GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 729*

Short Title:  Electrical Contracting by Utilities.	(Public)
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Sponsors: Senator Daniel.
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Referred to:  Public Utilities.
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April 22, 1991

A BILL TO BE ENTITLED
AN ACT TO PREVENT UNFAIR COMPETITION BY ELECTRIC POWER SUPPLIERS.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 87 of the General Statutes is amended by adding a new Article to read:
“ARTICLE 4A.
"Unfair Electric Suppliers Practices Control Act.
"§ 87-51.1.  Short title.
This act shall be known and may be cited as the Unfair Electric Power Suppliers Practices Control Act.
"§ 87-51.2.  Purpose.
(a)	The General Assembly finds and declares as follows:
(1)	It is the public policy of this State to promote free and open competition in electrical contracting, as defined in G.S. 87-43.
(2)	Free and open competition in electrical contracting will promote the availability of quality electrical contracting at a reasonable cost to the consumer.
(3)	Such free and open competition can be achieved only if the market for electrical contracting is not distorted or dominated by electric power suppliers who, by virtue of their special status as regulated monopolies in the development and distribution of energy, have an unfair advantage in energy-related markets.
(4)	Electric power suppliers should be in the business of development, transport, sale, and conservation of their energies only.
(b)	It is, therefore, the intent of the General Assembly that electric power suppliers be prohibited from engaging in electrical contracting except in matters pertaining to load control devices, single-family residential security lighting, roadway and highway lighting.
"§ 87-51.3.  Prohibited activities.
(a)	Except as otherwise provided in this act, electric power suppliers are prohibited from engaging in electrical contracting.  An electric power supplier, for the purpose of this act, is a public utility company, a private utility company, an electric membership co-op, a municipal utility, or any other entity that furnishes electric energy for private or public use.
(b)	It shall not be unlawful for an electric power supplier, upon being properly licensed pursuant to Article 4 of Chapter 87 of the General Statutes, to engage in electrical contracting to the extent necessary to install, service, and remove load control devices on and from appliances and equipment located on the premises of consumers.  The State Board of Examiners of Electrical Contractors shall establish a special restricted classification of license, pursuant to G.S. 87-43.3, for such electrical contracting.
(c)	It shall not be unlawful for an electric power supplier to install, service, and maintain single-family residential security lights mounted on poles owned by it.
(d)	It shall not be unlawful for an electric power supplier to install, service, and maintain roadway and highway lighting on public rights-of-way.
(e)	It shall not be unlawful for an affiliated or subsidiary entity of an electric power supplier to engage in electrical contracting provided the following criteria are met:
(1)	The affiliated business entity shall not have any place of business at a premises owned by the electric power supplier, or at a premises leased or subleased by the electric power supplier to the affiliated business entity.
(2)	The name of the affiliated business entity shall bear no resemblance to the name of the electric power supplier.  Neither the supplier nor the affiliated business entity shall trade upon, promote, or advertise the affiliated status in any manner.
(3)	The affiliated business entity shall not share the use of equipment, tools, vehicles, inventory, personnel, or other resources of the electric power supplier.
(4)	The affiliated business entity shall not advertise, promote, or market its products or services through mailings of the electric power supplier or in advertisements in which the electric power supplier's name is set forth.  The electric power supplier shall not advertise, promote, or market its services through mailings of the affiliated business entity or in advertisements in which the affiliated business entity's name is set forth.
(5)	The affiliated business entity shall maintain books and records separate and distinct from those of the electric power supplier.
(6)	All costs and expenses involved in operating the affiliated business entity shall be borne by the affiliated business entity and not by the electric power supplier and revenues from the affiliated business entity shall not be provided or disbursed to the electric power supplier.
(7)	All assets of the affiliated business entity shall be maintained separate and distinct from those of the electric power supplier.
(8)	The affiliated business entity shall transact its business wholly, separately, and independently from the electric power supplier so as to gain no competitive advantage by virtue of its status as an affiliated company.
(9)	The affiliated business entity shall be subject to the provisions of Article 4 of Chapter 87 of the General Statutes and shall apply for and obtain a license for electrical contracting in the license classification applicable to its activities, pursuant to G.S. 87-43.3.  It shall comply with the applicable building and electrical codes, statutes, and ordinances of the State of North Carolina and of any county or municipality thereof now in force or hereafter enacted.
(f)	It shall be unlawful for any electric power supplier to grant any preference or privilege to its affiliated business entity in the transaction of business between them.
(g)	It shall be unlawful for electric power suppliers or their agents, employees, or representatives to refer or steer customers to specific individuals or companies engaged in electrical contracting, including any affiliated business entity.
"§ 87-51.4.  Powers and duties of the State Board of Examiners of Electrical Contractors.
(a)	The State Board of Examiners of Electrical Contractors shall have jurisdiction over affiliated business entities of electric power suppliers to ensure that electric power suppliers are not engaged in electrical contracting.  The Board shall adopt such rules as are necessary for this purpose.
(b)	The Board may review, inspect, and audit all books, accounts, papers, records, and memoranda kept or required by rule to be kept by an affiliated business entity.
(c)	The Board may investigate upon its own initiative or upon complaint any matter relative to the operations of the affiliated business entity and its relation to the electric power supplier.
(d)	The Board shall have jurisdiction over applicants for licenses and over licensees, and shall have the powers as set forth in G.S. 87-47.
"§ 87-51.5.  Remedies; penalties.
(a)	Any electric power supplier that violates any provision of this act shall be guilty of a misdemeanor and shall, upon conviction, be fined not more than one thousand dollars ($1,000) which fine shall not be paid by the rate base.
(b)	The superior courts shall have jurisdiction to prevent and restrain violations of this act and may issue prohibitory and mandatory injunctive relief.  The Attorney General or any person aggrieved by a violation of this act may institute proceedings to prevent and restrain violations.
(c)	Any plaintiff other than the Attorney General who succeeds in obtaining the relief sought shall be awarded reasonable court costs, including attorneys' fees.  A plaintiff may bring an action in the superior court without first obtaining an adjudication by the State Board of Examiners of Electrical Contractors."
Sec. 2.  G.S. 66-58(b)(13) reads as rewritten:
"(13)	Rural electric membership corporations, except for electrical contracting as limited by Article 4A of Chapter 87 of the General Statutes."
Sec. 3.  All electric power suppliers and their affiliated business entities that are in violation of this act shall cease all such activities no later than the effective date of this act.
Sec. 4.  This act becomes effective October 1, 1991.