IC 8-1-2.2
Chapter 2.2. Municipal Electric Utility Programs
IC 8-1-2.2-1 Findings and purpose
Sec. 1. Municipalities owning facilities for the distribution of
electric power and energy are required by law to provide, and serve
a public purpose by providing, customers with an adequate, a
reliable, and an economical supply of electric power and energy.
Individually, such municipalities or joint agencies are not financially
capable of providing the planning, financing, locating, and building
of needed new facilities for generation and transmission or operating
or managing these facilities. Therefore, the general assembly finds
it necessary and proper to provide a method for certain of those
municipalities to jointly finance, develop, own, manage, and operate,
either by themselves or with public utilities, electric generation and
transmission facilities appropriate to the present and projected
electric energy needs of such municipalities and to the changes in the
electric utility industry affecting these municipalities or joint
agencies. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.54-1992,
SEC.1; P.L.81-1997, SEC.1.
IC 8-1-2.2-2 Definitions
Sec. 2. (a) The definitions in this section apply throughout this
chapter.
(b) "Bonds" means electric utility revenue bonds, notes, and other
evidences of indebtedness of a municipality or a joint agency issued
under the provisions of this chapter.
(c) "Cost" or "cost of a project" means but may not be limited to
the cost of acquisition, construction, reconstruction, improvement,
enlargement, betterment, extension, decommissioning, or disposal of
any project or part thereof, including:
(1) the cost of studies, plans, specifications, surveys, and
estimates of costs and revenues relating thereto;
(2) the cost of land, land rights, rights-of-way and easements,
water rights, fees, permits, approvals, licenses, certificates,
franchises, and the preparation of applications thereof;
(3) administrative, legal, engineering, and inspection expenses;
(4) financing fees, expenses, and costs;
(5) working capital;
(6) initial fuel costs;
(7) interest on the bonds during the period of construction and
for such reasonable period thereafter as may be determined by
the issuing municipality or joint agency;
(8) establishment of reserves for the payment of debt service,
for renewals and replacements, for working capital, for
operating expenses, and for any other purposes deemed
reasonable and proper; and
(9) all other expenditures of the issuing municipality or joint
agency incidental, necessary, or convenient to the acquisition,
construction, reconstruction, improvement, enlargement,
betterment, extension, decommissioning, or disposal of any
project and the placing of the same in operation.
(d) "Governing body" means the legislative body of a city or town
or commissioners of a joint agency.
(e) "Joint agency" means an agency created by two (2) or more
municipalities pursuant to section 8 of this chapter.
(f) "Municipality" means a city or town in the state or any board,
agency, or commission thereof owning and operating on January 1,
1980, an electric utility which furnishes retail electric service to the
public.
(g) "Project" means any plant, works, system, or facilities, and
other real and personal property of any nature whatsoever necessary
or convenient in the generation, transmission, transformation,
purchase, sale, exchange, or interchange of electric power and energy
or steam, or the development, production, manufacture, procurement,
handling, storage, fabrication, enrichment, processing, or
reprocessing of fuel of any kind or any facility or rights with respect
to the supply of water, by any means whatsoever or any interest
therein or any rights to the use, output, or capacity thereof. A
transmission contract entered into under section 9(a)(14) of this
chapter is not a project.
(h) "Public utility" means any corporation, company, limited
liability company, partnership, or other form of legal entity,
individual, association of individuals, or public agency organized
under the laws of Indiana or another state of the United States
authorized to own, operate, or control any plant or equipment for the
generation, transmission, or distribution of electric power and energy
and to sell electric power and energy to:
(1) the public;
(2) public or municipally owned utilities (as defined in
IC 8-1-2); or
(3) cooperatives.
(i) "State" means the state of Indiana. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.23-1988,
SEC.29; P.L.82-1988, SEC.1; P.L.8-1989, SEC.39; P.L.179-1991,
SEC.12; P.L.1-1992, SEC.29; P.L.54-1992, SEC.2; P.L.1-1993,
SEC.48; P.L.81-1997, SEC.2.
IC 8-1-2.2-3 Authorization to cooperate
Sec. 3. Authorization to Cooperate. (a) In addition and
supplemental to the powers otherwise conferred on municipalities by
law, and in order to accomplish the purposes of this chapter, a
municipality may plan, finance, develop, construct, reconstruct,
acquire, improve, enlarge, own, operate and maintain an undivided
interest as a tenant in common in a project jointly with one (1) or
more municipalities, joint agencies or public utilities, and may plan
and enter into contracts in this connection with them, not inconsistent
with the provisions of this chapter.
(b) Prior to acquiring any undivided interest, the governing body
shall determine the present and future needs of the municipality for
power and energy based upon engineering studies and reports, and
may not acquire an undivided interest as a tenant in common in a
project in excess of that amount of capacity and the energy required
to provide for its projected needs for power and energy for such
reasonable period of time as shall be determined by the governing
body and approved by the commission in a proceeding pursuant to
section 19 of this chapter.
(c) The future power requirements of a municipality shall be
evaluated by the governing body in accordance with the following:
(1) the economies and efficiencies to be achieved in
constructing large scale facilities for the generation and
transmission of electric power and energy;
(2) the municipality's needs for reserve and peaking capacity
and obligations reasonably related to its needs for power and
energy under pooling and reserve sharing agreements to which
it is or may become a party;
(3) the estimated useful life of the project; and
(4) the estimated time for planning, development, acquisition or
construction of the project and the time required in advance to
obtain, acquire or construct additional power supply. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-4 Joint ownership of project
Sec. 4. (a) Each municipality, joint agency, or public utility shall
own an undivided interest in any project in proportion to the amount
of the money furnished or the value of property or other
consideration supplied by it for the planning, development,
acquisition, or construction of the project and shall be entitled to a
percentage share of the project net output and capacity equal to the
undivided interest. This section does not preclude a joint owner of a
project from agreeing to take and pay for the project net output in a
percentage share that differs from its undivided interest.
(b) Each municipality, joint agency, and public utility
participating in a project shall be severally liable for its own acts and
may not be held, jointly or severally liable for the acts, omissions, or
obligations of others. However, nothing shall preclude each
municipality, joint agency and public utility participating in a project
from being severally liable for acts performed by any project
manager, construction agent, or operating agent for such project.
Except as otherwise provided in this chapter, no money or property
or other consideration supplied by any municipality, joint agency, or
public utility may be credited or otherwise applied to the account of
any other municipality, joint agency, or public utility, nor shall the
undivided share of any municipality, joint agency, or public utility in
a project be charged directly or indirectly with any debt or obligation
of any other municipality, joint agency, or public utility, or be
subject to any lien as a result thereof. The acquisition of a project
may include, but is not limited to, the purchase or lease of an existing
and completed project or the purchase of a project under construction
or the purchase of a project to be constructed. A municipality or joint
agency participating in the joint planning, financing, construction,
reconstruction, acquisition, improvement, enlargement, ownership,
operation, or maintenance of any project under this chapter may
furnish money derived solely from the proceeds of bonds or from the
ownership and operation of its electric system, or both, and provide
property, both real and personal, services, and other considerations.
(c) Any contract entered into by municipalities under this chapter
with respect to joint ownership in a project shall contain terms,
conditions, and provisions, not inconsistent with the provisions of
this section. Any contract shall be ratified by resolution of the
governing body of each municipality and recorded in its minutes.
Any contract shall include the following:
(1) The purpose or purposes of the contract.
(2) The duration of the contract.
(3) The manner of appointing or employing personnel necessary
in connection with the project.
(4) The method of financing the project including the
apportionment of costs and revenues.
(5) Provisions specifying the ownership interests of the parties
in property used or useful in connection with the project, and
the procedures for the disposition of such property when the
contract expires, is terminated, or when the project, for any
reason, is abandoned, decommissioned, or dismantled.
(6) Provisions relating to alienation and prohibiting partition of
a municipality's undivided interest in a project, which
provisions shall not be subject to any provision of law
restricting convenants against alienation or partition.
(7) Provisions for the construction of a project, which may
include the determination that a municipality, joint agency, or
public utility may construct the project as agent for all the
parties.
(8) Provisions for the operation and maintenance of a project,
which may include the determination that a municipality, joint
agency, or public utility may operate and maintain the project
as agent for all the parties.
(9) Provisions for the creation of a committee of representatives
of the municipalities, joint agencies and public utilities jointly
participating with such powers of supervision of the
construction and operation of the project as the contract may
provide, which are not inconsistent with the provisions of this
chapter.
(10) Provisions that if one (1) or more of the municipalities,
joint agencies, or public utilities default in the performance or
discharge of its obligations with respect to the project, the other
party or parties may assume, pro rata, or otherwise, the
obligations of the defaulting party or parties and may succeed
to the rights and interests of the defaulting party or parties as
may be agreed upon in the contract.
(11) Methods for amending the contract.
(12) Methods for terminating the contract.
(13) Any other necessary or proper matter.
(d) For the purpose of paying its respective share of the cost of a
project or projects, a municipality or joint agency may issue its bonds
as provided in this chapter, and, notwithstanding the provisions of
any other law to the contrary, may pledge to the payment of the
principal, premium, if any, and interest on such bonds, the revenues,
or any portion of revenues, derived or to be derived from the
ownership and operation of its system or facilities for the generation,
transmission, or distribution of electric power or energy or its interest
in any joint project or projects, or a combination of such revenues.
All bonds issued under the provisions of this chapter shall be
authorized and issued by the governing body. Upon the request of the
issuing municipality or joint agency the commission shall approve at
one (1) time sufficient bonds to be issued to finance the issuer's share
of the cost of a project even though such bonds are to be issued in
series from time to time and even though the exact amount of such
costs have not been finally determined and such approval may be of
an indeterminate amount.
(e) Municipalities and joint agencies may jointly or severally own,
operate and maintain projects with any public utility. Any
municipality or joint agency shall have for such purposes all powers
conferred upon them by the provisions of this chapter including the
power to issue revenue bonds pursuant to the provisions of this
chapter to finance its share of the cost of any such project. The
definitions and all other terms and provisions of this chapter shall be
construed so as to include such undivided ownership interest in order
to fully effectuate the power and authority conferred by the foregoing
provisions of this section. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.2.
IC 8-1-2.2-5 Sale of capacity or output by a municipality
Sec. 5. Sale of Capacity or Output by a Municipality. Whenever
a municipality has capacity or output derived from its ownership
share of a project or otherwise in excess of its current needs or which
cannot be economically utilized immediately, it may sell or exchange
the excess capacity or output, by agreement, to any municipality
owning electric distribution facilities in this state, to any joint
agency, or to any public utility. Sales of excess capacity or output of
a project to public utilities shall not be made in such amounts, for
such periods of time, and under such conditions as will cause the
interest on bonds issued to finance the cost of a project to become
taxable by the federal government. As added by Acts 1980, P.L.68, SEC.1. IC 8-1-2.2-6 Licenses and approvals
Sec. 6. Licenses and Approvals. Municipalities and joint agencies
proposing to jointly plan, finance, develop, and operate a project are
authorized to jointly or separately apply to any agency of the state or
federal government for licenses, permits, certificates, or approvals. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-7 Authority to contract for energy exchange
Sec. 7. Authority to Contract for Energy Exchange. Municipalities
participating in a project or projects are hereby authorized to enter
into contracts for the exchange, interchange, wheeling, pooling, and
transmission of electric power and energy produced by the project or
projects with any municipality, joint agency, or public utility. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-8 Joint agency
Sec. 8. (a) The governing bodies of two (2) or more municipalities
may, by resolution or ordinance, determine that it is in their best
interests to create a joint agency, for the purpose of undertaking the
planning, financing, ownership, and operation of a project or projects
to supply electric power and energy for their present or future needs.
Any joint agency created under this chapter shall be a body corporate
and politic and a political subdivision of the state, and in exercising
its powers under this chapter, it shall be deemed to be exercising a
part of the sovereign powers of the state. The activities of the joint
agency in carrying out the purposes of this chapter shall constitute
state action.
(b) In determining whether or not the creation of a joint agency is
in their best interests, the governing bodies shall consider the
following:
(1) Whether cost reduction, efficiencies, or other advantages
may be realized by creating a joint agency.
