ND HB1398

Amends North Dakota Century Code section 49-02-01.1 to limit Public Service Commission jurisdiction over certain utilities, including nonprofit, cooperative, and mutual telecommunications companies with fewer than 18,000 local exchange subscribers.

Allows cities to request exemptions from PSC regulation for natural gas utilities serving no more than 2,500 customers within city limits and extraterritorial zoning jurisdiction, effective August 1, 2017.

Transfers regulatory authority over exempted natural gas utilities to the city government upon approval of the exemption request.

Requires exempted utilities to remain subject to PSC rules governing customer service disconnections and prohibits resale of natural gas service by customers.

Allows the PSC to rescind exemptions if the utility exceeds 2,500 customers, the city withdraws its request, or the utility requests rescission for good cause; mandates compliance with manufacturer instructions for equipment installation and prohibits fuel type conversions if manufacturer prohibits them.