Retainage -- Notice of service and agreement. (1) As used in this section, "communications service facility" means the same as that term is defined in Section 10-18-102. (2) (a) A municipality may: (i) construct, maintain, and operate waterworks, sewer collection, sewer treatment systems, gas works, electric light works, broadband services, telecommunications lines, cable television lines, public transportation systems, or communications service facilities; (ii) authorize the construction, maintenance, and operation of the works or systems described in Subsection (2)(a)(i) by others; (iii) purchase or lease the works or systems described in Subsection (2)(a)(i) from any person or corporation; and (iv) subject to Subsection (2)(b), sell and deliver the surplus product or service capacity of any works or systems described in Subsection (2)(a)(i), not required by the municipality or the municipality's inhabitants, to others beyond the limits of the municipality. (b) The sale and delivery of the surplus product or service capacity described in Subsection (2) (a)(iv) in relation to: (i) retail electricity beyond the municipal boundary is governed by Subsections (3) through (7); (ii) broadband services, cable television services, or public telecommunications services is governed by Subsection (11); and (iii) water is governed by Sections 10-7-14 and 10-8-22. (3) If any payment on a contract with a private person, firm, or corporation to construct waterworks, sewer collection, sewer treatment systems, gas works, electric works, broadband services, telecommunications lines, cable television lines, public transportation systems, or communications service facilities is retained or withheld, it shall be retained or withheld and released as provided in Section 13-8-5. (4) (a) Except as provided in Subsection (4)(b), (5), or (9), a municipality may not sell or deliver the electricity produced or distributed by the municipality's electric works constructed, maintained, or operated in accordance with Subsection (2) to a retail customer located beyond the municipality's municipal boundary. (b) A municipality that provided retail electric service to a customer beyond the municipality's municipal boundary on or before June 15, 2013, may continue to serve that customer if: (i) on or before December 15, 2013, the municipality provided the electrical corporation, as defined in Section 54-2-1, that is obligated by the municipality's certificate of public convenience and necessity to serve the customer with an accurate and complete verified written notice identifying each customer served by the municipality beyond the municipality's municipal boundary; (ii) no later than June 15, 2014, the municipality entered into a written filing agreement for the provision of electric service with the electrical corporation; and (iii) the Public Service Commission approved the written filing agreement in accordance with Section 54-4-40. (5) (a) A municipality may submit to the electrical corporation a request to provide electric service to an electric customer who is located outside the municipal boundary and who was not identified in accordance with Subsection (4)(b)(i). (b) If a municipality submits a request described in Subsection (5)(a), the electrical corporation shall respond to the request within 60 days. (c) If the electrical corporation agrees to allow the municipality to provide electric service to the customer: (i) the electrical corporation and the municipality shall enter into a written agreement; (ii) the municipality shall agree in the written agreement to subsequently transfer service to the customer described in Subsection (5)(a) if the electrical corporation notifies, in writing, the municipality that the electrical corporation has installed a facility capable of providing electric service to the customer; and (iii) the municipality may provide the service if: (A) except as provided in Subsection (5)(c)(iii)(B), the Public Service Commission approves the agreement in accordance with Section 54-4-40; or (B) for an electrical cooperative that meets the requirements of Subsection 54-7-12(7), the governing board of the electrical cooperative approves the agreement. (d) The municipality or the electrical corporation may terminate the agreement for the provision of electric service if the Public Service Commission imposes a condition authorized in Section 54-4-40 that is a material change to the agreement. (6) If the municipality and electrical corporation make a transfer described in Subsection (5)(c)(ii): (a) (i) the municipality shall transfer the electric service customer to the electrical corporation; and (ii) the electrical corporation shall provide electric service to the customer; and (b) the municipality shall transfer a facility in accordance with and for the value as provided in Section 10-2-817. (7) (a) In accordance with Subsection (7)(b), the municipality shall establish a reasonable mechanism for resolving potential future complaints by an electric customer located outside the municipality's municipal boundary. (b) The mechanism shall require: (i) that the rates and conditions of service for a customer outside the municipality's boundary are at least as favorable as the rates and conditions of service for a similarly situated customer within the municipality's boundary; and (ii) if the municipality provides a general rebate, refund, or other payment to a customer located within the municipality's boundary, that the municipality also provide the same general rebate, refund, or other payment to a similarly situated customer located outside the municipality's boundary. (8) The municipality is relieved of any obligation to transfer a customer described in Subsection (5)(a) or facility used to serve the customer in accordance with Subsection (5)(c)(ii) if the municipality annexes the property on which the customer is being served. (9) (a) A municipality may provide electric service outside of the municipality's municipal boundary to a facility that is solely owned and operated by the municipality for municipal service. (b) A municipality's provision of electric service to a facility that is solely owned and operated by the municipality does not expand the municipality's electric service area. (10) Nothing in this section expands or diminishes the ability of a municipality to enter into a wholesale electrical sales contract with another municipality that serves electric customers to sell and deliver wholesale electricity to the other municipality. (11) A municipality's actions under this section related to works or systems involving broadband services, public telecommunications services, or cable television services are subject to the requirements of Chapter 18, Municipal Cable Television and Communications Services Act.
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