56-265.4:1 - Furnishing of electric public utility service or provision of facilities therefor by municipal corp...

§ 56-265.4:1. Furnishing of electric public utility service or provision offacilities therefor by municipal corporations and other governmental bodies.

If any municipal corporation or other governmental body, having legalauthority by charter or other law, shall desire to supply electric publicutility service, or construct, enlarge or acquire, by lease or otherwise, anyelectric utility facilities, outside its political boundaries, it shall havepower to enter into agreements in that regard with affected public utilitieswhich shall be binding in accordance with their terms and for the periodtherein provided; but no contract entered into under this section shall limitthe power of the Commission to fix rates and to otherwise regulate a publicutility. No such service by a municipal corporation or other governmentalbody shall be provided, or facilities constructed, enlarged or acquired, interritory allotted to any public utility by the Commission except interritory served by such municipal corporation or other governmental body onJune 26, 1964, unless the affected public utility shall consent by such anagreement or the Commission shall grant a certificate therefor uponapplication by the municipal corporation or other governmental body pursuantto § 56-265.4, authority for which certification is hereby granted. Provided,however, this limitation on the extension of public utility service by anymunicipal corporation or governmental body outside its political boundariesshall not be applicable to cities or towns extending their service inaccordance with the provisions of § 56-265.4:2. No public utility shallextend its electric public utility service, or construct, enlarge or acquire,by lease or otherwise, any electric utility facilities, in territory servedexclusively by a municipal corporation or other governmental body on June 26,1964, unless such municipal corporation or other governmental body shallconsent by such an agreement. In case of question as to the scope of theterritory served by a municipal corporation or other governmental body onJune 26, 1964, the Commission may, and on application by either such publicutility or such municipal corporation or other governmental body shall,decide such question and allot such territory accordingly, between suchpublic utility and such municipal corporation or other governmental body, inwhich event any expansion of service outside the territory so allotted shallbe subject to the applicable provisions of this chapter, provided, however,that nothing contained herein shall prevent any municipal corporation fromconstructing or maintaining facilities in county areas for the purpose ofgenerating or purchasing electricity to be transmitted into the service areaof such municipal corporation.

(1964, c. 228; 1978, c. 325.)