§ 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.)