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6 This act modifies provisions relating to thermal power facilities and makes them apply
7 instead to electric power facilities. The act expands application of those provisions to include
8 interlocal entities and modifies provisions relating to the requirements for agreements for
9 common facilities, the financing of common facilities, and the liability of public power
10 entities and power utilities. The act modifies definitions and makes conforming and
11 technical changes.
12 This act affects sections of Utah Code Annotated 1953 as follows:
14 54-9-101, Utah Code Annotated 1953
15 RENUMBERS AND AMENDS:
16 54-9-102, (Renumbered from 54-9-1.5, as last amended by Chapter 241, Laws of Utah
18 54-9-103, (Renumbered from 54-9-2, as last amended by Chapter 241, Laws of Utah 1985)
19 54-9-104, (Renumbered from 54-9-3, as enacted by Chapter 21, Laws of Utah 1975)
20 54-9-105, (Renumbered from 54-9-4, as last amended by Chapter 241, Laws of Utah 1985)
21 54-9-106, (Renumbered from 54-9-5, as last amended by Chapter 9, Laws of Utah 2001)
22 54-9-107, (Renumbered from 54-9-6, as last amended by Chapter 241, Laws of Utah 1985)
24 54-9-1, as last amended by Chapter 241, Laws of Utah 1985
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 54-9-101 is enacted to read:
28 54-9-101. Title.
29 This chapter is known as the "Electric Power Facilities Act."
30 Section 2. Section 54-9-102 , which is renumbered from Section 54-9-1.5 is renumbered
31 and amended to read:
33 As used in this chapter:
37 transmission, or distribution of electric power[
38 (2) "Interlocal entity" means a legal or administrative entity created under Section
39 11-13-5.5 .
40 (3) "Power utility":
41 (a) means [
42 or other person engaged in generating, transmitting, [
43 and energy[
48 (b) does not include a public power entity.
49 (4) "Public power entity" means a city, town, or interlocal entity that owns a system for
50 the generation, transmission, or distribution of electric power and energy for public or private use.
51 Section 3. Section 54-9-103 , which is renumbered from Section 54-9-2 is renumbered and
52 amended to read:
54 Determination of needs -- Agreements -- Ownership interest.
55 (1) [
56 Subsection 11-14-1 (1)(k), and in addition to [
59 (i) plan, finance, construct, acquire, operate, own, and maintain an undivided interest in
60 common facilities; [
61 (ii) participate in and enter into agreements with one or more public power entities or
62 power utilities; and [
63 (iii) enter into contracts and agreements as may be necessary or appropriate for the joint
64 planning, financing, construction, operation, ownership, or maintenance of common facilities.
65 (b) (i) Before entering into an agreement providing for common facilities, the governing
66 body of [
67 public power entity for electric power and energy based on engineering studies and reports.
68 (ii) In determining the future electric power and energy requirements of a [
69 power entity, the governing body shall consider [
71 constructing or acquiring common facilities for the generation and transmission of electric power
72 and energy;
74 capacity, and to meet obligations under pooling and reserve sharing agreements reasonably related
75 to the needs of the [
79 acquisition of the common facilities and the [
82 the cost of those existing or alternate power supply sources.
83 (2) [
84 (i) contain provisions not inconsistent with this chapter[
85 the [
91 with the common facilities;
93 costs of construction and operation;
95 used or useful in connection with the common facilities and the procedures for disposition of [
96 the common facilities and other property when the agreement expires or is terminated or when the
97 common facilities are abandoned, decommissioned, or dismantled;
99 (F) any agreement of the parties prohibiting or restricting the alienation or partition of the
100 undivided interests of [
103 including, if the parties agree, a determination that a [
104 power utility or public power entity may construct or repair the common facilities as agent for all
105 parties to the agreement;
109 common facilities as agent for all parties to the agreement;
114 performance or discharge of its obligations with respect to the common facilities, [
115 parties may perform or assume, pro rata or otherwise, the obligations of the defaulting [
116 party and may, if the [
117 rights and interests of the defaulting party [
120 administration agents, for completion of construction, for handling emergencies, and for allocation
121 of output of the common facilities among the parties to the agreement according to the ownership
122 interests of the parties;
125 to the agreement to be necessary and proper[
127 (ii) clearly disclose the [
128 (iii) provide for an equitable method of allocating operation, repair, and maintenance costs
129 of the common facilities; and
130 (iv) be approved or ratified by resolution of the governing body of the public power entity.
131 (b) A provision under Subsection (2)(a)(i)(F) in an agreement providing for common
132 facilities under this Subsection (2) is not subject to any law restricting covenants against alienation
133 or partition.
134 (c) Each committee created under Subsection (2)(a)(i)(I) in an agreement providing for
135 common facilities under this Subsection (2) shall have the powers, not inconsistent with this
136 chapter, regarding the construction and operation of the common facilities that the agreement
138 (d) (i) The [
139 common facilities may not be less than the proportion [
140 supplied by it for the acquisition, construction, and operation of the common [
142 (ii) Each public power entity shall own and control [
143 of the electrical output [
145 ownership interest in them.