(2) Whether better financial market acceptance may result if a
joint agency is responsible for issuing all of the bonds for the
project or projects in a timely and orderly manner and with
uniform credit ratings as opposed to multiple municipalities
making separate issues of bonds.
If each governing body determines that it is in the best interests of
the municipality to create a joint agency, each governing body shall
adopt a mutually acceptable resolution or ordinance so finding
(which need not prescribe in detail the basis for the determination),
which shall set forth the names of the municipalities proposed to be
members of the joint agency and shall authorize any two (2) or more
of such municipalities to enter into a contract for the creation of the
joint agency. After the execution of the contract, each municipality
shall cause notice of the execution of the contract to be given to the
presiding officer of the governing body of the municipality. The
governing body shall thereupon appoint in writing one (1)
commissioner of the joint agency.
(c) The appointed commissioners shall convene and issue a
statement containing:
(1) a brief description of the resolution creating the joint
agency;
(2) the name of the agency;
(3) the participating municipalities; and
(4) the names and addresses of the appointed commissioners.
The commissioners shall file copies of the statement with the
commission, the secretary of state, and with the recorder of each
county in which the member municipal utilities provide service.
(d) The joint agency shall consist of a board of commissioners.
The governing body of each municipality shall appoint one (1)
commissioner who may be an officer or employee of the municipality
or a member or employee of the board described in IC 8-1.5-3-3(a).
The appointment of a commissioner shall be made by resolution or
ordinance. Each commissioner shall have not less than one (1) vote
and may have such number of additional votes as a majority of the
members of the joint agency shall determine. Each commissioner
shall serve at the pleasure of the governing body by which he was
appointed. Each appointed commissioner before entering upon his
duties shall take and subscribe to an oath before a person authorized
by law to administer oaths to execute the duties of his office
faithfully and impartially, and a record of the oath shall be filed with
the governing body of the appointing municipality and entered in its
minutes.
(e) The board of commissioners of the joint agency shall annually
elect, from among its membership, a chairman and a vice chairman.
It shall also annually elect another person or persons, who may be
commissioners, as treasurer and secretary. It may also annually elect,
if desired, one (1) or more assistant secretaries. The office of
treasurer may be held by the secretary or an assistant secretary. The
board of commissioners may also appoint additional officers. The
secretary or assistant secretary of the joint agency shall keep a record
of its proceedings and the secretary shall be the custodian of all
records, books, documents, and papers filed with the joint agency,
the minute book or journal of the joint agency and its official seal.
Either the secretary or an assistant secretary of the joint agency may
cause copies to be made of all minutes and other records and
documents of the joint agency and may give certificates under the
official seal of the joint agency to the effect that such copies are true
copies, and all persons dealing with the joint agency may rely upon
such certificates.
(f) A majority of the commissioners of a joint agency constitute
a quorum. A vacancy in the board of commissioners of the joint
agency shall not impair the right of a quorum to exercise all the
rights and perform all the duties of the joint agency. Any action taken
by the joint agency under the provisions of this chapter may be
authorized by resolution at any regular or special meeting, and each
resolution takes effect immediately and need not be published or
posted. A contract that is approved by a resolution of the board of
commissioners may provide that an action may be taken under a
delegation provision in the contract if the action taken is consistent
with prudent utility practice. A majority of the votes which the
convened commissioners are entitled to cast shall be sufficient to
take any action or to pass any resolution, so long as the convened
commissioners are entitled to cast a majority of the total number of
votes held by the full board.
(g) Except as provided in this subsection, no commissioner of a
joint agency may receive from the joint agency any compensation for
the performance of his duties under this chapter. However, each
commissioner may be paid his necessary expenses incurred while
engaged in the performance of his duties. In addition, a municipality
may pay the commissioner it appoints up to fifteen dollars ($15) per
day for each day or fraction of a day the commissioner is engaged in
the performance of duties under this chapter, but only if the
commissioner is not a person holding a lucrative office.
(h) The board of commissioners of the joint agency may create an
executive committee of the board of commissioners. The board may
provide for the composition of the executive committee. The
executive committee shall have and shall exercise such of the powers
and authority of the board of commissioners during the intervals
between the board's meetings as shall be prescribed in the bylaws of
the joint agency. The terms of office of the members of the executive
committee and the method of filling vacancies therein shall be fixed
by the bylaws of the joint agency.
(i) Additional municipalities may join a joint agency upon such
terms and conditions as shall be provided in the contract for the
creation of the joint agency. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.90-1985,
SEC.1; P.L.82-1988, SEC.3; P.L.81-1997, SEC.3.
IC 8-1-2.2-9 General powers of joint agencies
Sec. 9. (a) Each joint agency shall have all of the rights and
powers necessary or convenient to carry out the purposes and
provisions of this chapter, including but not limited to the following:
(1) To adopt bylaws for the regulation of the affairs and the
conduct of its business, and to prescribe rules, regulations, and
policies in connection with the performance of its functions and
duties.
(2) To adopt an official seal and alter the same at pleasure.
(3) To maintain an office at such place or places as it may
determine.
(4) To sue and be sued in its own name and to plead and be
impleaded.
(5) To receive, administer, and comply with the conditions and
requirements respecting any gift, grant, or donation of any
property or money.
(6) To acquire by purchase, lease, gift, or otherwise, or to
obtain options for the acquisition of, any property, real or
personal, improved or unimproved, including an interest in land
less than the fee thereof.
(7) To sell, lease, exchange, transfer, or otherwise dispose of,
or to grant options for any such purposes with respect to, any
real or personal property or interest therein.
(8) To pledge or assign any money, rents, charges, or other
revenues and proceeds derived by the joint agency from the
sales of bonds or property and insurance or condemnation
proceeds and any contracts or other rights of the joint agency.
(9) To issue bonds of the joint agency for the purpose of paying
all or any part of the costs of any of the projects or purposes
authorized by this chapter.
(10) To study, plan, finance, construct, reconstruct, acquire,
improve, enlarge, better, own, operate, and maintain
individually or jointly with one (1) or more other joint agencies,
municipalities or public utilities one (1) or more projects and to
pay all or any part of the costs thereof from the proceeds of
bonds of the joint agency or from any other funds available to
the joint agency.
(11) To generate, produce, transmit, deliver, exchange,
purchase, or sell for resale only, electric power or energy or
steam, and transmission and related services and to enter into
contracts for any or all such purposes.
(12) To fix, charge and collect rents, rates, fees and charges for
electric power or energy and other services, facilities, and
commodities sold, furnished or supplied by it.
(13) To negotiate and enter into contracts with each of its
member municipalities whereby each municipality may
purchase power and energy and related services from the joint
agency derived from any project or projects or without
designation as to source and pursuant to which contracts each
municipality shall agree to make payments from the revenues of
its electric system adequate:
(A) to pay when due (whether at maturity, upon acceleration,
or by sinking fund requirements) the principal, premium, if
any, and interest on all bonds issued by the joint agency to
finance any service provided to such member municipality,
and to establish reserves therefor; and
(B) to pay the necessary expenses of the joint agency
(including, without limitation, all amounts required to be
collected pursuant to the trust agreement or resolution
providing for the issuance of bonds) and to establish reserves
therefor.
(14) To make and execute contracts and other instruments
necessary or convenient for the operation, maintenance, and
management of a regional transmission system, including
transmission facilities owned by a municipality or a joint
agency. Such a contract may not be for a term that is more than
fifty (50) years. Such a contract may not make the state, a
political subdivision, or a municipality a shareholder in a public
utility. Such a contract may delegate responsibilities if the
delegation and action taken are consistent with prudent utility
practice.
(15) To make and execute contracts and other instruments
necessary or convenient in the exercise of the powers and
functions of the joint agency under this chapter, including
contracts with persons, firms, corporations, limited liability
companies, and others.
(16) To employ engineers, attorneys, financial advisors, and
such other consultants, agents, and employees as may be
required in the judgment of the joint agency and to fix and pay
their compensation from funds available to the joint agency
therefor.
(17) To do all acts and things necessary, convenient, or
desirable to carry out the purposes of, and to exercise the
powers granted to, the joint agency herein.
(b) No joint agency may finance a project or projects, in whole or
in part, without first obtaining the approval of the commission as
provided in section 19 of this chapter.
(c) No joint agency may construct any transmission line without
first obtaining the approval of the commission as provided in section
19 of this chapter.
(d) A determination by the joint agency approved by the
commission shall be conclusive unless a party to the proceeding
aggrieved by the determination of the commission shall file notice of
appeal pursuant to IC 8-1-3. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.4; P.L.8-1993, SEC.116; P.L.81-1997, SEC.4.
IC 8-1-2.2-10 Contracts with municipality
Sec. 10. Contracts with Municipality. (a) Any municipality which
is a member of a joint agency may contract to purchase power and
energy and related services from the joint agency derived from any
project or projects or without designation as to source and pursuant
to which contracts such municipality shall agree to make payments
to the joint agency from the revenues of its electric system adequate:
(1) to pay when due (whether at maturity, upon acceleration, or
by sinking fund requirements) the principal, premium, if any,
and interest on all bonds issued by the joint agency to finance
any service provided to such member municipality, and to
establish reserves therefor; and
(2) to pay the necessary expenses of the joint agency (including,
without limitation, all amounts required to be collected pursuant
to the trust agreement or resolution providing for the issuance
of bonds) and to establish reserves therefor.
Since the creation of a joint agency is an alternative method whereby
a municipality may obtain the benefits of a joint project or projects,
any contract may provide: (A) that the contracting municipality shall
be obligated to make the payments required by the contract whether
or not a project is completed, operable or operating and
notwithstanding the suspension, interruption, interference, reduction
or curtailment of the output of a project or the power and energy
contracted for; and (B) that the payments under the contract may not
be subject to any reduction whether by offset or otherwise, and may
not be conditioned upon the performance or nonperformance of the
joint agency or any other member of the joint agency under the
contract or any other instrument. Any contract may also provide that
if one (1) or more of the municipalities should default in the
performance or discharge of its obligations under its contract, the
other contracting municipalities shall assume, pro rata, or otherwise,
the obligations of the defaulting municipality or municipalities and
may succeed to the rights and interests of the defaulting municipality
or municipalities as may be agreed upon in the contract. Any such
contract may also provide for requirements, purchases or exclusive
dealing arrangements if the joint agency determines that such
provisions are necessary to obtain financing on favorable terms.
(b) Notwithstanding the provisions of any other law to the
contrary, any contract with respect to the sale or purchase of power
and energy, transmission and related services, from a joint agency
may extend for a period not exceeding fifty (50) years from the date
service is estimated to be first rendered under the contract; and the
execution and effectiveness of the contract may not be subject to any
authorizations or approvals by the state or any agency, commission
or instrumentality or political subdivision thereof except as
specifically required and provided in this chapter, nor shall it be
subject to any publication requirements.
(c) Payments by a municipality under any contract with a joint
agency shall be payable solely from the revenues derived from the
ownership and operation of the electric system of that municipality
and may be treated as an expense of the operation and maintenance
thereof if the contract so provides, and any obligation under that
contract may not constitute a legal or equitable pledge, charge, lien,
or encumbrance upon any property of the municipality or upon any
of its income, receipts, or revenues, except the revenues of its electric
system, and neither the faith and credit nor the taxing power of the
municipality are, or may be, pledged for the payment of any
obligation under any such contract. A municipality shall be obligated
to fix, charge and collect rents, rates, fees and charges for electric
power and energy and other services, facilities and commodities,
sold, furnished or supplied through its electric system in an amount
sufficient to provide revenues adequate to meet its obligations under
any such contract and to pay any and all other amounts payable from
or constituting a charge and lien upon such revenues. In any
proceeding before the commission for the approval of rates set by a
municipality subject to its jurisdiction, the commission shall make
specific findings of the revenue requirements referred to in the prior
sentence and shall provide rates sufficient for such requirements.
(d) Any member of a joint agency may furnish the joint agency
with money derived solely from the ownership and operation of its
electric system or facilities and provide the joint agency with
personnel, equipment and property, both real and personal. Any
municipality may also provide any services to a joint agency.
