§ 601. Definitions
(a) The following words as used in this chapter shall, unless the context otherwise requires,
have the meanings provided in subsection (b) of this section.
(b)(1) “New England power pool agreement,” a contractual agreement between electric utilities
that is open to all electric utilities, whether private or governmental, operating
in New England, that provides for cooperation and joint participation in developing
and implementing a regional bulk power supply of electricity, that constitutes the
central dispatching and primary pooling arrangement for electric utilities in the
New England states, and that has been permitted to become effective under the Federal
Power Act by the Federal Power Commission or the Federal Energy Regulatory Commission.
(2) “New England power pool,” is the relationship or organization created by the New England
power pool agreement. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 2023, No. 85 (Adj. Sess.), § 389, eff. July 1, 2024.)
§ 602. Authorization
The City of Burlington and the Village of Lyndonville acting through its board of
trustees are, and each municipality singly is, hereby authorized to enter into a New
England power pool agreement and to participate within and outside the State of Vermont
in the New England power pool created thereby. Any action taken by the City or such
board of trustees in connection with entering into or participating in such pool prior
to March 25, 1974, shall be deemed to be as effective as if this chapter had then
been in effect. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 275 (Adj. Sess.), § 17, eff. April 12, 1978; 1977, No. 278 (Adj. Sess.), § 1, eff. Feb. 9, 1978.)
§ 603. NEPOOL agreement
The New England power pool agreement may provide for, among other things:
(1) the pooling of power;
(2) coordination of planning, construction, and operation and the manner of establishing
and enforcing standards and other requirements;
(3) delegation of authority to administrative committees;
(4) amendments of the agreement by vote or other action of the participants or of committees
in the manner specified therein, subject to the right of any participant to withdraw
in the event of its nonconcurrence with an amendment;
(5) appointment of representatives to act for one or more participants in regard to amendments
and other matters;
(6) the allocation of pool expenses among participants;
(7) the provision of new, altered, improved, or enlarged facilities by the participants
subject to such proceedings as may be required by law for undertaking or financing
any such project;
(8) limitations on other actions by the participants that might be inconsistent with the
agreement or might adversely affect its implementation;
(9) arbitration; and
(10) other matters deemed necessary or desirable in order to carry out the purpose of the
agreement. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974.)
§ 604. Additional authority
(a) Notwithstanding any contrary provision of any general or special law relating to the
powers and authorities of electric utilities or any limitation imposed by their charters,
the City of Burlington, the Village of Lyndonville acting through its board of trustees,
and all other Vermont municipal electric utilities, shall each have the following
additional powers:
(1) jointly or separately to plan, finance, construct, purchase, operate, maintain, use,
share costs of, own, mortgage, lease, sell, dispose of, or otherwise participate in
electric power generating and transmission facilities or portions of it within or
outside the State or the product or service of it or securities issued in connection
with the financing of such facilities or portions of it;
(2) to enter into and perform contracts for such joint or separate planning, financing,
construction, purchase, operation, maintenance, use, sharing costs of, ownership,
mortgaging, leasing, sale, disposal of, or other participation in electric power generating
and transmission facilities, or portions of it, within or outside the State of the
product or service of it, or securities issued in connection with the financing of
electric power facilities or portions of it, including, contracts for the payment
of obligations imposed without regard to the operational status of a facility or facilities
and contracts for the sale or purchase of electricity from an electric power facility
or facilities for long or short periods of time or for the life of a specific electric
generating unit or units.
(b) Other electric utilities, whether cooperative, municipal, or privately owned, may
enter into and perform contracts with the City of Burlington and all other Vermont
municipal electric utilities for the purposes of this section. The provisions of this
chapter shall not otherwise affect the jurisdiction of the Public Utility Commission
regarding the activities of the Burlington electric light department and of the Village
of Lyndonville electric light department, or any municipal utility formed within the
State of Vermont.
(c) Cooperative and municipal electric utilities, in accordance with chapter 83 of this
title, and other electric utilities may enter into and perform contracts with the
City of Burlington, the Village of Lyndonville, and all other Vermont municipal electric
utilities for the purposes of this section.
