Sec. 7-233c. Municipal electric energy cooperative membership. Board representatives, appointment, term, removal. Officers. Meetings. Staff. Apportionment
of expenses. (a) Any two or more municipal electric utilities may, by concurrent resolutions, duly adopted by the governing bodies of each of such municipal electric utilities,
create and become members of a municipal electric energy cooperative under the name
and style of "the .... municipal electric energy cooperative", with some identifying phrase
inserted. The managing body of the municipal electric energy cooperative shall be a
cooperative utility board which shall be charged with carrying out the corporate purposes
and powers of the municipal electric energy cooperative. The number of representatives
to be appointed at any time for full terms of office by the governing bodies of such
municipal electric utilities shall be such uniform numbers as may be mutually agreed
upon in said resolutions which number shall be not less than two nor more than six for
each member. After the taking effect of the said resolutions of all such municipal electric
utilities and after the filing of certified copies thereof pursuant to subsection (a) of section
7-233d, the agreed number of representatives shall be appointed to the cooperative utility
board by the governing body of each municipal electric utility. The qualification, terms
of office for the original representatives and their successors and compensation, if any,
of such representatives shall be prescribed by each such governing body; provided, each
representative shall be an official of such municipal electric utility. In addition to paying
such compensation as may be prescribed pursuant to section 7-233p, a member may
reimburse its representatives for expenses for travel, both within and without the state,
incurred by them in connection with services as a designated representative on such
board. Before such municipal cooperative can be validly and legally formed each of the
municipalities represented by a municipal electric utility joining together to form the
municipal cooperative must, by proper proceedings duly adopted, consent and agree to
such formation of the municipal cooperative.
(b) After the creation of a municipal cooperative under subsection (a) of this section,
any other municipal electric utility may become a member of the municipal cooperative
if (1) the municipal electric utility files with the municipal cooperative (A) a resolution,
duly adopted by its governing body, requesting membership in such cooperative and
(B) a certified copy of the proper proceedings, duly adopted by the municipality represented by the municipal electric utility, consenting and agreeing to such membership
and (2) after the municipal cooperative receives such filing, the governing body of each
municipal electric utility which is a member of the municipal cooperative at the time
of such filing duly adopts a resolution approving membership of such municipal electric
utility in the municipal cooperative. After the filing of certified copies of all such resolutions with the Secretary of the State pursuant to subsection (b) of section 7-233d, the
governing body of the municipal electric utility being added to the municipal cooperative
shall appoint representatives to the cooperative utility board of the municipal cooperative. The number of such appointed representatives shall be the same as the number
mutually agreed upon by the other members of the municipal cooperative pursuant
to subsection (a) of this section. The provisions of said subsection (a) concerning the
qualification and terms of office of, and reimbursement of travel expenses for, representatives of the existing members of the municipal cooperative shall apply to representatives of such municipal electric utility.
(c) A municipal electric utility which is a member of a municipal cooperative may
withdraw from the municipal cooperative if: (1) Such municipal cooperative has no
outstanding debt or obligations for which such municipal electric utility has entered into
a contract with respect to or otherwise become legally obligated to provide payment
for, (2) the municipal electric utility files with the municipal cooperative a resolution,
duly adopted by its governing body, approving the withdrawal, (3) the municipality
represented by the municipal electric utility does not disapprove of such withdrawal,
by vote of the municipality's legislative body, within thirty days after the adoption of
such a resolution and (4) the governing body of each other municipal electric utility
which is a continuing member of the municipal cooperative at the time of the filing of
such resolution duly adopts a resolution approving such withdrawal.
(d) Upon appointment of its representatives by the members of the municipal cooperative the cooperative utility board shall organize, select its chairman and vice-chairman from among said board and proceed to consider those matters which have been
recommended to it by the several members of the municipal cooperative. The cooperative utility board may hold such meetings and public hearings as it deems desirable and
the powers of the municipal cooperative shall be vested in the representatives thereof
in office from time to time. A majority of the entire authorized number of representatives
of the municipal cooperative shall constitute a quorum at any meeting thereof. Action
may be taken, motions voted and resolutions adopted by the municipal cooperative at
any meeting of the cooperative utility board by vote of a majority of the representatives
present, unless in any case the bylaws of a municipal cooperative shall require a larger
number for adoption or any representative of the cooperative utility board requests that
the vote be based on megawatt-hour purchases. If such a request is made, (1) each
representative shall have a number of votes equal to the total number of megawatt-hours
purchased by the representative's member municipal electric utility from the municipal
cooperative during the preceding completed calendar year, provided, if the municipal
cooperative includes a new member municipal electric utility which purchased part or all
of its power and energy from a supplier or suppliers other than the municipal cooperative
during such year, each representative of such new member municipal electric utility
shall have a number of votes equal to the total megawatt-hours purchased by such new
member from such other suppliers during such year plus the total number of megawatt-hours purchased from the municipal cooperative during such year and (2) any action,
motion or resolution taken, voted or adopted by the municipal cooperative at such meeting shall be by a favorable vote of sixty-seven per cent or more of the total of such votes
of the representatives who are present at the meeting and who vote. Notwithstanding
any provision of this subsection to the contrary, a unanimous vote of all of the representatives of the municipal cooperative shall be required before said municipal cooperative
can exercise the power of condemnation or eminent domain provided in this chapter. The
cooperative utility board may appoint and employ a treasurer, a secretary, an executive
director, a chief engineer and a general counsel and such other special counsel, consulting engineer, accountants, legal, financial and construction experts, and other agents
and employees as it may deem necessary, and the cooperative utility board shall determine their qualifications, terms of office, duties and compensation.
