Commission oversight.

Effective upon becoming law; ratified April 1, 2015.