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House | February 12, 2012 | Committee Room | Utilities

Full MP3 Audio File

Let's call this meeting to order. I thank everybody for attending. I think we have a pretty streamlined agenda. Hopefully it won't take real long. I know I'm standing between you guys and lunch, so everybody remember that. Today we have with us, on the pages, we have- where are my pages at, raise your hand. There we go. We have Anne Church, Geoffrey Manchester, and Mia Haydens. Sargeant at arms today is John Brandon, Carl ??, and Charles Goodwin. We do have- because of what we have on the agenda today with the utilities commission, we have four members of the utilities commission I'd like to recognize today. We have chairman Finley, chairman you back there? thank you for coming today. Commissioner Raybin, thank you for coming. Commissioner Brown, ?? and commissioner Alan, thank you guys for coming today. We appreciate that. We're going to run the bill first that is house joint resolution for the utilities commission. I'm going to relinquish the chair to representative Holloway while I run that and then we will run the co op bill right after that. So, Holloway. [SPEAKER CHANGES] Thank you mister chair. We'll proceed with house joint resolution two seventy one, the confirmation of Don Bailey and we'll recognize representative Hager to speak on the resolution. Absolutely, we will wait on you. We'll send somebody to take care of him. [SPEAKER CHANGES] Thank you mister chairman. House joint resolution is providing for the confirmation of appointment of Don M Bailey, the utilities commission. This is the governor's appointment for us and we're going to confirm this today upon your confirmation of the committee. I would like to recognize, if it's ok with you mister chairman, Fred ?? from the governor's office to introduce mister Bailey. [SPEAKER CHANGES] Absolutely. ?? ?? [SPEAKER CHANGES] Thank you mister chairman and mister chairman, members of the committee. Don Bailey is the nominee for the governor and we'd appreciate your confirmation for that. Don is from ?? county and is the general manager, project design engineering at A T I Allvac in Monroe, North Carolina. He graduated from N C state university with a civil engineer degree and mister Bailey has over thirty one years of experience in the engineering field. Mister Bailey is here to answer questions you may have of him concerning his appointment. The governor feels that mister Bailey is a great fit for public utilities commission due to his background in civil engineering and business. The governor would appreciate your confirmation of mister Bailey. Thank you. [SPEAKER CHANGES] We'll have- Don Bailey, if you could come forward, we'll recognize you to speak next. Mister Bailey. [SPEAKER CHANGES] Thank you mister chairman and vice chairs and members of this committee, I appreciate the opportunity to be here today in front of you and I also want to stress my appreciation to the governor for this appointment. I have a little brief I want to read to you so I don't mess it up so bad and I'll get started. I realize that for the state to have a successful, beneficial economic utilities commission and to be really successful at the state level that each commissioner as a regulator must use a balanced approach between all classes of utility rate payers. Even though my background comes from the large industrial rate payer class, I believe I can have a fair and balanced approach to all matters that come before the utility commission in all those classes. This includes, as a commissioner I realize the very importance of being environmentally minded as well and take that into consideration in all cases. I understand as a position of the utility commission I have a lot of hard work ahead of me and as well as a large learning curve that I'll have to work through. If confirmed, my past experience as an engineer has prepared me well for this specific service to the citizens and utility rate payers of North Carolina and I am prepared, also I realize the ethical constraints that this position has on it and I am prepared to meet those requirements as well and I want to let you know I do not take this confirmation for granted