(d) The Town of Rockingham shall have the authority, if duly authorized by its voters
in accordance with the procedures set forth in chapter 79 of this title for the formation
of a municipal utility, whether such vote or authorization occurs before or after
June 8, 2004 and after obtaining a certificate of public good pursuant to section 248 of this title, to acquire, own, and operate the hydroelectric generating facilities located at
Bellows Falls, Vermont, notwithstanding the fact the output of such facilities may
exceed the electric needs of the Town and its municipal utility, and to sell that
portion of the output of such facilities that exceeds the needs of the Town in serving
its own municipal utility and such municipal utility’s own customers. The Town shall
not have the authority to acquire the hydroelectric generating facilities located
at Bellows Falls, Vermont by eminent domain for a period of 10 years commencing on
January 1, 2005. In selling any of the output of such generating facilities, the Town
of Rockingham shall not have the authority to seek or obtain treatment as a “qualifying
facility” under 18 C.F.R. § 292.201-207 or subdivision 209(a)(8) of this title, and Rockingham shall not have the authority to own or operate such facilities or
a portion of such facilities if such facilities otherwise obtain treatment as a “qualifying
facility.”
(e) A municipality owning a municipal plant and conducting itself as a utility under chapter
79 of this title shall have the authority to acquire equity ownership of Vermont Transco
LLC or Vermont Electric Power Company, or both, and to finance the acquisition of
equity ownership by any means permitted under 24 V.S.A. subchapters 1 and 2 or municipal
charter. The terms under which equity ownership is acquired pursuant to this subsection
shall not include any provision of guaranty, assessment, indemnification, or joint
and several liability applicable to any such municipality. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 275 (Adj. Sess.), § 18, eff. April 12, 1978; 1977, No. 278 (Adj. Sess.), § 2, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 95, eff. June 8, 2004; 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008; 2023, No. 85 (Adj. Sess.), § 390, eff. July 1, 2024.)
§ 605. Contracts
Contracts under section 604 of this chapter may be for a term or for an indefinite
period; may provide for the sale or other disposition of byproducts of electric power
facilities; and may contain provisions for arbitration, delegation, and other matters
deemed necessary or desirable to carry out their purposes. Any party, public or private,
desiring to purchase or use byproducts of electric power facilities financed, constructed,
or operated under this chapter may enter into contracts for short or long terms. The
obligation of the city, village, and town under contracts referred to in this section
shall not be included in the debt of the city, village, and town for the purpose of
ascertaining its borrowing capacity. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 3, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004; 2023, No. 85 (Adj. Sess.), § 391, eff. July 1, 2024.)
§ 606. Tenancy in common
If the City of Burlington, the Village of Lyndonville, or the Town of Rockingham acquires
or owns an interest as a tenant in common with one or more other electric utilities
in any electric power facilities, the surrender or waiver by any party of its right
to partition such property for a period not exceeding the period for which the property
is used or useful for electric utility purposes shall not be invalid or unenforceable
by reason of the length of such period, or as unduly restricting the alienation of
such property. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 4, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004.)
§ 607. Consent to application of laws of other states
(a) Legislative consent is hereby given to the application of the laws of other states
with respect to taxation, payments in lieu of taxes, and the assessment thereof to
the City of Burlington, the Village of Lyndonville, or the Town of Rockingham, to
the extent that any such municipality acquires or has an interest in an electric power
facility, real or personal, situated outside the State or to the extent it owns or
operates electric power facilities outside the State pursuant to authority granted
in this chapter.
(b) Legislative consent is hereby given to the application of regulatory and other laws
of other states and of the United States to the City of Burlington, the Village of
Lyndonville, or the Town of Rockingham to the extent it owns or operates electric
power facilities outside the State pursuant to authority granted in this chapter.
(c) Any law, municipal bylaw, or ordinance governing contracts awarded by the City of
Burlington or the Village of Lyndonville shall not be applicable by reason of the
participation of the City of Burlington or the Village of Lyndonville in electric
power facilities pursuant to the authority granted in this chapter wherever the City
of Burlington or the Village of Lyndonville is not the lead participant. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 5, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004.)
