54-9-106 - Funding -- Power sales contracts -- Revenue bonds -- Fee in lieu of ad valorem property taxes -- Bond issues -- Public purpose.
54-9-106. Funding -- Power sales contracts -- Revenue bonds -- Fee in lieu of advalorem property taxes -- Bond issues -- Public purpose.
(1) A public power entity participating in common facilities under this chapter mayfurnish money and provide property, both real and personal, and, in addition to any otherauthority now existing, may issue and sell, either at public or privately negotiated sale, generalobligation bonds or revenue bonds, pledging either the revenues of its entire electric system oronly its interest or share of the revenues derived from the common facilities in order to pay itsrespective share of the costs of the planning, financing, acquisition, construction, repair, andreplacement of common facilities.
(2) (a) Capacity or output derived by a public power entity from its ownership share ofcommon facilities not then required by the public power entity for its own use and for the use ofits customers may be sold or exchanged for a consideration, for a period, and upon other termsand conditions as may be determined by the parties prior to the sale and as embodied in a powersales contract.
(b) Any revenues arising under a power sales contract under Subsection (2)(a) may bepledged by the public power entity to the payment of revenue bonds issued to pay its respectiveshare of the costs of the common facilities.
(c) (i) As used in this Subsection (2)(c), "nonexempt purchaser" means a purchaser thatis not exempt from property taxes under Utah Constitution Article XIII, Section 2.
(ii) (A) Each power sales contract between a public power entity and a nonexemptpurchaser shall contain a provision requiring the nonexempt purchaser to pay an annual fee to thepublic power entity in lieu of ad valorem property taxes.
(B) The amount of the fee in lieu of ad valorem property taxes under Subsection(2)(c)(ii)(A) shall be based on the taxable value of the public power entity's percentageownership of the common facilities used to produce the capacity or output that the public powerentity sells to or exchanges with the nonexempt purchaser.
(iii) The public power entity shall pay over to the county treasurer each fee in lieu of advalorem property taxes that it receives from a nonexempt purchaser for distribution in the samemanner as other ad valorem tax revenues.
(iv) This Subsection (2)(c) does not apply to a public power entity to the extent that itsinterest in common facilities is subject to or exempt from the fee in lieu of ad valorem propertytaxes under Section 11-13-302.
(3) A public power entity acquiring or owning an undivided interest in common facilitiesmay contract with a county to pay, solely from the revenues derived from the interest of thepublic power entity in the common facilities, to the county or counties in which the commonfacilities are located, an annual fee in lieu of ad valorem property taxes based upon the taxablevalue of the percentage of the ownership share of the public power entity in the commonfacilities, which fee in lieu of ad valorem property taxes shall be paid over by the public powerentity to the county treasurer of the county or counties in which the common facilities are locatedfor distribution as per distribution of other ad valorem tax revenues.
(4) (a) Bonds issued by a city or town shall be issued under the applicable provisions ofTitle 11, Chapter 14, Local Government Bonding Act, authorizing the issuance of bonds for theacquisition and construction of electric public utility properties by cities or towns.
(b) Bonds or other debt instruments issued by an interlocal entity shall be issued underTitle 11, Chapter 13, Interlocal Cooperation Act, or other applicable law.
(5) All moneys paid or property supplied by a public power entity for the purpose ofcarrying out powers conferred by this chapter are declared to be for a public purpose.
Amended by Chapter 105, 2005 General Session