70-1010. Modification of service areas; application; procedure; suppliers agreements; exception; transfer of customers and facilities; price; how computed; impairment of obligations prohibited.
(1) The board shall have authority upon application by a supplier at any time to modify service areas or customers to be served as previously established. The same procedures as to notice, hearing, and decision shall be followed as in the case of an original application. Suppliers shall have authority by agreement to change service areas or customers to be served with the approval of the board. This section shall not apply to agreements referred to in subsection (2) of section 70-1002.
(2) In the event of a proposed transfer of customers and facilities from one supplier to another in accordance with this section or section 70-1008 or 70-1009, the parties shall attempt to agree upon the value of the certified service area and distribution facilities and customers being transferred. If the parties cannot agree upon the value, then the board shall determine the total economic impact on the selling supplier and establish the price accordingly based on, but not limited to, the following guidelines: The supplier acquiring the certified service area, distribution facilities, and customers shall purchase the electric distribution facilities of the supplier located within the affected area, together with the supplier's rights to serve within such area, for cash consideration which shall consist of (a) the current reproduction cost if the facilities being acquired were new, less depreciation computed on a straight-line basis at three percent per year not to exceed seventy percent, plus (b) an amount equal to the nonbetterment cost of constructing any facilities necessary to reintegrate the system of the supplier outside the area being transferred after detaching the portion to be sold, plus (c) an amount equal to two and one-half times the annual revenue received from power sales to existing customers of electric power within the area being transferred, except that for large commercial or industrial customers with peak demands of three hundred kilowatts or greater during the twelve months immediately preceding the date of filing with the board, the multiple shall be five times the net revenue, defined as gross power sales, less costs of wholesale power including facilities rental charges, received from power sales to large commercial or industrial customers with measured demand of three hundred kilowatts or greater during the twelve months immediately preceding the filing with the board for service area modification. After the board has determined the price in accordance with such guidelines, the acquiring supplier may acquire such distribution facilities and customers by payment of the established price within one year of the final order.
(3) Notwithstanding the provisions of sections 70-1008 to 70-1010, no transfer of facilities and customers shall be made or approved by the board if such transfer would impair the obligations of a power supplier to holders of its bonds or mortgages.
Source
Annotations
"Reintegration" for the purposes of this section 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 section 70-1008 and this section. In re Application of City of Neligh, 299 Neb. 517, 909 N.W.2d 73 (2018).
The plain meaning of "existing customer" under subsection (2)(c) of this section is a customer who is purchasing or has been purchasing electricity from a supplier of electricity at the time transfer of the service area becomes imminent. The proper date to determine valuation under this section is not the date of annexation, but, rather, the date on which the acquiring service provider firmly asserts its rights to acquire the service area by filing an application with the Nebraska Power Review Board to serve the newly annexed area. In re Application of City of North Platte, 257 Neb. 551, 599 N.W.2d 218 (1999).
Subsection (2) of this section clearly provides that the Nebraska Power Review Board shall determine economic impact on the selling supplier when a proposed transfer of customers and facilities from one supplier to another is involved and the parties are unable to agree upon the value of the certified service area, distribution facilities, and customers being transferred. In re Application of City of Grand Island, 247 Neb. 446, 527 N.W.2d 864 (1995).
In determining total economic impact on selling supplier, this section authorizes the Nebraska Power Review Board to consider factors other than those specifically named. In re Application of City of Lexington, 244 Neb. 62, 504 N.W.2d 532 (1993).
A service area is subject to modification at any time by procedure prescribed. City of Schuyler v. Cornhusker P. P. Dist., 181 Neb. 704, 150 N.W.2d 588 (1967).
Structure Nebraska Revised Statutes
Chapter 70 - Power Districts and Corporations
70-101 - Districts and corporations; furnish information; enforcement.
70-301 - Right-of-way; acquisition; procedure; approval.
70-303 - Right-of-way; abandonment, effect of.
70-304 - Right-of-way; acquisition; crop damage.
70-305 - Right-of-way; damage to private property; procedure.
70-306 - Placement of lines; procedure.
70-307 - Placement of lines; violation; penalty.
70-308 - Property within village or city; how treated.
70-313 - Electric transmission or electric distribution lines; liability; cost of removal.
70-408 - Electric companies; rates; kilowatt-hour meter; demand meter; minimum charge authorized.
70-409 - Electric companies; rate regulations; violation; penalty.
70-502 - Electric energy; sale or purchase; interconnections; contracts authorized.
70-503 - Acquisition, extension, and improvements; pledge of earnings or profits authorized.
70-504 - Sale, lease, or transfer; election and voter approval required; exceptions; procedure.
70-505 - Sale, lease, or transfer; documents; filing.
70-506 - Sale, lease, or transfer; statement and report; contents; filing.
