Cooperative Electric Associations

C.R.S. tit. 40, art. 9.5
in effect

C.R.S. § 40-9.5-101 Legislative declaration

40-9.5-101. Legislative declaration. The general assembly hereby finds and declares that cooperative electric associations which are owned by the member-consumers they serve are regulated by the member-consumers themselves acting through an elected governing body. It is further declared that the regulation by the public utilities commission under the "Public Utilities Law", articles 1 to 7 of this title, may be duplicative of the self-regulation by the association and may be neither necessary nor cost-effective. It is therefore the purpose of this part 1 to determine the necessity of regulation by the public utilities commission by allowing cooperative electric associations to exempt themselves from regulation by the public utilities commission.

C.R.S. § 40-9.5-102 Definitions

40-9.5-102. Definitions. As used in this part 1, unless the context otherwise requires: (1) "Cooperative electric association" or "association" includes a nonprofit electric corporation or association but does not include nonprofit generation and transmission electric corporations or associations. (2) "Joint membership" means a membership in a cooperative electric association in which more than one individual is treated as a single member of the cooperative electric association in accordance with the cooperative electric association's bylaws. Each individual in a joint membership is a joint member.

C.R.S. § 40-9.5-103 Exemption from "Public Utilities Law"

40-9.5-103. Exemption from "Public Utilities Law". Except as otherwise provided in this part 1, the provisions of the "Public Utilities Law", articles 1 to 7 of this title, shall not apply to cooperative electric associations which have, by an affirmative vote of the members and consumers pursuant to section 40-9.5-104, voted to exempt themselves from such provisions and to be subject to the provisions of this part 1. The period of exemption shall begin on the date the election results are filed with the public utilities commission.

C.R.S. § 40-9.5-104 Procedure for exemption - election

40-9.5-104. Procedure for exemption - election. (1) (a) The board of directors of each cooperative electric association may, at its option, submit the question of its exemption from the "Public Utilities Law", articles 1 to 7 of this title, to its members and its consumers. Approval by a majority of those voting in the election shall be required for such exemption. (b) The board of directors of the cooperative electric association shall be responsible for mailing the ballots to all members and consumers of the association, for counting the returned ballots, and for determining the result of the election and shall also be responsible for insuring that the election is not held in a dishonest, corrupt, or fraudulent manner. The ballot shall contain the following language: "Shall ...... (name of the cooperative electric association) be exempt from regulation by the public utilities commission of the state of Colorado? ( ) Yes ( ) No" (c) The ballot must be postmarked or returned in an envelope accompanying the ballot with return postage paid within thirty days after it was mailed to the member or consumer. (d) The results of the election held pursuant to this subsection (1) shall be certified by the secretary of the board of directors of the cooperative electric association no later than sixty days after the ballots are mailed to the members and consumers, and said secretary shall file the results with the director of the public utilities commission. (2) Upon an affirmative vote of the members and consumers of the cooperative electric association on the question of exempting said association, the association shall be exempt from the "Public Utilities Law", articles 1 to 7 of this title, beginning on the date the election results are filed with the public utilities commission.

