Print Friendly SENATE BILL NO. 1505 – Idaho Electricity Authority created
SENATE BILL NO. 1505
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S1505......................................................by STATE AFFAIRS
IDAHO ELECTRICITY AUTHORITY - Amends and adds to existing law to provide
for the creation of the Idaho Electricity Authority; to provide powers of
the director of the authority; to provide regulations for the sale of power
by the authority; to state conditions where the director can contract with
someone other than the United States for power; to provide for conditions
for the purchase of facilities by the authority; to provide for the
approval of rates; to state criteria for the return on investment to the
authority; to provide for contracting with public utilities; to provide for
the procurement of power from public utilities; to establish an Idaho
Electricity Authority Fund; to provide for regulation by the Public
Utilities Commission; to limit application regarding service areas for
publicly owned utilities; to provide for commencement and cessation of
activities; and to provide for bonding.
03/05 Senate intro - 1st rdg - to printing
03/06 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1505
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO ELECTRICITY AUTHORITY; AMENDING SECTION 50-2502, IDAHO
3 CODE, TO FURTHER DEFINE "PUBLIC UTILITY" TO INCLUDE THE IDAHO ELECTRICITY
4 AUTHORITY, TO PROVIDE REFERENCE TO THE STATE OF IDAHO AND TO MAKE A TECH-
5 NICAL CORRECTION; AMENDING SECTION 61-332B, IDAHO CODE, TO REFERENCE A
6 CODE SECTION; AND AMENDING TITLE 61, IDAHO CODE, BY THE ADDITION OF A NEW
7 CHAPTER 14, TITLE 61, IDAHO CODE, TO PROVIDE A DECLARATION OF POLICY, TO
8 DEFINE TERMS, TO PROVIDE THE POWERS OF THE DIRECTOR OF THE AUTHORITY, TO
9 CREATE AND GIVE THE DUTIES OF THE AUTHORITY, TO PROVIDE REGULATIONS FOR
10 SALE OF POWER BY THE AUTHORITY, TO STATE CONDITIONS WHERE THE DIRECTOR CAN
11 CONTRACT WITH SOMEONE OTHER THAN THE UNITED STATES FOR POWER, TO PROVIDE
12 FOR FINDINGS BY THE DIRECTOR AND TO DEFINE A TERM, TO PROVIDE CONDITIONS
13 FOR PURCHASE OF FACILITIES BY THE AUTHORITY, TO PROVIDE FOR THE APPROVAL
14 OF RATES, TO GIVE REQUIREMENTS FOR ADMINISTRATION OF CONTRACTS, TO STATE
15 CRITERIA FOR RETURN ON INVESTMENT TO THE AUTHORITY, TO PROVIDE FOR CON-
16 TRACTING WITH PUBLIC UTILITIES, TO PROVIDE RULES FOR EXTENSION OF CON-
17 TRACTS BETWEEN A PUBLIC UTILITY AND THE AUTHORITY, TO PROVIDE FOR THE PRO-
18 CUREMENT OF POWER FROM PUBLIC UTILITIES, TO ESTABLISH AN IDAHO ELECTRICITY
19 AUTHORITY FUND, TO PROVIDE FOR REGULATION BY THE PUBLIC UTILITIES COMMIS-
20 SION, TO PROVIDE THAT STATE AGENCIES SHALL PROVIDE ASSISTANCE TO THE
21 AUTHORITY UPON REQUEST, TO LIMIT APPLICATION REGARDING SERVICE AREAS OF
22 PUBLICLY OWNED UTILITIES, TO DETERMINE THE AUTHORITY'S ELIGIBILITY FOR
23 TAXATION, TO PROVIDE FOR COMMENCEMENT OF ACTIVITIES, TO PROVIDE FOR CESSA-
24 TION OF ACTIVITIES, TO PROVIDE FOR BONDING AND TO PROVIDE SEVERABILITY.
25 Be It Enacted by the Legislature of the State of Idaho:
26 SECTION 1. That Section 50-2502, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 50-2502. DEFINITIONS. As used in this chapter, the following words and
29 phrases and any variations thereof shall have the following meanings:
30 (1) "Communication service" means the transmission of intelligence by
31 electrical means, including, but not limited to, telephone, telegraph,
32 messenger-call, clock, police, fire alarm and traffic control circuits or the
33 transmission of standard television or radio signals.