70-507 - Sale, lease, or transfer; statement and report; certification; filing.
70-508 - Sale, lease, or transfer; false statement, report, or certificate; penalty.
70-509 - Sale, lease, or transfer; evidence of valuation.
70-510 - Sale, lease, or transfer; promotion expenditures; limitation.
70-511 - Sale, lease, or transfer; excessive promotion expenditures; violation; penalty.
70-513 - Sale, lease, or transfer; promotion expenditures; statement.
70-514 - Sale, lease, or transfer; promotion expenditures; failure to file statement; penalty.
70-515 - Applicability of laws.
70-602 - District; creation; general powers.
70-603 - District; organization; amendment of charter; petition.
70-604 - District; petition; contents.
70-604.01 - Chartered territory; boundaries.
70-604.02 - Operating area, defined.
70-604.04 - Operating area; electric utility not included, when; wholesale supplier; duties.
70-604.05 - District; noncompliance; complaint; hearing; notice; order; failure to comply; penalty.
70-604.06 - Nebraska Power Review Board; final action; appeal; manner.
70-604.08 - District; reorganization, consolidation, or merger; directors; continue to serve term.
70-604.09 - District; conduct business in other states; limitations.
70-605 - District; original creation; petition; signatures; number required.
70-606 - District; petition requirements.
70-607 - District; petition; investigation; approval.
70-608 - District; certificate of approval; filing.
70-609 - District; board of directors; assumption of duties.
70-609.01 - Board of directors; statement of public policy.
70-610 - Board of directors; candidate qualifications; election; expenses.
70-611 - Board of directors; election; certified notice; publication.
70-612 - Board of directors; election; subdivisions; procedure.
70-615 - Board of directors; vacancy; how filled.
70-616 - Board of directors; oath.
70-619 - Board of directors; qualifications; eligibility to serve.
70-620 - Officers; appointment; treasurer's bond.
70-620.01 - Chief executive officer; terms of employment; powers; duties.
70-621 - Board of directors; rules and regulations.
70-622 - Books and records; where kept; open to inspection.
70-623 - Fiscal year; annual audit; filing.
70-623.02 - Audit; records accessible to auditor.
70-623.03 - Failure to file audit; effect.
70-624 - Officers; compensation; approval; publication; violation; penalty.
70-624.01 - District; agent; cost-plus contracts prohibited.
70-624.02 - Board of directors; expenses; compensation; prohibitions; exceptions.
70-625 - Public power district; powers; restrictions.
70-625.01 - Rural areas; legislative findings and declarations.
70-625.02 - Electric transmission facilities and interconnections, defined; policy of state.
70-626.01 - Generating power agency; duty to sell electrical energy; when.
70-626.02 - Generating power agency; physical connections; establish; rates.
70-626.05 - Wheeling service; contract; dispute; exception; board; settlement.
70-627 - Irrigation works; construction; acquisition; contracts authorized.
70-628 - District; additional powers.
70-628.02 - Joint exercise of powers with municipalities and public agencies; authority.
70-628.03 - Joint exercise of powers with electric cooperatives or corporations; authority.
70-629 - Power to tax denied; exception.
70-630 - Water storage or service; contract required; conditions.
70-631 - Power to borrow; repayment of indebtedness; source of funds; security for indebtedness.
70-632 - Indebtedness; pledge of revenue, how made.
70-633 - Pledge of revenue; terms; directors to prescribe; officer of district; powers authorized.
70-634 - Pledge of revenue; provision for refunding indebtedness.
70-635 - Pledge of revenue; special fund.
70-636 - District; rates; agreement with security holders.
70-637 - Construction, repairs, and improvements; contracts; sealed bids; exceptions; notice; when.
70-638 - Contracts; sealed bids; advertisement.
70-639 - Letting of contracts; considerations.
70-640 - Contracts; Nebraska workmen preferred.
70-641 - Contracts; bonds; laws applicable.
70-642 - Damage, injury, or impairment to district property; emergencies; procedure.
70-642.01 - Conditions created by war or national defense; contracting requirements inapplicable.
70-643 - District; funds; how expended; bond, when required.
70-644 - District facilities and property; mortgage authorized; when.
70-645 - Pledge of revenue; authorized; when.
70-646.01 - District property; alienation to private power producers prohibited; exceptions.
70-648 - Receivership; when authorized; discharge of receiver; when.
70-651.01 - Districts; payments in lieu of taxes.
70-651.02 - Districts; payments in lieu of taxes; distribution; use.
70-651.03 - Districts; gross revenue tax; how determined.
70-651.04 - Districts; gross revenue tax; distribution.
70-651.05 - Public power districts; payment made in lieu of other taxes and fees; exceptions.
70-653.01 - Electric distribution system; purchase by city or village; payment in lieu of taxes.
