Introduction
On July 14, 2022, BHI Limited (and its transportation subsidiaries) and SharpVue Capital, LLC (and its relevant subsidiaries) applied to the North Carolina Utilities Commission (NCUC) for permission to transfer the operating rights for the BHI Ferry and Tram System from BHI Limited to SharpVue. BHA has intervened in that action in order to advise the NCUC its views as to whether or not this transfer should be approved. To assist us, we want to know your views, comments and opinions on the proposed transfer.
Over the last five months, we have forwarded to you almost all of the relevant public information on this matter. We held an Information Session for you on July 27, 2022, on this issue. In addition, we have posted and/or provided links for all of this voluminous information on our website. Rather than trying to briefly summarize this information now, we refer you to our website under the “News” heading for all the documents and videos of the recorded gatherings.
We want your opinions. We want your comments and thoughts on this matter. Your opinions, comments and thoughts will help guide us in the actions we take on behalf
of BHA.
Legal framework for ruling upon proposed mergers and acquisitions
To assist in forming your opinions, you may find of interest a review of the legal standard for review of utility acquisitions in North Carolina:
Notwithstanding the authority of the Commission to regulate its services and rates,
and other matters incidental thereto, the property of the utility is private property and
the business is private business. Except as otherwise provided, expressly or by
reasonable implication, in G.S. Chapter 62, the utility is free to manage its property
and business as it sees fit and the Commission may not restrict, or control, the
discretion of the board of directors in the acquisition of property, or in the price paid
for it.
State ex rel. Utilities Commission v. Gen. Tel. Co. of S.E., 281 N.C. 318, 337, 189 S.E. 2d 705, 717 -18 (1972).
G.S.§ 62-111(a) provides that no franchise now existing ... shall be sold ... except after application to and written approval by the Commission, which approval shall be given if justified by the public convenience and necessity.
In applying this statutory merger approval standard, the Commission has concluded
that a proposed business combination is justified by the public convenience and
necessity where: (i) the transaction will have no adverse impact on North Carolina
retail ratepayers; (ii) the utility’s customers are protected as much as possible from
potential costs and risks resulting from the transaction; and (iii) there are sufficient
benefits from the proposed transaction to offset the potential costs and risks.
See , e.g., Order Approving Merger Subject to Regulatory Conditions and Code of Conduct (Duke/Piedmont Order) Docket Nos. E-2 Sub 1095, E-7, Sub 1100 and G-9, Sub 682 at p. 68 (Sept. 29, 2016).
The Public Staff of the NCUC
One of the services provided by North Carolina to protect the public (we are part of that public in this case) in proceedings before the NCUC is the NCUC Public Staff. The Public Staff is an independent agency created in 1977 by legislation in General Statute
62-15 to review, investigate and make appropriate recommendations to the North Carolina Utilities Commission with respect to various matters, including transfers of franchises, such as is under consideration for the BHI Ferry System.
They have a team of financial experts who are in the process of reviewing all the financial information of SharpVue and advising the NCUC on whether or not the Public Staff is of the opinion SharpVue has the financial strength and other attributes to meet the requirement of the statute. The President, Treasurer and Executive Director of BHA have met with the Public Staff and are comfortable this process is proceeding appropriately. We will continue to monitor the progress of the work of the Public Staff and will report to you later regarding the information we receive.
Your opinions are requested
We are aware of this legal standard, and we think it is useful for you to be aware of it also. We will continue to monitor this closely and keep you advised.
However, what we are asking you now is what do you want? What do you believe is in the best interests of Bald Head Island, and what do you believe is in your best interests? And then, tell us why you believe that way.
We are still receiving more information and documents to assist all of us in reviewing this matter. As we receive additional information, we will pass it on to you.
But, we need your opinions, comments and thoughts now to assist us in the actions we must take now. We have found your responses to similar surveys we have sent in the past very helpful to us.
Therefore, we ask you to answer four survey questions for us now, by clicking on the survey button below. PLEASE RESPOND TO THE SURVEY BY THE END OF DAY ON MONDAY, NOVEMBER 21, 2022.
Thank you,
Bald Head Association Board of Directors