C.R.S. § 40-9.5-105 Certificate of public convenience and necessity

40-9.5-105. Certificate of public convenience and necessity. (1) A certificate of public convenience and necessity issued by the public utilities commission prior to July 1, 1983, assigning specific service territories to a cooperative electric association shall remain in full force and effect and shall be subject to such rights and limitations as other certificates of public convenience and necessity held by other electric public utilities subject to regulation of the public utilities commission. (2) After giving simultaneous notice by certified mail to other electric public utilities serving areas adjacent to an unserved, uncertificated territory and to the public utilities commission of its intent to extend service, a cooperative electric association shall have the right to extend service into such unserved, uncertificated territory unless the public utilities commission receives a complaint concerning such extension. Such complaint must be received by the commission no later than thirty days following the commission's receipt of the notice of extension. Upon the filing of a complaint, the commission shall determine whether to issue a certificate of public convenience and necessity authorizing such extension. (3) Whenever the public utilities commission, after a hearing upon complaint, finds that an electric public utility, including a cooperative electric association, is unwilling or unable to serve an existing or newly developing load within its certificated territory and that the public convenience and necessity requires a change, said commission may, in its discretion, delete from the certificate of said public utility or association that portion of said territory which the public utility or association is unwilling or unable to serve and incorporate said territory into the certificated territory of another electric public utility, including another cooperative electric association, upon such terms as are just and reasonable, having due regard to due process of law and to all the rights of the respective parties and to public convenience and necessity. (4) Upon complaint filed by an electric public utility, including a cooperative electric association, the public utilities commission shall determine whether any construction or extension made or proposed to be made by another such public utility or association will interfere with or duplicate the line, plant, system, or service of the complainant, in which event the public utilities commission may make such order prohibiting such construction or extension or prescribing the terms and conditions thereof as to it may seem just and reasonable. (5) The provisions of articles 6 and 7 of this title shall apply to any proceeding of the public utilities commission required by this section. (6) Except as otherwise provided in this part 1, the enactment of this part 1 shall neither enlarge nor diminish the rights and obligations of electric public utilities, including cooperative electric associations, under certificates of public convenience and necessity issued by the public utilities commission. Nothing in this part 1 shall enlarge or diminish the respective rights and obligations of electric public utilities, including cooperative electric associations, or municipalities under franchise or other contractual agreements.

C.R.S. § 40-9.5-106 Prohibited acts

40-9.5-106. Prohibited acts. (1) No cooperative electric association shall make a change in any rate charged for electric service or in any rule or regulation in connection therewith unless such association shall provide public notice of such proposed change at least thirty days prior to the day the proposed change is to take effect. (2) No cooperative electric association, as to rates, charges, service, or facilities or as to any other matter, shall make or grant any preference or advantage to any corporation or person or subject any corporation or person to any prejudice or disadvantage. No cooperative electric association shall establish or maintain any unreasonable difference as to rates, charges, service, or facilities or as to any other matter, either between localities or between any class of service. Notwithstanding section 40-6-108 (1)(b), any complaint arising out of this subsection (2) signed by one or more customers of such association shall be resolved by the public utilities commission in accordance with the hearing and enforcement procedures established in articles 6 and 7 of this title. A cooperative electric association may approve any reasonable rate, charge, service, classification, or facility that establishes a graduated rate for increased energy consumption, for energy conservation and energy efficiency purposes, by residential customers that is revenue-neutral for the class, where revenue includes margins, expenses, riders, or charges as approved by the cooperative electric association. The implementation of such rate, charge, service, classification, or facility by a cooperative electric association shall not be deemed to subject any person or corporation to any prejudice, disadvantage, or undue discrimination. In adopting such rate, a cooperative electric association shall give due consideration to the impact of such rates on low-income customers. A cooperative electric association may utilize a community energy fund as contemplated by sections 40-2-127 and 40-2-127.5 for energy efficiency, energy conservation, weatherization, and renewable energy purposes. A cooperative electric association shall not apply such rate to consumers that have single meters that record energy consumption for combined residential and agricultural uses. (3) No rates, charges, rules, or regulations of a cooperative electric association shall be unjust or unreasonable. Any complaint under this subsection (3) shall be resolved by the public utilities commission in accordance with the hearing and enforcement procedures established in articles 6 and 7 of this title if the complaint alleging a violation is signed by the mayor, the president or chairman of the board of trustees, or a majority of the council, commission, or other legislative body of an affected county, city and county, city, or town, an affected public utility, or any one or more affected entities constituting a separate rate class of the association or is signed by not less than twenty-five customers or prospective customers of such association.