(e) Any member of a joint agency may contract for, advance or
contribute funds derived solely from the ownership and operation of
its electric system or facilities to a joint agency as may be agreed
upon by the joint agency and the member, and the joint agency shall
repay such advances or contributions from proceeds of bonds, or
from any other funds of the joint agency, together with interest
thereon as may be agreed upon by the member and the joint agency.
(f) In the exercise of the powers enumerated in this chapter,
including without limitation, the execution of contracts as provided
in this section, a municipality and a joint agency shall be deemed to
be exercising a part of the sovereign powers of the state and shall be
exempt from any and all laws, rules and regulations prohibiting,
limiting or conditioning anticompetitive conduct. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-11 Issuance of bonds
Sec. 11. Issuance of Bonds. (a) Each municipality or joint agency
is hereby authorized to issue at one (1) time, or from time to time, its
bonds for the purpose of paying all or any part of the cost of any of
the purposes authorized by this chapter including, without limitation,
the funding or refunding of the principal, interest or other obligation
on any bonds issued by the municipality or joint agency whether or
not such bonds to be funded or refunded have or have not become
due, the establishment or increase of reserves to secure or to pay
such bonds, the provision of working capital and the payment of all
other costs or expenses incident to and necessary or convenient to
carry out the purposes and powers authorized by this chapter. The
principal of, premium, if any, and the interest on these bonds shall be
payable solely from the revenues and other available funds of the
issuer pledged or specified for their payment in accordance with this
chapter. The bonds of each issue shall bear interest at a rate or rates
determined by the issuer and shall not be subject to any other law of
this state limiting the same. The bonds of each issue shall be dated
and shall mature in amounts and at a time or times, not exceeding
fifty (50) years from their respective date or dates, as may be
determined by the governing body of the issuer. The bonds of each
issue may be made redeemable before maturity at a price or prices,
and under terms and conditions, as may be fixed by the governing
body of the issuer prior to issuance of the bonds. The governing body
of the issuer shall determine the form and manner of execution of the
bonds, including any interest coupons to be attached, and shall fix
the denomination or denominations of the bonds and the place or
places of payment of principal and interest, which may be at any
bank or trust company within or without the state, provided that at
least one (1) place of payment is within the state. In case any officer
whose signature, or a facsimile of whose signature, appears on any
bonds or coupons shall cease to hold that office before the delivery
of his bond, that signature or facsimile shall nevertheless be valid
and sufficient for all purposes as if he had remained in office until
delivery. The governing body of the issuer may also provide for the
authentication of the bonds by a trustee or fiscal agent. The bonds
may be issued in coupon or in fully registered form, or both, as the
governing body of the issuer may determine, and provisions may be
made for the registration of any coupon bonds as to principal alone
and also as to both principal and interest, and for the reconversion
into coupon bonds of any bonds registered as to both principal and
interest, and for the interchange of registered and coupon bonds. The
bonds of each issue, issued by a joint agency, shall be sold either by
public or negotiated sale at such price as may be determined by the
joint agency.
(b) The proceeds of the bonds of each issue shall be used solely
for the purposes for which such bonds have been issued, and shall be
disbursed in such manner and under such restrictions, if any, as the
governing body of the issuer may provide in the resolution
authorizing the issuance of those bonds or in any trust agreement
securing the bonds. The municipality or joint agency may issue
interim receipts or temporary bonds, with or without coupons,
exchangeable for definitive bonds when those bonds have been
executed and are available for delivery. The municipality or joint
agency may also provide for replacement of any bonds which have
become mutilated, destroyed, or lost.
(c) Except as provided in section 19 of this chapter, bonds may be
issued under the provisions of this chapter without obtaining the
consent of the state or of any political subdivision, or of any agency,
commission or instrumentality of either of them, and without any
other approvals, proceedings or the happening of any conditions or
things other than those approvals, proceedings, conditions or things
specifically required by this chapter, and provisions of the resolution
authorizing the issuance of the bonds or the trust agreement securing
them. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-12 Trust agreement or resolution on bondholders' rights
Sec. 12. Trust Agreement, or Resolution, on Rights of
Bondholders. In the discretion of the governing body of the issuer,
any bonds issued under the provisions of this chapter may be secured
by a trust agreement by and between the issuer and a corporate
trustee, which may be any trust company or bank having the powers
of a trust company within or without the state. That trust agreement,
or the resolution providing for the issuance of bonds, may contain
provisions for protecting and enforcing the rights and remedies of the
bondholders and of the trustee as may be reasonable and proper and
not in violation of law, and may restrict the individual right of action
by bondholders. The trust agreement or the resolution providing for
the issuance of bonds may contain covenants including, but not
limited to, the following:
(1) the pledge of all or any part of the revenues derived or to be
derived from the project or projects to be financed by the bonds
or from the electric system or facilities of a municipality or
joint agency, or in the case of a joint agency from the revenues
received from the municipalities;
(2) the rents, rates, fees and charges to be established,
maintained and collected, and the use and disposal of revenues,
gifts, grants and funds received or to be received by the
municipality or joint agency;
(3) the setting aside of reserves and the investment, regulation
and disposition of reserves;
(4) the custody, collection, securing, investment, and payment
of any moneys held for the payment of bonds;
(5) limitations or restrictions on the purposes to which the
proceeds of sale of bonds then or thereafter to be issued may be
applied;
(6) limitations or restrictions on the issuance of additional
bonds; the terms upon which additional bonds may be issued
and secured; or the refunding of outstanding or other bonds;
(7) the procedure, if any, by which the terms of any contract
with bondholders may be amended, the percentage of bonds the
bondholders of which must consent to an amendment, and the
manner in which consent may be given;
(8) events of default and the rights and liabilities arising upon
default, the terms and conditions upon which bonds issued
under this chapter shall become or may be declared due before
maturity, and the terms and conditions upon which the
declaration and its consequences may be waived;
(9) the preparation and maintenance of a budget;
(10) the retention or employment of consulting engineers,
independent auditors, and other technical consultants;
(11) limitations on or the prohibition of free service to any
person, firm, limited liability company, or corporation, public
or private;
(12) the acquisition and disposal of property, provided that no
project or part thereof may be mortgaged by such trust
agreement or resolution;
(13) provisions for insurance and for accounting reports and for
their inspection and audit; and
(14) the continuing operation and maintenance of the project. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.8-1993,
SEC.117.
IC 8-1-2.2-13 Revenues
Sec. 13. Revenues. (a) A municipality or joint agency may fix,
charge and collect rents, rates, fees and charges for electric power
and energy and other services, facilities and commodities sold,
furnished or supplied through the facilities of its electric system or
its interests in any project. For so long as any bonds of a municipality
or joint agency issued under this chapter are outstanding and unpaid,
the rents, fees and charges shall be so fixed as to provide revenues
sufficient to pay (1) all costs of and charges and expenses in
connection with the proper operation and maintenance of the
municipality's or joint agency's electric system, (2) its interest in any
project, (3) all necessary repairs, replacements or renewals thereof,
(4) when due (whether at maturity, upon acceleration, or by sinking
fund requirements), the principal, premium, if any, and interest on all
bonds payable from said revenues, (5) to create and maintain
reserves as may be required by any resolution or trust agreement
authorizing and securing bonds, (6) when due (whether at maturity,
upon acceleration, or by sinking fund requirements), the principal,
premium, if any, and interest on all general obligation bonds
heretofore or hereafter issued to finance additions, and improvements
to its electric system, (7) any and all amounts which the municipality
may be obligated to pay from these revenues by law or contract, and
(8) any additional amounts which must be realized in order to meet
the requirements of any rate covenant imposed by any resolution or
trust agreement authorizing and securing bonds.
(b) Any pledge made by a municipality or joint agency pursuant
to this chapter shall be valid and binding from the date the pledge is
made. The revenues, securities, and other moneys so pledged and
then held or thereafter received by the municipality or joint agency
or any fiduciary shall immediately be subject to the lien of the pledge
without any physical delivery thereof or further act, and the lien of
the pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
municipality or joint agency without regard to whether such parties
have notice thereof. The resolution or trust agreement or any
financing statement, continuation statement or other instrument by
which a pledge is created need not be filed or recorded in any
manner. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-14 Trust funds
Sec. 14. Trust Funds. Notwithstanding any other provisions of law
to the contrary, all moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of bonds or as revenues,
shall be considered trust funds to be held and applied solely as
provided in this chapter. The resolution authorizing the bonds of any
issue, or the trust agreement securing such bonds, may provide that
any of those moneys may be temporarily invested and reinvested
pending the disbursements of those moneys in securities and other
investments as shall be provided in the resolution or trust agreement,
and shall also provide that any officer with whom, or any bank or
trust company with which, such moneys shall be deposited shall act
as trustee of those moneys and shall hold and apply them as directed,
subject to such regulation as this chapter and the resolution or trust
agreement may provide. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-15 Remedies
Sec. 15. Remedies. Any holder of bonds issued under the
provisions of this chapter or any of the bond coupons, and the trustee
under any trust agreements, except to the extent that his rights are
restricted by the trust agreement or the resolution authorizing the
issuance of the bonds, may, (a) either at law or in equity, by suit,
action, or other proceeding, protect and enforce any and all rights
under the laws of the state or, to the extent permitted by law, under
the trust agreement or resolution authorizing the issuance of the
bonds or under any agreement or other contract executed by the
municipality or joint agency pursuant to this chapter, and (b) may
enforce and compel the performance of all duties required by this
chapter or by the trust agreement or resolution to be performed by
any municipality or joint agency or by any officer of any
municipality or joint agency, including the fixing, charging, and
collecting of rents, rates, fees, and charges. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-16 Bond eligibility for investment
Sec. 16. Bond Eligibility for Investment. Bonds issued by a
municipality or joint agency under the provisions of this chapter are
hereby made securities in which all public officers and agencies of
the state, all insurance companies, banking associations, investment
companies, executors, administrators, trustees and other fiduciaries
may properly and legally invest funds, including capital in their
control or belonging to them. These bonds are hereby made securities
which may properly and legally be deposited with and received by
any officer or agency of the state for any purpose for which the
deposit of bonds or obligations of the state is now or may hereafter
be authorized by law. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-17 Agreement of state with bondholders
Sec. 17. Agreement of the State. The state hereby covenants and
agrees with the holders of any bonds that so long as any bonds of a
municipality or joint agency issued under this chapter are
outstanding and unpaid, the state will not limit or alter the rights
vested in such municipality or joint agency to acquire, construct,
reconstruct, improve, enlarge, extend, own, operate and maintain its
electric system or any project or interest in any project, or to
establish, maintain, revise, charge, and collect the rents, rates, fees
and charges referred to in this chapter and to fulfill the terms of any
agreements made with the holders of the bonds or in any way impair
the rights and remedies of the bondholders, until the bonds, together
with interest thereon, interest on any unpaid installment of interest,
and all costs and expenses in connection with any action or
proceedings by or on behalf of the bondholders, are fully paid, met
and discharged. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-18 Limited liability on bonds
Sec. 18. Limited Liability. (a) The bonds issued under the
authority of this chapter by a municipality shall not be general
obligations of the municipality issuing them. The principal of,
premium, if any, and interest on the bonds shall not be payable from
the general funds of the municipality, nor shall they constitute a legal
or equitable pledge, charge, lien, or encumbrance upon any of its
property or upon any of its income, receipts, or revenues, except the
funds which are pledged under the resolution authorizing the bonds
or the trust agreement securing the bonds. Neither the faith and credit
nor the taxing power of a municipality or of the state are, or may be,
pledged for the payment of the principal of, premium, if any, or
interest on the bonds, and no holder of the bonds shall have the right
to compel the exercise of the taxing power by the state or a
municipality or the forfeiture of any of its property in connection
with any default. Every bond shall recite in substance that the
principal of, premium, if any, and interest on the bond is payable
solely from the revenues and other funds pledged to its payment and
that the municipality is not obligated to pay the principal, premium,
if any, or interest except from such revenues and other funds.
(b) The bonds issued under the authority of this chapter by a joint
agency shall constitute obligations of the joint agency issuing them
and neither the state nor any political subdivision thereof, other than
the joint agency, shall be obligated to pay the principal of, premium,
if any, or interest on the bonds and neither the faith and credit nor the
taxing power of the state or any such political subdivision thereof or
of any such municipality shall be pledged to the payment of the
principal of, premium, if any, or interest on the bonds.
