As a city's borders spread outward and housing development follows, the city's electric power system often encroaches into areas long served by electric cooperatives. When two power providers each serve an area, all consumers pay for unnecessary power lines. Electric service in the state is governed by Senate Bill 512, known as the Territory Law, which was passed in 1965. The NC General Assembly recently modernized the law. The updated law creates more efficiency in planning for growth and a new framework for determining which utility will serve a growing area.