394.080. Powers, generally--may supply energy to certain cities, towns and villages, when. - Missouri Statutes

Powers, generally--may supply energy to certain cities, towns andvillages, when.

394.080. 1. A cooperative shall have power:

(1) To sue and be sued, in its corporate name;

(2) To have succession by its corporate name for the periodstated in its articles of incorporation or, if no period isstated in its articles of incorporation, to have such successionperpetually;

(3) To adopt a corporate seal and alter the same atpleasure;

(4) Except as provided in section 386.800, RSMo, togenerate, manufacture, purchase, acquire, accumulate and transmitelectric energy, and to distribute, sell, supply, and dispose ofelectric energy in rural areas to its members, to governmentalagencies and political subdivisions, and to other persons not inexcess of ten percent of the number of its members; provided,however, that where a cooperative has been transmitting,distributing, selling, supplying or disposing of electric energyin a rural area which, by reason of increase in its population,its inclusion in a city, town or village, or by reason of anyother circumstance ceases to be a rural area, such cooperativeshall have the power to continue to transmit, distribute, sell,supply or dispose of electric energy therein until such time asthe municipality, or the holder of a franchise to furnishelectric energy in such municipality, may purchase the physicalproperty of such cooperative located within the boundaries of themunicipality, pursuant to law, or until such time as themunicipality may grant a franchise in the manner provided by lawto a privately owned public utility to distribute electric powerwithin the municipality and such privately owned public utilityshall purchase the physical property of such cooperative locatedwithin the boundaries of the municipality. In case any of theparties to such purchase, as herein provided, cannot agree uponthe fair and reasonable price to be paid for the physicalproperty of such cooperative within the municipality, or ifeither party refuses to negotiate for the sale of such propertyupon the request of the other, the fair and reasonable value ofsuch property for such purchase shall be fixed by the publicservice commission upon application of any one or more of theinterested parties;

(5) To make loans to persons to whom electric energy is orwill be supplied by the cooperative for the purpose of, andotherwise to assist such persons in, wiring their premises andinstalling therein electric and plumbing fixtures, appliances,apparatus and equipment of any and all kinds and character, andin connection therewith, to purchase, acquire, lease, sell,distribute, install and repair such electric and plumbingfixtures, appliances, apparatus and equipment, and to accept orotherwise acquire, and to sell, assign, transfer, endorse,pledge, hypothecate and otherwise dispose of notes, bonds andother evidences of indebtedness and any and all types of securitytherefor;

(6) To make loans to persons to whom electric energy is orwill be supplied by the cooperative for the purpose of, andotherwise to assist such persons in, constructing, maintainingand operating electric refrigeration plants;

(7) To construct, purchase, take, receive, lease as lessee,or otherwise acquire, and to own, hold, use, equip, maintain, andoperate, and to sell, assign, transfer, convey, exchange, leaseas lessor, mortgage, pledge, or otherwise dispose of or encumber,electric transmission and distribution lines or systems, electricgenerating plants, electric refrigeration plants, lands,buildings, structures, dams, plants and equipment, and any andall kinds and classes of real or personal property whatsoever,which shall be deemed necessary, convenient or appropriate toaccomplish the purpose for which the cooperative is organized;

(8) To purchase or otherwise acquire, and to own, hold, useand exercise and to sell, assign, transfer, convey, mortgage,pledge, hypothecate, or otherwise dispose of or encumber,franchises, rights, privileges, licenses, rights-of-way andeasements;

(9) To borrow money and otherwise contract indebtedness,and to issue notes, bonds, and other evidences of indebtednesstherefor, and to secure the payment thereof by mortgage, pledge,deed of trust, or any other encumbrance upon any or all of itsthen-owned or after-acquired real or personal property, assets,franchises, revenues or income;

(10) To construct, maintain and operate electrictransmission and distribution lines along, upon, under and acrossall public thoroughfares, including without limitation, allroads, highways, streets, alleys, bridges and causeways, andupon, under and across all publicly owned lands, subject,however, to the requirements in respect of the use of suchthoroughfares and lands that are imposed by the respectiveauthorities having jurisdiction thereof upon corporationsconstructing or operating electric transmission and distributionlines or systems;

(11) To exercise the power of eminent domain in the mannerprovided by the laws of this state for the exercise of that powerby corporations constructing or operating electric transmissionand distribution lines or systems;

(12) To conduct its business and exercise any or all of itspowers within or without this state;

(13) To adopt, amend and repeal bylaws; and

(14) To do and perform any and all other acts and things,and to have and exercise any and all other powers which may benecessary, convenient or appropriate to accomplish the purposefor which the cooperative is organized.

2. In addition to all other powers granted in this section,rural electric cooperatives shall have the power to supplyelectric energy at retail after August 28, 1989, in cities, townsand villages having a population in excess of fifteen hundredinhabitants under the following conditions:

(1) The cooperative was the predominant supplier of retailelectric energy within the city, town or village at the time anyofficial United States Census Bureau "decennial census report"declares the population of such city, town or village to be inexcess of fifteen hundred inhabitants;

(2) The city, town or village has granted to thecooperative a franchise to supply electric energy within thecity, town or village.

3. In addition, the cooperative shall provide, concurrentwith its application to the city, town or village for its initialfranchise, written notice of its franchise application to allother providers of electric energy at retail operating withinsuch city, town or village.

4. The provisions of subsections 2 and 3 of this sectionshall in no way affect or diminish the rights and duties of anycity, town or village to grant franchises to electric suppliersin the manner provided by law or of any electrical corporationauthorized by law to provide electric service at retail withinsuch city, town or village.

5. Notwithstanding the provisions of subsection 2 of thissection, after a public hearing upon a complaint, the publicservice commission may order that service be provided by anothersupplier if it finds that service from another supplier ofelectricity is in the public interest for a reason other thanrate differential. Nothing in this section shall be construed asconferring upon the public service commission jurisdiction overthe rates, financing, accounting or management of any electriccooperative.

(RSMo 1939 § 5388, A.L. 1943 p. 491, A.L. 1949 p. 238, A.L. 1983 H.B. 137, A.L. 1989 H.B. 813, A.L. 1991 S.B. 221)

Effective 7-11-91

CROSS REFERENCES:

Condemnation proceedings, Chap. 523, RSMo

Power lines on state highways, location and removal, RSMo 227.240

(1966) Cooperative's refusal of offer of amount fixed by public service commission does not terminate its power to supply electricity to annexed areas. Missouri Public Service Comm. v. Platte-Clay Elec. Coop. (Mo.), 407 S.W.2d 883.