(c) Payments made under a transmission contract under section
9(a)(14) of this chapter must be paid solely from revenues of the
joint agency entering into the contract. The obligation to make these
payments does not constitute an indebtedness, or lend the credit of
the state, a political subdivision, or a municipality to a public utility. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.81-1997,
SEC.5.
IC 8-1-2.2-19 Approval of commission
Sec. 19. (a) Prior to the acquisition or the commencement of
construction of any project to be financed by the issuance of bonds
under this chapter, the municipality or municipalities or joint agency
shall file a verified petition with the commission for approval of the
project, for approval of participation of the municipality or
municipalities or joint agency in the project, and for approval of any
bonds to be issued under this chapter. If the commission shall
determine:
(1) that the participation of the municipality or municipalities
or joint agency in the project is economically and technically
feasible;
(2) that the project will be integrated with existing or planned
transmission line facilities in the state in a manner that will
avoid economic and physical duplication of existing or planned
transmission line facilities;
(3) that the municipality or municipalities or joint agency own
or have access to the transmission facilities to transmit such
power and energy from the project to the municipality or
municipalities or joint agency;
(4) that for a project involving a coal-consuming facility, the
facility utilizes Indiana coal or is justified, because of economic
considerations or governmental requirements, in utilizing
non-Indiana coal;
(5) that for a project involving the acquisition or participation
in the ownership of an electric generating facility located
outside Indiana, the municipality, municipalities, or joint
agency has been unable to acquire or participate in the
ownership of a comparable generating facility in Indiana at a
comparable cost and unable to purchase sufficient amounts of
electricity in Indiana at a comparable cost giving due
consideration to all factors, including but not limited to the
length and terms of available purchases and the expected useful
life of the facility;
(6) that for a project involving the acquisition or participation
in the ownership of an electric generating facility located
outside Indiana, acquisition of or participation in the ownership
of the facility provides the municipality, municipalities, or joint
agency with greater economic benefits than either:
(A) the acquisition or participation in the ownership of a
comparable generating facility in Indiana available for
ownership; or
(B) the purchase of sufficient amounts of electricity in
Indiana at a comparable cost giving due consideration to all
factors, including but not limited to the length and terms of
available purchases and the expected useful life of the
facility; and
(7) that the determinations of the governing body or bodies with
respect to the items listed in section 3(c) or 8(b) of this chapter
have been or should be approved;
then the commission shall issue an order approving the project and
the participation of the municipality or municipalities or joint agency
in the project and the issuance of bonds by the municipality or
municipalities or by the joint agency. For the purpose of enabling it
to determine whether it should issue such an order, the commission
shall make such inquiry or investigation, hold such hearings, and
examine such witnesses, books, papers, documents, or contracts as
it may deem of importance in enabling it to reach a determination.
The determinations required by this subsection are in addition to the
requirements of IC 8-1-8.5-4 and IC 8-1-8.5-5.
(b) A joint agency is not a public utility (as defined in IC 8-1-2).
However, with respect to proceedings initiated by a joint agency
under this section, the commission is given jurisdiction to proceed in
the same manner and with like power as is provided by IC 8-1-2 in
the case of public utilities (as defined in IC 8-1-2). As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.5; P.L.54-1992, SEC.3; P.L.81-1997, SEC.6.
IC 8-1-2.2-20 Acquisition and construction contracts
Sec. 20. Acquisition and Construction Contracts. A municipality
or joint agency may contract for the planning, acquisition,
construction, reconstruction, operation, maintenance, repair,
extension, and improvement of generation and transmission facilities
within or without its corporate limits or those of its members, or may
contract with other public or private entities to perform these
functions, without advertising for bids or securing performance and
payment bonds, except to the extent that its governing body
determines that these actions are desirable in furtherance of the
purposes of this chapter. Except as otherwise provided by this
section, no contract shall be invalid or unenforceable by reason of
nonperformance of the conditions required by any other law relating
to public contracts. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-21 Tax exempt status
Sec. 21. Tax Exempt Status. Bonds, their transfer and the income
therefrom (including any profit made on the sale thereof), shall at all
times be free from taxation by the state or any political subdivision
or any agency of either thereof, excepting inheritance or gift taxes. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-22 Payments in lieu of taxes
Sec. 22. Payments in Lieu of Taxes. That part of a project owned
by a municipality or municipalities or joint agency shall be exempt
from property taxes. However, each municipality participating in a
project or joint agency owning all or any part of a project shall, in
lieu of property taxes, pay to any governmental unit authorized to
levy property taxes the amount which would be assessed as taxes on
real and personal property of a project if such project were otherwise
subject to valuation and assessment. Such payments in lieu of taxes
shall be due and shall bear interest if unpaid, as in the cases of taxes
on other property. Payments in lieu of taxes made under this section
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
Except as expressly provided in this section with respect to jointly
owned projects, no other property of a municipality used or useful in
the generation, transmission and distribution of electric power and
energy shall be subject to payments in lieu of taxes. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-23 Personnel
Sec. 23. Personnel. Personnel employed or appointed by a
municipality or joint agency to work on a project shall have the same
authority, rights, privileges and immunities which officers, agents
and employees of municipalities enjoy, when they are acting within
the scope of their authority or in the course of their employment. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-24 Dissolution of joint agencies
Sec. 24. Dissolution of Joint Agencies. Whenever the board of
commissioners of a joint agency and the governing bodies of its
member municipalities by resolution or ordinance determine that the
purposes for which the joint agency was formed have been
substantially fulfilled and that all bonds issued and all other
obligations incurred by the joint agency have been fully paid or
satisfied or provision for the payment thereof has been made in
accordance with the terms of the resolution or trust agreement
securing the same, the board of commissioners and governing boards
may declare the joint agency to be dissolved. On the effective date
of the resolution or ordinance, the title to all funds and other property
owned by the joint agency at the time of the dissolution shall vest in
the member municipalities of the joint agency as provided in this
chapter and the bylaws of the joint agency. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-25 Annual reports
Sec. 25. Annual Reports. The municipal utilities or joint agencies
possessing ownership interests in a project shall, following the
closing of each fiscal year, submit a consolidated or combined annual
report of their activities (including the activities of any joint agency)
with respect to such project for the preceding year to the respective
governing bodies of such municipalities and to the commission. Each
report shall set forth in a form prescribed by the commission a
complete operating and financial statement covering the operations
of the project during the year. The municipalities or joint agencies
possessing ownership interests in a project shall cause an audit of the
books of record and accounts relating to such project (including any
joint agency) to be made at least once in each year by a certified
public accountant or accountants and the cost of the audit may be
treated as a cost of construction of the project, or otherwise as part
of the expenses of the administration of the project covered by such
audit. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-26 Government grants and loans
Sec. 26. Government Grants and Loans. The governing body of
any municipality or the joint agency is hereby authorized to make
application and to enter into contracts for and to accept grants-in-aid
and loans from the federal and state governments and their agencies
for planning, acquiring, constructing, expanding, maintaining and
operating any project or facility, or participating in any research or
development program, or performing any function which such
municipality or joint agency may be authorized by general or local
law to provide or perform.
In order to exercise the authority granted by this section, the
governing board of any municipality or joint agency may:
(1) enter into and carry out contracts with the state or federal
government or any agency or institution thereof under which
such government, agency or institution grants financial or other
assistance to the municipality or joint agency;
IC 8-1-2.2
Chapter 2.2. Municipal Electric Utility Programs
IC 8-1-2.2-1 Findings and purpose
Sec. 1. Municipalities owning facilities for the distribution of
electric power and energy are required by law to provide, and serve
a public purpose by providing, customers with an adequate, a
reliable, and an economical supply of electric power and energy.
Individually, such municipalities or joint agencies are not financially
capable of providing the planning, financing, locating, and building
of needed new facilities for generation and transmission or operating
or managing these facilities. Therefore, the general assembly finds
it necessary and proper to provide a method for certain of those
municipalities to jointly finance, develop, own, manage, and operate,
either by themselves or with public utilities, electric generation and
transmission facilities appropriate to the present and projected
electric energy needs of such municipalities and to the changes in the
electric utility industry affecting these municipalities or joint
agencies. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.54-1992,
SEC.1; P.L.81-1997, SEC.1.
IC 8-1-2.2-2 Definitions
Sec. 2. (a) The definitions in this section apply throughout this
chapter.
(b) "Bonds" means electric utility revenue bonds, notes, and other
evidences of indebtedness of a municipality or a joint agency issued
under the provisions of this chapter.
(c) "Cost" or "cost of a project" means but may not be limited to
the cost of acquisition, construction, reconstruction, improvement,
enlargement, betterment, extension, decommissioning, or disposal of
any project or part thereof, including:
(1) the cost of studies, plans, specifications, surveys, and
estimates of costs and revenues relating thereto;
(2) the cost of land, land rights, rights-of-way and easements,
water rights, fees, permits, approvals, licenses, certificates,
franchises, and the preparation of applications thereof;
(3) administrative, legal, engineering, and inspection expenses;
(4) financing fees, expenses, and costs;
(5) working capital;
(6) initial fuel costs;
(7) interest on the bonds during the period of construction and
for such reasonable period thereafter as may be determined by
the issuing municipality or joint agency;
(8) establishment of reserves for the payment of debt service,
for renewals and replacements, for working capital, for
operating expenses, and for any other purposes deemed
reasonable and proper; and
(9) all other expenditures of the issuing municipality or joint
agency incidental, necessary, or convenient to the acquisition,
construction, reconstruction, improvement, enlargement,
betterment, extension, decommissioning, or disposal of any
project and the placing of the same in operation.
(d) "Governing body" means the legislative body of a city or town
or commissioners of a joint agency.
(e) "Joint agency" means an agency created by two (2) or more
municipalities pursuant to section 8 of this chapter.
(f) "Municipality" means a city or town in the state or any board,
agency, or commission thereof owning and operating on January 1,
1980, an electric utility which furnishes retail electric service to the
public.
(g) "Project" means any plant, works, system, or facilities, and
other real and personal property of any nature whatsoever necessary
or convenient in the generation, transmission, transformation,
purchase, sale, exchange, or interchange of electric power and energy
or steam, or the development, production, manufacture, procurement,
handling, storage, fabrication, enrichment, processing, or
reprocessing of fuel of any kind or any facility or rights with respect
to the supply of water, by any means whatsoever or any interest
therein or any rights to the use, output, or capacity thereof. A
transmission contract entered into under section 9(a)(14) of this
chapter is not a project.
(h) "Public utility" means any corporation, company, limited
liability company, partnership, or other form of legal entity,
individual, association of individuals, or public agency organized
under the laws of Indiana or another state of the United States
authorized to own, operate, or control any plant or equipment for the
generation, transmission, or distribution of electric power and energy
and to sell electric power and energy to:
(1) the public;
(2) public or municipally owned utilities (as defined in
IC 8-1-2); or
(3) cooperatives.
(i) "State" means the state of Indiana. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.23-1988,
SEC.29; P.L.82-1988, SEC.1; P.L.8-1989, SEC.39; P.L.179-1991,
SEC.12; P.L.1-1992, SEC.29; P.L.54-1992, SEC.2; P.L.1-1993,
SEC.48; P.L.81-1997, SEC.2.
IC 8-1-2.2-3 Authorization to cooperate
Sec. 3. Authorization to Cooperate. (a) In addition and
supplemental to the powers otherwise conferred on municipalities by
law, and in order to accomplish the purposes of this chapter, a
municipality may plan, finance, develop, construct, reconstruct,
acquire, improve, enlarge, own, operate and maintain an undivided
interest as a tenant in common in a project jointly with one (1) or
more municipalities, joint agencies or public utilities, and may plan
and enter into contracts in this connection with them, not inconsistent
with the provisions of this chapter.
(b) Prior to acquiring any undivided interest, the governing body
shall determine the present and future needs of the municipality for
power and energy based upon engineering studies and reports, and
may not acquire an undivided interest as a tenant in common in a
project in excess of that amount of capacity and the energy required
to provide for its projected needs for power and energy for such
reasonable period of time as shall be determined by the governing
body and approved by the commission in a proceeding pursuant to
section 19 of this chapter.
