1.1                          A bill for an act 
  1.2             relating to utilities; authorizing the city of Austin 
  1.3             municipal utilities commission to enter into joint 
  1.4             ventures with the Freeborn-Mower counties cooperative 
  1.5             electric power association. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [JOINT VENTURE; AUSTIN MUNICIPAL UTILITIES 
  1.8   COMMISSION; FREEBORN-MOWER COUNTIES COOPERATIVE ELECTRIC POWER 
  1.9   ASSOCIATION.] 
  1.10     Subdivision 1.  [AUTHORIZATION.] (a) On behalf of the city 
  1.11  of Austin, the Austin municipal utilities commission is 
  1.12  authorized to enter into a joint venture with the Freeborn-Mower 
  1.13  counties cooperative electric power association.  The joint 
  1.14  venture shall be for the provision of utility services, 
  1.15  including retail electric service, within the boundaries of each 
  1.16  utility's exclusive electric service territory, as shown on the 
  1.17  map of service territories maintained by the department of 
  1.18  commerce and as may otherwise be provided by law.  The terms and 
  1.19  conditions of the joint venture authorized by this subdivision 
  1.20  are subject to ratification by both the municipal utilities 
  1.21  commission of the city of Austin and the board of the 
  1.22  cooperative electric power association.  The terms and 
  1.23  conditions may include the formation of a corporate or other 
  1.24  separate legal entity with an administrative and governance 
  1.25  structure independent of the two participating utilities.  
  2.1      (b) The corporate or other separate legal entity, if formed:
  2.2      (1) has the authority and legal capacity, and in the 
  2.3   exercise of joint venture powers the privileges, 
  2.4   responsibilities, and duties authorized by this section; 
  2.5      (2) is subject to the law generally applicable to the 
  2.6   organization, internal governance, and activities of the entity 
  2.7   formed; and 
  2.8      (3) may exercise in connection with its property and 
  2.9   affairs, and in connection with property within its control, any 
  2.10  and all powers that may be exercised by a natural person or a 
  2.11  private corporation or other private legal entity in connection 
  2.12  with similar property and affairs.  
  2.13     (c) A joint venture, including any separate legal entity, 
  2.14  if formed, may elect to be deemed a municipal utility or a 
  2.15  cooperative association for purposes of Minnesota Statutes, 
  2.16  chapter 216B, or other federal or state law regulating utility 
  2.17  operations. 
  2.18     (d) Any corporate or legal entity formed under this 
  2.19  subdivision must comply with Minnesota Statutes, section 
  2.20  465.719, subdivisions 9, 10, 11, 12, 13, and 14.  For the 
  2.21  purpose of Minnesota Statutes, section 465.719, the term 
  2.22  "political subdivision" means the city council of Austin. 
  2.23     Subd. 2.  [POWERS.] (a) A joint venture under this section 
  2.24  has the powers, privileges, responsibilities, and duties of the 
  2.25  separate utilities entering into the joint venture as the joint 
  2.26  venture agreement may provide and the powers provided under 
  2.27  paragraph (b), except that the joint venture, with respect to 
  2.28  retail electric utility services, must not enlarge the service 
  2.29  territory served by the joint venture under Minnesota Statutes, 
  2.30  sections 216B.44 and 216B.47, unless it receives the written 
  2.31  consent of the retail electric utility serving the area under 
  2.32  consideration. 
  2.33     (b) Such powers include, but are not limited to, the 
  2.34  authority to: 
  2.35     (1) finance, acquire, own, construct, and operate 
  2.36  facilities necessary for the provision of electric power to 
  3.1   wholesale or retail customers, including generation, 
  3.2   transmission, and distribution facilities; 
  3.3      (2) combine retail electric service territories, in whole 
  3.4   or in part, upon notice and hearing to do so with the public 
  3.5   utilities commission; 
  3.6      (3) serve electric customers in the two utilities' retail 
  3.7   electric service territories or in the combined service 
  3.8   territory and as provided in Minnesota Statutes, chapter 216B; 
  3.9      (4) combine, share, or employ administrative, managerial, 
  3.10  operational, or other staff which combining or sharing will not 
  3.11  degrade safety, reliability, or customer service standards; 
  3.12     (5) provide for joint administrative functions, such as 
  3.13  meter reading and billing; 
  3.14     (6) purchase or sell utility services at wholesale for 
  3.15  resale to customers; 
  3.16     (7) provide energy conservation programs, other utility 
  3.17  programs, and public interest programs, such as cold weather 
  3.18  shutoff protection, and energy conservation spending programs as 
  3.19  required by law and rule; and 
  3.20     (8) participate as the parties deem necessary or 
  3.21  appropriate in the provision of utility services with other 
  3.22  municipal utilities, cooperative associations, investor-owned 
  3.23  utilities, or other entities, public or private. 
  3.24     Subd. 3.  [MONITOR AND REPORT.] The Freeborn-Mower counties 
  3.25  cooperative electric power association and the Austin municipal 
  3.26  utilities commission shall monitor the progress and operation of 
  3.27  the joint venture, and shall issue a report to the public 
  3.28  utilities commission and legislative committees with 
  3.29  jurisdiction over utility regulation and operation outlining the 
  3.30  progress of the joint venture.  The report required by this 
  3.31  subdivision must be submitted not later than January 15, 2002. 
  3.32     Subd. 4.  [CITY AUTHORITY.] This section shall be construed 
  3.33  liberally to effect its legislative intent and purpose of 
  3.34  allowing the municipal utilities commission and the cooperative 
  3.35  power association named in subdivision 1 to operate joint 
  3.36  ventures with the powers granted by this section.  No additional 
  4.1   authority is necessary to authorize the city of Austin to form 
  4.2   and operate joint ventures as provided in this section.  The 
  4.3   powers conferred by this section are in addition and 
  4.4   supplemental to the powers conferred by any other law or 
  4.5   charter.  Any joint venture under this section, and the Austin 
  4.6   municipal utilities commission relative to any joint venture 
  4.7   under this section, has all powers necessary to effect the 
  4.8   intent and purpose of this section, including but not limited to 
  4.9   the expenditure of public funds and the transfer of real or 
  4.10  personal property in accordance with the terms and conditions of 
  4.11  the joint venture and the joint venture agreement.  This section 
  4.12  does not supersede or modify any powers, privileges, or 
  4.13  authority of the Austin municipal utilities commission or the 
  4.14  Freeborn-Mower counties cooperative electric power association.  
  4.15  The power of the Austin city council to overrule or override an 
  4.16  action of its municipal utilities commission as provided in the 
  4.17  relevant city charter is not superseded, but that power shall 
  4.18  not extend to the actions of the joint venture.  If there is a 
  4.19  conflict or inconsistency between this section and any other law 
  4.20  or any other charter provision, the provisions of this section 
  4.21  shall prevail. 
  4.22     Subd. 5.  [TELEPHONE EXCHANGE REQUIREMENT.] This section 
  4.23  does not permit the city of Austin to establish a telephone 
  4.24  exchange within the city unless it complies with the referendum 
  4.25  requirements of Minnesota Statutes, section 237.19.