C.R.S. § 40-9.5-107 Duties of cooperative electric associations

40-9.5-107. Duties of cooperative electric associations. (1) Cooperative electric associations shall provide reasonably continuous and adequate electric utility service to all members and consumers within their certificated service areas. (2) Cooperative electric associations shall provide and maintain reasonably adequate facilities for the provision of electric utility service within their certificated service areas. (3) All cooperative electric associations shall cooperate with each other and with other electric utilities in avoiding unnecessary construction of facilities and cooperate in the joint use of facilities for generation, transmission, and distribution of electric energy. (4) Cooperative electric associations shall construct and maintain their facilities in a careful and safe fashion so as to minimize hazards to either persons or property. (5) Cooperative electric associations shall continue to file with the public utilities commission those items required by sections 40-2-111, 40-3-110, and 40-5-106 (2) and shall comply with section 40-2-124 (3) and (4). The records and accounts of cooperative electric associations shall be kept in accordance with procedures established by the commission pursuant to section 40-4-111. (6) If a cooperative electric association has an immediate shutoff policy, such association shall have provisions for an immediate appeal of such policy to the board of directors. (7) The board of directors of a cooperative electric association shall adopt all necessary rules and regulations to comply with the provisions of this part 1. (8) Any conflict arising out of this section shall be resolved by the public utilities commission in accordance with the hearing procedures established in article 6 of this title.

C.R.S. § 40-9.5-108 Public meetings - definition

40-9.5-108. Public meetings - definition. (1) All meetings of a cooperative electric association are declared to be open meetings and open to the members, consumers, and news media at all times; but such association, by a two-thirds affirmative vote of the board members present, may go into executive session for consideration of documents or testimony given in confidence, but such association shall not make final policy decisions or adopt or approve any resolution, rule, regulation, or formal action, any contract, or any action calling for the payment of money at any session which is closed to the members, consumers, and news media. (1.5) All meetings of a generation and transmission association are declared to be open meetings and open to the members, consumers, and news media at all times; but such association, by a two-thirds affirmative vote of the board members present, may go into executive session for consideration of documents or testimony given in confidence. (2) (a) Before a board of directors convenes in executive session pursuant to subsection (1) or (1.5) of this section, the board shall announce the general topic of the executive session. (b) At every regular meeting of the board of directors of an association or a generation and transmission association, members of the association shall be given an opportunity to address the board on any matter concerning the policies and business of the association. The board may place reasonable, viewpoint-neutral restrictions on the amount and duration of public comment. (c) Written minutes shall be made of all meetings of the board of directors of an association or a generation and transmission association. The minutes shall be posted on the website of the association or generation and transmission association as soon as they have been approved and shall remain posted until at least six months after the date of the meeting. Upon request by a member of the board, that member's own vote on any issue shall be noted in the minutes. (3) Any action taken contrary to the provisions of this section shall be null and void and without force or effect. (4) As used in this section, "generation and transmission association" means a nonprofit generation and transmission electric association that provides wholesale electric service directly to Colorado cooperative electric associations that are its members.

C.R.S. § 40-9.5-108.5 Public posting of documents

40-9.5-108.5. Public posting of documents. (1) Each cooperative electric association shall post on the association's website the following information: (a) The association's current rates; and (b) The association's net metering requirements. (2) Each cooperative electric association shall keep and make available on request to a member of the association all financial audits of the association conducted in the last three fiscal years.

C.R.S. § 40-9.5-109 Regulations governing consumer complaints

40-9.5-109. Regulations governing consumer complaints. The board of directors of each cooperative electric association shall adopt regulations which specify a procedure for members and consumers to register complaints about and be given an opportunity to be heard by the board on the rates charged by such association, the manner in which the electric service is provided, and proposed changes in the rates or regulations. Such regulations may be amended whenever deemed appropriate by the board.

C.R.S. § 40-9.5-109.5 Election policy - adoption - publication - contents

40-9.5-109.5. Election policy - adoption - publication - contents. (1) The board of directors of each cooperative electric association shall adopt a written policy governing the election of directors. The association shall post the policy on the association's website, provide notice of the policy at the time a person becomes a member, and provide a copy of the policy to a member upon request. The election policy shall contain true and complete information on the following subjects: (a) The procedure and timing for a member to become a candidate for the board of directors and the process by which elections for the board of directors are held; (b) The qualifications for candidates and requirements for appearing on the ballot; (c) The date of the election, which shall be fixed, posted on the association's website, and otherwise publicized no less than six months before the election; (d) Who is entitled to vote in an election, including how joint members may vote; and (e) How a member may obtain and cast a ballot. (2) In addition to the requirements of subsection (1) of this section, information on how to become a candidate and the schedule for elections shall be posted on the association's website and otherwise publicized based on a member's preferred method of communication no less than two months before petitions to become a candidate are due. (3) The deadline to return ballots shall be posted on the website at least two months before the deadline and shall remain so posted until after the election.