34 (2) "Convert" or "conversion" means the removal of all or any part of any
35 existing overhead electric or communications facilities and the replacement
36 thereof with underground electric or communication facilities constructed at
37 the same or different locations.
38 (3) "Electric or communication facilities" means any works or improve-
39 ments used or useful in providing electric or communication service, includ-
40 ing, but not limited to, poles, supports, tunnels, manholes, vaults, conduits,
41 pipes, wires, conductors, guys, stubs, platforms, crossarms, braces, trans-
42 formers, insulators, cut-outs, switches, capacitors, meters, communication
43 circuits, appliances, attachments, and appurtenances. "Communication facili-
1 ties" shall not include facilities used for the transmission of intelligence
2 by microwave or radio, apparatus cabinets or outdoor public telephones.
3 (4) "Extension" or "extending" means any continuation, either overhead or
4 underground, of existing distribution or transmission facilities or the con-
5 struction of new electric or communication facilities which are reasonably
6 required by prudent electrical or communication practices.
7 (5) "Governing body" means the board of county commissioners or mayor and
8 council or board of directors as may be appropriate depending on whether the
9 improvement district is located in a county or within a city.
10 (6) "Ordinance" shall be construed to mean resolution where the governing
11 body properly acts by resolution and vice versa.
12 (7) "Overhead electric or communication facilities" means electric or
13 communication facilities located, in whole or in part, above the surface of
14 the ground.
15 (8) "Public utility" means any one (1) or more, public or private persons
16 or corporations or the Idaho electricity authority that provide electric or
17 communication service to the public by means of electric or communication
18 facilities and shall include the state of Idaho or any city, special district,
19 or public corporation that provides electric or communication service to the
20 public by means of electric or communication facilities.
21 (9) "Underground electric or communication facilities" means electric or
22 communication facilities located, in whole or in part, beneath the surface of
23 the ground.
24 (10) A "lot" or "parcel" of land means a single tract or parcel of land
25 containing five (5) acres or less. No single tract or parcel of property con-
26 taining more than five (5) acres may be included in any district organized
27 under this chapter, unless located within an incorporated city, without the
28 consent of the owner or owners thereof.
29 Definitions in section 50-1702, Idaho Code, shall be applicable to any sec-
30 tions of chapter 17, title 50, Idaho Code, incorporated in this chapter by
32 SECTION 2. That Section 61-332B, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 61-332B. ELECTRIC SUPPLIER PROHIBITED FROM SERVING CONSUMERS OR FORMER
35 CONSUMERS OF ANOTHER ELECTRIC SUPPLIER. Except as provided in section 61-1405,
36 Idaho Code, n No electric supplier shall supply or furnish electric service to
37 any electric service entrance that is then or had at any time previously been
38 lawfully connected for electric service to facilities of another electric sup-
39 plier except as provided in this act.
40 SECTION 3. That Title 61, Idaho Code, be, and the same is hereby amended
41 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
42 ter 14, Title 61, Idaho Code, and to read as follows:
43 CHAPTER 14
44 IDAHO ELECTRICITY AUTHORITY
45 61-1401. DECLARATION OF POLICY. (1) The legislature finds and declares
46 that the power system on the Columbia River and its tributaries is a resource
47 of low-cost hydroelectric power of which Idaho citizens should enjoy the bene-
48 fits and it is incumbent upon the legislature of the state of Idaho to protect
49 the interests of the people of the state of Idaho by protecting the benefits
50 of the Columbia River power system and all rivers tributary thereto.
1 (2) The legislature further finds and declares that it is the purpose of
2 this chapter to:
3 (a) Provide, through the Idaho electricity authority established by this
4 chapter, low power rates to customers in Idaho who might be deleteriously
5 impacted by electric utility deregulation at the federal and regional lev-
6 els or by rising power costs generally;
7 (b) Make possible rates for power consumers in Idaho at the lowest gener-
8 ating costs consistent with good business principles and protection of the
9 environment; and
10 (c) Distribute power obtained by the Idaho electricity authority from the
11 Columbia River power system and other sources at cost to Idaho consumers.
12 (3) The legislature further finds and declares that it is legislative
13 intent that the purpose of this chapter is to protect the employees of an
14 investor owned public utility from a takeover or purchase of the investor
15 owned public utility and it is legislative intent that this chapter not be
16 implemented until an application is filed with the public utilities commission
17 for purchase, takeover or merger of an investor owned public utility that pro-
18 vides for sale of electric energy.
