HB0086 - Regulation of cooperative electrical associations.

 

2001

State of Wyoming

01LSO-0119

 

 

 

HOUSE BILL NO.  HB0086

 

 

Regulation of cooperative electrical associations.

 

Sponsored by:

 

 

A BILL

 

for

 

 1  AN ACT relating to utilities; authorizing cooperative
 2  electric associations to elect alternative regulation;
 3  providing for alternative regulation after election;
 4  providing procedures; providing legislative declaration;
 5  specifying applicability; specifying duties and prohibited
 6  acts of cooperative electric associations; and providing
 7  for an effective date.

 8 

 9  Be It Enacted by the Legislature of the State of Wyoming:

10 

11         Section 1.  W.S. 37-16-101 through 37-16-111 are
12  created to read:

13 

14         37-16-101.  Legislative declaration.

15 

16  The legislature hereby finds and declares that cooperative
17  electric associations which are owned by the member-

 

Page  1

 

 

 

 1  consumers they serve are regulated by the member-consumers
 2  themselves acting through an elected governing body. It is
 3  further declared that the regulation by the public service
 4  commission under this title, may be duplicative of the
 5  self-regulation by the association and may be neither
 6  necessary nor cost effective. It is therefore the purpose
 7  of this article to determine the necessity of regulation by
 8  the public service commission by allowing cooperative
 9  electric associations to exempt themselves from regulation
10  by the public service commission, subject to the provisions
11  of this article.

12 

13         37-16-102.  Definitions; construction.

14 

15         (a)  For the purposes of this article "cooperative
16  electric association" includes a nonprofit electric
17  corporation or association but does not include nonprofit
18  generation and transmission electric corporations or
19  associations.

20 

21         (b)  A cooperative electric association exempted from
22  regulation under this title shall be subject only to the
23  provisions of this article and those provisions of this
24  title as specified in this article.

 

Page  2

 

 

 

 1 

 2         37-16-103.  Exemption from regulation.

 3 

 4  Except as otherwise provided in this article, the
 5  provisions of this title shall not apply to cooperative
 6  electric associations which have, by an affirmative vote of
 7  the members and consumers pursuant to W.S. 37-16-104, voted
 8  to exempt themselves from such provisions and to be subject
 9  to the provisions of this article, W.S. 37-1-101 and
10  articles 1, 2 and 4 of chapter 12 of this title. The period
11  of exemption shall begin on the date the election results
12  are filed with the commission.

13 

14         37-16-104.  Procedure for exemption; election.

15 

16         (a)  The board of directors of each cooperative
17  electric association may, at its option, submit the
18  question of its exemption from this title, to its members
19  and its consumers. Approval by a majority of those voting
20  in the election shall be required for the exemption.

21 

22         (b)  The board of directors of the cooperative
23  electric association shall be responsible for mailing the
24  ballots to all members and consumers of the association,

 

Page  3

 

 

 

 1  for counting the returned ballots and for determining the
 2  result of the election and shall also be responsible for
 3  insuring that the election is not held in a dishonest,
 4  corrupt or fraudulent manner. The ballot shall contain the
 5  following language:

 6 

 7  "Shall .... (name of the cooperative electric association)
 8  be exempt from regulation by the public service commission
 9  of the state of Wyoming?

10  Yes No"

11 

12         (c)  The ballot must be postmarked or returned in an
13  envelope accompanying the ballot with return postage paid,
14  within thirty (30) days after it was mailed to the member
15  or consumer.

16 

17         (d)  The results of the election held pursuant to this
18  section shall be certified by the secretary of the board of
19  directors of the cooperative electric association no later
20  than sixty (60) days after the ballots are mailed to the
21  members and consumers and the secretary of the board shall
22  file the results with the commission.

23 

 

Page  4

 

 

 

 1         (e)  Upon an affirmative vote of the members and
 2  consumers of the cooperative electric association on the
 3  question of exempting the association, the association
 4  shall be exempt from this title, other than as provided in
 5  this article, beginning on the date the election results
 6  are filed with the commission.