(e) Organizational expenses incurred by a municipal cooperative shall be paid
ratably by each member in the same proportion as the population or area of operation
serviced by each such member bears to the total population or area of operation serviced
by all members or by such other method as determined to be fair and equitable by the
cooperative utility board. Such payments shall be made by each member whether or not
that member utilizes the electric power or energy made available or furnished to such
member.
(f) Each representative of a municipal electric energy cooperative shall hold office
for the term for which he was appointed and until his successor has been appointed
and has qualified. A representative of a municipal electric energy cooperative may be
removed only by the cooperative utility board for inefficiency or neglect of duty or
misconduct in office and after he shall have been given a copy of the charges against
him and, not sooner than ten days thereafter, had opportunity in person or by counsel
to be heard thereon by such governing body. A member may remove one or more of its
representatives with or without cause at any time.
(P.A. 75-634, S. 3, 24; P.A. 76-237, S. 3, 9; P.A. 86-354, S. 2, 6.)
History: P.A. 76-237 amended Subsec. (a) to clarify the number of representatives for each member, to require that
representatives be officials of utilities and to require consent of municipalities involved for legal formation of cooperative,
amended Subsec. (c) to substitute "area of operation" for "geographic area" and amended Subsec. (d) to include provision
concerning removal of representatives; P.A. 86-354 inserted new Subsecs. (b) and (c), authorizing a municipal electric
utility to become a member of an existing municipal electric energy cooperative or to withdraw from a cooperative,
relettered the remaining Subsecs. accordingly, and amended Subsec. (d) to authorize voting based on megawatt-hour
purchases.
Sec. 7-233d. Filings with Secretary of the State. Effect. (a) A certified copy of
each concurrent resolution creating a municipal electric energy cooperative, which is
adopted pursuant to subsection (a) of section 7-233c, and a certified copy of each of
the proceedings of the municipalities consenting and agreeing to the formation of the
municipal electric energy cooperative as required by said subsection (a), shall be filed
in the office of the Secretary of the State. Upon proof of such filing of a certified copy
of the concurrent resolutions creating the municipal electric energy cooperative and the
municipal proceedings as aforesaid, the municipal electric energy cooperative therein
referred to shall, in any suit, action or proceeding involving the validity or enforcement
of, or relating to, any contract or obligation or act of the municipal electric energy
cooperative, be conclusively deemed to have been lawfully and properly created, organized and established and authorized to transact business and exercise its powers under
this chapter.
(b) A certified copy of each resolution approving the addition of a municipal electric
utility to an existing municipal cooperative, which is adopted pursuant to subsection
(b) of section 7-233c, and a certified copy of the proceedings of the municipality represented by such municipal electric utility consenting and agreeing to membership in such
municipal cooperative as required by said subsection (b), shall be filed in the office of
the Secretary of the State. Upon proof of such filing of a certified copy of such resolutions
and such municipal proceedings, such municipal electric utility shall be deemed to be
a member of such municipal cooperative.
(c) A certified copy of each resolution approving the withdrawal of a municipal
electric utility from an existing municipal cooperative, which is adopted pursuant to
subsection (c) of section 7-233c, and an affidavit by the withdrawing municipal electric
utility stating that the legislative body of the municipality has not disapproved of such
withdrawal in the manner provided under said subsection (c), shall be filed in the office
of the Secretary of the State. Upon proof of such filing of a certified copy of such
resolutions and such affidavit, such municipal electric utility shall conclusively be
deemed to have lawfully and properly withdrawn from the municipal cooperative and the
municipal electric utility shall be deemed never to have been a member of the municipal
cooperative and shall no longer have any right, title or interest in the property of the
municipal cooperative.
(d) A copy of any such resolutions or proceedings filed under this section, duly
certified by or on behalf of the Secretary of the State, shall be admissible in evidence
in any suit, action or proceeding and shall be conclusive evidence of the due and proper
filing thereof as aforesaid.
(P.A. 75-634, S. 4, 24; P.A. 76-237, S. 4, 9; P.A. 86-354, S. 3, 6.)
History: P.A. 76-237 required filing of certified copy of municipal proceedings as well as of concurrent resolutions;
P.A. 86-354 divided section into Subsecs. and added Subsecs. (b) and (c), re filings for addition or withdrawal of a municipal
electric utility from a municipal electric energy cooperative.
Sec. 7-233e. Powers. (a) As used in this section, "person without the state" means
a person located outside the state that complies with the standards for interconnection
to the transmission or distribution facilities of the public utility to which such person is
interconnected.