C.R.S. § 40-9.5-109.7 Electronic participation - meetings - elections conducted by mail or electronic means - definition

40-9.5-109.7. Electronic participation - meetings - elections conducted by mail or electronic means - definition. (1) A cooperative electric association may adopt provisions in its bylaws authorizing members to participate electronically in member meetings of the association. (2) (a) Notwithstanding section 7-55-110 or any other provision of law to the contrary, a cooperative electric association may adopt provisions in its bylaws authorizing members to vote electronically in an election of directors of the board or in an election on any matter requiring a vote of the membership. If authorized by its bylaws, the association may establish a secure and verifiable electronic transmission system through which a member may apply for, receive, and return a ballot in an election. (b) As used in this section, "secure and verifiable electronic transmission system" means a system that saves and is capable of producing the records necessary to audit the operation of the electronic transmission, including a paper record of all ballots sent and received. (3) Notwithstanding section 7-55-119, a member who registers in person or electronically at any cooperative electric association meeting or who casts a vote through mail ballot or a secure electronic transmission system if authorized by the association's bylaws is considered present in person for the purpose of determining a quorum for action by the membership. (4) Notwithstanding any other provision of law, a cooperative electric association may adopt provisions in its bylaws allowing directors on the board of directors to participate and vote electronically in meetings of the board of directors. A meeting of the board of directors that is conducted electronically must allow members of the association an opportunity to address the board in accordance with section 40-9.5-108 (2)(b).

C.R.S. § 40-9.5-110 Board of directors of cooperative electric associations - nomination - elections

40-9.5-110. Board of directors of cooperative electric associations - nomination - elections. (1) (a) A nomination for director on the board of directors of a cooperative electric association may be made by written petition signed by at least fifteen members of such association, and filed with the board of directors of such association no later than sixty days prior to the date of the election. Any petition so filed shall designate the name of the nominee and the term for which nominated. The name of a nominee shall appear on the ballot if the nominating petition is in apparent conformity with this section as determined by the secretary of the board. Nomination and election of directors by districts, if provided for in the bylaws of the association, shall be permitted. (b) Each candidate for a position on the board of directors is entitled to receive a membership list in an electronic format upon receipt and verification of a valid petition. The membership list must include the names and addresses of all members, including all joint members, as they appear in the association's records. Candidates shall use such lists only for purposes of the election and shall return or destroy them immediately after the election. (c) All board members shall make available to association members some means for direct contact, whether by telephone, electronic mail, or regular mail. Information on how to contact each board member by one or more of these methods shall be available on the association website. (2) (a) (I) Each member of the association is entitled to vote in the election of directors on the board of directors. In the case of a joint membership, any one joint member may cast the vote for the membership. A member may vote in person at a meeting held for such purpose, by mail, or by electronic means if authorized by the association's bylaws. A member who has voted by mail or by electronic means is not entitled to vote at the meeting. (II) Mail voting must be in writing on ballots provided by the association. The mail ballot shall be voted by the member, deposited in a return envelope, which must be signed by the voting member, and mailed back to the association or to an independent third party with whom the association has contracted for the storage and counting of ballots in accordance with subsection (2)(c) of this section. For the ballot of a joint membership, the ballot envelope mailed to the joint member must include the name of each eligible voter. Any one of the joint members may cast the ballot. The joint member who casts the ballot shall sign the return envelope. (III) An association may provide a secrecy sleeve or inner envelope to conceal the markings on a mail ballot in the return envelope. A mail ballot returned in a signed return envelope but without the markings concealed is nonetheless valid and shall be counted. (b) The order of names on the ballot shall be determined randomly in a manner that does not automatically assign the top line to the incumbent. An association may provide a secrecy sleeve or inner envelope to conceal the markings on a mail ballot in the return envelope. A mail ballot returned in a signed return envelope but without the markings concealed is nonetheless valid and shall be counted. (b) The order of names on the ballot shall be determined randomly in a manner that does not automatically assign the top line to the incumbent. (c) The board of directors shall, when practicable, arrange for an independent third party to oversee the storage and counting of ballots. If this is not practicable, then ballots shall be collected and stored in a manner that protects the privacy of their content. All candidates for the board of directors shall be given the opportunity to be present to observe the counting of the ballots; except that, if the association has contracted with an independent third party to collect and count ballots, the ballots must be delivered to the association under seal promptly after the count and, upon the request of any candidate, made available to the candidate for inspection. (3) Voting for directors on the board of directors by proxy or cumulative voting is prohibited. (4) Neither the association nor the board of directors shall endorse or oppose the candidacy of an incumbent board member or other candidate for a position on the board. During the two months immediately preceding the election, board members shall not send individual newsletters using the association's resources.

