Minnesota Session Laws - 1997, Regular Session

                            CHAPTER 232-S.F.No. 1419 
                  An act relating to utilities; authorizing a municipal 
                  and cooperative utility to form joint ventures for the 
                  provision of utility services; amending Laws 1996, 
                  chapter 300, section 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Laws 1996, chapter 300, section 1, is amended 
        to read: 
           Section 1.  [JOINT VENTURE.] 
           Subdivision 1.  [AUTHORIZATION.] The city of Willmar is 
        authorized to allow On behalf of their respective cities:  (1) 
        the Willmar municipal utilities commission is authorized to 
        enter into a joint venture with the Kandiyohi cooperative 
        electric power association; and (2) the Jackson municipal 
        utilities commission is authorized to enter into a joint venture 
        with the Federated rural electric association.  These joint 
        ventures shall be for the provision of utility 
        services including retail electric service within the boundaries 
        of each utility's exclusive electric service territory, as shown 
        on the map of service territories maintained by the department 
        of public service and as may otherwise be provided by law.  The 
        terms and conditions of the a joint venture authorized by this 
        subdivision are subject to ratification by both the municipal 
        utilities commission of the city of Willmar and the board of the 
        Kandiyohi cooperative electric power association and 
        participating in the joint venture.  These terms and conditions 
        may include the formation of a corporate or other separate legal 
        entity with an administrative and governance structure 
        independent of the two participating utilities.  A corporate 
        entity formed under this section shall be subject to all laws 
        and rules applicable to municipal utilities and cooperative 
        electric associations.  The corporate or other separate legal 
        entity, if formed: 
           (1) has the authority and legal capacity, and in the 
        exercise of joint venture powers the privileges, 
        responsibilities, and duties authorized by this section; 
           (2) is subject to the law generally applicable to the 
        organization, internal governance, and activities of the entity 
        formed; 
           (3) may exercise in connection with its property and 
        affairs, and in connection with property within its control, any 
        and all powers that may be exercised by a natural person or a 
        private corporation or other private legal entity in connection 
        with similar property and affairs; and 
           (4) is not a public body or authority, government entity, 
        municipal corporation, or political subdivision. 
           A joint venture, including any separate legal entity, if 
        formed, may elect to be deemed a municipal utility or a 
        cooperative association for purposes of Minnesota Statutes, 
        chapter 216B, or other federal or state law regulating utility 
        operations. 
           Subd. 2.  [POWERS.] (a) The A joint venture formed under 
        this section, if any, shall have such has the powers, 
        privileges, responsibilities, and duties of the separate 
        utilities entering into the joint venture as the joint venture 
        agreement may provide, except that, upon formation of the joint 
        venture, neither the joint venture nor the Willmar municipal 
        utilities commission shall have the power of eminent domain or 
        the authority under section 216B.44 to and the powers provided 
        under paragraph (b), except that the joint venture, with respect 
        to retail electric utility services, may not enlarge the service 
        territory served by the joint venture under Minnesota Statutes, 
        sections 216B.44 and 216B.47, unless it receives the written 
        consent of the retail electric utility serving the area under 
        consideration. 
           (b) Such powers include, but are not limited to, the 
        authority to: 
           (1) finance, acquire, own, construct, and operate 
        facilities necessary for the provision of electric power to 
        wholesale or retail customers, including generation, 
        transmission, and distribution facilities; 
           (2) combine retail electric service territories, in whole 
        or in part, upon notice and hearing to do so with the public 
        utilities commission; 
           (3) serve electric customers in the two utilities' retail 
        electric service territories or in the combined service 
        territory and as provided in Minnesota Statutes, chapter 216B; 
           (4) combine, share, or employ administrative, managerial, 
        operational, or other staff which combining or sharing will not 
        degrade safety, reliability, or customer service standards; 
           (5) provide for joint administrative functions, such as 
        meter reading and billing; 
           (6) purchase or sell power utility services at wholesale 
        for resale to customers; 
           (7) provide energy conservation programs, other utility 
        programs, and public interest programs, such as cold weather 
        shutoff protection, and energy conservation spending programs as 
        required by law and rule; and 
           (8) participate as the parties deem necessary or 
        appropriate in the provision of wholesale electric power utility 
        services with other municipal utilities, rural electric 
        cooperative utilities associations, investor-owned utilities, or 
        other entities, public or private. 
           Subd. 3.  [MONITOR AND REPORT.] The Kandiyohi cooperative 
        electric power association and the Willmar municipal utilities 
        commission shall monitor the progress and operation of the joint 
        venture, and shall issue a report to the public utilities 
        commission and legislative committees with jurisdiction over 
        utility regulation and operation outlining the progress of the 
        joint venture.  The report required by this subdivision must be 
        submitted not later than January 1 15, 1998. 
           Subd. 4.  [CITY AUTHORITY.] This section shall be construed 
        liberally to effectuate its legislative intent and purpose of 
        allowing the municipal utilities commissions and the cooperative 
        power associations named in subdivision 1 to operate joint 
        ventures with the powers granted by this section.  No additional 
        authority is necessary to authorize the cities of Willmar and 
        Jackson to form and operate joint ventures as provided in this 
        section.  The powers conferred by this section shall be in 
        addition and supplemental to the powers conferred by any other 
        law or charter.  Any joint venture under this section, and the 
        Willmar and Jackson municipal utilities commissions relative to 
        any joint venture under this section, has all powers, 
        privileges, responsibilities, and duties necessary or 
        appropriate to effectuate the intent and purpose of this 
        section, including but not limited to the expenditure of public 
        funds and the transfer of real or personal property in 
        accordance with the terms and conditions of the joint venture 
        and the joint venture agreement.  Nothing in this section shall 
        be construed to supersede or modify any powers, privileges, or 
        authority of the Willmar or Jackson municipal utilities 
        commissions or the Kandiyohi or Federated cooperative electric 
        power associations.  The power of the Willmar city council or 
        the Jackson city council to overrule or override an action of 
        their respective municipal utilities commission as provided in 
        the relevant city charter is not superseded but that power shall 
        not extend to the actions of the joint venture.  If there is a 
        conflict or inconsistency between this section and any other law 
        or any other charter provision, the provisions of this section 
        shall prevail. 
           Subd. 5.  [TELEPHONE EXCHANGE REQUIREMENT.] Nothing in this 
        section shall permit the city of Willmar or the city of Jackson 
        to establish a telephone exchange within the city unless it 
        complies with the referendum requirements of section 237.19. 
           Sec. 2.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment, 
        except, that the authority granted to the Jackson municipal 
        utilities commission and the Federated rural electric 
        association by this act is effective February 1, 1998. 
           Presented to the governor May 29, 1997 
           Signed by the governor June 2, 1997, 2:16 p.m.