(b) A municipal electric energy cooperative created in the manner provided in this
chapter shall constitute a public body corporate and politic, and in furtherance of its
purpose of providing facilities for the generation and transmission of electric power
such municipal electric energy cooperative shall be deemed to be exercising an essential
governmental function and shall have the following powers, to wit:
(1) To adopt and have a common seal and to alter the same;
(2) To sue and be sued;
(3) To contract and be contracted with;
(4) To plan, acquire, construct, reconstruct, operate, maintain, repair, extend or
improve one or more projects within or without the state; or to acquire any interest in
or any right to capacity of such a project and to act as agent, or designate one or more
of the other participants in such project to act as agent, for all the participants in such
project in connection with the planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension or improvement of such project;
(5) To investigate the desirability of and necessity for additional sources and supplies of electric power, and to make such studies, surveys and estimates as may be
necessary to determine the feasibility and cost of any such additional sources and supplies of electric power;
(6) To cooperate with private electric utilities, member and nonmember municipal
electric utilities and other public or private electric power entities, within and without
the state, or with any person without the state, in the development of such sources and
supplies of electric power;
(7) To procure from the United States of America or any agency or instrumentality
thereof, or from any state or agency or instrumentality thereof, any consents, authorizations or approvals which may be requisite to enable any project within its powers to be
carried forward;
(8) To do and perform any acts and things authorized by the act under, through or
by means of its cooperative utility board, officers, agents or employees;
(9) To acquire, hold, use and dispose of its income, revenues, funds and moneys;
(10) To acquire, own, hire, use, operate and dispose of personal property;
(11) To acquire, own, use, lease, operate and dispose of real property and interests
in real property, and to make improvements thereon;
(12) To grant the use, by lease or otherwise, and to make charges for the use, of
any property or facility owned or controlled by it;
(13) To borrow money and to issue its negotiable bonds or notes, and to enter into
any agreements with the purchasers or holders of such bonds or notes or with others for
their benefit;
(14) Subject to any agreement with bondholders or noteholders, to invest moneys
of the municipal cooperative not required for immediate use, including proceeds from
the sale of any bonds or notes, in such obligations, securities and other investments as
the cooperative utility board shall deem prudent and in accordance with the laws of the
state regarding the investment of public moneys;
(15) To exercise the right of eminent domain, subject to the limitations contained
herein;
(16) To fix and determine the location and character of, and all other matters in
connection with, any and all projects it may be authorized to acquire, hold, establish,
effectuate, operate or control;
(17) To contract with any electric utility, any member or nonmember municipal
electric utility, any public or private electric power entity within or without the state,
or any person without the state, for the sale, exchange or transmission of electric power
or energy generated by any project, or any interest therein or any right to capacity thereof,
on such terms and for such period of time as the cooperative utility board shall determine;
(18) To purchase, sell, exchange or transmit electric power and energy within and
without the state, to any electric utility, any member or nonmember municipal electric
utility or any other public or private electric power entity, or any person without the
state; and to enter into agreements with respect to such purchase, sale, exchange, or
transmission to any electric utility, any member or nonmember municipal electric utility
or any other public or private electric power entity; as one means of implementing the
power granted by this subsection (18), a municipal electric energy cooperative, if its
cooperative utility board shall so determine, may enter into or become a participant in
the New England Power Pool; and to acquire, own, hold and dispose of stock or other
ownership interests in, or evidences of indebtedness of, any corporation or business
entity which constructs electric power generation or transmission facilities or generates,
produces, transmits, purchases, sells or exchanges electric power and energy to, or insures the liabilities of, public or private electric power entities located within or without
the state, provided the outstanding stock of such corporation is owned in whole or in
part by such public or private electric power entities;
(19) To procure insurance against any losses in connection with its property, operations or assets in such amounts and from such insurers as the cooperative utility board
deems desirable;
(20) To contract for and to accept any gifts or grants or loans of funds or property
or financial or other aid in any form from the United States of America or any agency
or instrumentality thereof, or from any other source, and to comply, subject to the provisions of this chapter, with the terms and conditions thereof;
(21) To mortgage, or otherwise hypothecate, any or all of its property or assets to
secure the payment of its bonds, notes or other obligations;
(22) To submit to arbitration any disputes with others or among its members;
(23) To produce electric power by the use of cogeneration technology or renewable
fuel resources, as defined in section 16-1;
(24) To contract for the purchase or exchange of electricity produced by a person
using cogeneration technology or renewable fuel resources, as defined in section 16-1,
or for the sale or exchange of electricity produced by the municipal cooperative to such
person, provided such purchase, sale or exchange is subject to the rates and conditions
of service established in accordance with section 16-243a;
(25) To provide in any agreement executed in connection with a project by or among
a municipal cooperative and other participants in such project that, if one or more of
such participants defaults in its obligations under such agreement including, without
limitation, the payment of principal or interest on their indebtedness issued with respect
to such project, the municipal cooperative and the other nondefaulting participants, if
any, shall be required to pay such obligations, including the principal of and the interest
on such indebtedness, for which the defaulting participant or participants were to have
paid, upon such terms and conditions and with such limitations as the cooperative utility
board may determine;
(26) To guarantee, in connection with any project, the punctual payment of the
principal of and interest on the indebtedness or other contractual obligations of any of
the participants in such project;
(27) To exercise and perform all or part of its power and functions for the sole
purpose of purchasing, selling, exchanging or transmitting electric power and energy
on a wholesale basis, as provided in this chapter, through one or more wholly owned
or partly owned corporations or other business entities; and
(28) To exercise all other powers not inconsistent with the state Constitution or the
United States Constitution, which may be reasonably necessary or appropriate for or
incidental to the effectuation of its authorized purposes or to the exercise of any of the
foregoing powers, and generally to exercise in connection with its property and affairs,
and in connection with property within its control, any and all powers which might be
exercised by a natural person or a private corporation in connection with similar property
and affairs.
