[§269-14.5]  Appointment ofreceiver for public utilities.  (a)  Whenever the commission finds that aregulated water utility or regulated sewer utility is failing, or that there isan imminent threat of the utility failing, to provide adequate and reasonableservice to its customers, and that the failure is a serious and imminent threatto health, safety, and welfare, the commission may appoint a receiver to takeany temporary action necessary to assure continued service or to bring theservice up to appropriate regulatory standards.  The commission may alsoappoint a receiver to take any temporary action necessary to assure continuedservice if, after notice and hearing, the commission finds that any water orsewer utility regulated under this chapter consistently fails to provideadequate and reasonable service.  In carrying out its responsibilities, thereceiver and any additional outside legal counsel, consultants, or staff thecommission or receiver may deem necessary under the circumstances, shall havethe authority to gain access to all of the utility company assets and recordsand to manage those assets in a manner that will restore or maintain anacceptable level of service to customers.  The receiver shall be authorized toexpend existing utility company revenues for labor and materials and to commitadditional resources as are essential to providing an acceptable level ofservice.  These expenditures shall be funded in accordance with generallyaccepted ratemaking practices.  Any costs incurred by the commission, itsstaff, or the appointed receiver under this section shall be the responsibilityof the utility in receivership or its ratepayers.  Control of andresponsibility for the utility shall remain with the receiver until the utilitycan be returned to the original owners, transferred to new owners, orliquidated as the commission determines to be in the public interest.

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