Resale of Water/Wastewater

In regard to the water/wastewater industry, on July 29, 2004, the North Carolina General Assembly ratified House Bill 1083 (HB1083) entitled “An Act To Promote Water Conservation In Multifamily Residential Properties By Amending Various State Laws Regarding The Use Of Submeters In Light Of Changes In Policy Related To Water Testing Requirements And Water Conservation By The United States Environmental Protection Agency, As Recommended By The Environmental Review Commission.”

In accordance with N.C.G.S. 62-110(g), as revised pursuant to HB1083, for the purpose of encouraging water conservation, the Commission may adopt procedures that allow a lessor to charge for the costs of providing water and sewer service to persons who occupy the same contiguous premises.

The rates shall equal the cost of purchased water or sewer service. The usage rate charged by the provider shall equal the usage rate charged by the supplier. All charges other than the administrative fee shall be based on tenants’ metered consumption of water. All sewer service shall be measured based on the amount of water metered.

Metered consumption of water shall be determined by metered measurement of all water consumed by the tenant, and not by any partial measurement of water consumption (i.e., ratio utility billing system (RUBS) and hot water capture, cold water allocation (HWCCWA) are not allowed), unless specifically authorized by the Commission [See Commission Rule R18-8].

Regulation as a resale entity is applicable only for residential apartment complexes and manufactured home parks. Resale regulation is not applicable for service areas with commercial tenants.

A certificate of authority to charge for the resale of water/sewer service is granted to the lessor (owner of the property served). If the service area is sold or the ownership changes, the lessor (owner granted the certificate) and the new owner shall file an Application for Transfer of Authority (Form WR2 may be found here). Failure to do so may result in revocation of the certificate of authority and suspension of rates

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