AN ACT authorizing the utilities commission to adopt, implement, modify, or eliminate a rate adjustment mechanism 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 a new section to read as follows:
"§ 62‑133.7A.  Rate adjustment mechanism 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 to enable the company to recover the prudently incurred capital investment and associated costs of complying with federal gas pipeline safety requirements,   including a return based on the company's then authorized return. The Commission shall adopt, implement, modify, or eliminate a rate adjustment mechanism authorized under this section only upon a finding by the Commission that the mechanism is in the public interest."
SECTION 2.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 16th day of May, 2013.

	s/	 Daniel J. Forest
	 President of the Senate

	s/	 Thom Tillis
	 Speaker of the House of Representatives

	_____________________________________
		 Pat McCrory
	 Governor

Approved __________.m. this ______________ day of ___________________, 2013