§ 4002a. All requirements contracts

(a) For purposes of this section, and subdivisions 4002(6) and 5012(15) of this title, the term "all requirements service" shall mean service pursuant to a contract by which the Vermont Public Power Supply Authority assumes responsibility for power supply arrangements and other arrangements pertaining to the procurement and transmission of electric energy and capacity, on behalf of those systems which are signatories to a contract under this section, and subdivisions 4002(6) and 5012(15) of this title, and such contract may contain provisions consistent with and shall be subject to the provisions of section 5013 of this title in the same manner as a capacity and output contract. Such contract may include provisions under which the Vermont Public Power Supply Authority will provide demand-side management programs and least-cost integrated plans for the contracting utility.

(b) Prior to entering into such a contract, the municipal or cooperative utility must obtain:

(1) Approval, upon petition of the utility or of the Authority, by the Public Utility Commission of the proposed arrangement, which shall be given upon findings that the proposed arrangement will promote the general good of the ratepayers of the utility or utilities, and is consistent with least-cost integrated planning principles. The proposed contract reflecting the arrangement shall be filed with the Commission and the Department at least 45 days prior to its intended execution, and the Department shall make its recommendation as to whether it accepts or does not accept the contract within 30 days of the date on which the proposed contract was filed. Should the Department oppose the contract, or the Commission on its own motion determine that investigation into the contract is appropriate, the Commission shall hear evidence on the matter and shall determine, within seven months of the intended execution date, whether the contract promotes the general good as described in this subdivision. Failure of the Commission to act within seven months shall be deemed to constitute approval of the contract.

(2) Approval of the arrangement, within 90 days of approval or failure to act by the Public Utility Commission under subdivision (1) of this subsection, by a majority of persons voting in a duly warned election called by the cooperative or municipality for the purpose of considering such arrangement.

(c) Nothing in this section or subdivision 4002(6) of this title shall be construed as precluding entry by municipal or cooperative utilities into letters of intent or other conditional arrangements for ultimate entry into a contract contemplated by this section and subdivision 5012(15) of this title.

(d) Any contract under this section shall contain provisions allowing for its termination upon appropriate prior notice, with due consideration for the equitable allocation of obligations incurred pursuant to subdivision 5012(6) of this title during the period of delegated authority. Where a petition signed by not less than five percent of the qualified voters of a municipality or members of a cooperative, requesting termination of the participation of the municipality or cooperative in an all requirements contract, is filed with the clerk of the municipality or the board of directors of the cooperative, the legislative body of the municipality or the board of directors of the cooperative shall provide for a binding vote of the municipality or cooperative in accordance with this subsection within 60 days of filing, at an annual or special meeting duly warned for that purpose.

(e) No contract under this section reduces the responsibility of a contracting utility to develop cost-effective demand-side and supply-side resources in accordance with an approved least-cost integrated plan. However, the utility may delegate authority to the Vermont Public Power Supply Authority to prepare, file, and seek approval of least-cost integrated resource plans on behalf of the contracting utility. (Added 1991, No. 170 (Adj. Sess.), § 3, eff. May 15, 1992.)