(c) The future power requirements of a municipality shall be
evaluated by the governing body in accordance with the following:
(1) the economies and efficiencies to be achieved in
constructing large scale facilities for the generation and
transmission of electric power and energy;
(2) the municipality's needs for reserve and peaking capacity
and obligations reasonably related to its needs for power and
energy under pooling and reserve sharing agreements to which
it is or may become a party;
(3) the estimated useful life of the project; and
(4) the estimated time for planning, development, acquisition or
construction of the project and the time required in advance to
obtain, acquire or construct additional power supply. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-4 Joint ownership of project
Sec. 4. (a) Each municipality, joint agency, or public utility shall
own an undivided interest in any project in proportion to the amount
of the money furnished or the value of property or other
consideration supplied by it for the planning, development,
acquisition, or construction of the project and shall be entitled to a
percentage share of the project net output and capacity equal to the
undivided interest. This section does not preclude a joint owner of a
project from agreeing to take and pay for the project net output in a
percentage share that differs from its undivided interest.
(b) Each municipality, joint agency, and public utility
participating in a project shall be severally liable for its own acts and
may not be held, jointly or severally liable for the acts, omissions, or
obligations of others. However, nothing shall preclude each
municipality, joint agency and public utility participating in a project
from being severally liable for acts performed by any project
manager, construction agent, or operating agent for such project.
Except as otherwise provided in this chapter, no money or property
or other consideration supplied by any municipality, joint agency, or
public utility may be credited or otherwise applied to the account of
any other municipality, joint agency, or public utility, nor shall the
undivided share of any municipality, joint agency, or public utility in
a project be charged directly or indirectly with any debt or obligation
of any other municipality, joint agency, or public utility, or be
subject to any lien as a result thereof. The acquisition of a project
may include, but is not limited to, the purchase or lease of an existing
and completed project or the purchase of a project under construction
or the purchase of a project to be constructed. A municipality or joint
agency participating in the joint planning, financing, construction,
reconstruction, acquisition, improvement, enlargement, ownership,
operation, or maintenance of any project under this chapter may
furnish money derived solely from the proceeds of bonds or from the
ownership and operation of its electric system, or both, and provide
property, both real and personal, services, and other considerations.
(c) Any contract entered into by municipalities under this chapter
with respect to joint ownership in a project shall contain terms,
conditions, and provisions, not inconsistent with the provisions of
this section. Any contract shall be ratified by resolution of the
governing body of each municipality and recorded in its minutes.
Any contract shall include the following:
(1) The purpose or purposes of the contract.
(2) The duration of the contract.
(3) The manner of appointing or employing personnel necessary
in connection with the project.
(4) The method of financing the project including the
apportionment of costs and revenues.
(5) Provisions specifying the ownership interests of the parties
in property used or useful in connection with the project, and
the procedures for the disposition of such property when the
contract expires, is terminated, or when the project, for any
reason, is abandoned, decommissioned, or dismantled.
(6) Provisions relating to alienation and prohibiting partition of
a municipality's undivided interest in a project, which
provisions shall not be subject to any provision of law
restricting convenants against alienation or partition.
(7) Provisions for the construction of a project, which may
include the determination that a municipality, joint agency, or
public utility may construct the project as agent for all the
parties.
(8) Provisions for the operation and maintenance of a project,
which may include the determination that a municipality, joint
agency, or public utility may operate and maintain the project
as agent for all the parties.
(9) Provisions for the creation of a committee of representatives
of the municipalities, joint agencies and public utilities jointly
participating with such powers of supervision of the
construction and operation of the project as the contract may
provide, which are not inconsistent with the provisions of this
chapter.
(10) Provisions that if one (1) or more of the municipalities,
joint agencies, or public utilities default in the performance or
discharge of its obligations with respect to the project, the other
party or parties may assume, pro rata, or otherwise, the
obligations of the defaulting party or parties and may succeed
to the rights and interests of the defaulting party or parties as
may be agreed upon in the contract.
(11) Methods for amending the contract.
(12) Methods for terminating the contract.
(13) Any other necessary or proper matter.
(d) For the purpose of paying its respective share of the cost of a
project or projects, a municipality or joint agency may issue its bonds
as provided in this chapter, and, notwithstanding the provisions of
any other law to the contrary, may pledge to the payment of the
principal, premium, if any, and interest on such bonds, the revenues,
or any portion of revenues, derived or to be derived from the
ownership and operation of its system or facilities for the generation,
transmission, or distribution of electric power or energy or its interest
in any joint project or projects, or a combination of such revenues.
All bonds issued under the provisions of this chapter shall be
authorized and issued by the governing body. Upon the request of the
issuing municipality or joint agency the commission shall approve at
one (1) time sufficient bonds to be issued to finance the issuer's share
of the cost of a project even though such bonds are to be issued in
series from time to time and even though the exact amount of such
costs have not been finally determined and such approval may be of
an indeterminate amount.
(e) Municipalities and joint agencies may jointly or severally own,
operate and maintain projects with any public utility. Any
municipality or joint agency shall have for such purposes all powers
conferred upon them by the provisions of this chapter including the
power to issue revenue bonds pursuant to the provisions of this
chapter to finance its share of the cost of any such project. The
definitions and all other terms and provisions of this chapter shall be
construed so as to include such undivided ownership interest in order
to fully effectuate the power and authority conferred by the foregoing
provisions of this section. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.2.
IC 8-1-2.2-5 Sale of capacity or output by a municipality
Sec. 5. Sale of Capacity or Output by a Municipality. Whenever
a municipality has capacity or output derived from its ownership
share of a project or otherwise in excess of its current needs or which
cannot be economically utilized immediately, it may sell or exchange
the excess capacity or output, by agreement, to any municipality
owning electric distribution facilities in this state, to any joint
agency, or to any public utility. Sales of excess capacity or output of
a project to public utilities shall not be made in such amounts, for
such periods of time, and under such conditions as will cause the
interest on bonds issued to finance the cost of a project to become
taxable by the federal government. As added by Acts 1980, P.L.68, SEC.1. IC 8-1-2.2-6 Licenses and approvals
Sec. 6. Licenses and Approvals. Municipalities and joint agencies
proposing to jointly plan, finance, develop, and operate a project are
authorized to jointly or separately apply to any agency of the state or
federal government for licenses, permits, certificates, or approvals. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-7 Authority to contract for energy exchange
Sec. 7. Authority to Contract for Energy Exchange. Municipalities
participating in a project or projects are hereby authorized to enter
into contracts for the exchange, interchange, wheeling, pooling, and
transmission of electric power and energy produced by the project or
projects with any municipality, joint agency, or public utility. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-8 Joint agency
Sec. 8. (a) The governing bodies of two (2) or more municipalities
may, by resolution or ordinance, determine that it is in their best
interests to create a joint agency, for the purpose of undertaking the
planning, financing, ownership, and operation of a project or projects
to supply electric power and energy for their present or future needs.
Any joint agency created under this chapter shall be a body corporate
and politic and a political subdivision of the state, and in exercising
its powers under this chapter, it shall be deemed to be exercising a
part of the sovereign powers of the state. The activities of the joint
agency in carrying out the purposes of this chapter shall constitute
state action.
(b) In determining whether or not the creation of a joint agency is
in their best interests, the governing bodies shall consider the
following:
(1) Whether cost reduction, efficiencies, or other advantages
may be realized by creating a joint agency.
(2) Whether better financial market acceptance may result if a
joint agency is responsible for issuing all of the bonds for the
project or projects in a timely and orderly manner and with
uniform credit ratings as opposed to multiple municipalities
making separate issues of bonds.
If each governing body determines that it is in the best interests of
the municipality to create a joint agency, each governing body shall
adopt a mutually acceptable resolution or ordinance so finding
(which need not prescribe in detail the basis for the determination),
which shall set forth the names of the municipalities proposed to be
members of the joint agency and shall authorize any two (2) or more
of such municipalities to enter into a contract for the creation of the
joint agency. After the execution of the contract, each municipality
shall cause notice of the execution of the contract to be given to the
presiding officer of the governing body of the municipality. The
governing body shall thereupon appoint in writing one (1)
commissioner of the joint agency.
(c) The appointed commissioners shall convene and issue a
statement containing:
(1) a brief description of the resolution creating the joint
agency;
(2) the name of the agency;
(3) the participating municipalities; and
(4) the names and addresses of the appointed commissioners.
The commissioners shall file copies of the statement with the
commission, the secretary of state, and with the recorder of each
county in which the member municipal utilities provide service.
(d) The joint agency shall consist of a board of commissioners.
The governing body of each municipality shall appoint one (1)
commissioner who may be an officer or employee of the municipality
or a member or employee of the board described in IC 8-1.5-3-3(a).
The appointment of a commissioner shall be made by resolution or
ordinance. Each commissioner shall have not less than one (1) vote
and may have such number of additional votes as a majority of the
members of the joint agency shall determine. Each commissioner
shall serve at the pleasure of the governing body by which he was
appointed. Each appointed commissioner before entering upon his
duties shall take and subscribe to an oath before a person authorized
by law to administer oaths to execute the duties of his office
faithfully and impartially, and a record of the oath shall be filed with
the governing body of the appointing municipality and entered in its
minutes.
(e) The board of commissioners of the joint agency shall annually
elect, from among its membership, a chairman and a vice chairman.
It shall also annually elect another person or persons, who may be
commissioners, as treasurer and secretary. It may also annually elect,
if desired, one (1) or more assistant secretaries. The office of
treasurer may be held by the secretary or an assistant secretary. The
board of commissioners may also appoint additional officers. The
secretary or assistant secretary of the joint agency shall keep a record
of its proceedings and the secretary shall be the custodian of all
records, books, documents, and papers filed with the joint agency,
the minute book or journal of the joint agency and its official seal.
Either the secretary or an assistant secretary of the joint agency may
cause copies to be made of all minutes and other records and
documents of the joint agency and may give certificates under the
official seal of the joint agency to the effect that such copies are true
copies, and all persons dealing with the joint agency may rely upon
such certificates.
(f) A majority of the commissioners of a joint agency constitute
a quorum. A vacancy in the board of commissioners of the joint
agency shall not impair the right of a quorum to exercise all the
rights and perform all the duties of the joint agency. Any action taken
by the joint agency under the provisions of this chapter may be
authorized by resolution at any regular or special meeting, and each
resolution takes effect immediately and need not be published or
posted. A contract that is approved by a resolution of the board of
commissioners may provide that an action may be taken under a
delegation provision in the contract if the action taken is consistent
with prudent utility practice. A majority of the votes which the
convened commissioners are entitled to cast shall be sufficient to
take any action or to pass any resolution, so long as the convened
commissioners are entitled to cast a majority of the total number of
votes held by the full board.
(g) Except as provided in this subsection, no commissioner of a
joint agency may receive from the joint agency any compensation for
the performance of his duties under this chapter. However, each
commissioner may be paid his necessary expenses incurred while
engaged in the performance of his duties. In addition, a municipality
may pay the commissioner it appoints up to fifteen dollars ($15) per
day for each day or fraction of a day the commissioner is engaged in
the performance of duties under this chapter, but only if the
commissioner is not a person holding a lucrative office.
(h) The board of commissioners of the joint agency may create an
executive committee of the board of commissioners. The board may
provide for the composition of the executive committee. The
executive committee shall have and shall exercise such of the powers
and authority of the board of commissioners during the intervals
between the board's meetings as shall be prescribed in the bylaws of
the joint agency. The terms of office of the members of the executive
committee and the method of filling vacancies therein shall be fixed
by the bylaws of the joint agency.
(i) Additional municipalities may join a joint agency upon such
terms and conditions as shall be provided in the contract for the
creation of the joint agency. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.90-1985,
SEC.1; P.L.82-1988, SEC.3; P.L.81-1997, SEC.3.
IC 8-1-2.2-9 General powers of joint agencies
Sec. 9. (a) Each joint agency shall have all of the rights and
powers necessary or convenient to carry out the purposes and
provisions of this chapter, including but not limited to the following:
(1) To adopt bylaws for the regulation of the affairs and the
conduct of its business, and to prescribe rules, regulations, and
policies in connection with the performance of its functions and
duties.
