Person County staff: state-appraised utilities hard to predict; Moriah Energy Center adds ~$60M valuation for 2025
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Summary
County staff told commissioners on June 6 that state-appraised utilities are difficult to forecast, but the newly constructed Moriah Energy Center is expected to add roughly $60 million to 2025 valuations; the county’s state-appraised utility base is about $1 billion of an estimated $7 billion total tax base.
County staff presented revenue projections and an explanation of state-appraised property valuations to the Person County Board of Commissioners at a June 6 budget work session, saying overall utility valuations are difficult to predict and that the county depends on state-provided income figures to allocate value to local jurisdictions.
Russell Jones, who presented the slides and answered commissioners’ questions, said state-appraised properties (utilities and similar company-wide appraisals) are valued using an income approach that relies on companywide net income. That means local investments do not automatically translate into higher local valuations until the company’s statewide income and the county’s share of it are allocated.
Jones told the board that Duke Progress (the county’s largest state-appraised utility player) was trending flat in mid-May reporting, while Moriah Energy Center—currently under construction—provided staff with information that staff interpreted as roughly a $60,000,000 valuation increase for 2025. Jones said state-appraised properties account for “just a little bit over a billion dollars of our $7,000,000,000 base.” He cautioned that state filings and income fluctuations (for example, a warm winter reducing demand and income) create uncertainty for multi-year projections.
Why it matters: State-appraised utilities can form a substantial portion of a county’s tax base. Because the state allocates company income statewide before apportioning to counties, local staff said it is hard to predict year-to-year changes even when significant investment is occurring locally.
What the county will do next: Jones said he contacts the state annually after May 1 (the reporting deadline for state utilities) to gauge expectations for the county’s September draft valuation report; the board was told staff will continue to monitor filings and report back. Commissioners suggested reaching out directly to utility companies for timelines and to the School of Government and peer counties for comparative data.
Quote
“They think about a $60,000,000 increase in their valuation for 2025,” Russell Jones said of Moriah Energy Center’s preliminary information to county staff.
Ending
Staff will continue to monitor state utility filings and provide updated estimates to the board; the county’s September report from the state will provide the more definitive number used for the adopted budget.