Municipal Utility Acquisition of Facilities and Other Assets

V.S.A. tit. 30, ch. 14

in effect

30 V.S.A. § 601 Definitions

601. Definitions (a) The following words as used in this chapter shall, unless the context otherwise requires, have the meanings provided in subsection (b) of this section. (b)(1) “New England power pool agreement,” a contractual agreement between electric utilities that is open to all electric utilities, whether private or governmental, operating in New England, that provides for cooperation and joint participation in developing and implementing a regional bulk power supply of electricity, that constitutes the central dispatching and primary pooling arrangement for electric utilities in the New England states, and that has been permitted to become effective under the Federal Power Act by the Federal Power Commission or the Federal Energy Regulatory Commission. (2) “New England power pool,” is the relationship or organization created by the New England power pool agreement. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 2023, No. 85 (Adj. Sess.), § 389, eff. July 1, 2024.

30 V.S.A. § 602 Authorization

602. Authorization The City of Burlington and the Village of Lyndonville acting through its board of trustees are, and each municipality singly is, hereby authorized to enter into a New England power pool agreement and to participate within and outside the State of Vermont in the New England power pool created thereby. Any action taken by the City or such board of trustees in connection with entering into or participating in such pool prior to March 25, 1974, shall be deemed to be as effective as if this chapter had then been in effect. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 275 (Adj. Sess.), § 17, eff. April 12, 1978; 1977, No. 278 (Adj. Sess.), § 1, eff. Feb. 9, 1978.

30 V.S.A. § 603 NEPOOL agreement

603. NEPOOL agreement The New England power pool agreement may provide for, among other things: (1) the pooling of power; (2) coordination of planning, construction, and operation and the manner of establishing and enforcing standards and other requirements; (3) delegation of authority to administrative committees; (4) amendments of the agreement by vote or other action of the participants or of committees in the manner specified therein, subject to the right of any participant to withdraw in the event of its nonconcurrence with an amendment; (5) appointment of representatives to act for one or more participants in regard to amendments and other matters; (6) the allocation of pool expenses among participants; (7) the provision of new, altered, improved, or enlarged facilities by the participants subject to such proceedings as may be required by law for undertaking or financing any such project; (8) limitations on other actions by the participants that might be inconsistent with the agreement or might adversely affect its implementation; (9) arbitration; and (10) other matters deemed necessary or desirable in order to carry out the purpose of the agreement. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974.

30 V.S.A. § 604 Additional authority

604. Additional authority (a) Notwithstanding any contrary provision of any general or special law relating to the powers and authorities of electric utilities or any limitation imposed by their charters, the City of Burlington, the Village of Lyndonville acting through its board of trustees, and all other Vermont municipal electric utilities, shall each have the following additional powers: (1) jointly or separately to plan, finance, construct, purchase, operate, maintain, use, share costs of, own, mortgage, lease, sell, dispose of, or otherwise participate in electric power generating and transmission facilities or portions of it within or outside the State or the product or service of it or securities issued in connection with the financing of such facilities or portions of it; (2) to enter into and perform contracts for such joint or separate planning, financing, construction, purchase, operation, maintenance, use, sharing costs of, ownership, mortgaging, leasing, sale, disposal of, or other participation in electric power generating and transmission facilities, or portions of it, within or outside the State of the product or service of it, or securities issued in connection with the financing of electric power facilities or portions of it, including, contracts for the payment of obligations imposed without regard to the operational status of a facility or facilities and contracts for the sale or purchase of electricity from an electric power facility or facilities for long or short periods of time or for the life of a specific electric generating unit or units. (b) Other electric utilities, whether cooperative, municipal, or privately owned, may enter into and perform contracts with the City of Burlington and all other Vermont municipal electric utilities for the purposes of this section. The provisions of this chapter shall not otherwise affect the jurisdiction of the Public Utility Commission regarding the activities of the Burlington electric light department and of the Village of Lyndonville electric light department, or any municipal utility formed within the State of Vermont. (c) Cooperative and municipal electric utilities, in accordance with chapter 83 of this title, and other electric utilities may enter into and perform contracts with the City of Burlington, the Village of Lyndonville, and all other Vermont municipal electric utilities for the purposes of this section. (d) The Town of Rockingham shall have the authority, if duly authorized by its voters in accordance with the procedures set forth in chapter 79 of this title for the formation of a municipal utility, whether such vote or authorization occurs before or after June 8, 2004 and after obtaining a certificate of public good pursuant to section 248 of this title, to acquire, own, and operate the hydroelectric generating facilities located at Bellows Falls, Vermont, notwithstanding the fact the output of such facilities may exceed the electric needs of the Town and its municipal utility, and to sell that portion of the output of such facilities that exceeds the needs of the Town in serving its own municipal utility and such municipal utility’s own customers. The Town shall not have the authority to acquire the hydroelectric generating facilities located at Bellows Falls, Vermont by eminent domain for a period of 10 years commencing on January 1, 2005. In selling any of the output of such generating facilities, the Town of Rockingham shall not have the authority to seek or obtain treatment as a “qualifying facility” under 18 C.F.R. § 292.201-207 or subdivision 209(a)(8) of this title, and Rockingham shall not have the authority to own or operate such facilities or a portion of such facilities if such facilities otherwise obtain treatment as a “qualifying facility.” (e) A municipality owning a municipal plant and conducting itself as a utility under chapter 79 of this title shall have the authority to acquire equity ownership of Vermont Transco LLC or Vermont Electric Power Company, or both, and to finance the acquisition of equity ownership by any means permitted under 24 V.S.A. subchapters 1 and 2 or municipal charter. The terms under which equity ownership is acquired pursuant to this subsection shall not include any provision of guaranty, assessment, indemnification, or joint and several liability applicable to any such municipality. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 275 (Adj. Sess.), § 18, eff. April 12, 1978; 1977, No. 278 (Adj. Sess.), § 2, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 95, eff. June 8, 2004; 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008; 2023, No. 85 (Adj. Sess.), § 390, eff. July 1, 2024.