 7 

 8         37-16-105.  Certificate of public convenience and
 9  necessity.

10 

11         (a)  A certificate of public convenience and necessity
12  issued by the commission prior to July 1, 2001, assigning
13  specific service territories to a cooperative electric
14  association shall remain in full force and effect and shall
15  be subject to such rights and limitations as other
16  certificates of public convenience and necessity held by
17  other electric public utilities subject to regulation of
18  the commission.

19 

20         (b)  After giving simultaneous notice by certified
21  mail to other electric public utilities serving areas
22  adjacent to an unserved, uncertificated territory and to
23  the commission of its intent to extend service, a
24  cooperative electric association shall have the right to

 

Page  5

 

 

 

 1  extend service into such unserved, uncertificated territory
 2  unless the commission receives a complaint concerning the
 3  extension. The complaint must be received by the commission
 4  no later than thirty (30) days following the commission's
 5  receipt of the notice of extension. Upon the filing of a
 6  complaint, the commission shall determine whether to issue
 7  a certificate of public convenience and necessity
 8  authorizing the extension.

 9 

10         (c)  Whenever the commission, after a hearing upon
11  complaint, finds that an electric public utility, including
12  a cooperative electric association, is unwilling or unable
13  to serve an existing or newly developing load within its
14  certificated territory and that the public convenience and
15  necessity requires a change, the commission may, in its
16  discretion, delete from the certificate of the public
17  utility or association that portion of the territory which
18  the public utility or association is unwilling or unable to
19  serve and incorporate the territory into the certificated
20  territory of another electric public utility, including
21  another cooperative electric association, upon such terms
22  as are just and reasonable, having due regard to due
23  process of law and to all the rights of the respective
24  parties and to public convenience and necessity.

 

Page  6

 

 

 

 1 

 2         (d)  Upon complaint filed by an electric public
 3  utility, including a cooperative electric association, the
 4  commission shall determine whether any construction or
 5  extension made or proposed to be made by another public
 6  utility or association will interfere with or duplicate the
 7  line, plant, system or service of the complainant, in which
 8  event the commission may make an order prohibiting the
 9  construction or extension or prescribing the terms and
10  conditions thereof as are just and reasonable.

11 

12         (e)  The provisions of W.S. 37-2-111 through 37-2-119
13  and article 2 of chapter 2 of this title shall apply to any
14  proceeding of the public service commission required by
15  this section.

16 

17         (f)  Except as otherwise provided in this article, the
18  enactment of this article shall neither enlarge nor
19  diminish the rights and obligations of electric public
20  utilities, including cooperative electric associations,
21  under certificates of public convenience and necessity
22  issued by the commission. Nothing in this article shall
23  enlarge or diminish the respective rights and obligations
24  of electric public utilities, including cooperative

 

Page  7

 

 

 

 1  electric associations, or municipalities under franchise or
 2  other contractual agreements.

 3 

 4         37-16-106.  Prohibited acts.

 5 

 6         (a)  No cooperative electric association shall make a
 7  change in any rate charged for electric service or in any
 8  rule or regulation in connection therewith unless the
 9  association provides public notice of the proposed change
10  at least thirty (30) days prior to the day the proposed
11  change is to take effect.

12 

13         (b)  No cooperative electric association, as to rates,
14  charges, service, facilities or as to any other matter,
15  shall make or grant any preference or advantage to any
16  person or subject any person to any prejudice or
17  disadvantage. No cooperative electric association shall
18  establish or maintain any unreasonable difference as to
19  rates, charges, service, facilities or as to any other
20  matter within any class of service. Any complaint arising
21  out of this subsection signed by one (1) or more customers
22  of such association shall be resolved by the commission in
23  accordance with the hearing and enforcement procedures

 

Page  8

 

 

 

 1  established in W.S. 37-2-111 through 37-2-119 and article 2
 2  of chapter 2 of this title.

