HB0318 - Self-regulation of cooperative electrical associations.

 

2001

State of Wyoming

01LSO-0644

 

 

 

HOUSE BILL NO.  HB0318

 

 

Self-regulation of cooperative electrical associations.

 

Sponsored by:

 

 

A BILL

 

for

 

 1  AN ACT relating to utilities; authorizing cooperative
 2  electric associations to elect alternative rate regulation;
 3  providing for alternative regulation after election;
 4  providing procedures; providing legislative declaration;
 5  specifying applicability; specifying rate adjustment
 6  procedures; providing complaint procedure;
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 37-16-109 are
12  created to read:

13 

14                         CHAPTER 16

15  SELF-REGULATION OF COOPERATIVE ELECTRICAL ASSOCIATIONS

16 

17         37-16-101.  Legislative declaration.

 

Page  1

 

 

 

 1 

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

15 

16         37-16-102.  Definitions; construction.

17 

18         (a)  For the purposes of this chapter "cooperative
19  electric association" means a nonprofit electric
20  corporation or association.

21 

22         (b)  A cooperative electric association exempted from
23  regulation under this title shall be subject only to the

Page  2

 

 

 

 1  provisions of this chapter and those provisions of this
 2  title as specified in this chapter.

 3 

 4         37-16-103.  Exemption from regulation.

 5 

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

15 

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

17 

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

24 

 

Page  3

 

 

 

 1         (b)  The board of directors of the cooperative
 2  electric association shall notify its members and its
 3  consumers of its resolution and the election for self-
 4  regulation. The notice shall be by first class United
 5  States mail or by public meeting of the board not less than
 6  forty-five (45) days before the date set for the election.

 7 

 8         (c)  The board of directors shall be responsible for
 9  mailing the ballots to all members and consumers of the
10  association, for counting the returned ballots and for
11  determining the result of the election and also shall be
12  responsible for insuring that the election is not held in a
13  dishonest, corrupt or fraudulent manner. The ballot shall
14  contain the following language:

15 

16  "Shall the members of .... (name of the cooperative
17  electric association), through its board of directors,
18  regulate the rates of the cooperative electric association
19  and terminate regulation by the public service commission
20  of the state of Wyoming?

21  Yes  No"

22 

 

Page  4

 

 

 

 1         (d)  The ballot must be postmarked or returned in an
 2  envelope accompanying the ballot with return postage paid
 3  within thirty (30) days after it was mailed to the member
 4  or consumer.

 5 

 6         (e)  The results of the election held pursuant to this
 7  section shall be certified by the secretary of the board of
 8  directors of the cooperative electric association no later
 9  than sixty (60) days after the ballots are mailed to the
10  members and consumers and the secretary of the board shall
11  file the results with the commission.

12 

13         (f)  Upon an affirmative vote of the members and
14  consumers of the cooperative electric association on the
15  question of exempting the association, the association
16  shall be exempt from this title, other than as provided in
17  this chapter, beginning on the date the election results
18  are filed with the commission.

19 

20         37-16-105.  Certificate of public convenience and
21  necessity.

22 

23  Nothing in this chapter shall be construed to affect the
24  certified service territory of a cooperative electric

Page  5

 

 

 

 1  association or the authority of the Wyoming public service
 2  commission as otherwise provided by law.

 3 

 4         37-16-106.  Rate adjustment procedure; complaints to
 5  commission.

 6 

 7         (a)  A cooperative electric association which is not
 8  exempt under this chapter shall not change any rate charged
 9  for electric service or change any rule in connection
10  therewith, unless the association notifies its members by
11  first class United States mail or at a public meeting of
12  the board of directors of the proposed change at least
13  thirty (30) days before the day the proposed change is to
14  take effect. Any rate adjustment approved by the board of
15  directors shall be filed with the` commission.

16 

17         (b)  Notwithstanding an association's election for
18  self-regulation, the commission shall investigate the
19  adjusted rates of the association, if there is filed with
20  the commission a petition signed by not less than five
21  percent (5%) of all of the association's customers or ten
22  percent (10%) of the association's customers within any one
23  (1) rate class. The complaint shall be resolved by the
24  commission in accordance with the hearing and enforcement

Page  6

 

 

 

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

 3 

 4         (c)  The commission is authorized to fix and order
 5  rates it determines are just and reasonable, if the
 6  commission finds after investigation that the rates are
 7  unjust or unreasonable, unjustly discriminatory or unduly
 8  preferential. The cooperative's rates complained of shall
 9  remain in effect while the rates are under investigation
10  and until a final order changing them is adopted.

11 

12         37-16-107.  Duties of cooperative electric
13  associations.

14 

15  The board of directors of a cooperative electric
16  association shall adopt all necessary rules to comply with
17  the provisions of this chapter.

18 

19         37-16-108.  Rules governing consumer complaints.

20 

21  The board of directors of each cooperative electric
22  association shall adopt rules which specify a procedure for
23  members and consumers to register complaints about and be
24  given an opportunity to be heard by the board of directors

Page  7

 

 

 

 1  on the rates charged by the association, the manner in
 2  which the electric service is provided and proposed changes
 3  in the rates or rules. The rules may be amended whenever
 4  deemed appropriate by the board.

 5 

 6         37-16-109.  Method of reimposing public service
 7  commission regulation.

 8 

 9  A cooperative electric association may vote no more than
10  once a year to remove the association from regulation under
11  this chapter and place the association under the regulation
12  of the commission, as otherwise provided in this title. The
13  question of reimposing rate regulation may be proposed by
14  resolution of the board of directors or may be submitted to
15  the board by the members and consumers of a cooperative
16  electric association if at least ten percent (10%) of the
17  members and consumers of the association sign a petition
18  requesting an election. The election shall be conducted
19  according to the provisions of W.S. 36-16-104.

20 

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

23 

24         37-1-101.  Definitions.

 

Page  8

 

 

 

 1 

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

 4 

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

 6 

 7                         (END)

 

Page  9