(P.A. 75-634, S. 5, 24; P.A. 76-237, S. 5, 6, 9; P.A. 80-167, S. 1; P.A. 86-354, S. 4, 6; P.A. 97-313, S. 2, 5.)
History: P.A. 76-237 amended Subdiv. (17) to include contracts for the exchange of electric power and amended Subdiv.
(22) to include disputes with nonmembers; P.A. 80-167 inserted new Subdivs. (23) and (24) re cogeneration technology
and renewable resources and renumbered former Subdiv. (23) as Subdiv. (25); P.A. 86-354 added to Subdiv. (18) the
power to acquire, own, hold and dispose of stock, other ownership interests or evidence, of indebtedness of certain corporations, added new Subdiv. (25) re provision in a project agreement for default by a participant, added new Subdiv. (26) re
guarantee of punctual payment and renumbered remaining Subdiv. accordingly; P.A. 97-313 added new Subsec. (a) defining
"person without the state", designated existing section as Subsec. (b) and amended Subsec. (b) to add reference to "person
without the state" to Subdivs. (6), (17) and (18), to add "or business entity" in Subdiv. (18), to insert new Subdiv. (27) re
transactions through wholly owned or partly owned corporations or business entities, renumbering former Subdiv. (27) as
(28), effective July 1, 1997.
Sec. 7-233f. Bonds. (a) A municipal cooperative shall have the power and is hereby
authorized from time to time to issue revenue bonds in such principal amounts as the
cooperative utility board shall deem necessary for any of its corporate purposes as set
forth under this chapter. A member of a municipal cooperative may not revoke or in
any way terminate, amend or modify its membership resolution to the detriment of the
bondholders if revenue bonds or obligations issued in anticipation of the issuance of
said revenue bonds have been issued and are then outstanding and unpaid as provided
for herein.
(b) Revenue bonds of a municipal cooperative shall be payable as to both principal
and interest (1) exclusively from the income and revenues of the municipal cooperative
derived from one or more of its projects financed from the proceeds of such bonds; or
(2) from the income received from one or more revenue producing contracts made by
the municipal cooperative with any participant or other contracts entered into for the
sale of electric energy authorized under this chapter; or (3) from its revenues generally,
subject, however, to any agreements previously made by the municipal cooperative with
the holders of any of its outstanding bonds. Any such bonds may be additionally secured
by a pledge of any grant, subsidy or contribution from the United States of America or
any agency or instrumentality or political subdivision thereof, or a pledge of any income
or revenues, funds or moneys of the municipal cooperative derived from any source
whatsoever.
(c) Any provision of any law to the contrary notwithstanding, any bonds issued
pursuant to this chapter shall be deemed to be negotiable instruments within the meaning
and for all purposes of title 42a, and each holder or owner of such bonds, or of any
coupons appurtenant thereto, by accepting such bonds or coupons shall be conclusively
deemed to have agreed that such bonds or coupons are and shall be fully negotiable
within the meaning and for all purposes of said Uniform Commercial Code.
(d) Bonds of a municipal cooperative issued pursuant to this chapter may be issued
as serial bonds or as term bonds, or the municipal cooperative, in its discretion, may
issue bonds of both types. Bonds shall be authorized by resolution of the cooperative
utility board and may be issued in one or more series and shall bear such date or dates,
mature at such time or times not exceeding forty years from the date of said bonds, bear
interest at such rate or rates, be in such denominations, be in such form, either coupon
or registered, carry such conversion, registration and exchange privileges, have such
rank or priority, be executed in such manner, be payable in such medium of payment
at such place or places within or without the state, be subject to such terms of redemption
(with or without premium), and contain or be subject to such other terms, all as such
resolution may provide.
(e) If any officer whose signature or a facsimile of whose signature appears on any
bonds or coupons ceases to be such officer before delivery of such bonds, such signature
or such facsimile shall nevertheless be valid and sufficient for all purposes the same as
if he had remained in office until such delivery. Pending preparation of the definitive
bonds, a municipal cooperative may issue temporary bonds which shall be exchanged
for such definitive bonds.
(f) Bonds of a municipal cooperative may be sold at public or private sale for such
price or prices and in such manner as the cooperative utility board shall determine.
Bonds of a municipal cooperative may be issued under the provisions of this chapter
without obtaining the consent of any department, division, commission, board, bureau
or agency of the state, and without any other proceeding or the happening of any other
conditions or other things than those proceedings, conditions or things which are specifically required by this chapter.