(2) To adopt an official seal and alter the same at pleasure.
(3) To maintain an office at such place or places as it may
determine.
(4) To sue and be sued in its own name and to plead and be
impleaded.
(5) To receive, administer, and comply with the conditions and
requirements respecting any gift, grant, or donation of any
property or money.
(6) To acquire by purchase, lease, gift, or otherwise, or to
obtain options for the acquisition of, any property, real or
personal, improved or unimproved, including an interest in land
less than the fee thereof.
(7) To sell, lease, exchange, transfer, or otherwise dispose of,
or to grant options for any such purposes with respect to, any
real or personal property or interest therein.
(8) To pledge or assign any money, rents, charges, or other
revenues and proceeds derived by the joint agency from the
sales of bonds or property and insurance or condemnation
proceeds and any contracts or other rights of the joint agency.
(9) To issue bonds of the joint agency for the purpose of paying
all or any part of the costs of any of the projects or purposes
authorized by this chapter.
(10) To study, plan, finance, construct, reconstruct, acquire,
improve, enlarge, better, own, operate, and maintain
individually or jointly with one (1) or more other joint agencies,
municipalities or public utilities one (1) or more projects and to
pay all or any part of the costs thereof from the proceeds of
bonds of the joint agency or from any other funds available to
the joint agency.
(11) To generate, produce, transmit, deliver, exchange,
purchase, or sell for resale only, electric power or energy or
steam, and transmission and related services and to enter into
contracts for any or all such purposes.
(12) To fix, charge and collect rents, rates, fees and charges for
electric power or energy and other services, facilities, and
commodities sold, furnished or supplied by it.
(13) To negotiate and enter into contracts with each of its
member municipalities whereby each municipality may
purchase power and energy and related services from the joint
agency derived from any project or projects or without
designation as to source and pursuant to which contracts each
municipality shall agree to make payments from the revenues of
its electric system adequate:
(A) to pay when due (whether at maturity, upon acceleration,
or by sinking fund requirements) the principal, premium, if
any, and interest on all bonds issued by the joint agency to
finance any service provided to such member municipality,
and to establish reserves therefor; and
(B) to pay the necessary expenses of the joint agency
(including, without limitation, all amounts required to be
collected pursuant to the trust agreement or resolution
providing for the issuance of bonds) and to establish reserves
therefor.
(14) To make and execute contracts and other instruments
necessary or convenient for the operation, maintenance, and
management of a regional transmission system, including
transmission facilities owned by a municipality or a joint
agency. Such a contract may not be for a term that is more than
fifty (50) years. Such a contract may not make the state, a
political subdivision, or a municipality a shareholder in a public
utility. Such a contract may delegate responsibilities if the
delegation and action taken are consistent with prudent utility
practice.
(15) To make and execute contracts and other instruments
necessary or convenient in the exercise of the powers and
functions of the joint agency under this chapter, including
contracts with persons, firms, corporations, limited liability
companies, and others.
(16) To employ engineers, attorneys, financial advisors, and
such other consultants, agents, and employees as may be
required in the judgment of the joint agency and to fix and pay
their compensation from funds available to the joint agency
therefor.
(17) To do all acts and things necessary, convenient, or
desirable to carry out the purposes of, and to exercise the
powers granted to, the joint agency herein.
(b) No joint agency may finance a project or projects, in whole or
in part, without first obtaining the approval of the commission as
provided in section 19 of this chapter.
(c) No joint agency may construct any transmission line without
first obtaining the approval of the commission as provided in section
19 of this chapter.
(d) A determination by the joint agency approved by the
commission shall be conclusive unless a party to the proceeding
aggrieved by the determination of the commission shall file notice of
appeal pursuant to IC 8-1-3. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.4; P.L.8-1993, SEC.116; P.L.81-1997, SEC.4.
IC 8-1-2.2-10 Contracts with municipality
Sec. 10. Contracts with Municipality. (a) Any municipality which
is a member of a joint agency may contract to purchase power and
energy and related services from the joint agency derived from any
project or projects or without designation as to source and pursuant
to which contracts such municipality shall agree to make payments
to the joint agency from the revenues of its electric system adequate:
(1) to pay when due (whether at maturity, upon acceleration, or
by sinking fund requirements) the principal, premium, if any,
and interest on all bonds issued by the joint agency to finance
any service provided to such member municipality, and to
establish reserves therefor; and
(2) to pay the necessary expenses of the joint agency (including,
without limitation, all amounts required to be collected pursuant
to the trust agreement or resolution providing for the issuance
of bonds) and to establish reserves therefor.
Since the creation of a joint agency is an alternative method whereby
a municipality may obtain the benefits of a joint project or projects,
any contract may provide: (A) that the contracting municipality shall
be obligated to make the payments required by the contract whether
or not a project is completed, operable or operating and
notwithstanding the suspension, interruption, interference, reduction
or curtailment of the output of a project or the power and energy
contracted for; and (B) that the payments under the contract may not
be subject to any reduction whether by offset or otherwise, and may
not be conditioned upon the performance or nonperformance of the
joint agency or any other member of the joint agency under the
contract or any other instrument. Any contract may also provide that
if one (1) or more of the municipalities should default in the
performance or discharge of its obligations under its contract, the
other contracting municipalities shall assume, pro rata, or otherwise,
the obligations of the defaulting municipality or municipalities and
may succeed to the rights and interests of the defaulting municipality
or municipalities as may be agreed upon in the contract. Any such
contract may also provide for requirements, purchases or exclusive
dealing arrangements if the joint agency determines that such
provisions are necessary to obtain financing on favorable terms.
(b) Notwithstanding the provisions of any other law to the
contrary, any contract with respect to the sale or purchase of power
and energy, transmission and related services, from a joint agency
may extend for a period not exceeding fifty (50) years from the date
service is estimated to be first rendered under the contract; and the
execution and effectiveness of the contract may not be subject to any
authorizations or approvals by the state or any agency, commission
or instrumentality or political subdivision thereof except as
specifically required and provided in this chapter, nor shall it be
subject to any publication requirements.
(c) Payments by a municipality under any contract with a joint
agency shall be payable solely from the revenues derived from the
ownership and operation of the electric system of that municipality
and may be treated as an expense of the operation and maintenance
thereof if the contract so provides, and any obligation under that
contract may not constitute a legal or equitable pledge, charge, lien,
or encumbrance upon any property of the municipality or upon any
of its income, receipts, or revenues, except the revenues of its electric
system, and neither the faith and credit nor the taxing power of the
municipality are, or may be, pledged for the payment of any
obligation under any such contract. A municipality shall be obligated
to fix, charge and collect rents, rates, fees and charges for electric
power and energy and other services, facilities and commodities,
sold, furnished or supplied through its electric system in an amount
sufficient to provide revenues adequate to meet its obligations under
any such contract and to pay any and all other amounts payable from
or constituting a charge and lien upon such revenues. In any
proceeding before the commission for the approval of rates set by a
municipality subject to its jurisdiction, the commission shall make
specific findings of the revenue requirements referred to in the prior
sentence and shall provide rates sufficient for such requirements.
(d) Any member of a joint agency may furnish the joint agency
with money derived solely from the ownership and operation of its
electric system or facilities and provide the joint agency with
personnel, equipment and property, both real and personal. Any
municipality may also provide any services to a joint agency.
(e) Any member of a joint agency may contract for, advance or
contribute funds derived solely from the ownership and operation of
its electric system or facilities to a joint agency as may be agreed
upon by the joint agency and the member, and the joint agency shall
repay such advances or contributions from proceeds of bonds, or
from any other funds of the joint agency, together with interest
thereon as may be agreed upon by the member and the joint agency.
(f) In the exercise of the powers enumerated in this chapter,
including without limitation, the execution of contracts as provided
in this section, a municipality and a joint agency shall be deemed to
be exercising a part of the sovereign powers of the state and shall be
exempt from any and all laws, rules and regulations prohibiting,
limiting or conditioning anticompetitive conduct. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-11 Issuance of bonds
Sec. 11. Issuance of Bonds. (a) Each municipality or joint agency
is hereby authorized to issue at one (1) time, or from time to time, its
bonds for the purpose of paying all or any part of the cost of any of
the purposes authorized by this chapter including, without limitation,
the funding or refunding of the principal, interest or other obligation
on any bonds issued by the municipality or joint agency whether or
not such bonds to be funded or refunded have or have not become
due, the establishment or increase of reserves to secure or to pay
such bonds, the provision of working capital and the payment of all
other costs or expenses incident to and necessary or convenient to
carry out the purposes and powers authorized by this chapter. The
principal of, premium, if any, and the interest on these bonds shall be
payable solely from the revenues and other available funds of the
issuer pledged or specified for their payment in accordance with this
chapter. The bonds of each issue shall bear interest at a rate or rates
determined by the issuer and shall not be subject to any other law of
this state limiting the same. The bonds of each issue shall be dated
and shall mature in amounts and at a time or times, not exceeding
fifty (50) years from their respective date or dates, as may be
determined by the governing body of the issuer. The bonds of each
issue may be made redeemable before maturity at a price or prices,
and under terms and conditions, as may be fixed by the governing
body of the issuer prior to issuance of the bonds. The governing body
of the issuer shall determine the form and manner of execution of the
bonds, including any interest coupons to be attached, and shall fix
the denomination or denominations of the bonds and the place or
places of payment of principal and interest, which may be at any
bank or trust company within or without the state, provided that at
least one (1) place of payment is within the state. In case any officer
whose signature, or a facsimile of whose signature, appears on any
bonds or coupons shall cease to hold that office before the delivery
of his bond, that signature or facsimile shall nevertheless be valid
and sufficient for all purposes as if he had remained in office until
delivery. The governing body of the issuer may also provide for the
authentication of the bonds by a trustee or fiscal agent. The bonds
may be issued in coupon or in fully registered form, or both, as the
governing body of the issuer may determine, and provisions may be
made for the registration of any coupon bonds as to principal alone
and also as to both principal and interest, and for the reconversion
into coupon bonds of any bonds registered as to both principal and
interest, and for the interchange of registered and coupon bonds. The
bonds of each issue, issued by a joint agency, shall be sold either by
public or negotiated sale at such price as may be determined by the
joint agency.
(b) The proceeds of the bonds of each issue shall be used solely
for the purposes for which such bonds have been issued, and shall be
disbursed in such manner and under such restrictions, if any, as the
governing body of the issuer may provide in the resolution
authorizing the issuance of those bonds or in any trust agreement
securing the bonds. The municipality or joint agency may issue
interim receipts or temporary bonds, with or without coupons,
exchangeable for definitive bonds when those bonds have been
executed and are available for delivery. The municipality or joint
agency may also provide for replacement of any bonds which have
become mutilated, destroyed, or lost.
(c) Except as provided in section 19 of this chapter, bonds may be
issued under the provisions of this chapter without obtaining the
consent of the state or of any political subdivision, or of any agency,
commission or instrumentality of either of them, and without any
other approvals, proceedings or the happening of any conditions or
things other than those approvals, proceedings, conditions or things
specifically required by this chapter, and provisions of the resolution
authorizing the issuance of the bonds or the trust agreement securing
them. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-12 Trust agreement or resolution on bondholders' rights
Sec. 12. Trust Agreement, or Resolution, on Rights of
Bondholders. In the discretion of the governing body of the issuer,
any bonds issued under the provisions of this chapter may be secured
by a trust agreement by and between the issuer and a corporate
trustee, which may be any trust company or bank having the powers
of a trust company within or without the state. That trust agreement,
or the resolution providing for the issuance of bonds, may contain
provisions for protecting and enforcing the rights and remedies of the
bondholders and of the trustee as may be reasonable and proper and
not in violation of law, and may restrict the individual right of action
by bondholders. The trust agreement or the resolution providing for
the issuance of bonds may contain covenants including, but not
limited to, the following:
(1) the pledge of all or any part of the revenues derived or to be
derived from the project or projects to be financed by the bonds
or from the electric system or facilities of a municipality or
joint agency, or in the case of a joint agency from the revenues
received from the municipalities;
(2) the rents, rates, fees and charges to be established,
maintained and collected, and the use and disposal of revenues,
gifts, grants and funds received or to be received by the
municipality or joint agency;
(3) the setting aside of reserves and the investment, regulation
and disposition of reserves;
(4) the custody, collection, securing, investment, and payment
of any moneys held for the payment of bonds;
(5) limitations or restrictions on the purposes to which the
proceeds of sale of bonds then or thereafter to be issued may be
applied;
(6) limitations or restrictions on the issuance of additional
bonds; the terms upon which additional bonds may be issued
and secured; or the refunding of outstanding or other bonds;
(7) the procedure, if any, by which the terms of any contract
with bondholders may be amended, the percentage of bonds the
bondholders of which must consent to an amendment, and the
manner in which consent may be given;
(8) events of default and the rights and liabilities arising upon
default, the terms and conditions upon which bonds issued
under this chapter shall become or may be declared due before
maturity, and the terms and conditions upon which the
declaration and its consequences may be waived;
(9) the preparation and maintenance of a budget;
(10) the retention or employment of consulting engineers,
independent auditors, and other technical consultants;
(11) limitations on or the prohibition of free service to any
person, firm, limited liability company, or corporation, public
or private;
(12) the acquisition and disposal of property, provided that no
project or part thereof may be mortgaged by such trust
agreement or resolution;
(13) provisions for insurance and for accounting reports and for
their inspection and audit; and
(14) the continuing operation and maintenance of the project. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.8-1993,
SEC.117.
