[§269-14.5]  Appointment of
receiver for public utilities.  (a)  Whenever the commission finds that a
regulated water utility or regulated sewer utility is failing, or that there is
an imminent threat of the utility failing, to provide adequate and reasonable
service to its customers, and that the failure is a serious and imminent threat
to health, safety, and welfare, the commission may appoint a receiver to take
any temporary action necessary to assure continued service or to bring the
service up to appropriate regulatory standards.  The commission may also
appoint a receiver to take any temporary action necessary to assure continued
service if, after notice and hearing, the commission finds that any water or
sewer utility regulated under this chapter consistently fails to provide
adequate and reasonable service.  In carrying out its responsibilities, the
receiver and any additional outside legal counsel, consultants, or staff the
commission or receiver may deem necessary under the circumstances, shall have
the authority to gain access to all of the utility company assets and records
and to manage those assets in a manner that will restore or maintain an
acceptable level of service to customers.  The receiver shall be authorized to
expend existing utility company revenues for labor and materials and to commit
additional resources as are essential to providing an acceptable level of
service.  These expenditures shall be funded in accordance with generally
accepted ratemaking practices.  Any costs incurred by the commission, its
staff, or the appointed receiver under this section shall be the responsibility
of the utility in receivership or its ratepayers.  Control of and
responsibility for the utility shall remain with the receiver until the utility
can be returned to the original owners, transferred to new owners, or
liquidated as the commission determines to be in the public interest.



(b)  If the commission determines that the
utility's action or inaction that caused it to be placed under the control and
responsibility of a receiver under this section was due to intentional
misappropriation or wrongful diversion of the assets or income of the utility
or to other wilful misconduct by any director, officer, or manager of the
utility, it may require such director, officer, or manager to make restitution
to the utility. [L 2009, c 74, §2]