30 V.S.A. § 605 Contracts

605. Contracts Contracts under section 604 of this chapter may be for a term or for an indefinite period; may provide for the sale or other disposition of byproducts of electric power facilities; and may contain provisions for arbitration, delegation, and other matters deemed necessary or desirable to carry out their purposes. Any party, public or private, desiring to purchase or use byproducts of electric power facilities financed, constructed, or operated under this chapter may enter into contracts for short or long terms. The obligation of the city, village, and town under contracts referred to in this section shall not be included in the debt of the city, village, and town for the purpose of ascertaining its borrowing capacity. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 3, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004; 2023, No. 85 (Adj. Sess.), § 391, eff. July 1, 2024.

30 V.S.A. § 606 Tenancy in common

606. Tenancy in common If the City of Burlington, the Village of Lyndonville, or the Town of Rockingham acquires or owns an interest as a tenant in common with one or more other electric utilities in any electric power facilities, the surrender or waiver by any party of its right to partition such property for a period not exceeding the period for which the property is used or useful for electric utility purposes shall not be invalid or unenforceable by reason of the length of such period, or as unduly restricting the alienation of such property. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 4, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004.

30 V.S.A. § 607 Consent to application of laws of other states

607. Consent to application of laws of other states (a) Legislative consent is hereby given to the application of the laws of other states with respect to taxation, payments in lieu of taxes, and the assessment thereof to the City of Burlington, the Village of Lyndonville, or the Town of Rockingham, to the extent that any such municipality acquires or has an interest in an electric power facility, real or personal, situated outside the State or to the extent it owns or operates electric power facilities outside the State pursuant to authority granted in this chapter. (b) Legislative consent is hereby given to the application of regulatory and other laws of other states and of the United States to the City of Burlington, the Village of Lyndonville, or the Town of Rockingham to the extent it owns or operates electric power facilities outside the State pursuant to authority granted in this chapter. (c) Any law, municipal bylaw, or ordinance governing contracts awarded by the City of Burlington or the Village of Lyndonville shall not be applicable by reason of the participation of the City of Burlington or the Village of Lyndonville in electric power facilities pursuant to the authority granted in this chapter wherever the City of Burlington or the Village of Lyndonville is not the lead participant. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 1977, No. 278 (Adj. Sess.), § 5, eff. Feb. 9, 1978; 2003, No. 121 (Adj. Sess.), § 96, eff. June 8, 2004.

30 V.S.A. § 608 Bonding authority — City of Burlington

608. Bonding authority — City of Burlington (a) The City of Burlington, when authorized by a two-thirds vote of all voters present and voting at a meeting called for that purpose, may pledge its credit by issuing the negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to section 604 of this chapter. Such project costs may include all costs, whether incurred prior to or after the issue of bonds or notes, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, nuclear fuel, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this chapter, the funding of notes issued for project costs as provided, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation. (b) The obligations shall be issued in accordance with the charter of the City of Burlington. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the City. (c) The March 6, 1973 vote of the voters of the City of Burlington authorizing and empowering the Burlington City Council to pledge the credit of the City by issuing general obligation bonds or notes in an amount not to exceed $6,000,000.00 for the purpose of acquiring joint ownership interests in four nuclear power plants presently designated as the Connecticut 1979 Nuclear Unit, Pilgrim No. 2, and Seabrook Units No. 1 and No. 2, to be constructed and located in the states of Connecticut, Massachusetts, and New Hampshire is hereby ratified, adopted, and validated in all respects. In addition, any authorized action taken during the calendar year that commenced January 1, 1974 shall be valid and effective as if this chapter were in effect on January 1, 1974. Added 1973, No. 167 (Adj. Sess.), eff. March 25, 1974; amended 2023, No. 85 (Adj. Sess.), § 392, eff. July 1, 2024.