70-653.02 - Cities and villages; payment in lieu of taxes; how paid.
70-655 - Reasonable rates required; negotiated rates authorized; conditions.
70-659 - Operation within city or village by district; franchise required.
70-660 - Franchise to operate utility; terms and conditions; rates prescribed.
70-661 - Contracts with city or village; terms and conditions.
70-663 - Amendment; approval procedure.
70-664 - Amendment; board approval; certificate; filing.
70-665 - Amendment; when effective.
70-666 - Dissolution; procedure.
70-668 - Streams; water rights; priority.
70-669 - Streams; inferior rights; acquired by superior right; how compensated.
70-671 - District; breaks, overflow, and seepage; liability.
70-672 - Water rights; eminent domain; condemnation; procedure.
70-673 - Competitive or proprietary information; withheld; when; procedures applicable.
70-680 - Judicial proceedings; bond not required, when.
70-706 - Articles of incorporation; contents.
70-707 - Electric cooperative; use of term restricted.
70-708 - Articles of incorporation; filing; certificate of incorporation; issuance.
70-709 - Certificate of incorporation; effect.
70-710 - Organizational meeting; bylaws; adoption; election of officers; notice; waiver.
70-711 - Bylaws; make, alter, amend, or repeal; contents.
70-712 - Membership; conditions.
70-713 - Meetings, where held; annual and special meetings.
70-714 - Meetings; notice; waiver.
70-715 - Members; voting rights.
70-716 - Membership certificate; issuance; transfer; conditions.
70-718 - Board of directors; number; powers; qualifications.
70-719 - Directors; alternate directors; election; compensation; expenses.
70-720 - Directors; alternate directors; vacancy; how filled.
70-721 - Board of directors; quorum; how determined.
70-722 - Board meetings; notice; waiver.
70-723 - Officers; powers; duties; removal.
70-724 - Executive committee; powers.
70-725 - Rates for electric energy and other services; nonprofit operation.
70-726 - Revenue; use; surplus; return to consumer.
70-727 - Articles of incorporation; amendment; procedure.
70-728 - Consolidation of corporations; how effected.
70-729 - Articles of consolidation; filing.
70-730 - Dissolution; procedure.
70-731 - Dissolution; discharge of liabilities; distribution of assets.
70-732 - Defective corporations; dissolution; procedure.
70-734 - Securities Act of Nebraska; inapplicable; when.
70-735 - Defective incorporation; correction; effect.
70-736 - Existing associations; compliance with sections.
70-737 - Sections, how construed.
70-738 - Sections; exclusive; applicability of other law.
70-801 - District; how created.
70-803 - Formation of district; petition; contents.
70-804 - Formation of district; petition; investigation; hearing; notice; expenses.
70-805 - Formation of district; petition; hearing; approval; procedure.
70-806 - Formation of district; petitioner; appeal; procedure.
70-807 - Formation of district; petition granted; interested person; appeal; procedure.
70-808 - Sections, how construed.
70-1001 - Declaration of policy.
70-1002.02 - Suppliers of electricity; sale in violation of approved agreement; prohibited.
70-1004 - Suppliers of electricity; filing of maps and service area statements; exception.
70-1006 - Hearings; continuance; rules of procedure.
70-1007 - Establishment of service areas; board; orders; policy considerations.
70-1014.01 - Special generation application; approval; findings required; eminent domain.
70-1017 - Suppliers; duty to furnish service; disputes submitted to board.
70-1018 - Suppliers; disputes over rates; submission to board; hearing; recommendations.
70-1021 - Microwave communication facilities; authorization; procedure; protest; hearing; when.
70-1022 - Microwave facilities or system; authorization; when not required.
70-1023 - Transferred to section 70-1001.01.
70-1024 - Power supply plan; board; powers and duties; special assessment.
70-1025 - Power supply plan; contents; filing; annual report.
70-1026 - Power supply plan; research and conservation report; contents.
70-1032 - Working group; members.
70-1033 - Nebraska Power Review Board; duties.
70-1101 - Declaration of policy.
70-1102 - Public power districts; agreements with municipalities; operation until January 1, 1972.
70-1104 - Public power districts; municipal operation; employees' rights respected.
70-1106 - Sections, how construed.
70-1301 - Statement of policy.
70-1302 - Electric rate disputes; legislative determination.
70-1303 - Wholesale purchaser; payment to supplier; when.
70-1304 - Wholesale purchaser; billing; dispute; notice; contents.
70-1305 - Wholesale purchaser; dispute; supplier establish escrow account.
70-1306 - Unresolved dispute; submitted to arbitration; rules applicable.
70-1307 - Arbitration board; membership.
70-1308 - Arbitrators; disqualifications.