§ 608. Bonding authority — City of Burlington
(a) The City of Burlington, when authorized by a two-thirds vote of all voters present
and voting at a meeting called for that purpose, may pledge its credit by issuing
the negotiable orders, warrants, notes, or bonds for project costs, or its share of
project costs, of electric power facilities authorized pursuant to section 604 of
this chapter. Such project costs may include all costs, whether incurred prior to
or after the issue of bonds or notes, of acquisition, site development, construction,
improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings,
nuclear fuel, demolition or removal of existing buildings or structures, including
the cost of acquiring any lands to which such buildings or structures may be moved,
financing charges, interest prior to and during the carrying out of any project and
for a reasonable period thereafter, planning, engineering, financial advisory and
legal services, administrative expenses, prepayments under contracts made pursuant
to section 604 of this chapter, the funding of notes issued for project costs as provided,
and all other expenses incidental to the determination of the feasibility of any project
or to carrying out the project or to placing the project in operation.
(b) The obligations shall be issued in accordance with the charter of the City of Burlington.
The amount of obligations issued for such purpose shall not be considered in computing
any debt limit applicable to the City.
(c) The March 6, 1973 vote of the voters of the City of Burlington authorizing and empowering
the Burlington City Council to pledge the credit of the City by issuing general obligation
bonds or notes in an amount not to exceed $6,000,000.00 for the purpose of acquiring
joint ownership interests in four nuclear power plants presently designated as the
Connecticut 1979 Nuclear Unit, Pilgrim No. 2, and Seabrook Units No. 1 and No. 2,
to be constructed and located in the states of Connecticut, Massachusetts, and New
Hampshire is hereby ratified, adopted, and validated in all respects. In addition,
any authorized action taken during the calendar year that commenced January 1, 1974
shall be valid and effective as if this chapter were in effect on January 1, 1974. (Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 2023, No. 85 (Adj. Sess.), § 392, eff. July 1, 2024.)
§ 609. Village of Lyndonville
(a) The Village of Lyndonville, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds
for project costs, or its share of project costs, of electric power facilities authorized
pursuant to section 604 of this title. The project costs may include all costs, whether incurred prior to or after the
issue of bonds or notes of acquisition, site development, construction, improvement,
enlargement, reconstruction, alteration, machinery, equipment, furnishings, nuclear
fuel, demolition or removal of existing buildings or structures, including the cost
of acquiring any lands to which such buildings or structures may be moved, financing
charges, interest prior to and during the carrying out of any project and for a reasonable
period thereafter, planning, engineering, financial advisory and legal services, administrative
expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs as provided in this section, and all
other expenses incidental to the determination of the feasibility of any project or
to carrying out the project or to placing the project in operation.
(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 and the charter of the Village of Lyndonville relating to said obligations. The
amount of obligations issued for such purpose shall not be considered in computing
any debt limit applicable to the Village.
(c) The May 3, 1977 vote of the voters of the Village of Lyndonville authorizing and empowering
the Village of Lyndonville Board of Trustees to pledge the credit of the Village by
issuing general obligation bonds or notes in an amount not to exceed $3,800,000.00
for the purpose of acquiring joint ownership interests in four power plants presently
designated as the Connecticut 1979 Nuclear Unit, Pilgrim No. 2, and Wyman Unit No.
4 and MMWEC Phase I Intermediate Units and located in the states of Connecticut, Maine,
and Massachusetts is hereby ratified, adopted, and validated in all respects. In addition,
any action authorized and taken during the calendar year that commenced January 1,
1977 shall be valid and effective as if this chapter were in effect on January 1,
1977. (Added 1977, No. 278 (Adj. Sess.), § 6, eff. Feb. 9, 1978; amended 2023, No. 85 (Adj. Sess.), § 393, eff. July 1, 2024.)
§ 610. Bonding authority — Town of Rockingham
(a) The Town of Rockingham, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds
for project costs, or its share of project costs, of electric power facilities authorized
pursuant to subsection 604(d) of this title. Such project costs may include all costs, whether incurred prior to or after the
issue of bonds or notes relating to the acquisition of facilities under this chapter,
of acquisition, site development, construction, improvement, enlargement, reconstruction,
alteration, machinery, equipment, furnishings, demolition or removal of existing buildings
or structures, including the cost of acquiring any lands to which such buildings or
structures may be moved, financing charges, interest prior to and during the carrying
out of any project and for a reasonable period thereafter, planning, engineering,
financial advisory and legal services, administrative expenses, prepayments under
contracts made pursuant to section 604 of this title, the funding of notes issued for project costs, and all other expenses incidental
to the determination of the feasibility of any project, or to carrying out the project,
or to placing the project in operation.
