70-1008. Certified service areas; established; municipalities; newly annexed areas; acquisition of facilities and customers; procedure; waiver of right to acquire; joint planning.

In the absence of an agreement between the suppliers affected and notwithstanding the provisions of subdivisions (1) to (5) of section 70-1007:

(1) Existing service areas presently designated by agreements and exhibits filed with and approved by the board, or previously ordered by the board, shall remain and be established as certified service areas.

(2) A municipally owned electric system, serving such municipality at retail, shall have the right, upon application to and approval by the board, to serve newly annexed areas of such municipality. Electric distribution facilities and customers of another supplier in such newly acquired certified service area may be acquired, in accordance with the procedure and criteria set forth in section 70-1010, within a period of one year and payment shall be made in respect to the value of any such facilities' customers or certified service area being transferred. The rights of a municipality to acquire such distribution facilities and customers within such newly annexed area shall be waived unless such acquisition and payment are made within one year of the date of annexation. If an application is made to the board within one year of the date of annexation for a determination of total economic impact as provided in section 70-1010, such right shall not be waived unless the municipality fails to make payment of the price determined by the board within one year of a final decision establishing such price. Notwithstanding other provisions of this section, the parties may extend the time for acquisition and payment by mutual written agreement.

(3) All retail power suppliers having adjoining certified service areas shall engage in joint planning with respect to customers, facilities, and services, taking into account the considerations specified in section 70-1007, including the possibility that an area may be annexed by a municipality within a reasonable period of time.

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Annotations

"Reintegration" for the purposes of section 70-1010 means "'to restore to unity after disintegration'" and is distinct from any accompanying loss of revenue that might be associated with a loss of load following a transfer of electrical services under this section and section 70-1010. In re Application of City of Neligh, 299 Neb. 517, 909 N.W.2d 73 (2018).

Under this section, a municipality is authorized to acquire the electric distribution facilities and customers of any other supplier within an area annexed by the municipality. This section does not require the municipality to make payment for the value of a rural power district area transferred to a city when there are no facilities or customers for a city to acquire. In re Application of City of Grand Island, 247 Neb. 446, 527 N.W.2d 864 (1995).

A municipality which operates a retail system has a preference to furnish service within its corporate limits and its zoning area. City of Schuyler v. Cornhusker P. P. Dist., 181 Neb. 704, 150 N.W.2d 588 (1967).

A municipality that furnishes electric energy at retail has the right to serve its zoning area with specified exception. City of Gering v. Gering Valley Rural P. P. Dist., 180 Neb. 241, 142 N.W.2d 155 (1966).