56-231.33 - Adequate service; rates.
§ 56-231.33. Adequate service; rates.
Regulated utility services offered by a cooperative shall be reasonablyadequate, subject to the regulations of the Commission, as provided in §56-231.34. The charge made by any such cooperative for any regulated utilityservice rendered or to be rendered, either directly or in connectiontherewith, shall be nondiscriminatory, reasonable and just, and everydiscriminatory, unjust or unreasonable charge for such regulated utilityservice is prohibited and declared unlawful. Reasonable and just charges forservice within the meaning of this section shall be such charges as shallproduce sufficient revenue to pay all legal and other necessary expensesincident to the operation of the system, and shall include but not be limitedto maintenance cost, operating charges, interest charges on bonds or otherobligations, to recover such stranded costs and transition costs as may beauthorized in this title, to provide for the liquidation of bonds or otherevidences of indebtedness, to provide adequate funds to be used as workingcapital, as well as reasonable reserves and funds for making replacements andalso for the payment of any taxes that may be assessed against suchcooperative or its property, it being the intent and purpose hereof that suchcharges shall produce an income sufficient to maintain such cooperativeproperty in a sound physical and financial condition to render adequate andefficient service and additional amounts that must be realized by thecooperative to meet the requirement of any rate covenant with respect tocoverage of principal of and interest on its debt contained in any indenture,mortgage, or other contract with holders of its debt, provided that any suchindenture, mortgage or other contract must have been approved by theCommission pursuant to Chapter 3 (§ 56-55 et seq.) of this title. Any ratefor regulated utility services that is too low to meet the foregoingrequirements shall be unlawful.
(1999, c. 874; 2000, cc. 944, 999.)