(g) The resolution under which any bonds shall be issued shall constitute a contract
with the holders of said bonds and may contain provisions, among others, as to:
(1) The terms and provisions of the bonds;
(2) Pledging all or any part of the revenues from any project or projects or any
revenue-producing contract or contracts made by the municipal cooperative with any
participant to secure the payment of said bonds as provided in the authorizing resolution,
subject to such agreements with the holders of outstanding bonds as may then exist;
(3) The custody, collection, securing, investment and payment of any revenues,
assets, moneys, funds or property of a municipal cooperative with respect to which the
municipal cooperative may have any rights or interest;
(4) The rates or charges for electric power and energy sold by, or services rendered
by, the municipal cooperative, the amount to be raised by such rates or charges and the
use and disposition of any or all revenue;
(5) The creation of reserves or sinking funds and the regulation and disposition
thereof;
(6) Limitations on the purposes to which the proceeds from the sale of any bonds
then or thereafter to be issued may be applied and pledging such proceeds to secure the
payment of any such bonds;
(7) Limitations on the issuance of any additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;
(8) The rank or priority of any bonds with respect to any lien or security or as to
the acceleration of the maturity of any such bonds;
(9) The creation of special funds or moneys to be held in trust or otherwise for
operating expenses, payment or redemption of bonds, reserves or other purposes and
as to the use and disposition of moneys held in such funds;
(10) The procedure by which the terms of any contract with or for the benefit of
the holders of bonds may be amended or abrogated, the amount of bonds the holders of
which must consent thereto, and the manner in which such consent may be given;
(11) Defining the acts or omissions to act which shall constitute a default in the
duties of the municipal cooperative to holders of its bonds and providing the rights and
remedies of such holders in the event of such default including, if the cooperative utility
board shall so determine, the right to accelerate the due date of the bonds or the right
to appoint a receiver or receivers of the property or revenues subject to the lien of the
resolution;
(12) Any other or additional agreements with or for the benefit of the holders of
bonds or any covenants or restrictions necessary or desirable to safeguard the interests
of such holders;
(13) The custody of any of its properties or investments, the safekeeping thereof,
the insurance to be carried thereon, and the use and disposition of insurance moneys;
(14) Vesting in a trustee or trustees within or without the state such properties,
rights, powers and duties in trust as the cooperative utility board may determine, which
may include any or all of the rights, powers and duties of any trustee appointed pursuant
to this section; or limiting or abrogating the rights of the holders of any bonds of a
municipal cooperative to appoint a trustee under this chapter or limiting the rights,
powers and duties of such trustee; and
(15) Appointing and providing for the duties and obligations of a paying agent or
paying agents or such other fiduciaries within or without the state.
(h) (1) It is the intention hereof that any pledge of revenues or other moneys or of
a revenue producing contract or contracts made by a municipal cooperative pursuant to
this chapter shall be valid and binding from the time when the pledge is made; that
the revenues or other moneys or proceeds of any contract or contracts so pledged and
thereafter received by the municipal cooperative shall immediately be subject to the
lien of such pledge without any physical delivery thereof or further act; and that the lien
of any such pledge shall be valid and binding as against all parties having claims of any
kind in tort, contract or otherwise against the municipal cooperative irrespective of
whether such parties have notice thereof. Neither the cooperative utility board nor any
official executing bonds or notes shall be liable personally on the bonds or notes or be
subject to any personal liability or accountability by reason of the issuance thereof.
(2) The principal of and interest on bonds issued by a municipal cooperative shall
be payable solely from the revenues or funds pledged or available for their payment as
authorized in this chapter. Each bond shall contain a statement that the principal thereof
or interest thereon is payable solely from such revenues or funds of the municipal cooperative and that neither the state nor any political subdivision thereof nor any member
participating in establishing the municipal cooperative nor other participant is obligated
to pay such principal or interest and that neither the faith or credit nor taxing power of
the state or any political subdivision thereof nor any such member or other participant
is pledged to the payment of the principal of or the interest on such bonds. A municipal
cooperative shall have no power to pledge the credit or create a debt or liability of the
state or any political subdivision thereof or of any member participating in establishing
the municipal cooperative or of any participant, and any bonds issued under the provisions of this chapter shall not create or constitute an indebtedness, liability or obligation
of the state or of any such political subdivision or any such member or other participant
or be or constitute a pledge of the faith and credit of the state or any such political
subdivision or any such member or other participant but all such bonds, unless funded
or refunded by bonds of the municipal cooperative, shall be payable solely from revenues
or funds pledged or available for their payment as authorized in this chapter.
(P.A. 75-634, S. 6, 24; P.A. 76-237, S. 7, 9; P.A. 77-604, S. 5, 84; P.A. 86-354, S. 5, 6.)
History: P.A. 76-237 amended Subsec. (a) to allow issuance of bonds to be exchanged for outstanding bonds or to
refund outstanding bonds before maturity; P.A. 77-604 substituted "chapter" for "act" in Subdiv. (14) of Subsec. (g); P.A.
86-354 replaced existing bond purposes provisions in Subsec. (a) with provision re corporate purposes as set forth under
this chapter.
Sec. 7-233g. Filing of bond resolution. Notice. Action challenging validity of
bond resolution to be brought within twenty days or forever barred. Any municipal
cooperative may cause a copy of any bond resolution adopted by it to be filed for public
inspection in its office and in the office of the appropriate public official of the governing
body of each of its members and may thereupon cause to be published in a newspaper
or newspapers published or circulating in the area of operation a notice stating the fact
and date of such adoption and the places where such bond resolution has been so filed
for public inspection and also the date of the first publication of such notice and also
that any action or proceeding of any kind or nature in any court questioning the validity
or proper authorization of bonds provided for by the bond resolution, or the validity of
any covenants, agreements or contract provided for by the bond resolution shall be
commenced within twenty days after the first publication of such notice. If any such
notice shall at any time be published and if no action or proceeding questioning the
validity or proper authorization of bonds provided for by the bond resolution referred
to in said notice, or the validity of any covenants, agreements or contracts provided for
by said bond resolution shall be commenced or instituted within twenty days after the
first publication of said notice, then all residents and taxpayers and owners of property
in the area of operation and users of the project and all other persons whatsoever shall
be forever barred and foreclosed from instituting or commencing any action or proceeding in any court, or from pleading any defense to any action or proceedings, questioning
the validity or proper authorization of such bonds, or the validity of any such covenants,
agreements or contracts, and said bonds, covenants, agreements and contracts shall be
conclusively deemed to be valid and binding obligations in accordance with their terms
and tenor.
