Sec. 7-233x. Power supply contracts between cooperatives and municipal electric utilities.
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.