19 61-1402. DEFINITIONS. As used in this chapter:
20 (1) "Authority" means the Idaho electricity authority.
21 (2) "Bonneville power administration" means the Bonneville power adminis-
22 tration, its successor or other agency or corporation of the United States
23 authorized to sell energy generated by federal facilities located in the
24 states of Idaho, Oregon, Washington and Montana.
25 (3) "Commission" means the public utilities commission of Idaho.
26 (4) "Cooperative corporation" means a cooperative corporation furnishing
27 electric service in the state of Idaho to its consumer members who own and
28 operate the cooperative.
29 (5) "Cost" means all commonly accepted accounting costs including, but
30 not limited to, depreciation, interest on borrowed funds, maintenance of
31 reserves for uncollectible accounts and other contingencies, and accumulation
32 of working capital over a reasonable period of time.
33 (6) "Director" means the director of the Idaho electricity authority.
34 (7) "Federal Columbia River power system" means those electric generating
35 facilities, power from which is marketed in whole or in part by the Bonneville
36 power administration including, but not limited to, generating facilities not
37 owned by the federal government, power from which is purchased by the Bonne-
38 ville power administration, or electric generating facilities on tributaries
39 to the Columbia River.
40 (8) "Municipality" means any city, municipal corporation or other politi-
41 cal subdivision in this state.
42 (9) "Power" means electricity in any form capable of being measured,
43 transmitted and sold for use by customers of the authority.
44 (10) "Public utility" has the meaning given the term "electrical corpora-
45 tion" in section 61-119, Idaho Code.
46 (11) "Publicly owned utility" means an electric utility owned or operated,
47 in whole or in part, by a municipality or cooperative electrical association.
48 (12) "Purchase" means acquisition by purchase, exchange, barter, gift or
49 forgiveness of indebtedness or amounts owed.
50 (13) "Sell" means to give up by sale, exchange, barter, gift or forgive-
51 ness of indebtedness or amounts owed.
52 (14) "State" means the state of Idaho.
53 61-1403. DIRECTOR. (1) Subject to confirmation by the senate in the man-
1 ner provided by section 6, article IV, of the constitution of the state of
2 Idaho, the governor shall appoint the director of the Idaho electricity
3 authority in whom shall repose all the powers and duties of the authority. The
4 director shall serve for a term of four (4) years at the pleasure of the gov-
6 (2) The director shall:
7 (a) Serve as the administrative head of the authority and shall supervise
8 its day-to-day functions;
9 (b) Have authority, within applicable budget limitations and substan-
10 tially in accordance with chapter 53, title 67, Idaho Code, to hire,
11 assign, reassign and coordinate personnel within the authority and to fix
12 their compensation;
13 (c) Contract for or procure on a fee or part-time basis, or both, such
14 expert, technical or other professional services as he may require for the
15 discharge of his duties;
16 (d) Be authorized to participate or intervene in any proceeding before
17 any public officer, commission, court or body of the United States or any
18 state or political subdivision thereof for the purpose of representing the
19 interests of the authority's power consumers which relate to the purposes
20 for which the authority is created;
21 (e) Be authorized to delegate to any employees of the authority the exer-
22 cise or discharge, in the director's name, of any power, duty or function
23 vested in or imposed by law upon the director; provided however, the power
24 to make contracts obligating the authority for payment in an amount
25 greater than fifty thousand dollars ($50,000) and to establish rates for
26 sales of electric energy shall not be delegated; and
27 (f) Adopt rules and issue orders to carry out his duties and those of the
28 authority substantially in accordance with chapter 52, title 67, Idaho
30 (3) The official act of any person acting in the director's name and by
31 his authority pursuant to paragraph (e) of subsection (2) of this section
32 shall be considered to be an official act of the director.