IC 8-1-2.2-13 Revenues
Sec. 13. Revenues. (a) A municipality or joint agency may fix,
charge and collect rents, rates, fees and charges for electric power
and energy and other services, facilities and commodities sold,
furnished or supplied through the facilities of its electric system or
its interests in any project. For so long as any bonds of a municipality
or joint agency issued under this chapter are outstanding and unpaid,
the rents, fees and charges shall be so fixed as to provide revenues
sufficient to pay (1) all costs of and charges and expenses in
connection with the proper operation and maintenance of the
municipality's or joint agency's electric system, (2) its interest in any
project, (3) all necessary repairs, replacements or renewals thereof,
(4) when due (whether at maturity, upon acceleration, or by sinking
fund requirements), the principal, premium, if any, and interest on all
bonds payable from said revenues, (5) to create and maintain
reserves as may be required by any resolution or trust agreement
authorizing and securing bonds, (6) when due (whether at maturity,
upon acceleration, or by sinking fund requirements), the principal,
premium, if any, and interest on all general obligation bonds
heretofore or hereafter issued to finance additions, and improvements
to its electric system, (7) any and all amounts which the municipality
may be obligated to pay from these revenues by law or contract, and
(8) any additional amounts which must be realized in order to meet
the requirements of any rate covenant imposed by any resolution or
trust agreement authorizing and securing bonds.
(b) Any pledge made by a municipality or joint agency pursuant
to this chapter shall be valid and binding from the date the pledge is
made. The revenues, securities, and other moneys so pledged and
then held or thereafter received by the municipality or joint agency
or any fiduciary shall immediately be subject to the lien of the pledge
without any physical delivery thereof or further act, and the lien of
the pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
municipality or joint agency without regard to whether such parties
have notice thereof. The resolution or trust agreement or any
financing statement, continuation statement or other instrument by
which a pledge is created need not be filed or recorded in any
manner. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-14 Trust funds
Sec. 14. Trust Funds. Notwithstanding any other provisions of law
to the contrary, all moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of bonds or as revenues,
shall be considered trust funds to be held and applied solely as
provided in this chapter. The resolution authorizing the bonds of any
issue, or the trust agreement securing such bonds, may provide that
any of those moneys may be temporarily invested and reinvested
pending the disbursements of those moneys in securities and other
investments as shall be provided in the resolution or trust agreement,
and shall also provide that any officer with whom, or any bank or
trust company with which, such moneys shall be deposited shall act
as trustee of those moneys and shall hold and apply them as directed,
subject to such regulation as this chapter and the resolution or trust
agreement may provide. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-15 Remedies
Sec. 15. Remedies. Any holder of bonds issued under the
provisions of this chapter or any of the bond coupons, and the trustee
under any trust agreements, except to the extent that his rights are
restricted by the trust agreement or the resolution authorizing the
issuance of the bonds, may, (a) either at law or in equity, by suit,
action, or other proceeding, protect and enforce any and all rights
under the laws of the state or, to the extent permitted by law, under
the trust agreement or resolution authorizing the issuance of the
bonds or under any agreement or other contract executed by the
municipality or joint agency pursuant to this chapter, and (b) may
enforce and compel the performance of all duties required by this
chapter or by the trust agreement or resolution to be performed by
any municipality or joint agency or by any officer of any
municipality or joint agency, including the fixing, charging, and
collecting of rents, rates, fees, and charges. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-16 Bond eligibility for investment
Sec. 16. Bond Eligibility for Investment. Bonds issued by a
municipality or joint agency under the provisions of this chapter are
hereby made securities in which all public officers and agencies of
the state, all insurance companies, banking associations, investment
companies, executors, administrators, trustees and other fiduciaries
may properly and legally invest funds, including capital in their
control or belonging to them. These bonds are hereby made securities
which may properly and legally be deposited with and received by
any officer or agency of the state for any purpose for which the
deposit of bonds or obligations of the state is now or may hereafter
be authorized by law. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-17 Agreement of state with bondholders
Sec. 17. Agreement of the State. The state hereby covenants and
agrees with the holders of any bonds that so long as any bonds of a
municipality or joint agency issued under this chapter are
outstanding and unpaid, the state will not limit or alter the rights
vested in such municipality or joint agency to acquire, construct,
reconstruct, improve, enlarge, extend, own, operate and maintain its
electric system or any project or interest in any project, or to
establish, maintain, revise, charge, and collect the rents, rates, fees
and charges referred to in this chapter and to fulfill the terms of any
agreements made with the holders of the bonds or in any way impair
the rights and remedies of the bondholders, until the bonds, together
with interest thereon, interest on any unpaid installment of interest,
and all costs and expenses in connection with any action or
proceedings by or on behalf of the bondholders, are fully paid, met
and discharged. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-18 Limited liability on bonds
Sec. 18. Limited Liability. (a) The bonds issued under the
authority of this chapter by a municipality shall not be general
obligations of the municipality issuing them. The principal of,
premium, if any, and interest on the bonds shall not be payable from
the general funds of the municipality, nor shall they constitute a legal
or equitable pledge, charge, lien, or encumbrance upon any of its
property or upon any of its income, receipts, or revenues, except the
funds which are pledged under the resolution authorizing the bonds
or the trust agreement securing the bonds. Neither the faith and credit
nor the taxing power of a municipality or of the state are, or may be,
pledged for the payment of the principal of, premium, if any, or
interest on the bonds, and no holder of the bonds shall have the right
to compel the exercise of the taxing power by the state or a
municipality or the forfeiture of any of its property in connection
with any default. Every bond shall recite in substance that the
principal of, premium, if any, and interest on the bond is payable
solely from the revenues and other funds pledged to its payment and
that the municipality is not obligated to pay the principal, premium,
if any, or interest except from such revenues and other funds.
(b) The bonds issued under the authority of this chapter by a joint
agency shall constitute obligations of the joint agency issuing them
and neither the state nor any political subdivision thereof, other than
the joint agency, shall be obligated to pay the principal of, premium,
if any, or interest on the bonds and neither the faith and credit nor the
taxing power of the state or any such political subdivision thereof or
of any such municipality shall be pledged to the payment of the
principal of, premium, if any, or interest on the bonds.
(c) Payments made under a transmission contract under section
9(a)(14) of this chapter must be paid solely from revenues of the
joint agency entering into the contract. The obligation to make these
payments does not constitute an indebtedness, or lend the credit of
the state, a political subdivision, or a municipality to a public utility. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.81-1997,
SEC.5.
IC 8-1-2.2-19 Approval of commission
Sec. 19. (a) Prior to the acquisition or the commencement of
construction of any project to be financed by the issuance of bonds
under this chapter, the municipality or municipalities or joint agency
shall file a verified petition with the commission for approval of the
project, for approval of participation of the municipality or
municipalities or joint agency in the project, and for approval of any
bonds to be issued under this chapter. If the commission shall
determine:
(1) that the participation of the municipality or municipalities
or joint agency in the project is economically and technically
feasible;
(2) that the project will be integrated with existing or planned
transmission line facilities in the state in a manner that will
avoid economic and physical duplication of existing or planned
transmission line facilities;
(3) that the municipality or municipalities or joint agency own
or have access to the transmission facilities to transmit such
power and energy from the project to the municipality or
municipalities or joint agency;
(4) that for a project involving a coal-consuming facility, the
facility utilizes Indiana coal or is justified, because of economic
considerations or governmental requirements, in utilizing
non-Indiana coal;
(5) that for a project involving the acquisition or participation
in the ownership of an electric generating facility located
outside Indiana, the municipality, municipalities, or joint
agency has been unable to acquire or participate in the
ownership of a comparable generating facility in Indiana at a
comparable cost and unable to purchase sufficient amounts of
electricity in Indiana at a comparable cost giving due
consideration to all factors, including but not limited to the
length and terms of available purchases and the expected useful
life of the facility;
(6) that for a project involving the acquisition or participation
in the ownership of an electric generating facility located
outside Indiana, acquisition of or participation in the ownership
of the facility provides the municipality, municipalities, or joint
agency with greater economic benefits than either:
(A) the acquisition or participation in the ownership of a
comparable generating facility in Indiana available for
ownership; or
(B) the purchase of sufficient amounts of electricity in
Indiana at a comparable cost giving due consideration to all
factors, including but not limited to the length and terms of
available purchases and the expected useful life of the
facility; and
(7) that the determinations of the governing body or bodies with
respect to the items listed in section 3(c) or 8(b) of this chapter
have been or should be approved;
then the commission shall issue an order approving the project and
the participation of the municipality or municipalities or joint agency
in the project and the issuance of bonds by the municipality or
municipalities or by the joint agency. For the purpose of enabling it
to determine whether it should issue such an order, the commission
shall make such inquiry or investigation, hold such hearings, and
examine such witnesses, books, papers, documents, or contracts as
it may deem of importance in enabling it to reach a determination.
The determinations required by this subsection are in addition to the
requirements of IC 8-1-8.5-4 and IC 8-1-8.5-5.
(b) A joint agency is not a public utility (as defined in IC 8-1-2).
However, with respect to proceedings initiated by a joint agency
under this section, the commission is given jurisdiction to proceed in
the same manner and with like power as is provided by IC 8-1-2 in
the case of public utilities (as defined in IC 8-1-2). As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.5; P.L.54-1992, SEC.3; P.L.81-1997, SEC.6.
