Sec. 7-233c. Municipal electric energy cooperative membership. Board representatives, appointment, term, removal. Officers. Meetings. Staff. Apportionment of expenses.
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.