Introduced

SB 5 - This act provides that any city, town, or village must ensure that there is an adequate supply of electric service to an area that is to be annexed. They can do so by:

- Making a determination that there is a provider authorized and capable of serving the annexed area; or

- Granting authority to an electric cooperative to serve all of the area; or

- Requiring all suppliers serving within the area to be annexed to enter into a territorial agreement.

The act requires any grant of authority to a rural electric cooperative to serve the area be included in the annexation ordinance. The cooperative’s property and operations in the area will be subject to taxation by the city, town, or village.

Any rural electric cooperative granted authority may generate, manufacture, purchase, acquire, accumulate, and transmit electric energy, and distribute, sell, supply, and dispose of electric energy with the area. This is in addition to other powers they might have under the law. This authority does not affect the rights of other electric suppliers to provide service in the annexed area.

When complying with this act, a city, town, or village cannot require that a provider transfer any of its facilities or customers to another provider. Nor shall this act prohibit electric providers from continuing to serve existing customers and structures in annexed areas.

According to this act, any city, town, or village that has a pending annexation may petition the PSC (Public Service Commission) to designate the boundaries of the electric service areas to be served by provider. The PSC designations shall be binding. The PSC must rule on applications within 90 days of the filing.

Currently, the law provides that the PSC shall hold evidentiary hearings to determine whether territorial agreements should be approved. This act would allow such hearings to be waived if the matter is resolved by stipulation and agreement by all the parties. Also, the law currently provides that the PSC shall hold hearings regarding complaints about the territorial agreements. This act would also allow these hearings to be waived in the same manner.

In addition, if the PSC determines that a territorial agreement that is the subject of a complaint is no longer in the public interest, it has the authority to suspend or revoke the agreement.

Section 71.516 of this act has an effective date of June 1, 2005.

SUSAN HENDERSON


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