33 61-1404. CREATION OF AND DUTIES OF AUTHORITY. There is hereby created the
34 Idaho electricity authority, an independent body corporate politic, which
35 shall have the following powers and duties:
36 (1) To make timely application for, and to purchase power from, the Bon-
37 neville power administration or Canadian power generating entities, and to
38 purchase power from public utilities and other sources;
39 (2) To purchase generation, transmission and distribution lines and to
40 generate electric power;
41 (3) To provide for the transfer of power marketing or transmission func-
42 tions of the Bonneville power administration to the authority;
43 (4) To sell power at retail to electricity consumers as provided in sec-
44 tion 61-1405, Idaho Code;
45 (5) If power acquired under subsections (1) and (2) of this section tem-
46 porarily is surplus to the needs of the authority's consumers, to sell power
47 at wholesale to any person within the terms of the agreements by which the
48 authority obtained the power;
49 (6) Sell power to, or exchange power with, any other entity or person if
50 such sale or exchange results in a greater, more economical or more reliable
51 supply of power to the authority;
52 (7) To contract with any person for management, consulting, rate design,
53 economic analysis and other similar services as the authority considers neces-
54 sary and convenient to carry out the policies and purposes of this chapter;
1 (8) To establish rates for its sale of power to its consumers in the man-
2 ner set forth in section 61-1409, Idaho Code, and to collect receipts from its
3 consumers for its sales and other services;
4 (9) Within the limitations set forth in section 61-1408, Idaho Code, to
5 acquire by purchase or lease real and personal property necessary for the
6 operation of the authority; and
7 (10) To perform any function or service that is considered necessary to
8 carry out the policies and purposes of this chapter including, but not limited
9 to, organizing consumers or groups of consumers within the state or areas of
10 the state into buying consortiums for purposes of purchasing electric power.
11 61-1405. REGULATIONS FOR SALE OF POWER. (1) The authority may enter into
12 contracts or agreements with a public utility to serve customers within a ter-
13 ritory served by or allocated to that public utility. If a publicly owned
14 utility providing electric utility service requests the authority to sell
15 power for consumption by its consumers, the director, in his discretion, may
16 authorize power sales for such purpose to those consumers or to the publicly
17 owned utility after finding that the power requirements of the consumers of
18 the authority are satisfied.
19 (2) Except as provided in subsection (1) of this section and subsections
20 (4) and (5) of section 61-1404, Idaho Code, the authority shall sell electric
21 energy only to consumers within the service area acquired pursuant to this
22 section. A map of such service area shall be filed with the commission.
23 (3) All contracts or agreements for allocation of customers between the
24 authority and a public utility shall be governed by the provisions of section
25 61-333, Idaho Code.
26 (4) Except as provided in subsection (1) of this section, and notwith-
27 standing sections 61-332B and 61-332C, Idaho Code, or rules adopted thereun-
28 der, upon commencement of service by the authority, no person other than the
29 authority may provide electric utility service to a consumer within the area
30 served by the authority unless written authorization to serve the consumer or
31 consumers described therein is obtained from the authority.
32 61-1406. CONDITIONS TO CONTRACT POWER. Before executing a contract for
33 purchase of power from an entity other than the United States, the director
35 (1) Determine the amount of power sold by each public utility or other
36 entity to consumers in the state in the year last preceding;
37 (2) Determine for each public utility the ratio that the amount deter-
38 mined pursuant to subsection (1) of this section bears to the total amount of
39 power sold by public utilities to consumers in the state in that year and con-
40 vert that ratio to a percentage; and
41 (3) Offer to purchase from each public utility that percentage of the
42 requirements of the authority to be obtained from entities other than the
43 United States which is equal to the percentage determined pursuant to subsec-
44 tion (2) of this section, up to the amount determined pursuant to subsection
45 (1) of this section.
46 61-1407. FINDING BY DIRECTOR. (1) Before executing a contract for pur-
47 chase of power from any entity other than the United States or any entity
48 other than a public utility, the director shall find that the people of the
49 state of Idaho would receive a greater benefit from that purchase than if that
50 purchase would be made from a public utility.
51 (2) For the purposes of subsection (1) of this section, "public utility"
52 shall mean a public utility, or its corporate successor, which on January 1,
1 2002, provided electric service to consumers in the state.
