State Codes and Statutes

Statutes > Nebraska > Chapter66 > 66-1839

66-1839. Municipal RateNegotiations Revolving Loan Fund; created; use; administration; audit; investment;loan repayment.(1) The Municipal Rate NegotiationsRevolving Loan Fund is created. The fund shall be used to make loans to citiesfor rate negotiations under section 66-1838 or negotiations or litigationunder section 66-1867, exceptthat transfers may be made from the fund to the General Fund at the directionof the Legislature. Only one loan may be made for each rate filingmade by a jurisdictional utility within the scope of each section. Money inthe Municipal Natural Gas Regulation Revolving Loan Fund that is not necessaryto finance rate proceedings initiated prior to May 31, 2003, shall be transferredto the Municipal Rate Negotiations Revolving Loan Fund on May 31, 2003, andrepayments of loans or other obligations owing to the Municipal Natural GasRegulation Revolving Loan Fund on May 31, 2003, shall be deposited in theMunicipal Rate Negotiations Revolving Loan Fund upon receipt. Any obligationsagainst or commitments of money from the Municipal Natural Gas RegulationRevolving Loan Fund on May 31, 2003, shall be obligations or commitments ofthe Municipal Rate Negotiations Revolving Loan Fund.(2) The Municipal Rate Negotiations Revolving Loan Fund shallbe administered by the commission which shall adopt and promulgate rules andregulations to carry out this section. The rules and regulations shall include:(a) Loan application procedures and forms; and(b) Fund-use monitoring and quarterly accounting of funduse.(3) Applicants for a loan from the fund shall provide a budgetstatement which specifies the proposed use of the loan proceeds. Such proceedsmay only be used for the costs and expenses incurred by the city to analyzerate filings for the purposes specified in section 66-1838 or 66-1867. Suchcosts and expenses may include the cost of rate consultants and attorneysand any other necessary costs related to the negotiation process or litigationunder section 66-1867. Disbursements from the fund shall be audited by thecommission. The affected jurisdictional utility may petition the commissionto initiate a proceeding to determine whether the disbursements from the fundwere expended by the negotiating cities consistent with the requirements ofthis section.(4) The fund shall be audited as part of the regular auditof the commission's budget, and copies of the audit shall be available toall cities and any jurisdictional utility. Audits conducted pursuant to thissection are public records.(5) Any money in the fund available for investment shallbe invested by the state investment officer pursuant to the Nebraska CapitalExpansion Act and the Nebraska State Funds Investment Act. If the fund balanceexceeds four hundred thousand dollars, the income on the money in the fundshall be credited to the permanent school fund until the balance of the MunicipalRate Negotiations Revolving Loan Fund falls below such amount.(6) A city which receives a loan under this section shallbe responsible to provide for the opportunity for all other cities engagedin the same negotiations with the same jurisdictional utility to participatein all negotiations. Such city shall not exclude any other city from the informationor benefits accruing from the use of loan funds.(7) Upon the conclusion of negotiations, regardless of theresult, the loan shall be repaid by the jurisdictional utility to the commissionwithin thirty days after the date upon which it is billed by the commission.The utility shall recover the amount paid on the loan by a special surchargeon ratepayers who are or will be affected by the rate increase request. Theseratepayers may be billed on their monthly statements for a period not to exceedtwelve months, and the surcharge may be shown as a separate item on the statementsas a charge for rate negotiation expenses. SourceLaws 2003, LB 790, § 39; Laws 2009, LB658, § 3; Laws 2009, First Spec. Sess., LB3, § 42.Effective Date: November 21, 2009 Cross ReferencesNebraska Capital Expansion Act, see section 72-1269.Nebraska State Funds Investment Act, see section 72-1260.