146 (3) Notwithstanding any other provision of this chapter, an interlocal entity may not act
147 in a manner inconsistent with any provision of the agreement under Section 11-13-5.5 under which
148 it was created.
149 Section 4. Section 54-9-104 , which is renumbered from Section 54-9-3 is renumbered and
150 amended to read:
152 financing -- Share in costs and taxes.
153 (1) The joint owners of the common [
154 make the payments provided for in the agreement.
155 (2) Each owner shall arrange its own funding and financing and be responsible for all the
156 costs, interest, and payments required in connection with its share of the funding for the planning,
157 acquisition, construction, operation, repairs, and improvements, and each participant shall pay its
158 share of taxes or charges in lieu of taxes in connection with the common [
159 (3) (a) Notwithstanding any other provision of this section, a public power entity may
160 finance its funding share with one or more other owners through a financing agent, as long as no
161 public power entity is liable for more than its proportionate share of the debt service with respect
162 to the financing.
163 (b) A public power entity that is an owner may serve as the financing agent.
164 Section 5. Section 54-9-105 , which is renumbered from Section 54-9-4 is renumbered and
165 amended to read:
167 (1) (a) Each [
168 acts, omissions, and obligations with respect to the planning, financing, construction, acquisition,
169 administration, operation, ownership, repair, or maintenance of the common facilities and [
170 may not be jointly or severally liable for the acts, omissions, or obligations of others.
171 (b) Subsection (1)(a) may not be construed to:
172 (i) affect the liability of a public power entity or power utility with respect to its
173 contractual obligations, including a contractual obligation to indemnify a construction, operation,
174 or administrative agent for the common facilities; or
175 (ii) affect an immunity or other protection that may be available to a public power entity
176 or power utility under applicable law.
177 (2) No money, materials, or other contribution supplied by a [
178 power entity may be credited or otherwise applied to the account of any other [
179 in the common facilities, nor [
180 entity be charged, directly or indirectly, with any debt or obligation of any other [
181 owner or be subject to any lien as a result thereof.
182 (3) No action in connection with [
184 or ordinance of its governing body.
185 Section 6. Section 54-9-106 , which is renumbered from Section 54-9-5 is renumbered and
186 amended to read:
188 property taxes -- Bond issues -- Outlay declared for public purpose.
189 (1) A [
191 in addition to any other authority now existing, may issue and sell, either at public or privately
192 negotiated sale, general obligation bonds or revenue bonds, pledging either the revenues of its
193 entire electric system or only its interest or share of the revenues derived from the common
194 facilities in order to pay its respective share of the costs of the planning, financing, acquisition,
196 (2) (a) Capacity or output derived by a [
197 ownership share of common facilities not then required by the [
198 for its own use and for the use of its customers may be sold or exchanged [
199 a consideration, for a period, and upon other terms and conditions as may be determined by the
200 parties prior to the sale and as embodied in a power sales contract [
202 (b) Any revenues arising under [
203 be pledged by the [
204 its respective share of the costs of the common facilities.
205 (c) Each power sales contract entered into by a [
207 sale or exchange to the [
208 public power entity from its ownership share of common facilities shall contain a provision for
209 payment of an annual fee to the [
210 lieu of ad valorem property taxes based upon the taxable value of the percentage of the ownership
211 share of the [
212 the capacity or output that is sold or exchanged by the [
215 other ad valorem tax revenues.
216 (3) [
217 in common facilities may contract with a county or counties to pay, solely from the revenues
218 derived from the interest of the [
219 county or counties in which the common facilities are located, an annual fee in lieu of ad valorem
220 property taxes based upon the taxable value of the percentage of the ownership share of the [
222 taxes shall be paid over by the [
223 county or counties in which the common facilities are located for distribution as per distribution
224 of other ad valorem tax revenues.
225 (4) (a) Bonds issued by a city or town shall be issued under the applicable provisions of
226 Title 11, Chapter 14, Utah Municipal Bond Act, [
228 utility properties by cities or towns.
229 (b) Bonds or other debt instruments issued by an interlocal entity shall be issued under
230 Title 11, Chapter 13, Interlocal Cooperation Act, or other applicable law.
232 for the purpose of carrying out powers conferred by this chapter are declared to be for a public
242 Section 7. Section 54-9-107 , which is renumbered from Section 54-9-6 is renumbered and
243 amended to read:
245 All monies belonging to [
246 facilities, including the proceeds of the sale of bonds and the revenues arising from the operation
247 of [
248 (1) may be deposited in a bank or trust company doing business within or without the state
250 (2) shall be accounted for and disbursed in accordance with applicable law and the
251 provisions of the resolution or indenture authorizing the issuance of [
252 Section 8. Repealer.
253 This act repeals:
254 Section 54-9-1, Legislative purpose.
Legislative Review Note
as of 11-29-01 3:33 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
The Public Utilities and Technology Interim Committee recommended this bill.
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