70-682. Generating power agency; authority to engage in commodity futures financial hedging transactions; procedure; limitation.
(1) For purposes of this section:
(a) Generating power agency has the same meaning as in Chapter 70, article 6; and
(b) Regional transmission organization has the same meaning as in section 70-1001.01.
(2) Any generating power agency buying or selling fuel, power, or energy which operates in a regional transmission organization shall be authorized to engage in commodity futures financial hedging transactions with products regulated under the federal Commodity Futures Trading Commission for fuel, power, or energy as part of its sound business practices. Any generating power agency engaged in such transactions is authorized to grant a foreclosable security interest in and a lien on such agency’s commodity futures account contracts or funds used for such transactions in an amount not exceeding five percent of such agency’s annual gross revenue averaged over the preceding three calendar years.
(3) The authority to enter into agreements for the use of commodity futures financial hedging transactions shall be authorized by a resolution adopted or an agreement approved by the governing body of the generating power agency.
(4) The authority granted in this section is limited to granting a security interest in and a lien on future account contracts or funds specifically designated and used for such commodity futures financial hedging transactions. Except as otherwise authorized under Chapter 70, this section does not authorize granting a foreclosable security interest in or a lien on any other funds, assets, facilities, or property of a generating power agency.
(5) An agreement authorized by this section shall be considered a bond as defined in section 10-1103.
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