C.R.S. § 40-9.5-110.5 Directors - required policies

40-9.5-110.5. Directors - required policies. (1) The board of each cooperative electric association shall adopt written policies concerning: (a) The compensation provided to directors on the board of directors, including information on any authorized per diem amounts, and the value of any other benefits, services, or goods that directors receive; (b) The requirements and procedures for a director on the board of directors to disclose in writing any conflicts of interest. At a minimum, an association's policy must require disclosure when a decision before the board could provide directly and as a proximate result of the decision a financial or other material benefit to: (I) The director, if the benefit is unique to that director and not shared by similarly situated cooperative members; (II) A parent, grandparent, spouse, partner in a civil union, child, or sibling of the director, if the benefit is unique to that person and not shared by similarly situated cooperative members; or (III) An entity in which the director is an officer or director or has a financial interest unique to that director. (2) (a) Subject to subsection (2)(b) of this section, a director on the board of directors shall at all times fulfill the director's duty of loyalty to the association and shall not allow a conflict of interest to impair the director's loyalty to the association. (b) Notwithstanding any other law to the contrary, if an individual is a director on the board of directors of both a distribution cooperative electric association and a generation and transmission cooperative electric association, the director owes fiduciary duties to both associations and shall not be required to give priority to a fiduciary duty the director owes to one association over the duties the director owes to the other association.

C.R.S. § 40-9.5-111 Notice of meeting - agenda

40-9.5-111. Notice of meeting - agenda. (1) Notice of the time and place of a meeting of the board of directors and a copy of the agenda for such meeting shall be posted in every service office maintained by the association at least ten days before the meeting. The agenda shall specifically designate the issues or questions to be discussed, or the actions to be taken, at the meeting. Copies of the agenda shall be available at each service office for members and consumers. (2) The date, time, location, and agenda of every meeting of the board of directors shall be posted on the association's website no less than ten days before the meeting in the case of regular meetings and as soon as the meeting is scheduled in the case of special meetings. If a meeting is postponed or canceled, notice of the postponement or cancellation shall immediately be posted on the website.

C.R.S. § 40-9.5-112 Provisions applicable to cooperative electric associations

40-9.5-112. Provisions applicable to cooperative electric associations. (1) Except as otherwise provided in this part 1, the provisions of article 55 of title 7 shall apply to cooperative electric associations. In the case of any irreconcilable conflict between said article 55 and this part 1, this part 1 shall control. (2) Notwithstanding any provision of article 55 of title 7, a cooperative electric association may authorize joint memberships in its bylaws. (3) Section 40-4-105 shall apply to cooperative electric associations with respect to crossing of railroad rights-of-way.

