NC H352

Allows water and wastewater public utilities to request Commission approval to use a fully projected future test period (12 months beginning on or after the filing date) instead of the standard test period for rate-making purposes.

Requires utilities requesting a future test period to explain why it is more representative of their operations, with the Commission approving only if found to be in the public interest.

Directs the Commission to determine projected rate base at the end of the future test period and annualize probable future revenues and expenses based on projected plant and equipment in operation.

Requires utilities to file actual data within four months after the future test period ends, including capital investment costs, rate base balances, operating revenues and expenses, and actual rate-of-return achieved.

Mandates the Commission adopt a rate adjustment mechanism to true-up variations between projected and actual revenue requirements and adjust rates going forward based on actual performance.