30 V.S.A. § 609 Village of Lyndonville

609. Village of Lyndonville (a) The Village of Lyndonville, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to section 604 of this title. The project costs may include all costs, whether incurred prior to or after the issue of bonds or notes of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, nuclear fuel, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs as provided in this section, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation. (b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 and the charter of the Village of Lyndonville relating to said obligations. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the Village. (c) The May 3, 1977 vote of the voters of the Village of Lyndonville authorizing and empowering the Village of Lyndonville Board of Trustees to pledge the credit of the Village by issuing general obligation bonds or notes in an amount not to exceed $3,800,000.00 for the purpose of acquiring joint ownership interests in four power plants presently designated as the Connecticut 1979 Nuclear Unit, Pilgrim No. 2, and Wyman Unit No. 4 and MMWEC Phase I Intermediate Units and located in the states of Connecticut, Maine, and Massachusetts is hereby ratified, adopted, and validated in all respects. In addition, any action authorized and taken during the calendar year that commenced January 1, 1977 shall be valid and effective as if this chapter were in effect on January 1, 1977. Added 1977, No. 278 (Adj. Sess.), § 6, eff. Feb. 9, 1978; amended 2023, No. 85 (Adj. Sess.), § 393, eff. July 1, 2024.

30 V.S.A. § 610 Bonding authority — Town of Rockingham

610. Bonding authority — Town of Rockingham (a) The Town of Rockingham, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to subsection 604(d) of this title. Such project costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of facilities under this chapter, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs, and all other expenses incidental to the determination of the feasibility of any project, or to carrying out the project, or to placing the project in operation. (b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the Town. (c) The bonding authority of the Town of Rockingham set forth by this section shall be subject to the following: (1) The Town of Rockingham shall not incur indebtedness in order to support the acquisition of the hydroelectric facility specified in subsection 604(d) of this title except in the form of bonds issued under 24 V.S.A. chapter 53, subchapter 2, payable solely from the net revenues from that hydroelectric facility, nor shall the Town have the authority to use the Vermont Municipal Bond Bank to assist with the Town’s acquisition of that hydroelectric facility; provided, however, the foregoing limitations shall not restrict the Town from using whatever financing options, or combinations of financing options, otherwise legally available to it for purposes of acquiring, repairing, improving, or maintaining any other parts of a municipal plant as defined in chapter 79 of this title, or for purposes of repairing, improving, or maintaining the hydroelectric facility after the Town owns the hydroelectric facility. (2) Revenue bonds issued for purposes of the Town’s acquisition of the hydroelectric facility shall not be deemed to constitute a debt or liability or obligation of the Town, the State, or of any political subdivision of it, nor shall those revenue bonds be deemed to constitute a pledge of the faith and credit of the Town, the State, or of any political subdivision, but shall be payable solely from the revenues from the hydroelectric facility. Any revenue bond issued by the Town to support the Town’s acquisition of the hydroelectric facility shall contain on its face a statement to the effect the Town shall not be obligated to pay the same nor the interest on it, except from the revenues or assets pledged for those purposes, and neither the faith and credit nor the taxing power of the Town, the State, or of any political subdivision of it is pledged to the payment of the principal of or the interest on such obligations. (3) The State does hereby pledge to agree with the holders of the notes and bonds issued under this section that the State will not limit or restrict the rights hereby vested in the Town to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes. Neither will the State in any way impair the rights and remedies of the holders until the notes and bonds, together with interest on them, and interest on any unpaid installments of interest, are fully met, paid, and discharged. The Town is authorized to execute this pledge and agreement of the State in any agreement with the holders of the notes or bonds. Added 2003, No. 121 (Adj. Sess.), § 97, eff. June 8, 2004.

30 V.S.A. § 610a Authorization of indebtedness

610a. Authorization of indebtedness (a) A municipality owning and operating a municipal plant and conducting itself as a utility pursuant to chapter 79 of this title, when authorized as provided in 24 V.S.A. chapter 53, subchapters 1 and 2 or municipal charter, may pledge its credit or the net revenues of its municipal plant by issuing negotiable orders, warrants, notes, or bonds for the acquisition of equity ownership in Vermont Transco LLC or Vermont Electric Power Company or both pursuant to subsection 604(e) of this title. In addition, an acquisition of equity ownership may be effected through any instrument permitted under 24 V.S.A. § 1789. Acquisition costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of equity ownership under this chapter. Acquisition of equity ownership is an improvement as defined in 24 V.S.A. § 1751(3). (b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 or municipal charter. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the municipality. (c) Any contract entered into and any debt obligation issued under this section for any purpose pursuant to this chapter shall have been issued for an essential government purpose and shall not be deemed to be a pledge of private credit for public benefit nor a delegation of municipal authority, responsibility, or discretion. Added 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008.

30 V.S.A. § 611 Liability of the State; immunity

611. Liability of the State; immunity No provision of this chapter shall constitute a waiver of sovereign immunity of the State. The State of Vermont shall not be liable for injury to persons or property or loss of life caused by the negligent or wrongful act or omission of the Town of Rockingham or any of the Town’s agents or employees in the maintenance or operation of the hydroelectric facilities specified in subsection 604(d) of this title. Added 2003, No. 121 (Adj. Sess.), § 98, eff. June 8, 2004.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/30/014Fetched: 10/21/2026