2 61-1408. PURCHASE OF FACILITIES. (1) The authority may purchase or
3 acquire facilities, structures, land or equipment used by a public utility to
4 generate, transform, distribute or measure the use of power as set out in sub-
5 section (2) of this section.
6 (2) In order to qualify as a preference consumer in sales of electric
7 energy from the United States or to provide lower power costs to the state's
8 residents, the authority may acquire real and personal property of the follow-
9 ing types and descriptions by purchase or lease:
10 (a) Electric use meters for measurement of the amount of power consumed
11 by any consumer of the authority or for measuring power deliveries to the
13 (b) Transformers and associated land, materials and equipment used to
14 reduce current from voltages suitable for transmission or distribution to
15 voltage or voltages suitable for household or farm use; and
16 (c) Such land, conduits, lines, poles and associated material or equip-
17 ment used to carry current from the point of transformance to voltage or
18 voltages suitable for household or farm use to the consumer's electric use
20 61-1409. RATES. (1) All schedules of rates for sales of power by the
21 authority shall be approved by the public utilities commission in the same
22 manner as set forth in chapter 5, title 61, Idaho Code, for public utilities.
23 (2) The rates for sales of power shall recover the costs to the authority
24 of operating and providing service to its consumers and shall be sufficient
25 for the authority to be self-supporting without need for continuing support
26 from the general account in the state operating fund.
27 (3) The authority shall not be operated for gain or profit or as a source
28 of general revenue for the state.
29 61-1410. ADMINISTRATION OF CONTRACTS. (1) Except in an emergency, each
30 contract executed by the authority in an amount greater than fifty thousand
31 dollars ($50,000) for the services to be performed for the authority by a pub-
32 lic utility shall be submitted to the commission for review prior to execu-
34 (2) Upon receipt of a proposed contract, the commission shall within
35 sixty (60) days thereof:
36 (a) If in the commission's opinion it meets the requirements set forth in
37 section 61-1411, Idaho Code, favorably recommend the proposed contract; or
38 (b) If it fails to meet such requirements, return it to the director with
39 the commission's suggestions for modification of the contract or reasons
40 why the contract should not be executed.
41 (3) If the contract is returned by the commission, the director, after
42 considering the commission's stated reasons for the return and any suggestions
43 for improvement, may either execute the contract as originally proposed, exe-
44 cute a modified contract or refuse to execute a contract.
45 (4) The action of the director pursuant to subsection (3) of this section
46 shall be final.
47 61-1411. RETURN ON INVESTMENT. (1) All contracts for utility services
48 rendered to the authority shall be fair and reasonable and shall provide a
49 reasonable return on investment.
50 (2) The authority shall not enter into a contract with a public utility
51 for use of and delivery of energy over the distribution or transmission system
1 of the public utility which provides compensation to the public utility in an
2 amount greater than the allocated cost to the public utility providing the
3 service, including a reasonable return on investment. For determining cost to
4 the public utility, the director, to the extent practicable and consistent
5 with the terms of this chapter, shall use or require the use of accounting
6 procedures and methods consistent with those promulgated by the federal energy
7 regulatory commission.
8 61-1412. CONTRACTING WITH PUBLIC UTILITIES. (1) The director may contract
9 with a public utility providing electric utility service to consumers for per-
10 formance by the public utility of the services of power transmission, power
11 distribution or system maintenance in the service area of the authority previ-
12 ously served by each public utility.
13 (2) If a public utility and the director cannot agree on terms of a con-
14 tract for any of the services described in subsection (1) of this section, the
15 director or the public utility may petition the public utilities commission to
16 mediate further negotiations between the authority and the public utility.
17 61-1413. RULES FOR EXTENSION OF CONTRACT. Before expiration of a contract
18 between the authority and a public utility for performance by the public util-
19 ity of the utility services set out in section 61-1412, Idaho Code, either
20 party to the contract may petition the public utilities commission for an
21 order amending the terms of the contract. If the commission finds that condi-
22 tions since the execution of the contract have so changed that the contract no
23 longer conforms to the standards set forth in section 61-1411, Idaho Code, it
24 may order amendment of the contract. In exercising the powers granted by this
25 section, the commission shall follow the procedures outlined in section
26 61-1412, Idaho Code, and the rules adopted thereunder.
