NC S339

Allows water and wastewater utilities to elect fair value determination for rate-making purposes when acquiring systems owned by municipalities, counties, or governmental authorities.

Fair value is determined by averaging two independent appraisals conducted by accredited valuation experts, using cost, market, and income approaches in compliance with professional appraisal standards.

Rate base value of acquired system is the lesser of the negotiated purchase price or fair value plus allowed fees (up to 5% of fair value) and transaction costs.

Acquiring utility must submit application to Public Utilities Commission including both appraisals, engineer assessment of tangible assets, sale contract, fees/costs estimate, and tariff with selling utility's existing rates maintained until next rate case.

Commission must issue final order approving or denying application within 4 months; Commission retains authority to set rates in future cases consistent with public interest.