[Speaker changes.] thank you for your time and I'll ????? [Speaker changes.] Are there any questions from members? Is there a motion? Representative West. [Speaker changes.] Thank you, Mister Chairman, I move that we give House Joint Resolution 271 a favorable report. [Speaker changes.] All the members hear the motion. All those in favor of the motion, signify by saying "aye". (Ayes.) All those opposed, no. (No's) The ayes have it. The motion carries so congratulations, Mr. Bailey?????????? Alright, so that is 271. I think we have House Bill 223 and we will call Representative Presnell. I'm trying to find my notes here. Come forward and present 223, Representative Presnell. [Speaker changes.] House Bill 223 would exempt electric membership corporations from integrated resource planning and service regulations requirements that are established by the Utilities Commission...and return this oversight of the corporations to their member board of directors. To repeal...the repealing of the integrated resource planning requirement would ease the unnecessary regulatory burdens on the co-ops...electric co-ops. Is there any questions? [Speaker changes.] Are there any questions from members. Representative Jeter. [Speaker changes.] Mister Chairman, I have a motion whenever it's ready. [Speaker changes.] Alright. Let's just see if there's any questions and we'll get that motion. Representative Hall. [Speaker changes.] If you could just give some clarification on what type of regulations? I'm assuming it's regulations that regular electric companies hafta abide by. Is it...a few people have talked to me about this. Is it like percentages of where the energy has to come from? [Speaker changes.] Representative Presnell. [Speaker changes.] No, this is ...this proposed legislation is the deletion of provision's general statute 62110.1 and general statute 6242, that currently requires an oversight...that by eliminating these unnecessary provisions will do no harm. There is no opposition to this bill. If it's...the EMC's???? must still petition the Utilities Commission for a certificate of public convenience and necessity before building generation facilities. This statute is duplicative when applied to cooperatives because cooperative members give direct feedback on service to the elected board of directors. Does that answer your question? [Speaker changes.] Representative Hager. [Speaker changes.] Thank you Mister Chairman. We do have Jay Rouse????? here so if there is any particular questions on co-ops he would be happy to answer also. If there's any other questions if you could recognize him, I would appreciate it. [Speaker changes.] Mister Chair, would you like for me to recognize him or did you just want... [Speaker changes.] Just in case there's other questions... [Speaker changes.] OK...thank you. [Speaker changes.] Any other questions, members? Representative Hall. [Speaker changes.] I would like the chance to ask Mr. Rouse???? a few questions. [Speaker changes.] Mr. Rouse????? if you could please come forward and just identify yourself, tell us who you are for the record? [Speaker changes.] My name's... [Speaker changes.] I think your microphone must not be workin.... [Speaker changes.] My name is Jay Rouse???? I'm director of ?????? affairs for the North Carolina Association of Electric Co-operatives. [Speaker changes.] Thank you, Mister Rouse?????? I guess...if you could just give me a little bit of clarification on what type of regulations they are? I've heard a couple of different answers and one person told me it was one of the areas were percentages of where energy has to come from, whether a certain percentage has to come from clean sources or different types of sources. Is that one of them and, if you could give other examples, I'd appreciate it. [Speaker changes.] This bill has nothing to do with the type of energy or the source, renewable or otherwise. The first section 62-42 deals with quality of service for the most part...and our local board members are elected by our co-op owners to represent their interest on the board so there's direct oversight by the co-op board members on the areas of quality of service, the building of power lines, distribution lines and so forth. So, from that standpoint, we believe our...

[speaker] the local oversight is better then persay the utilities commision site, no offense to the utility commissionor but thats what our governmence is all about is letting our local people govern themselves through their own board the second part, 62-110.1 , is regarding the primarily the integrated resource plan and im not an attorney but as i understand the hour of ??? was designed from the home set to make sure that the investment utilities had suffeicent generation to meet their energy needs for their consumers and actually they probly didnt have too much, the focus there is to look after the interest of the investor utilites , we were brought into that process in the 80s, and havent really found the exact anwser as to how we got into that portion, but fill out that our ??? and it is quite time intensive labor, intensive lawyers, engineers, and so forth and giev the utilities commissions focus on investment utilities , we would like to be relived of that oversight portion of statue, we did look at other statues, relative to this and there about 9 other statues where the commission does have juristiction over us, and we believe that these two can be removed, without any noticable difference to , and reduce our cost [speaker changes] thank you sir, are there any other questions from members, that represent the paper, [speaker changes] promotion when applicable , i think represntative Jeter might have already reached through that and Chairmen with your permission i will allow him, to do that, [speaker changes] representaive Jeter promotion [speaker changes to representative Rep 92 Charles Jeter ] with representative Hager and Chairmen's permission , i will reccommend that we make a motion of a favorable repot of house bill 223 , [speaker changes] members hear the motion, all those in favor of the motion signifed say i , all oppose nay, the i's have it the motion carries so Mr. chairmen this is all i see on the calender , do you have any annoucements or anything for anyone , alright, well this meeting is adjorned,