27 61-1414. PROCUREMENT OF POWER FROM PUBLIC UTILITIES. To the extent of its
28 authority under applicable federal law, the public utilities commission may
29 order any public utility engaged in the business of generating, transmitting,
30 or distributing power in this state to furnish, upon demand of the authority,
31 power to the authority at points on the public utility's generation, transmis-
32 sion or distribution system at such rates and upon such fair and reasonable
33 terms and conditions as may be prescribed by the commission. For the purpose
34 of such delivery, any such public utility shall install at a fair and reason-
35 able cost to the authority, on its demand, suitable substations, switches,
36 transformers and other line and like apparatus.
37 61-1415. IDAHO ELECTRICITY AUTHORITY FUND. (1) There is hereby created
38 the Idaho electricity authority fund within the authority.
39 (2) All moneys received by the authority pursuant to law shall be col-
40 lected by the authority and paid into the state treasury pursuant to a con-
41 tract with the state treasurer and credited to the Idaho electricity authority
42 fund. All moneys in the fund shall be used by the authority for payment of
43 expenses of the authority pursuant to this chapter.
44 (3) Except as otherwise authorized or provided in this chapter, all
45 moneys of the authority shall be deposited as soon as practicable in the Idaho
46 electricity authority fund with the state treasurer, to be invested in such
47 manner as the idle moneys of the state may be invested.
48 61-1416. REGULATION BY PUBLIC UTILITIES COMMISSION. For the purposes of
49 sections 61-332 through 61-333C, Idaho Code, and sections 61-531 through
50 61-537, Idaho Code, the authority shall be considered a public utility and an
1 entity providing utility service to its consumers and shall therefore be con-
2 sidered subject to regulation by the public utilities commission under chapter
3 5, title 61, Idaho Code, unless otherwise provided in chapter 14, title 61,
4 Idaho Code.
5 61-1417. ASSISTANCE TO THE IDAHO ELECTRICITY AUTHORITY. Upon request of
6 the director, the office of the attorney general, the public utilities commis-
7 sion and the department of water resources shall furnish such assistance to
8 the director as he may require.
9 61-1418. PUBLIC UTILITIES' EXPANSION OF SERVICE AREAS. This chapter shall
10 not apply to, nor in any way restrict, the formation, acquisition, ownership,
11 operation or extension or expansion of service areas of facilities, or any
12 other function of a publicly owned utility as prescribed by law.
13 61-1419. ELIGIBILITY OF AUTHORITY FOR TAXATION. In the same manner as a
14 public utility, the authority shall be liable for and pay real and personal
15 property taxes, business license fees, user charges, franchise fees and other
16 fees and charges assessed or levied by a municipality, county or taxing dis-
17 trict. The authority shall be allowed as a credit against any tax, charge or
18 fee assessed on its receipts or income, any amounts similarly assessed on the
19 receipts or income received by a public utility from the authority. For pur-
20 poses of the constitution of the state of Idaho, the authority shall not be
21 considered to be the state or a political subdivision of the state for pur-
22 poses of taxation.
23 61-1420. COMMENCEMENT OF ACTIVITIES. Exercise of functions and powers
24 granted to the authority under this chapter shall commence at such time as the
25 legislature adopts a concurrent resolution finding that such exercise will
26 result in substantial benefits to the citizens of Idaho.
27 61-1421. CESSATION OF ACTIVITIES. The commission shall hold a hearing on
28 the record, pursuant to chapter 6, title 61, Idaho Code, regarding the cessa-
29 tion of operation of the authority at the request of any interested person,
30 but no more frequently than once in two (2) years. If the commission finds
31 that operation of the authority no longer results in substantial benefits to
32 the citizens of Idaho, the commission shall submit a written recommendation to
33 the legislature setting forth the basis for its recommendation that the activ-
34 ities of the authority cease. Following such recommendation, and upon adoption
35 by the legislature of a concurrent resolution finding that operation of the
36 authority no longer results in substantial benefits to the citizens of Idaho,
37 operation of the authority may be phased out as prescribed by the commission.
38 61-1422. BONDING PROVISIONS.
