North Carolina General Statutes Chapter 62. Public Utilities § 62-110.5. Commission may exempt certain nonprofit and consumer-owned water or sewer utilities

(1) The members or consumer-owners of the corporation elect the governing board of the corporation pursuant to the corporation's articles of incorporation and bylaws; and

(2) The Commission finds that the organization and the quality of service of the utility are adequate to protect the public interest to the extent that additional regulation is not required by the public convenience and necessity.