Substitute Senate Bill No. 939
          Substitute Senate Bill No. 939

              PUBLIC ACT NO. 97-313


AN  ACT  CONCERNING   MUNICIPAL   ELECTRIC  ENERGY
COOPERATIVES  AND  TELECOMMUNICATIONS  SERVICE  BY
CERTAIN MUNICIPALITIES.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section  7-233b  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    As used in  this  chapter, the following terms
shall  have  the   following  meanings,  unless  a
different meaning clearly appears from the context
and any use of plural terms herein shall be deemed
to refer to the singular thereof:
    (1) "Area of  operation"  means the geographic
area served by a municipal electric utility at the
time it becomes  a  member of a municipal electric
energy cooperative pursuant  to  this  chapter and
such other areas  as the municipal electric energy
cooperative may serve pursuant to contract entered
into under the provisions of this chapter;
    (2) "Bonds" means  bonds issued by a municipal
electric  energy  cooperative   pursuant  to  this
chapter;
    (3) "Cost" means,  in  addition  to  the usual
connotations  thereof, the  cost  of  all  or  any
property,    rights,    easements,     privileges,
agreements and franchises  deemed by the municipal
electric energy cooperative  to  be  necessary  or
useful and convenient  to a project or projects or
in  connection therewith,  including  discount  on
bonds, cost of  issuance of bonds, engineering and
inspection  costs  and  legal  expenses,  cost  of
financial,   professional  and   other   estimates
advice,  organization,  administrative,  operating
and  other  expenses  of  the  municipal  electric
energy  cooperative  prior   to   and  during  the
acquisition  or  construction   of  a  project  or
projects and all  such  other  expenses  as may be
necessary   or   incident    to   the   financing,
acquisition, construction and  completion  of said
project  or  projects  or  part  thereof  and  the
placing of the  same  in  operation, and also such
provision  or  reserves   for   working   capital,
operating, maintenance or  replacement expenses or
for reserves for  the  payment of the principal of
or  interest  on   bonds   during  or  after  such
acquisition  or  construction   as  the  municipal
electric  energy cooperative  may  determine,  and
reimbursements to the  municipal  electric  energy
cooperative or any  member  thereof  or  any other
participant in such  project  or  projects  of any
moneys theretofore expended  for  the  purposes of
the municipal electric energy cooperative;
    (4)  "Electric  utility"  means  any  electric
public  service company,  as  defined  in  section
16-1;
    (5)  "Governing  body"   means  the  board  of
commissioners of a  municipal  electric utility or
such other duly  elected  or  appointed  officials
charged by law  with  managing  the  affairs  of a
municipal electric utility;
    (6)  "Member"  means  any  municipal  electric
utility  within  the   state  which  has  been  in
continuous operation for  at  least five years and
whose governing body authorizes membership in, and
which becomes a  member  of,  a municipal electric
energy cooperative;
    (7) "Municipal electric energy cooperative" or
"municipal  cooperative" means  a  separate  legal
entity hereafter created by concurrent resolutions
of two or  more  municipal  electric  utilities to
exercise any of  the  powers  as  provided in this
chapter  in  connection   with   the  acquisition,
construction,  reconstruction, operation,  repair,
extension  or  improvement   of   electric   power
generation  or  transmission  facilities,  or  the
acquisition of any  interest  therein  or  of  any
capacity thereof;
    (8)  "Municipal  electric  utility"  means  an
electric department, agency  or  other  body  of a
municipality which provides  for  the  production,
supply and/or distribution  of  electric energy to
the inhabitants or  any portion thereof as well as
others, which department, agency or other body has
been  established in  accordance  with  applicable
provisions of law;
    (9) "Municipality" means  any  town,  city  or
borough located within  the state and any district
as defined in  section  7-324  or special services
district established under  chapter  105a which is
authorized  to  produce,   supply   or  distribute
electric energy;
    (10) "Notes" means notes issued by a municipal
electric  energy  cooperative   pursuant  to  this
chapter;
    (11)  "Participant"  means  any  member  of  a
municipal electric energy cooperative, a nonmember
municipal electric utility,  an  electric utility,
or any other  public  or  private  electric  power
entity located within or without the state, any of
which may contract  for  services with a municipal
electric  energy  cooperative   pursuant   to  the
provisions of this chapter;
    (12)  "Project" means  any  plant  or  plants,
hydro plants, works,  system,  facilities, or real
or  personal property,  together  with  all  parts
thereof and appurtenances  thereto, used or useful
in  connection with  the  generation,  production,
transmission,   purchase,   sale,    exchange   or
interchange of electric  power  or  energy, or any
interest therein or  right  to  capacity  thereof.
"Project" also includes  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;
    (13)   "Real   property"    includes    lands,
structures,  franchises, and  interests  in  land,
including lands under  water  and riparian rights,
and any and all things and rights usually included
within  said term,  and  includes  not  only  fees
simple  absolute  but  also  any  and  all  lesser
interests, such as easements, rights-of-way, uses,
leases,  licenses  and   all   other   incorporeal
hereditaments,  and  every   estate,  interest  or
right,  legal or  equitable,  including  terms  of
years  and liens  thereon  by  way  of  judgments,
mortgages or otherwise, and also claims for damage
to real estate.
    Sec. 2. Section 7-233e of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (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, [or] 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; [and]
    (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
    [(27)] (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.
    Sec. 3. Section 7-233j of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    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.
    Sec.   4.  (NEW)   (a)   Notwithstanding   any
provision of a special act or municipal charter to
the  contrary,  any   municipality  that  owns  or
operates one or more plants for the manufacture or
distribution of electricity  pursuant  to  section
7-213 of the  general statutes or any special act,
may provide telecommunications service, as defined
in section 16-247a  of the general statutes, other
than  community  antenna  television  service,  to
inhabitants within the  territorial  limits of the
area in which  the  municipality  is authorized to
provide electric service. No municipality may seek
authority  to provide  telecommunications  service
pursuant to this  section until affirmative action
for that purpose  has  been  approved by the chief
executive officer and  has  received  a two-thirds
vote of its  legislative  body  or  in any town in
which the legislative  body  is a town meeting, by
the board of selectmen.
    (b) Any municipality  seeking  to exercise the
authority granted by this section shall be subject
to  all  certification   requirements  imposed  by
statute  or order  of  the  Department  of  Public
Utility   Control   upon    persons,    firms   or
corporations  certified  to   provide   intrastate
telecommunications  services pursuant  to  section
16-247g of the general statutes.
    (c) Any municipality  exercising the authority
granted by this  section  may  finance any capital
expenditures       necessary      to       provide
telecommunications  service other  than  community
antenna  television  service,  including  but  not
limited to, the  costs  to  acquire  or  construct
necessary  systems or  facilities,  in  accordance
with the provisions  of chapter 109 of the general
statutes.
    Sec. 5. This  act  shall  take  effect July 1,
1997.

Approved July 8, 1997