C.R.S. § 40-9.5-113 Method of reimposing public utilities commission regulation

40-9.5-113. Method of reimposing public utilities commission regulation. Any cooperative electric association may vote no more than once a year to place said association under the regulation of the public utilities commission, as provided in the "Public Utilities Law", articles 1 to 7 of this title. Said question shall only be submitted to the member-consumers of the association if at least five percent of the member-consumers of the association sign a petition requesting such an election and if such signatures are gathered within a six-month period immediately preceding the submission of the petition to the association's board of directors. No petition circulated pursuant to this section shall be valid unless the petition sponsor notifies the board in writing prior to circulation for signatures. Such petition shall be submitted to, and signatures certified by, the board at a regular scheduled meeting. Such certification shall include a determination as to whether the signatures on the petition were gathered within a six-month period immediately preceding the submission of the petition to the board. After the petition has been certified by the board, the commission shall conduct an election within forty-five days on the question. If a majority of the persons voting at the election vote in favor of placing their association under commission regulation, the commission shall reassert its regulation upon determination of the election results.

C.R.S. § 40-9.5-114 Public utilities commission - fees

40-9.5-114. Public utilities commission - fees. No cooperative electric association which has voted to exempt itself from the "Public Utilities Law", articles 1 to 7 of this title, and to be subject to the provisions of this part 1 shall be required to pay to the public utilities commission the fees imposed by the provisions of article 2 of this title; except that, for any year in which the commission is required, pursuant to section 40-9.5-105 or 40-9.5-113, to act with respect to an exempt cooperative electric association, such exempt association shall pay to the commission actual and necessary costs not to exceed twenty-five percent of the fees that it would have been liable for under the provisions of article 2 of this title if regulated by the commission.

C.R.S. § 40-9.5-114.5 Applicability of sections 40-9.5-108 to 40-9.5-112

40-9.5-114.5. Applicability of sections 40-9.5-108 to 40-9.5-112. Sections 40-9.5-108 to 40-9.5-112 apply to all cooperative electric associations, whether regulated under this part 1 or the "Public Utilities Law", articles 1 to 7 of this title 40. Notwithstanding section 40-9.5-102 (1), sections 40-9.5-109, 40-9.5-110.5, and 40-9.5-111 apply to a nonprofit generation and transmission cooperative electric association that provides wholesale electric service directly to Colorado cooperative electric associations that are its members.

C.R.S. § 40-9.5-116 Investment in public-private transportation facilities

40-9.5-116. Investment in public-private transportation facilities. (1) Notwithstanding any provision of law to the contrary, the board of directors of a cooperative electric association may consider investing in one or more of the following: (a) Any public-private initiative with the department of transportation, as defined in section 43-1-1201 (3), C.R.S.; (b) Bonds issued for turnpikes in accordance with part 2 of article 3 of title 43, C.R.S.; (c) Repealed. (d) Any other public-private initiative program for transportation system projects in Colorado authorized by law. (2) The board of directors of a cooperative electric association may give preference to the investments described in subsection (1) of this section if such investments are in the interest of the cooperative electric association's members and are consistent with sound investment policy.

C.R.S. § 40-9.5-117 Surcharge for underground conversion of facilities

40-9.5-117. Surcharge for underground conversion of facilities. The board of directors of a cooperative electric association may adopt a resolution to impose a surcharge on those consumers within the service area of the cooperative electric association who derive a direct benefit from the conversion of overhead electric and communication facilities to underground locations. Such surcharge shall be limited to costs related to the conversion of overhead electric and communication facilities to underground locations.