(P.A. 75-634, S. 7, 24.)
Sec. 7-233h. Trust indenture. In the discretion of the cooperative utility board
any bonds issued under the provisions of this chapter may be secured by a trust indenture
by way of conveyance, deed of trust or mortgage of any project or any other property
of the municipal cooperative, whether or not financed in whole or in part from the
proceeds of such bonds, or by a trust agreement by and between the municipal cooperative and a corporate trustee, which may be any trust company or bank having the powers
of a trust company within or without the state or by both such conveyance, deed of trust
or mortgage and indenture or trust agreement. Such trust indenture or agreement may
pledge or assign any or all fees, rents and other charges to be received or proceeds of
any contract or contracts pledged, and may convey or mortgage any property of the
municipal cooperative. Such trust indenture or agreement may contain such provisions
for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including particularly such provisions as
have hereinabove been specifically authorized to be included in any resolution or resolutions of the municipal cooperative authorizing the issue of bonds. Any bank or trust
company incorporated under the laws of the state may act as depository of the proceeds
of such bonds or of revenues or other moneys and may furnish such indemnifying bonds
or pledge such securities as may be required by the municipal cooperative. Such trust
indenture may set forth the rights and remedies of the bondholders and of the trustee,
and may restrict the individual right of action by bondholders. In addition to the foregoing, such trust indenture or agreement may contain such other provisions as the municipal cooperative may deem reasonable and proper for the security of the bondholders.
All expenses incurred in carrying out the provisions of such trust indenture or agreement
may be treated as a part of the cost of a project.
(P.A. 75-634, S. 8, 24.)
Sec. 7-233i. Bond anticipation notes. A municipal cooperative shall have the
power at any time and from time to time after the issuance of bonds thereof shall have
been authorized by resolution duly adopted as hereinbefore provided, to borrow money
for the purposes for which such bonds are to be issued in anticipation of the receipt of
the proceeds of the sale of such bonds and within the authorized maximum amount of
such bond issue. Any such loan shall be paid within five (5) years after the date of the
initial loan. Bond anticipation notes shall be issued for all moneys so borrowed under
the provisions of this section, and such notes may be renewed from time to time, but
all such renewal notes shall mature within the time above limited for the payment of
the initial loan. Such notes shall be authorized by resolution of the cooperative utility
board and shall be in such denomination or denominations, shall bear interest at such
rate or rates, shall be in such form and shall be executed in such manner, all as such
cooperative utility board shall prescribe in said resolution. If such notes shall be renewal
notes, they may be exchanged for notes then outstanding on such terms as the cooperative
utility board shall determine. The cooperative utility board may, in its discretion, retire
any such notes from the revenues derived from the project or projects or from such other
moneys of the municipal cooperative which are lawfully available therefor or from a
combination of each, in lieu of retiring them by means of bond proceeds, provided,
however, that before the retirement of such notes by any means other than the issuance
of bonds it shall amend and modify the resolution authorizing the issuance of the bonds
in anticipation of the proceeds of the sale of which such notes shall have been issued
so as to reduce the authorized amount of the bond issue by the amount of the notes so
retired. Such amendatory or modifying resolution shall take effect immediately upon
its passage.
(P.A. 75-634, S. 9, 24.)
Sec. 7-233j. Interconnection of electric system lines. Contracts for sale of electricity. The municipal cooperative is authorized to (1) interconnect the lines of its system
with those of other electric systems within or without the state, and to enter into contracts
for the sale of electric energy within or without the state to electric systems constructed,
owned, controlled or operated by any electric utility, member or nonmember municipal
electric utility or any other public or private electric power entity, or any person without
the state; and (2) enter into contracts with other electric utilities, member or nonmember
municipal electric utilities, or any other public or private electric power entities within
or without the state for standby power upon suitable terms, and for the sale of any surplus
power not required for its own operation for sale to any electric utility, member or
nonmember municipal electric utility or any other public or private electric power entity
within or without the state.
(P.A. 75-634, S. 10, 24; P.A. 97-313, S. 3, 5.)
History: P.A. 97-313 added "or any person without the state" in Subdiv. (1), effective July 1, 1997.
Sec. 7-233k. Eminent domain. If a municipal cooperative is unable to agree with
the owner or owners of real or personal property upon the terms for the acquisition of
the same for any reason whatsoever, then the municipal cooperative may acquire, and
is hereby authorized to acquire, all real or personal property that it deems necessary for
carrying out the purposes of this chapter, whether a fee simple absolute or a lesser
interest, by condemnation or the exercise of the right of eminent domain, under and
pursuant to the provisions of chapter 835 and related statutes; provided that, notwithstanding anything herein to the contrary, the municipal cooperative shall have no power
of eminent domain with respect to any real or personal property owned by an electric
utility, nonmember municipal electric utility or any other public or private electric power
entity and used in connection with a system or plant of such electric utility, nonmember
municipal electric utility or any other public or private electric power entity. The power
of a municipal cooperative to acquire real or personal property by condemnation or the
exercise of the power of eminent domain shall be a continuing power and no exercise
thereof shall be deemed to exhaust it.