39 (1) (a) The authority shall have the power and is hereby authorized to
40 issue from time to time its notes and bonds in such principal amounts as
41 the authority shall determine to be necessary to provide sufficient funds
42 for achieving any of its corporate purposes including, but not limited to:
43 payment of interest on notes and bonds of the authority; establishment of
44 reserves to secure such notes and bonds; and all other expenditures of the
45 authority incident to and necessary or convenient to carry out its corpo-
46 rate purposes and powers.
47 (b) The authority shall have the power, from time to time: (i) to issue
48 notes; (ii) to renew notes; (iii) to issue bonds; (iv) to pay notes,
49 including the interest thereon; and (v) whenever it deems refunding expe-
1 dient, to refund any bonds by the issuance of new bonds, whether the
2 bonds to be refunded have or have not matured, and to issue bonds partly
3 to refund bonds then outstanding and matured and partly for any of its
4 corporate purposes. The refunding bonds may be exchanged for bonds to be
5 refunded or sold and the proceeds applied to the purchase, redemption or
6 payment of such bonds.
7 (c) Except as may otherwise be expressly provided by the authority, every
8 issue of its notes and bonds shall be general obligations of the authority
9 payable out of any revenues or moneys of the authority, subject only to
10 any agreements with the holders of particular notes or bonds pledging any
11 particular revenues.
12 (2) The notes and bonds shall be authorized by resolution or resolutions
13 of the authority, shall bear such date or dates and shall mature at such time
14 or times as such resolution or resolutions may provide, except that no bond
15 shall mature more than fifty (50) years from the date of its issue. The bonds
16 may be issued as serial bonds payable in annual installments or as term bonds
17 or as a combination thereof. The notes and bonds shall bear interest at such
18 rate or rates, be in such denominations, be in such form, either coupon or
19 registered, carry such registration privileges, be executed in such manner, be
20 payable in such medium of payment, at such place or places, and be subject to
21 such terms of redemption as such resolution or resolutions may provide. The
22 notes and bonds of the authority may be sold by the authority, at public or
23 private sale, at such price or prices as the authority shall determine.
24 (3) Any resolution or resolutions authorizing any notes or bonds or any
25 issue thereof may contain provisions, which shall be a part of the contract or
26 contracts with the holders thereof, as to:
27 (a) Pledging all or any part of the revenues to secure the payment of the
28 notes or bonds or of any issue thereof, subject to such agreements with
29 noteholders or bondholders as may then exist;
30 (b) Pledging all or any part of the assets of the authority to secure the
31 payment of the notes or bonds or of any issue of notes or bonds, subject
32 to such agreements with noteholders or bondholders as may then exist;
33 (c) The setting aside of reserves or sinking funds and the regulation and
34 disposition thereof;
35 (d) Limitations on the purpose to which the proceeds of sale of notes or
36 bonds may be applied and pledging such proceeds to secure the payment of
37 the notes or bonds or any issue thereof;
38 (e) Limitations on the issuance of additional notes or bonds, the terms
39 upon which additional notes or bonds may be issued and secured, and the
40 refunding of outstanding other notes and bonds;
41 (f) The procedure, if any, by which the terms of any contract with
42 noteholders or bondholders may be amended or abrogated, the amount of
43 notes or bonds the holders of which must consent thereto, and the manner
44 in which such consent may be given;
45 (g) Limitations on the amount of moneys to be expended by the authority
46 for operating expenses of the authority;
47 (h) Vesting in a trustee or trustees, such property, rights, powers and
48 duties in trust as the authority may determine which may include any or
49 all of the rights, powers and duties of the trustee appointed by the bond-
50 holders pursuant to this chapter and limiting or abrogating the right of
51 the bondholders to appoint a trustee under this chapter or limiting the
52 rights, powers and duties of such trustee;
53 (i) Defining the acts or omissions to act which shall constitute a
54 default in the obligations and duties of the Idaho electricity authority
55 to the holders of the notes or bonds in the event of such default, includ-
1 ing, as a matter of right, the appointment of a receiver; provided how-
2 ever, that such rights and remedies shall not be inconsistent with the
3 general laws of the state and the other provisions of this chapter; and
4 (j) Any other matters, of like or different character, which in any way
5 affect the security or protection of the holders of the notes or bonds.