 3 

 4         (c)  No rates, charges, rules or regulations of a
 5  cooperative electric association shall be unjust or
 6  unreasonable. Any complaint under this subsection shall be
 7  resolved by the commission in accordance with the hearing
 8  and enforcement procedures established in W.S. 37-2-111
 9  through 37-2-119 and article 2 of chapter 2 of this title,
10  if the complaint alleging a violation is signed by the
11  mayor, or a majority of the council, commission or other
12  legislative body of an affected county, city or town, an
13  affected public utility, or any one (1) or more affected
14  entities constituting a separate rate class of the
15  association or is signed by not less than twenty-five (25)
16  customers or prospective customers of such association.

17 

18         37-16-107.  Duties of cooperative electric
19  associations.

20 

21  The board of directors of a cooperative electric
22  association shall adopt all necessary rules and regulations
23  to comply with the provisions of this article.

24 

 

Page  9

 

 

 

 1         37-16-108.  Public meetings.

 2 

 3         (a)  All meetings of a cooperative electric
 4  association are declared to be open meetings and open to
 5  the members, consumers and news media at all times; but an
 6  association, by a two-thirds (2/3) affirmative vote of the
 7  board members present, may go into executive session for
 8  consideration of documents or testimony given in
 9  confidence, but an association shall not make final policy
10  decisions or adopt or approve any resolution, rule,
11  regulation, or formal action, any contract, or any action
12  calling for the payment of money at any session which is
13  closed to the members, consumers and news media.

14 

15         (b)  Prior to the time the board of directors convenes
16  in executive session, the board shall announce the general
17  topic of the executive session.

18 

19         (c)  Any action taken contrary to the provisions of
20  this section shall be null and void.

21 

22         37-16-109.  Regulations governing consumer complaints.

23 

 

Page 10

 

 

 

 1  The board of directors of each cooperative electric
 2  association shall adopt regulations which specify a
 3  procedure for members and consumers to register complaints
 4  about and be given an opportunity to be heard by the board
 5  on the rates charged by the association, the manner in
 6  which the electric service is provided and proposed changes
 7  in the rates or regulations. The regulations may be amended
 8  whenever deemed appropriate by the board.

 9 

10         37-16-110.  Method of reimposing public service
11  commission regulation.

12 

13  Any cooperative electric association may vote no more than
14  once a year to remove the association from regulation under
15  this article and place the association under the regulation
16  of the commission, as otherwise provided in this title. The
17  question shall only be submitted to the members and
18  consumers of a cooperative electric association if at least
19  five percent (5%) of the members and consumers of the
20  association sign a petition requesting an election. The
21  petition shall be submitted to, and signatures certified
22  by, the association's board of directors at a regular
23  scheduled meeting. After the petition has been certified by
24  the board, the commission shall conduct an election within

 

Page 11

 

 

 

 1  forty-five (45) days on the question. If a majority of the
 2  persons voting at the election vote in favor of placing
 3  their association under commission regulation, the
 4  commission shall reassert its regulation upon determination
 5  of the election results.

 6 

 7         37-16-111.  Public service commission; fees.

 8 

 9  No cooperative electric association which has voted to
10  exempt itself from this title other than the provisions of
11  this article, shall be required to pay to the commission
12  the fees imposed by the provisions of chapter 2 of this
13  title; except that, for any year in which the commission is
14  required, pursuant to W.S. 37-16-105 or 37-16-110, to act
15  with respect to an exempt cooperative electric association,
16  such exempt association shall pay to the commission actual
17  and necessary costs.

18 

19         Section 2.  W.S. 37-1-101(a)(intro) is amended to
20  read:

21 

22         37-1-101.  Definitions.

23 

 

Page 12

 

 

 

 1         (a)  As used in chapters 1, 2, 3, and12 and 16 of
 2  this title:

 3 

 4         Section 3.  This act is effective July 1, 2001.

 5 

 6                         (END)

 

Page 13