70-1309 - Arbitration board; appointed; when; manner.
70-1310 - Arbitration costs and expenses; how assessed.
70-1311 - Arbitration board; personnel; hire.
70-1312 - Arbitration board; meetings; chairperson; disputed issues.
70-1313 - Failure to appoint an arbitrator; effect.
70-1314 - Arbitration board; proceedings; duties.
70-1315 - Supplier; notice to other wholesale purchasers; when.
70-1316 - Arbitration board; preliminary written statements; hearing; notice.
70-1317 - Dispute; production of documents and records; depositions.
70-1318 - Arbitration board; hearing; testimony; evidence; witnesses.
70-1319 - Arbitration board; hearing; duration.
70-1320 - Arbitration board; decision; findings.
70-1322 - Escrow account; distribution.
70-1323 - Escrow account; deficiency; effect; interest.
70-1324 - Arbitration; time limits; extension.
70-1325 - Arbitration board; final decision; appeal.
70-1326 - Arbitration board; decision; reversal, modification, or vacation; procedure.
70-1327 - Appellate court; trial; de novo on the record.
70-1329 - Wholesale purchaser; failure or refusal to make payment; supplier; remedies.
70-1403 - Legislative findings.
70-1404 - Public power district; joint project authorized; limitation; study.
70-1408 - Joint authority; executive committee; creation; exercise powers of board.
70-1409 - Joint authority; rights and powers; enumerated.
70-1410 - Joint authority; statutory restrictions applicable; when.
70-1411 - Joint authority; annual audit.
70-1413 - Joint authority project; sale of excess capacity; limitations; applicability.
70-1414 - Joint authority; issue bonds; pledge revenue; restrictions.
70-1415 - Joint authority projects; bonds; issuance; proceeds; uses.
70-1416 - Bonds; secured by trust agreement; covenants authorized.
70-1417 - Directors; establish rates and fees; limitation; pledge; lien.
70-1418 - Funds from bond issuance; investment authorized; conditions.
70-1419 - Bondholder; trustee; enforcement of rights.
70-1420 - Refunding bonds; issuance; conditions.
70-1421 - Board of directors; grants-in-aid and loans; authorized; powers.
70-1422 - Sections, supplemental to other provisions.
70-1423 - Sections, how construed.
70-1501 - Statement of policy.
70-1502 - Suppliers; agreements authorized.
70-1503 - Agreement; Nebraska Power Review Board; approval required; procedure.
70-1504 - Agreement; dispute; hearing.
70-1505 - Supplier; competition and antitrust provisions; exemption.
70-1601 - Applicant for service; denial prohibited, when.
70-1602 - Domestic subscriber, defined.
70-1605 - Discontinuance of service; notice; procedure; limitation on fees.
70-1606 - Discontinuance of service; notice; contents; accessible to public.
70-1607 - Discontinuance of service; third-party notice procedure.
70-1608 - Discontinuance of service; dispute; conference.
70-1609 - Discontinuance of service; dispute; statement; effect.
70-1610 - Conference; employee; duties.
70-1611 - Conference; employee; decision to terminate service; when.
70-1612 - Appeal; hearing; procedure.
70-1613 - Appeal; hearing; domestic subscriber; rights.
70-1614 - Appeal; hearing; management office; duties.
70-1615 - Sections; not applicable; when.
70-1702 - Purchase agreement; contents.
70-1703 - Agreement; other provisions applicable.
70-1704 - Ownership agreement; terms and conditions.
70-1705 - Sections; how construed.
70-1802 - Definitions, where found.
70-1803 - Financing costs, defined.
70-1805 - Mandated project, defined.
70-1805.01 - Mandated project bond issuer, defined.
70-1806 - Mandated project bonds, defined.
70-1807 - Mandated project charge, defined.
70-1808 - Mandated project costs, defined.
70-1809 - Public entity, defined.
70-1810 - Related operating expenses, defined.
70-1811 - Special revenue, defined.
70-1813 - Issuance of mandated project bonds; authorized; proceeds; use.
70-1814 - Mandated project charges; use.
70-1815 - Public entity; discretionary actions.
70-1816 - Public entity collecting mandated project charges; billing explanation required.
70-1817 - Act and grants of power; how construed.
70-1818 - Creation of mandated project bond issuer; procedure; board of directors.
70-1905 - Electric supplier; duties.
70-1907 - C-BED project developer; provide notices.
70-1908 - Sections; how construed.
70-1909 - Electric supplier; limit on eminent domain.
70-2001 - Legislative findings.
70-2005 - Annual net metering report; contents.
70-2102 - Legislative findings.
70-2103 - Public power supplier, defined.
70-2104 - Prohibited acts; penalty.
70-2105 - Nuclear electrical generating facility; nuclear fuel; prohibited acts; penalty.