1.1                          A bill for an act
  1.2             relating to electric utilities; allowing the city of 
  1.3             Willmar to enter into a joint venture with the 
  1.4             Kandiyohi cooperative electric power association for 
  1.5             the provision of electric power. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [JOINT VENTURE.] 
  1.8      Subdivision 1.  [AUTHORIZATION.] The city of Willmar is 
  1.9   authorized to allow the Willmar municipal utilities commission 
  1.10  to enter into a joint venture with the Kandiyohi cooperative 
  1.11  electric power association for the provision of utility services 
  1.12  within the boundaries of each utility's exclusive electric 
  1.13  service territory, as shown on the map of service territories 
  1.14  maintained by the department of public service.  The terms and 
  1.15  conditions of the joint venture are subject to ratification by 
  1.16  both the municipal utilities commission of the city of Willmar 
  1.17  and the board of the Kandiyohi cooperative electric power 
  1.18  association and may include the formation of a corporate entity 
  1.19  with an administrative and governance structure independent of 
  1.20  the two utilities.  A corporate entity formed under this section 
  1.21  shall be subject to all laws and rules applicable to municipal 
  1.22  utilities and cooperative electric associations.  
  1.23     Subd. 2.  [POWERS.] (a) The joint venture formed under this 
  1.24  section, if any, shall have such powers, privileges, 
  1.25  responsibilities, and duties of the separate utilities entering 
  2.1   into the joint venture as the joint venture agreement may 
  2.2   provide, except that, upon formation of the joint venture, 
  2.3   neither the joint venture nor the Willmar municipal utilities 
  2.4   commission shall have the power of eminent domain or the 
  2.5   authority under section 216B.44 to enlarge the service territory 
  2.6   served by the joint venture. 
  2.7      (b) Such powers include, but are not limited to, the 
  2.8   authority to: 
  2.9      (1) finance, own, construct, and operate facilities 
  2.10  necessary for the provision of electric power to wholesale or 
  2.11  retail customers, including generation, transmission, and 
  2.12  distribution facilities; 
  2.13     (2) combine service territories, in whole or in part, upon 
  2.14  notice and hearing to do so with the public utilities 
  2.15  commission; 
  2.16     (3) serve customers in the two utilities' service 
  2.17  territories or in the combined service territory; 
  2.18     (4) combine, share, or employ administrative, managerial, 
  2.19  operational, or other staff which combining or sharing will not 
  2.20  degrade safety, reliability, or customer service standards; 
  2.21     (5) provide for joint administrative functions, such as 
  2.22  meter reading and billing; 
  2.23     (6) purchase or sell power at wholesale for resale to 
  2.24  customers; 
  2.25     (7) provide energy conservation programs, other utility 
  2.26  programs, and public interest programs, such as cold weather 
  2.27  shutoff protection, and energy conservation spending programs as 
  2.28  required by law and rule; and 
  2.29     (8) participate as the parties deem necessary in the 
  2.30  provision of wholesale electric power with other municipal 
  2.31  utilities, rural electric cooperative utilities, investor-owned 
  2.32  utilities, or other entities, public or private. 
  2.33     Subd. 3.  [MONITOR AND REPORT.] The Kandiyohi cooperative 
  2.34  electric power association and the Willmar municipal utilities 
  2.35  commission shall monitor the progress and operation of the joint 
  2.36  venture, and shall issue a report to the public utilities 
  3.1   commission and legislative committees with jurisdiction over 
  3.2   utility regulation and operation outlining the progress of the 
  3.3   joint venture.  The report required by this subdivision must be 
  3.4   submitted not later than January 1, 1998.