6 (4) Any pledge made by the authority shall be valid and binding from the
7 time the pledge is made; the revenues, moneys or property so pledged and
8 thereafter received by the authority shall immediately be subject to the lien
9 of such pledge without any physical delivery thereof or further act, and the
10 lien of any such pledge shall be valid and binding as against all parties hav-
11 ing claims of any kind in tort, contract or otherwise against the authority,
12 irrespective of whether such parties have notice thereof. Neither the resolu-
13 tion nor any other instrument by which a pledge is created need be recorded.
14 (5) Neither the director of the authority nor any other person executing
15 such notes or bonds shall be subject to any personal liability or accountabil-
16 ity by reason of issuance thereof.
17 (6) The authority, subject to such agreements with noteholders or bond-
18 holders as may then exist, shall have power out of any funds available to pur-
19 chase notes or bonds of the authority, which shall thereupon be canceled, at a
20 price not exceeding:
21 (a) If the notes or bonds are then redeemable, the redemption price then
22 applicable plus accrued interest to the next interest payment thereon; or
23 (b) If the notes or bonds are not then redeemable, the redemption price
24 applicable on the first date after such purchase upon which the notes or
25 bonds become subject to redemption plus accrued interest to such date.
26 (7) In the discretion of the authority, the bonds may be secured by a
27 trust indenture by and between the authority and a corporate trustee which may
28 be any trust company or bank having the power of a trust company in the state.
29 Such trust indenture may contain such provisions for protecting and enforcing
30 the rights and remedies of the bondholders as may be reasonable and proper and
31 not in violation of law, including covenants setting forth the duties of the
32 authority in relation to the exercise of its corporate powers and the custody,
33 safeguarding and application of all moneys. The authority may provide by such
34 trust indenture for the payment of the proceeds of the bonds and the revenues
35 to the trustee under such trust indenture or other depository, and for the
36 method of disbursement thereof, with such safeguards and restrictions as it
37 may determine. All expenses incurred in carrying out such trust indenture may
38 be treated as a part of the operating expense of the authority. If the bonds
39 shall be secured by a trust indenture, the bondholders shall have no authority
40 to appoint a separate trustee to represent them.
41 (8) Whether or not the notes and bonds are of such form and character as
42 to be negotiable instruments under the terms of the uniform commercial code,
43 the notes and bonds of the authority are hereby made negotiable instruments
44 within the meaning of and for all the purposes of the uniform commercial code,
45 subject only to the provisions of the notes and bonds for registration.
46 (9) If any officers of the authority whose signatures appear on any notes
47 or bonds or coupons shall cease to be such officers before the delivery of
48 such notes or bonds, such signatures shall nevertheless continue to be valid
49 and sufficient for all purposes and to the same extent as if such officers had
50 remained in office until such delivery.
51 61-1423. SEVERABILITY. If any provision of this chapter is declared
52 unconstitutional or ineffective, in whole or in part, to the extent that other
53 provisions of this chapter are not unconstitutional or ineffective, the other
54 provisions shall be valid and effective, and no other provision on account of
1 the finding of unconstitutionality or ineffectiveness shall be considered
2 invalid or ineffective.
STATEMENT OF PURPOSE
To set up the mechanism for creation of an Idaho electricity
authority if application is filed with the Public Utilities
Commission for purchase, takeover or merger of an investor owned
public utility that provides for sale of electric energy. The
legislature finds and declares that the power system on the
Columbia River and its tributaries is a resource of low-cost
hydroelectric power of which Idaho citizens should enjoy the
benefits and it is incumbent upon the legislature of the state
of Idaho to protect the interests of the people of the state of
Idaho by protecting the benefits of the Columbia River power system
and all rivers tributary thereto.
The legislature further finds and declares that it is the purpose
of this chapter to: a) Provide, through the Idaho electricity
authority established by this chapter, low power rates to customers
in Idaho who might be deleteriously impacted by electric utility
deregulation at the federal and regional levels or by rising power
costs generally; b) Make possible rates for power consumers in
Idaho at the lowest generating costs consistent with good business
principles and protection of the environment; c) Make protection
for the citizens of Idaho from the sale or takeover of power
interests by outside hostile or friendly interests; d) Distribute
power obtained by the Idaho electricity authority from the Columbia
River system and other sources at cost to Idaho consumers.
No fiscal impact
Name: Senator John Sandy
STATEMENT OF PURPOSE/FISCAL NOTE S 1505