(P.A. 75-634, S. 11, 24.)
Sec. 7-233l. Rates. A municipal cooperative is hereby authorized to fix, establish,
maintain and collect, or to authorize, by contract, franchise, lease or otherwise, the
establishment, levying and collection of, such rates, fees, rental or other charges, including connection charges, for the services afforded by the municipal cooperative or by or
in connection with any properties which it may construct, erect, acquire, own, operate
or control, and for the sale of electric energy or transmission capacity or service as it
may deem necessary, proper, desirable and reasonable, which said rates, fees, rentals
or other charges shall be fixed and established by the municipal cooperative in the
manner prescribed in the following section hereof.
(P.A. 75-634, S. 12, 24.)
Sec. 7-233m. Sufficiency of rate schedule. Public hearing. Public inspection.
A municipal cooperative shall prescribe and from time to time when necessary revise
a schedule of all of its rates, fees, rentals or other charges, which shall comply with the
terms of any resolution, contract or other agreement of the municipal cooperative and
shall be such that the revenues of the municipal cooperative will at all times be adequate
to pay the expenses of operation and maintenance of its project or projects, including
all reserves, insurance, extension, and replacement costs and to pay the principal of and
interest on any bonds or notes of the municipal cooperative issued under this chapter,
and to maintain such reserves therefor as may be required by the terms of any resolution,
contract or other agreement of the municipal cooperative or as may be deemed necessary
or desirable by the municipal cooperative. Said schedule shall thus be prescribed and
from time to time revised by the municipal cooperative after public hearing thereon
which shall be held by the municipal cooperative at least seven days after notice thereof
has been published at least once in the area of operation. A copy of the schedule of such
rates, fees, rentals or other charges of the municipal cooperative then in effect shall at
all times be kept on file at the principal office of the municipal cooperative and shall at
all reasonable times be open to public inspection.
(P.A. 75-634, S. 13, 24.)
Sec. 7-233n. Dissolution of cooperative. The governing bodies of two or more
municipal electric utilities which have created a municipal electric energy cooperative
pursuant to section 7-233c may, by concurrent resolutions duly adopted by each of
such governing bodies within any single calendar year, dissolve such municipal electric
energy cooperative on the conditions set forth in this section. Such municipal electric
energy cooperative may be dissolved on condition that either the representatives of
the municipal electric energy cooperative by resolution duly adopted, consent to such
dissolution, and the municipal electric energy cooperative has no debts or obligations
outstanding or that sufficient moneys have been set aside irrevocably in trust to satisfy
all of the outstanding debts or obligations of such municipal electric energy cooperative.
Upon the dissolution of any municipal electric energy cooperative in the manner provided in this section, the governing bodies dissolving such municipal electric energy
cooperative shall be deemed never to have joined in the creation of a municipal electric
energy cooperative. A copy of each concurrent resolution for the dissolution of a municipal electric energy cooperative adopted pursuant to this section, duly certified by the
appropriate officer of the municipal electric utility, shall be filed in the office of the
Secretary of the State. Upon proof of such filing of certified copies of the concurrent
resolutions for the dissolution of a municipal electric energy cooperative as aforesaid
and upon proof either that such municipal electric energy cooperative had no debts or
obligations outstanding at the time of the adoption of such resolutions, or that sufficient
moneys have been set aside irrevocably in trust to satisfy all of its outstanding debts
or obligations, the municipal electric energy cooperative therein referred to shall be
conclusively deemed to have been lawfully and properly dissolved and the property of
the municipal electric energy cooperative shall be vested in the creating municipal electric utilities. A copy of any such concurrent resolution, duly certified by or on behalf
of the Secretary of the State, shall be admissible in evidence in any suit, action, or
proceeding, and shall be conclusive evidence of due and proper filing thereof as
aforesaid.
(P.A. 75-634, S. 14, 24.)
Sec. 7-233o. Conflict of interest. No representative, officer or employee of a municipal electric energy cooperative shall have or acquire any interest, direct or indirect,
in any project or in any property included or planned to be included in any project or
in any contract or proposed contract for materials or services to be furnished to or used
by the municipal electric energy cooperative, but neither the holding of any office or
employment in the government of any municipal electric utility or under any law of the
state nor the owning of any property within the state shall be deemed a disqualification
for representation on or employment by a municipal electric energy cooperative.
(P.A. 75-634, S. 15, 24.)
Sec. 7-233p. Representative compensation. A municipal electric energy cooperative may reimburse its representatives for necessary expenses incurred in the discharge
of their duties. The concurrent resolutions creating a municipal electric energy cooperative may provide that the representatives of the municipal electric energy cooperative
may receive annual compensation for their services within limitations to be stated in
such concurrent resolutions and in that event, each representative may receive from
the municipal electric energy cooperative such compensation for his services as the
municipal electric energy cooperative may determine within the limitations stated in
such concurrent resolutions. Said provisions or limitations stated in any such resolutions
may be amended by subsequent concurrent resolutions, but no reduction of any such
limitation shall be effective as to any representative of the municipal electric energy
cooperative then in office except upon the written consent of such representative. No
representative of any municipal authority shall receive any compensation for his services
except as provided in this section.
(P.A. 75-634, S. 16, 24.)