C.R.S. § 40-9.5-118 Net metering - rules

40-9.5-118. Net metering - rules. (1) Definitions. For purposes of this section, unless the context otherwise requires: (a) "Customer-generator" means an end-use electricity customer that generates electricity on the customer's side of the meter using eligible energy resources. (b) "Eligible energy resources" has the meaning established in section 40-2-124. (2) Each cooperative electric association shall allow a customer-generator's retail electricity consumption to be offset by the electricity generated from eligible energy resources on the customer-generator's side of the meter that are interconnected with the facilities of the cooperative electric association, subject to the following: (a) Monthly excess generation. If a customer-generator generates electricity in excess of the customer-generator's monthly consumption, all such excess energy, expressed in kilowatt-hours, shall be carried forward from month to month and credited at a ratio of one to one against the customer-generator's energy consumption, expressed in kilowatt-hours, in subsequent months. (b) Annual excess generation. Within sixty days after the end of each annual period, or within sixty days after the customer-generator terminates its retail service, the cooperative electric association shall account for any excess energy generation, expressed in kilowatt-hours, accrued by the customer-generator and shall credit such excess generation to the customer-generator in a manner deemed appropriate by the cooperative electric association. (c) Nondiscriminatory rates. A cooperative electric association shall provide net metering service at nondiscriminatory rates. (d) Interconnection standards. A cooperative electric association and a customer-generator shall comply with the interconnection standards and insurance requirements established in the rules promulgated by the public utilities commission pursuant to section 40-2-124; except that the cooperative electric association may reduce or waive any of the insurance requirements, and except that the public utilities commission shall initiate a rule-making proceeding no later than October 1, 2008, for the purpose of addressing cooperative electric association system issues in its small generator interconnection procedures. A cooperative electric association shall not prevent or unreasonably burden the installation of a net metering system if such system includes protective equipment that prevents any export of customer-generated electricity from the customer's side of the meter. (e) (I) Size specifications. Each cooperative electric association shall allow: (A) Residential customer-generators to generate electricity subject to net metering up to ten kilowatts; and (B) Commercial or industrial customer-generators to generate electricity subject to net metering up to twenty-five kilowatts. (II) Each cooperative electric association may allow customer-generators to generate electricity subject to net metering in amounts in excess of the minimum amounts specified in subparagraph (I) of this paragraph (e). If the cooperative electric association denies interconnection to a customer-generator that has requested interconnection of a system with a capacity of twenty-five kilowatts or larger, the association shall provide a written technical or economic explanation of such denial to the customer. (3) The cooperative electric association and the customer-generator shall indemnify, defend, and save the other party harmless from any and all damages, losses, or claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other party's action or failure to act in relation to any obligations under this section, except in cases of gross negligence or intentional wrongdoing by the indemnified party.

C.R.S. § 40-9.5-201 Legislative declaration

40-9.5-201. Legislative declaration. The general assembly hereby finds and declares that the provisions of article XXV of the Colorado constitution allow the public utilities commission to establish exclusive service territories for utilities as provided in article 5 of this title and that it has been the policy of the state of Colorado to establish exclusive service territories for cooperative electric associations. The general assembly further finds and declares that, if a cooperative electric association has been granted an exclusive service territory that is within a municipality that operates an electric utility or within an area annexed by a municipality that operates an electric utility, the municipality has taken private property and shall pay just compensation for the electric distribution facilities and certificate of public convenience and necessity of the association located within the municipality. Therefore, it is declared to be a matter of statewide concern and to be the purpose of this part 2 to establish a procedure to be followed when the certificated service territory of a cooperative electric association is included within a municipality that operates an electric utility or within an area annexed by a municipality that operates an electric utility.

C.R.S. § 40-9.5-202 Definitions

40-9.5-202. Definitions. As used in this part 2, unless the context otherwise requires: (1) "Cooperative electric association" shall have the same meaning as in section 40-9.5-102. (2) "Electric distribution facilities" means all or any portion of the electric lines and facilities of a cooperative electric association used or capable of being used in serving ultimate consumers, but the term does not include transmission lines, feeder lines, and substation facilities, or portions thereof, which are necessary for the integration and operation of portions of the association's electric system which are located outside a municipality or the area annexed by a municipality, nor does the term include transformers, meters, and associated metering equipment. (3) "Municipality" means a statutory or home rule town, city, or city and county.

