PA 08-128—sHB 5330

Energy and Technology Committee

Planning and Development Committee

AN ACT CONCERNING MUNICIPAL UTILITIES

SUMMARY: This act expands the powers of a municipal electric energy cooperative. It also gives a cooperative more options in procuring supplies, materials, and equipment. The Connecticut Municipal Electric Energy Cooperative (CMEEC) is currently the only such cooperative in Connecticut.

EFFECTIVE DATE: Upon passage

POWERS

The act allows a cooperative to make agreements with any entity to receive or procure the supply, or prepay for the supply of, natural gas for the sole benefit of the cooperative's members, the city of Norwich Department of Public Utilities, or a municipal gas utility. The gas must be used or consumed by the utility or by its retail consumers entirely within the city of Norwich or the town of Preston. The gas cannot be consumed, used in, or transported to (1) any other municipality or utility, (2) land held in trust by the United States on behalf of a Native American tribe, or (3) land located in a Native American reservation or other jurisdiction. The cooperative cannot exercise these powers in a way that harms the rights, powers, and privileges of gas companies.

PROCUREMENT OPTIONS

Under current law, a cooperative must follow competitive bidding procedures to purchase supplies, materials, and equipment worth more than $25,000, unless there is only one source for the supplies or if a cooperative is a part owner of the affected project. The act additionally exempts from competitive bidding (1) contracts for projects in which a cooperative has an interest or if a cooperative is involved as a partner or joint venture and (2) contracts entered into under the law governing the cooperative. For these projects and contracts, the act allows a cooperative to enter contracts following negotiations, requests for proposals (RFPs), or open or sealed bid procurement. In determining which procurement method is most prudent, a cooperative can consider the scope of work and associated management complexities; the extent of current and future technological development requirements; and the best interests of the cooperative, its members, and its participants. A cooperative must determine the terms and conditions of the contracts and the fees or other compensation to be paid under them.

Under the act, a cooperative may enter into a contract following an RFP or negotiations by resolution or by the terms of its written policies, at the option of its governing body. If the cooperative chooses to proceed by negotiations or RFP under written policies adopted by the governing body, the contract and the factual basis for its choice of procurement method must be recorded and open for public inspection immediately after the cooperative awards the contract.

BACKGROUND

CMEEC

CMEEC is responsible for procuring power and financing and building generating resources for its members. The members are: Groton Utilities, Jewett City Department of Public Utilities, Norwich Public Utilities, and the Second and Third Taxing Districts of Norwalk (South Norwalk and East Norwalk, respectively). CMEEC also provides power for participating utilities (the Wallingford Department of Public Utilities, Bozrah Light and Power, and the Mohegan Tribal Authority).

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