(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53. The amount of obligations issued for such purpose shall not be considered in computing
any debt limit applicable to the Town.
(c) The bonding authority of the Town of Rockingham set forth by this section shall be
subject to the following:
(1) The Town of Rockingham shall not incur indebtedness in order to support the acquisition
of the hydroelectric facility specified in subsection 604(d) of this title except in the form of bonds issued under 24 V.S.A. chapter 53, subchapter 2, payable solely from the net revenues from that hydroelectric facility,
nor shall the Town have the authority to use the Vermont Municipal Bond Bank to assist
with the Town’s acquisition of that hydroelectric facility; provided, however, the
foregoing limitations shall not restrict the Town from using whatever financing options,
or combinations of financing options, otherwise legally available to it for purposes
of acquiring, repairing, improving, or maintaining any other parts of a municipal
plant as defined in chapter 79 of this title, or for purposes of repairing, improving,
or maintaining the hydroelectric facility after the Town owns the hydroelectric facility.
(2) Revenue bonds issued for purposes of the Town’s acquisition of the hydroelectric facility
shall not be deemed to constitute a debt or liability or obligation of the Town, the
State, or of any political subdivision of it, nor shall those revenue bonds be deemed
to constitute a pledge of the faith and credit of the Town, the State, or of any political
subdivision, but shall be payable solely from the revenues from the hydroelectric
facility. Any revenue bond issued by the Town to support the Town’s acquisition of
the hydroelectric facility shall contain on its face a statement to the effect the
Town shall not be obligated to pay the same nor the interest on it, except from the
revenues or assets pledged for those purposes, and neither the faith and credit nor
the taxing power of the Town, the State, or of any political subdivision of it is
pledged to the payment of the principal of or the interest on such obligations.
(3) The State does hereby pledge to agree with the holders of the notes and bonds issued
under this section that the State will not limit or restrict the rights hereby vested
in the Town to perform its obligations and to fulfill the terms of any agreement made
with the holders of its bonds or notes. Neither will the State in any way impair the
rights and remedies of the holders until the notes and bonds, together with interest
on them, and interest on any unpaid installments of interest, are fully met, paid,
and discharged. The Town is authorized to execute this pledge and agreement of the
State in any agreement with the holders of the notes or bonds. (Added 2003, No. 121 (Adj. Sess.), § 97, eff. June 8, 2004.)
§ 610a. Authorization of indebtedness
(a) A municipality owning and operating a municipal plant and conducting itself as a utility
pursuant to chapter 79 of this title, when authorized as provided in 24 V.S.A. chapter 53, subchapters 1 and 2 or municipal charter, may pledge its credit or the net revenues
of its municipal plant by issuing negotiable orders, warrants, notes, or bonds for
the acquisition of equity ownership in Vermont Transco LLC or Vermont Electric Power
Company or both pursuant to subsection 604(e) of this title. In addition, an acquisition of equity ownership may be effected through any instrument
permitted under 24 V.S.A. § 1789. Acquisition costs may include all costs, whether incurred prior to or after the
issue of bonds or notes relating to the acquisition of equity ownership under this
chapter. Acquisition of equity ownership is an improvement as defined in 24 V.S.A. § 1751(3).
(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 or municipal charter. The amount of obligations issued for such purpose shall not
be considered in computing any debt limit applicable to the municipality.
(c) Any contract entered into and any debt obligation issued under this section for any
purpose pursuant to this chapter shall have been issued for an essential government
purpose and shall not be deemed to be a pledge of private credit for public benefit
nor a delegation of municipal authority, responsibility, or discretion. (Added 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008.)
§ 611. Liability of the State; immunity
No provision of this chapter shall constitute a waiver of sovereign immunity of the
State. The State of Vermont shall not be liable for injury to persons or property
or loss of life caused by the negligent or wrongful act or omission of the Town of
Rockingham or any of the Town’s agents or employees in the maintenance or operation
of the hydroelectric facilities specified in subsection 604(d) of this title. (Added 2003, No. 121 (Adj. Sess.), § 98, eff. June 8, 2004.)