Sec. 7-233q. Competitive bidding. All purchases for supplies, materials or equipment to be made in excess of twenty-five thousand dollars shall be submitted for competitive bid provided that more than one source of such supplies, materials or equipment
is available, except this section shall not apply to any project or projects in which a
municipal electric energy cooperative is an owner of a portion if the project itself is not
required to be subject to competitive bidding.
(P.A. 75-634, S. 17, 24.)
Sec. 7-233r. Cooperative bonds and notes deemed legal investment. To the extent permitted by law, the state and all public officers, governmental units and agencies
thereof, all banks, trust companies, savings banks and institutions, savings and loan
associations, investment companies, and other persons carrying on a banking business,
all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries, may legally invest any sinking funds, moneys or other funds belonging to them or
within their control in any bonds or notes issued pursuant to this chapter, and such bonds
or notes shall be authorized security for any and all public deposits.
(P.A. 75-634, S. 18, 24; P.A. 80-483, S. 20, 186.)
History: P.A. 80-483 deleted reference to building and loan associations.
Sec. 7-233s. Taxation. The creation of a municipal electric energy cooperative
pursuant to the provisions of this chapter is in all respects for the benefit of the people
of the state and for the improvement of their health, safety, welfare, comfort and security,
and its purposes are public purposes and a municipal cooperative will be performing an
essential governmental function. The real and personal property of a municipal electric
energy cooperative, and its income and operations, shall be exempt from all taxation
by the state and any political subdivision thereof; provided, however, that in connection
with the acquisition or construction or ownership of any project or projects, or portions
thereof, which may be located outside the boundaries of the members of the municipal
cooperative, the municipal cooperative may make payments in lieu of taxation and enter
into a contract therefor to the appropriate taxing entity in which such project or projects,
or portions thereof, are so acquired or constructed. The state covenants with the purchasers and all subsequent holders and transferees of the notes or bonds issued by a municipal
cooperative, in consideration of the acceptance of any payment for the notes or bonds,
that the notes or bonds of a municipal cooperative, issued pursuant to this chapter and
the income therefrom shall at all times be free from taxation.
(P.A. 75-634, S. 19, 24.)
Sec. 7-233t. Exemption from jurisdiction of Department of Public Utility Control. A municipal electric energy cooperative created pursuant to the provisions of this
chapter shall be exempt from the jurisdiction and control of the Department of Public
Utility Control of this state, except to the extent municipal electric utilities are subject to
the Department of Public Utility Control as of the date of the formation of the municipal
cooperative.
(P.A. 75-634, S. 20, 24; P.A. 76-237, S. 8, 9; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 10, 348.)
History: P.A. 76-237 made it clear newly created energy cooperatives subject to public utilities control authority to the
extent others are at the time each is created, deleting provision that they be subject to authority as others are "presently";
P.A. 77-614 substituted division of public utility control within the department of business regulation for public utilities
control authority, effective January 1, 1979; P.A. 80-482 substituted department of public utility control for division and
deleted reference to abolished department of business regulation.
Sec. 7-233u. Severability of provisions. The respective words, clauses, sentences,
paragraphs and sections of this chapter are severable, and the declaration of invalidity of
any such word, clause, sentence, paragraph or section shall not invalidate the remaining
portions of the chapter.
(P.A. 75-634, S. 21, 24.)
Sec. 7-233v. Liberal construction. This chapter shall be construed liberally to
effectuate the legislative intent and the purposes of this chapter as complete and independent authority for the performance of each and every act and thing herein authorized
and all authority herein granted shall be broadly interpreted to effectuate such intent
and purposes and not as a limitation of powers.
(P.A. 75-634, S. 22, 24.)
Sec. 7-233w. Controlling provisions in case of conflict. Insofar as the provisions
of this chapter are inconsistent with the provisions of any other law, general, special or
local, or any limitation imposed by a corporate or municipal charter, the provisions of
this chapter shall be controlling and all other conflicting laws or limitations of any nature
whatsoever are hereby repealed, revoked and rescinded.
(P.A. 75-634, S. 23, 24.)
Sec. 7-233x. Power supply contracts between cooperatives and municipal electric utilities. Any municipal electric utility, as defined in section 7-233b, shall have
power, acting on behalf of the municipality with respect to which such municipal electric
utility is a department, agency or other such related body, to enter into agreements with
any municipal electric energy cooperative, as defined in said section 7-233b, for the
purchase, sale, exchange or transmission of electric power or energy on such terms and
for such periods of time as agreed upon by such municipal electric utility and such
municipal electric energy cooperative, and any such agreement shall be binding on the
parties thereto and such municipality, provided such municipality may disapprove and
thereby invalidate such agreement by vote of its legislative body at any time no later
than thirty days following the date such agreement is filed and appropriately recorded
in such municipality for consideration by its legislative body. Any such agreement may
include terms providing that the municipal electric utility (1) make payments for electric
power and energy based on a formula stated in the agreement, (2) make such payments
unconditionally whether or not the agreed upon electric power or energy is provided or
otherwise made available or a particular project is completed, operable or operating,
and (3) pay obligations of another municipal electric utility if such municipal electric
utility fails to make such payments as required in such agreement. Payments made under
such agreements may be recovered in the prices charged by the municipal electric utility.
(P.A. 79-468, S. 1, 2; P.A. 99-263, S. 1, 2.)
History: P.A. 99-263 authorized optional provisions re payments for electric power and energy and payment of obligations of another municipal electric utility which may be included in agreements, and made a technical change, effective
July 1, 1999.