C.R.S. § 40-9.5-203 Service rights and facilities of cooperative electric associations within municipalities or within areas to be annexed by municipalities which own and operate electric utilities

40-9.5-203. Service rights and facilities of cooperative electric associations within municipalities or within areas to be annexed by municipalities which own and operate electric utilities. (1) Notwithstanding any provision to the contrary, if a cooperative electric association has certificated service territory within a municipality which after May 27, 1986, commences operation of its own electric utility or has certificated service territory within an area annexed after May 27, 1986, by a municipality which owns and operates an electric utility, the municipality shall pay just compensation for the electric distribution facilities of the cooperative electric association located within the territory, together with the association's certificate of public convenience and necessity constituting its rights to serve such territory. (2) No later than thirty days prior to final action on each annexation ordinance, the municipality shall notify the affected cooperative electric association in writing of the boundaries of the municipality or the annexed area within which certificated service territory of the association is included and shall indicate such boundaries or area on appropriate maps.

C.R.S. § 40-9.5-204 Just compensation for service rights and facilities by municipality

40-9.5-204. Just compensation for service rights and facilities by municipality. (1) The just compensation for electric distribution facilities and service rights shall be: (a) The present-day reproduction cost, new, of the electric distribution facilities being acquired, less depreciation computed on a straight-line basis over thirty-five years with such depreciation being limited to one-half of such cost; and (b) An amount equal to the cost of constructing any necessary facilities to reintegrate the system of the cooperative electric association located outside the municipality or the area annexed by the municipality after detaching the electric distribution facilities to be sold; and (c) An annual amount, payable each year for a period of ten years following the date of purchase, equal to twenty-five percent of the revenues received by the municipality from the sale of electric power to the services within such municipality which were previously served by the cooperative electric association; and (d) An annual amount equal to five percent of the revenues received by the municipality from the sale of electric power to the additional services that come into existence in the affected area, for each year for a period of ten years following the date of acquisition. (2) If the cooperative electric association and the municipality cannot agree on the amount to be paid pursuant to subsection (1) of this section, either party may bring an action for condemnation or inverse condemnation in the district court for the county in which the property is located to determine the amount to be paid pursuant to the factors stated in subsection (1) of this section. During the pendency of any such action, the municipality shall deposit with the court the amount the municipality has offered to be paid the cooperative electric association, and, upon said payment, the municipality shall have the right to serve all electric customers within the annexed area.

C.R.S. § 40-9.5-205 Purchase by cooperative electric association of electric distribution facilities and service rights of municipality

40-9.5-205. Purchase by cooperative electric association of electric distribution facilities and service rights of municipality. If any municipality changes its boundaries so as to exclude from its corporate limits any territory previously served by a cooperative electric association, such municipality shall give, within thirty days, written notice to the association of such exclusion of territory, and the cooperative electric association, within one hundred twenty days after receipt of such notice, shall purchase the municipality's electric distribution facilities and service rights within the excluded area. Section 40-9.5-204 shall apply to acquisitions by a cooperative electric association pursuant to this section.

C.R.S. § 40-9.5-206 Provisions on purchase nonexclusive - no effect on existing contracts

40-9.5-206. Provisions on purchase nonexclusive - no effect on existing contracts. (1) Nothing contained in this part 2 shall prohibit a municipality and a cooperative electric association from buying, selling, or exchanging electric distribution facilities, service rights, and other rights, property, and assets by mutual agreement. (2) Nothing in this part 2 shall impair the obligations of existing contracts.

C.R.S. § 40-9.5-207 Applicability

40-9.5-207. Applicability. (1) This part 2 shall apply to all cooperative electric associations which have electric distribution facilities, franchises, certificates of public convenience and necessity, rights-of-way, or appurtenances to facilities which are included in the boundaries of a municipality which after May 27, 1986, commences operation of its own electric utility or are included in an area annexed by a municipality which owns and operates an electric utility. (2) Notwithstanding any statutory provision to the contrary, the procedures in this part 2 relating to the allocation and conveyance of property and property rights of any cooperative electric association to any municipality or of any municipality to any cooperative electric association shall be exclusively available to such municipality and to such cooperative electric association.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-40.docxFetched: 10/6/2026

Starting a business in Colorado? Colorado LLC guide: costs and requirements