The Vermont Statutes Online

Title 30: Public Service

Chapter 083: Consolidation of Municipal and Cooperative Districts

• § 4001. Definitions

  As used in this chapter, unless the context otherwise requires:

  (1) “Cooperative” means a corporation organized under, or otherwise subject to, chapter 81 of this title.

  (2) “Electric facilities” means any facilities necessary or incidental to the generation of electric power and energy or the transmission thereof, including electric generating units, electric generating plants, electric transmission lines, plant sites, rights-of-way, and real and personal property and equipment, and rights of every kind useful in connection therewith.

  (3) “Municipal electric utility” means any city, town, village, or department thereof, within this State, authorized to and engaged in the manufacture, distribution, purchase, and sale of electricity in this State.

  (4) “Utility” is intended to refer to cooperatives, municipal utilities, as defined, and private electric utilities. (Added 1977, No. 97; amended 2023, No. 85 (Adj. Sess.), § 444, eff. July 1, 2024.)

• § 4002. Agreements by cooperatives and municipal electric utilities

  Any cooperative or municipal electric utility shall have:

  (1) authority to participate with other utilities in entering into agreements for the planning, financing, acquisition, construction, ownership, operation, and maintenance of jointly owned or operated electric facilities and in connection therewith to construct, acquire, own, operate, and maintain electric facilities, for the purpose of providing a supply of power and energy to the cooperatives and municipal electric utilities entering into any such agreements, including the right to sell or exchange any surplus produced from such facilities to others;

  (2) authority to act in participation with other such utilities in arranging for the purchase of supplies of capacity and energy from other utilities, either within or outside the State of Vermont, including purchases from private electric utilities, municipal electric utilities, cooperatives, associations of utilities, or public authorities;

  (3) authority, in participation with other utilities, to enter into contracts for the transmission of such supplies of capacity or energy generated either by them or purchased from others;

  (4) authority, in participation with other utilities, to participate in facilities, projects, and programs for the purposes of modifying demand for electric capacity or energy through conservation or load management;

  (5) authority, in participation with other utilities, to employ attorneys, engineers, technicians, and any other personnel as said utilities may deem necessary or proper to carry out any of the foregoing powers;

  (6) authority to allow the Vermont Public Power Supply Authority to provide all requirements service for a stated period of time pursuant to subdivision 5012(15) of this title;

  (7) authority to otherwise do all lawful acts and things necessary or incidental to the exercise of the authority granted in this chapter. (Added 1977, No. 97; amended 1989, No. 112, § 3, eff. June 22, 1989; 1991, No. 170 (Adj. Sess.), § 2, eff. May 15, 1992.)

• § 4002a. All requirements contracts

  (a) For purposes of this section, and subdivisions 4002(6) and 5012(15) of this title, the term “all requirements service” shall mean service pursuant to a contract by which the Vermont Public Power Supply Authority assumes responsibility for power supply arrangements and other arrangements pertaining to the procurement and transmission of electric energy and capacity, on behalf of those systems that are signatories to a contract under this section, and subdivisions 4002(6) and 5012(15) of this title, and such contract may contain provisions consistent with and shall be subject to the provisions of section 5013 of this title in the same manner as a capacity and output contract. Such contract may include provisions under which the Vermont Public Power Supply Authority will provide demand-side management programs and least-cost integrated plans for the contracting utility.

  (b) Prior to entering into such a contract, the municipal or cooperative utility must obtain:

  (1) Approval, upon petition of the utility or of the Authority, by the Public Utility Commission of the proposed arrangement, which shall be given upon findings that the proposed arrangement will promote the general good of the ratepayers of the utility or utilities and is consistent with least-cost integrated planning principles. The proposed contract reflecting the arrangement shall be filed with the Commission and the Department at least 45 days prior to its intended execution, and the Department shall make its recommendation as to whether it accepts or does not accept the contract within 30 days following the date on which the proposed contract was filed. Should the Department oppose the contract, or the Commission on its own motion determine that investigation into the contract is appropriate, the Commission shall hear evidence on the matter and shall determine, within seven months of the intended execution date, whether the contract promotes the general good as described in this subdivision. Failure of the Commission to act within seven months shall be deemed to constitute approval of the contract.

  (2) Approval of the arrangement, within 90 days following approval or failure to act by the Public Utility Commission under subdivision (1) of this subsection, by a majority of persons voting in a duly warned election called by the cooperative or municipality for the purpose of considering such arrangement.

