1.1                          A bill for an act 
  1.2             relating to utilities; authorizing a municipal and 
  1.3             cooperative utility to form joint ventures for the 
  1.4             provision of utility services; amending Laws 1996, 
  1.5             chapter 300, section 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Laws 1996, chapter 300, section 1, is amended 
  1.8   to read: 
  1.9      Section 1.  [JOINT VENTURE.] 
  1.10     Subdivision 1.  [AUTHORIZATION.] On behalf of the city of 
  1.11  Willmar is authorized to allow, the Willmar municipal utilities 
  1.12  commission is authorized to enter into a joint venture with the 
  1.13  Kandiyohi cooperative electric power association for the 
  1.14  provision of utility services including retail electric service 
  1.15  within the boundaries of each utility's exclusive electric 
  1.16  service territory, as shown on the map of service territories 
  1.17  maintained by the department of public service and as may 
  1.18  otherwise be provided by law.  The terms and conditions of the 
  1.19  joint venture are subject to ratification by both the municipal 
  1.20  utilities commission of the city of Willmar and the board of the 
  1.21  Kandiyohi cooperative electric power association and may include 
  1.22  the formation of a corporate or other separate legal entity with 
  1.23  an administrative and governance structure independent of the 
  1.24  two utilities.  A corporate entity formed under this section 
  1.25  shall be subject to all laws and rules applicable to municipal 
  2.1   utilities and cooperative electric associations.  The corporate 
  2.2   or other separate legal entity, if formed: 
  2.3      (1) has the authority and legal capacity, and in the 
  2.4   exercise of joint venture powers the privileges, 
  2.5   responsibilities, and duties authorized by this section; 
  2.6      (2) is subject to the law generally applicable to the 
  2.7   organization, internal governance, and activities of the entity 
  2.8   formed; 
  2.9      (3) may exercise in connection with its property and 
  2.10  affairs, and in connection with property within its control, any 
  2.11  and all powers that may be exercised by a natural person or a 
  2.12  private corporation or other private legal entity in connection 
  2.13  with similar property and affairs; and 
  2.14     (4) is not a public body or authority, government entity, 
  2.15  municipal corporation, or political subdivision. 
  2.16     A joint venture, including any separate legal entity, if 
  2.17  formed, may elect to be deemed a municipal utility or a 
  2.18  cooperative association for purposes of Minnesota Statutes, 
  2.19  chapter 216B, or other federal or state law regulating utility 
  2.20  operations. 
  2.21     Subd. 2.  [POWERS.] (a) The A joint venture formed under 
  2.22  this section, if any, shall have such has the powers, 
  2.23  privileges, responsibilities, and duties of the separate 
  2.24  utilities entering into the joint venture as the joint venture 
  2.25  agreement may provide, except that, upon formation of the joint 
  2.26  venture, neither the joint venture nor the Willmar municipal 
  2.27  utilities commission shall have the power of eminent domain or 
  2.28  the authority under section 216B.44 to and the powers provided 
  2.29  under paragraph (b), except that the joint venture, with respect 
  2.30  to retail electric utility services, may not enlarge the service 
  2.31  territory served by the joint venture under Minnesota Statutes, 
  2.32  sections 216B.44 and 216B.47, unless it receives the written 
  2.33  consent of the retail electric utility serving the area under 
  2.34  consideration. 
  2.35     (b) Such powers include, but are not limited to, the 
  2.36  authority to: 
  3.1      (1) finance, acquire, own, construct, and operate 
  3.2   facilities necessary for the provision of electric power to 
  3.3   wholesale or retail customers, including generation, 
  3.4   transmission, and distribution facilities; 
  3.5      (2) combine retail electric service territories, in whole 
  3.6   or in part, upon notice and hearing to do so with the public 
  3.7   utilities commission; 
  3.8      (3) serve electric customers in the two utilities' retail 
  3.9   electric service territories or in the combined service 
  3.10  territory and as provided in Minnesota Statutes, chapter 216B; 
  3.11     (4) combine, share, or employ administrative, managerial, 
  3.12  operational, or other staff which combining or sharing will not 
  3.13  degrade safety, reliability, or customer service standards; 
  3.14     (5) provide for joint administrative functions, such as 
  3.15  meter reading and billing; 
  3.16     (6) purchase or sell power utility services at wholesale 
  3.17  for resale to customers; 
  3.18     (7) provide energy conservation programs, other utility 
  3.19  programs, and public interest programs, such as cold weather 
  3.20  shutoff protection, and energy conservation spending programs as 
  3.21  required by law and rule; and 
  3.22     (8) participate as the parties deem necessary or 
  3.23  appropriate in the provision of wholesale electric power utility 
  3.24  services with other municipal utilities, rural electric 
  3.25  cooperative utilities associations, investor-owned utilities, or 
  3.26  other entities, public or private. 
  3.27     Subd. 3.  [MONITOR AND REPORT.] The Kandiyohi cooperative 
  3.28  electric power association and the Willmar municipal utilities 
  3.29  commission shall monitor the progress and operation of the joint 
  3.30  venture, and shall issue a report to the public utilities 
  3.31  commission and legislative committees with jurisdiction over 
  3.32  utility regulation and operation outlining the progress of the 
  3.33  joint venture.  The report required by this subdivision must be 
  3.34  submitted not later than January 1 15, 1998. 
  3.35     Subd. 4.  [CITY AUTHORITY.] This section shall be construed 
  3.36  liberally to effectuate its legislative intent and purpose of 
  4.1   allowing the Willmar municipal utilities commission and the 
  4.2   Kandiyohi cooperative power association to operate a joint 
  4.3   venture with the powers granted by this section.  No additional 
  4.4   authority is necessary to authorize the city of Willmar to form 
  4.5   and operate a joint venture as provided in this section.  The 
  4.6   powers conferred by this section shall be in addition and 
  4.7   supplemental to the powers conferred by any other law or 
  4.8   charter.  A joint venture under this section and the Willmar 
  4.9   municipal utilities commission relative to any joint venture 
  4.10  under this section has all powers, privileges, responsibilities, 
  4.11  and duties necessary or appropriate to effectuate the intent and 
  4.12  purpose of this section, including but not limited to the 
  4.13  expenditure of public funds and the transfer of real or personal 
  4.14  property in accordance with the terms and conditions of the 
  4.15  joint venture and the joint venture agreement.  Nothing in this 
  4.16  section shall be construed to supersede or modify any powers, 
  4.17  privileges, or authority of the Willmar municipal utilities 
  4.18  commission or the Kandiyohi cooperative electric power 
  4.19  association.  The power of the Willmar city council to overrule 
  4.20  or override an action of the Willmar municipal utilities 
  4.21  commission as provided in the Willmar city charter is not 
  4.22  superseded but that power shall not extend to the actions of the 
  4.23  joint venture.  If there is a conflict or inconsistency between 
  4.24  this section and any other law or any other charter provision, 
  4.25  the provisions of this section shall prevail. 
  4.26     Subd. 5.  [TELEPHONE EXCHANGE REQUIREMENT.] A joint venture 
  4.27  may not establish a telephone exchange in a municipality until 
  4.28  it has received authorization to do so in a referendum conducted 
  4.29  in that municipality under Minnesota Statutes, section 237.19. 
  4.30     Sec. 2.  [EFFECTIVE DATE.] 
  4.31     This act is effective the day following final enactment.