AN ACT authorizing customer usage tracking rate adjustment mechanisms for natural gas local distribution company rates.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 7 of Chapter 62 of the General Statutes is amended by adding the following new section to read:
"§ 62‑133.7.  Customer usage tracking rate adjustment mechanisms for natural gas local distribution company rates.
In setting rates for a natural gas local distribution company in a general rate case proceeding under G.S. 62‑133, the Commission may adopt, implement, modify, or eliminate a rate adjustment mechanism for one or more of the company's rate schedules, excluding industrial rate schedules, to track and true‑up variations in average per customer usage from levels approved in the general rate case proceeding. The Commission may adopt a rate adjustment mechanism only upon a finding by the Commission that the mechanism is appropriate to track and true‑up variations in average per customer usage by rate schedule from levels adopted in the general rate case proceeding and that the mechanism is in the public interest."
SECTION 2.  The Utilities Commission shall report to the Joint Legislative Utility Review Committee on the orders issued pursuant to G.S. 62‑133.7 and the results obtained under those orders, as well as results obtained from the customer usage tracking component of the Commission's order issued in Docket G‑9, Sub 499.  The first report shall be delivered not later than July 1, 2008, and cover the period beginning with the effective date of this act and ending June 1, 2008.  Thereafter, the Commission shall report as required by the Committee.
SECTION 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 9th day of July, 2007.

	s/	 Beverly E. Perdue
	 President of the Senate

	s/	 Joe Hackney
	 Speaker of the House of Representatives

	s/	 Michael F. Easley
	 Governor

Approved 11:36 a.m. this 18th day of July, 2007