  (c) Nothing in this section or subdivision 4002(6) of this title shall be construed as precluding entry by municipal or cooperative utilities into letters of intent or other conditional arrangements for ultimate entry into a contract contemplated by this section and subdivision 5012(15) of this title.

  (d) Any contract under this section shall contain provisions allowing for its termination upon appropriate prior notice, with due consideration for the equitable allocation of obligations incurred pursuant to subdivision 5012(6) of this title during the period of delegated authority. Where a petition signed by not less than five percent of the qualified voters of a municipality or members of a cooperative, requesting termination of the participation of the municipality or cooperative in an all requirements contract, is filed with the clerk of the municipality or the board of directors of the cooperative, the legislative body of the municipality or the board of directors of the cooperative shall provide for a binding vote of the municipality or cooperative in accordance with this subsection within 60 days following filing, at an annual or special meeting duly warned for that purpose.

  (e) No contract under this section reduces the responsibility of a contracting utility to develop cost-effective demand-side and supply-side resources in accordance with an approved least-cost integrated plan. However, the utility may delegate authority to the Vermont Public Power Supply Authority to prepare, file, and seek approval of least-cost integrated resource plans on behalf of the contracting utility. (Added 1991, No. 170 (Adj. Sess.), § 3, eff. May 15, 1992; amended 2023, No. 85 (Adj. Sess.), § 445, eff. July 1, 2024.)

• § 4003. Implementing powers

  Without limiting the general scope and application of section 4002 of this chapter, each participating utility shall have the right and power:

  (1) To use its means and assets for the purposes of exercising the authority granted by section 4002 of this chapter, including, as to municipal electric utilities, the right and power to pledge the credit of the municipality.

  (2) To issue bonds and other securities to raise funds for those purposes in the same way and to the same extent and subject to all of the conditions that would apply if the utility’s interest in such agreements, actions, and contracts were whole and entire.

  (3) To acquire, for the use and benefit of all participating utilities, by purchase or through the exercise of the power of eminent domain, lands, easements, and properties for the purpose of jointly owned electric facilities, and transfer or convey lands, easements, and properties or interests, or otherwise to cause those lands, easements, and properties, or interests, to be vested in other participating utilities to the extent and in the manner agreed between the participating utilities. In all cases in which a participating utility exercises the right and power of eminent domain conferred by statute, it shall be controlled by the law governing condemnation by corporate public utilities in this State, and the right and power of eminent domain conferred shall include the right and power to take fee title in land so condemned, except that no participating utility has the right or power to take by the exercise of the power of eminent domain any electric facilities, or interests, belonging to any other municipal electric utility, electric cooperative, or private utility, except as provided by chapter 79 of this title.

  (4) To form a public service corporation with one or more other utilities and to hold stock and operate the same as a public utility as a means of carrying out the purposes of this chapter. However, the formation of any such public service corporation and its operation shall be subject to the requirements of this title governing the formation and operation of public service corporations. (Added 1977, No. 97; amended 2023, No. 85 (Adj. Sess.), § 446, eff. July 1, 2024.)

• § 4004. Taxes

  Electric facilities constructed or otherwise acquired under the terms of this chapter shall be subject to taxation by the municipality within which the same are located in the same manner as like facilities privately owned. (Added 1977, No. 97.)

• § 4005. Insurance

  Each participating utility shall have the right and power to enter into contracts or specialized insurance appertaining to property and risks in connection with an incident to the ownership, operation, and maintenance of electric facilities, in addition to the usual forms of available insurance. Each participating utility shall be authorized to enter into contracts or insurance for the use and benefit of each of the other participating utilities as though the insurance was for its sole benefit and to cause the rights of the other participating utilities to be protected by contracts according to their respective undivided interests or entitlements under applicable agreements between the participating utilities. (Added 1977, No. 97.)

• § 4006. Construction of chapter

  Notwithstanding any other provision of this chapter, nothing in this chapter shall have the effect of, or be construed as, altering, amending, or repealing the statutory purposes provided for by any statute enacted by the General Assembly of Vermont pertaining to the creation, establishment, or operation of municipal electric utilities or electric cooperatives. (Added 1977, No. 97; amended 2023, No. 85 (Adj. Sess.), § 447, eff. July 1, 2024.)

• § 4007. Severability

  If any provision of this chapter or the application thereof to any person or circumstance shall be held to be invalid, the remainder of the chapter, and the application of such provision to other persons or circumstances shall not be affected thereby, and to this end the provisions of this chapter are declared to be severable. (Added 1977, No. 97.)