IC 8-1-2.2-20 Acquisition and construction contracts
Sec. 20. Acquisition and Construction Contracts. A municipality
or joint agency may contract for the planning, acquisition,
construction, reconstruction, operation, maintenance, repair,
extension, and improvement of generation and transmission facilities
within or without its corporate limits or those of its members, or may
contract with other public or private entities to perform these
functions, without advertising for bids or securing performance and
payment bonds, except to the extent that its governing body
determines that these actions are desirable in furtherance of the
purposes of this chapter. Except as otherwise provided by this
section, no contract shall be invalid or unenforceable by reason of
nonperformance of the conditions required by any other law relating
to public contracts. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-21 Tax exempt status
Sec. 21. Tax Exempt Status. Bonds, their transfer and the income
therefrom (including any profit made on the sale thereof), shall at all
times be free from taxation by the state or any political subdivision
or any agency of either thereof, excepting inheritance or gift taxes. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-22 Payments in lieu of taxes
Sec. 22. Payments in Lieu of Taxes. That part of a project owned
by a municipality or municipalities or joint agency shall be exempt
from property taxes. However, each municipality participating in a
project or joint agency owning all or any part of a project shall, in
lieu of property taxes, pay to any governmental unit authorized to
levy property taxes the amount which would be assessed as taxes on
real and personal property of a project if such project were otherwise
subject to valuation and assessment. Such payments in lieu of taxes
shall be due and shall bear interest if unpaid, as in the cases of taxes
on other property. Payments in lieu of taxes made under this section
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
Except as expressly provided in this section with respect to jointly
owned projects, no other property of a municipality used or useful in
the generation, transmission and distribution of electric power and
energy shall be subject to payments in lieu of taxes. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-23 Personnel
Sec. 23. Personnel. Personnel employed or appointed by a
municipality or joint agency to work on a project shall have the same
authority, rights, privileges and immunities which officers, agents
and employees of municipalities enjoy, when they are acting within
the scope of their authority or in the course of their employment. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-24 Dissolution of joint agencies
Sec. 24. Dissolution of Joint Agencies. Whenever the board of
commissioners of a joint agency and the governing bodies of its
member municipalities by resolution or ordinance determine that the
purposes for which the joint agency was formed have been
substantially fulfilled and that all bonds issued and all other
obligations incurred by the joint agency have been fully paid or
satisfied or provision for the payment thereof has been made in
accordance with the terms of the resolution or trust agreement
securing the same, the board of commissioners and governing boards
may declare the joint agency to be dissolved. On the effective date
of the resolution or ordinance, the title to all funds and other property
owned by the joint agency at the time of the dissolution shall vest in
the member municipalities of the joint agency as provided in this
chapter and the bylaws of the joint agency. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-25 Annual reports
Sec. 25. Annual Reports. The municipal utilities or joint agencies
possessing ownership interests in a project shall, following the
closing of each fiscal year, submit a consolidated or combined annual
report of their activities (including the activities of any joint agency)
with respect to such project for the preceding year to the respective
governing bodies of such municipalities and to the commission. Each
report shall set forth in a form prescribed by the commission a
complete operating and financial statement covering the operations
of the project during the year. The municipalities or joint agencies
possessing ownership interests in a project shall cause an audit of the
books of record and accounts relating to such project (including any
joint agency) to be made at least once in each year by a certified
public accountant or accountants and the cost of the audit may be
treated as a cost of construction of the project, or otherwise as part
of the expenses of the administration of the project covered by such
audit. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-26 Government grants and loans
Sec. 26. Government Grants and Loans. The governing body of
any municipality or the joint agency is hereby authorized to make
application and to enter into contracts for and to accept grants-in-aid
and loans from the federal and state governments and their agencies
for planning, acquiring, constructing, expanding, maintaining and
operating any project or facility, or participating in any research or
development program, or performing any function which such
municipality or joint agency may be authorized by general or local
law to provide or perform.
In order to exercise the authority granted by this section, the
governing board of any municipality or joint agency may:
(1) enter into and carry out contracts with the state or federal
government or any agency or institution thereof under which
such government, agency or institution grants financial or other
assistance to the municipality or joint agency;
IC 8-1-2.2
Chapter 2.2. Municipal Electric Utility Programs
IC 8-1-2.2-1 Findings and purpose
Sec. 1. Municipalities owning facilities for the distribution of
electric power and energy are required by law to provide, and serve
a public purpose by providing, customers with an adequate, a
reliable, and an economical supply of electric power and energy.
Individually, such municipalities or joint agencies are not financially
capable of providing the planning, financing, locating, and building
of needed new facilities for generation and transmission or operating
or managing these facilities. Therefore, the general assembly finds
it necessary and proper to provide a method for certain of those
municipalities to jointly finance, develop, own, manage, and operate,
either by themselves or with public utilities, electric generation and
transmission facilities appropriate to the present and projected
electric energy needs of such municipalities and to the changes in the
electric utility industry affecting these municipalities or joint
agencies. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.54-1992,
SEC.1; P.L.81-1997, SEC.1.
IC 8-1-2.2-2 Definitions
Sec. 2. (a) The definitions in this section apply throughout this
chapter.
(b) "Bonds" means electric utility revenue bonds, notes, and other
evidences of indebtedness of a municipality or a joint agency issued
under the provisions of this chapter.
(c) "Cost" or "cost of a project" means but may not be limited to
the cost of acquisition, construction, reconstruction, improvement,
enlargement, betterment, extension, decommissioning, or disposal of
any project or part thereof, including:
(1) the cost of studies, plans, specifications, surveys, and
estimates of costs and revenues relating thereto;
(2) the cost of land, land rights, rights-of-way and easements,
water rights, fees, permits, approvals, licenses, certificates,
franchises, and the preparation of applications thereof;
(3) administrative, legal, engineering, and inspection expenses;
(4) financing fees, expenses, and costs;
(5) working capital;
(6) initial fuel costs;
(7) interest on the bonds during the period of construction and
for such reasonable period thereafter as may be determined by
the issuing municipality or joint agency;
(8) establishment of reserves for the payment of debt service,
for renewals and replacements, for working capital, for
operating expenses, and for any other purposes deemed
reasonable and proper; and
(9) all other expenditures of the issuing municipality or joint
agency incidental, necessary, or convenient to the acquisition,
construction, reconstruction, improvement, enlargement,
betterment, extension, decommissioning, or disposal of any
project and the placing of the same in operation.
(d) "Governing body" means the legislative body of a city or town
or commissioners of a joint agency.
(e) "Joint agency" means an agency created by two (2) or more
municipalities pursuant to section 8 of this chapter.
(f) "Municipality" means a city or town in the state or any board,
agency, or commission thereof owning and operating on January 1,
1980, an electric utility which furnishes retail electric service to the
public.
(g) "Project" means any plant, works, system, or facilities, and
other real and personal property of any nature whatsoever necessary
or convenient in the generation, transmission, transformation,
purchase, sale, exchange, or interchange of electric power and energy
or steam, or the development, production, manufacture, procurement,
handling, storage, fabrication, enrichment, processing, or
reprocessing of fuel of any kind or any facility or rights with respect
to the supply of water, by any means whatsoever or any interest
therein or any rights to the use, output, or capacity thereof. A
transmission contract entered into under section 9(a)(14) of this
chapter is not a project.
(h) "Public utility" means any corporation, company, limited
liability company, partnership, or other form of legal entity,
individual, association of individuals, or public agency organized
under the laws of Indiana or another state of the United States
authorized to own, operate, or control any plant or equipment for the
generation, transmission, or distribution of electric power and energy
and to sell electric power and energy to:
(1) the public;
(2) public or municipally owned utilities (as defined in
IC 8-1-2); or
(3) cooperatives.
(i) "State" means the state of Indiana. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.23-1988,
SEC.29; P.L.82-1988, SEC.1; P.L.8-1989, SEC.39; P.L.179-1991,
SEC.12; P.L.1-1992, SEC.29; P.L.54-1992, SEC.2; P.L.1-1993,
SEC.48; P.L.81-1997, SEC.2.
IC 8-1-2.2-3 Authorization to cooperate
Sec. 3. Authorization to Cooperate. (a) In addition and
supplemental to the powers otherwise conferred on municipalities by
law, and in order to accomplish the purposes of this chapter, a
municipality may plan, finance, develop, construct, reconstruct,
acquire, improve, enlarge, own, operate and maintain an undivided
interest as a tenant in common in a project jointly with one (1) or
more municipalities, joint agencies or public utilities, and may plan
and enter into contracts in this connection with them, not inconsistent
with the provisions of this chapter.
(b) Prior to acquiring any undivided interest, the governing body
shall determine the present and future needs of the municipality for
power and energy based upon engineering studies and reports, and
may not acquire an undivided interest as a tenant in common in a
project in excess of that amount of capacity and the energy required
to provide for its projected needs for power and energy for such
reasonable period of time as shall be determined by the governing
body and approved by the commission in a proceeding pursuant to
section 19 of this chapter.
(c) The future power requirements of a municipality shall be
evaluated by the governing body in accordance with the following:
(1) the economies and efficiencies to be achieved in
constructing large scale facilities for the generation and
transmission of electric power and energy;
(2) the municipality's needs for reserve and peaking capacity
and obligations reasonably related to its needs for power and
energy under pooling and reserve sharing agreements to which
it is or may become a party;
(3) the estimated useful life of the project; and
(4) the estimated time for planning, development, acquisition or
construction of the project and the time required in advance to
obtain, acquire or construct additional power supply. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-4 Joint ownership of project
Sec. 4. (a) Each municipality, joint agency, or public utility shall
own an undivided interest in any project in proportion to the amount
of the money furnished or the value of property or other
consideration supplied by it for the planning, development,
acquisition, or construction of the project and shall be entitled to a
percentage share of the project net output and capacity equal to the
undivided interest. This section does not preclude a joint owner of a
project from agreeing to take and pay for the project net output in a
percentage share that differs from its undivided interest.
(b) Each municipality, joint agency, and public utility
participating in a project shall be severally liable for its own acts and
may not be held, jointly or severally liable for the acts, omissions, or
obligations of others. However, nothing shall preclude each
municipality, joint agency and public utility participating in a project
from being severally liable for acts performed by any project
manager, construction agent, or operating agent for such project.
Except as otherwise provided in this chapter, no money or property
or other consideration supplied by any municipality, joint agency, or
public utility may be credited or otherwise applied to the account of
any other municipality, joint agency, or public utility, nor shall the
undivided share of any municipality, joint agency, or public utility in
a project be charged directly or indirectly with any debt or obligation
of any other municipality, joint agency, or public utility, or be
subject to any lien as a result thereof. The acquisition of a project
may include, but is not limited to, the purchase or lease of an existing
and completed project or the purchase of a project under construction
or the purchase of a project to be constructed. A municipality or joint
agency participating in the joint planning, financing, construction,
reconstruction, acquisition, improvement, enlargement, ownership,
operation, or maintenance of any project under this chapter may
furnish money derived solely from the proceeds of bonds or from the
ownership and operation of its electric system, or both, and provide
property, both real and personal, services, and other considerations.
(c) Any contract entered into by municipalities under this chapter
with respect to joint ownership in a project shall contain terms,
conditions, and provisions, not inconsistent with the provisions of
this section. Any contract shall be ratified by resolution of the
governing body of each municipality and recorded in its minutes.
Any contract shall include the following:
(1) The purpose or purposes of the contract.
(2) The duration of the contract.
(3) The manner of appointing or employing personnel necessary
in connection with the project.
(4) The method of financing the project including the
apportionment of costs and revenues.
(5) Provisions specifying the ownership interests of the parties
in property used or useful in connection with the project, and
the procedures for the disposition of such property when the
contract expires, is terminated, or when the project, for any
reason, is abandoned, decommissioned, or dismantled.
(6) Provisions relating to alienation and prohibiting partition of
a municipality's undivided interest in a project, which
provisions shall not be subject to any provision of law
restricting convenants against alienation or partition.
(7) Provisions for the construction of a project, which may
include the determination that a municipality, joint agency, or
public utility may construct the project as agent for all the
parties.
(8) Provisions for the operation and maintenance of a project,
which may include the determination that a municipality, joint
agency, or public utility may operate and maintain the project
as agent for all the parties.
(9) Provisions for the creation of a committee of representatives
of the municipalities, joint agencies and public utilities jointly
participating with such powers of supervision of the
construction and operation of the project as the contract may
provide, which are not inconsistent with the provisions of this
chapter.
(10) Provisions that if one (1) or more of the municipalities,
joint agencies, or public utilities default in the performance or
discharge of its obligations with respect to the project, the other
party or parties may assume, pro rata, or otherwise, the
obligations of the defaulting party or parties and may succeed
to the rights and interests of the defaulting party or parties as
may be agreed upon in the contract.
(11) Methods for amending the contract.
(12) Methods for terminating the contract.
(13) Any other necessary or proper matter.
(d) For the purpose of paying its respective share of the cost of a
project or projects, a municipality or joint agency may issue its bonds
as provided in this chapter, and, notwithstanding the provisions of
any other law to the contrary, may pledge to the payment of the
principal, premium, if any, and interest on such bonds, the revenues,
or any portion of revenues, derived or to be derived from the
ownership and operation of its system or facilities for the generation,
transmission, or distribution of electric power or energy or its interest
in any joint project or projects, or a combination of such revenues.
All bonds issued under the provisions of this chapter shall be
authorized and issued by the governing body. Upon the request of the
issuing municipality or joint agency the commission shall approve at
one (1) time sufficient bonds to be issued to finance the issuer's share
of the cost of a project even though such bonds are to be issued in
series from time to time and even though the exact amount of such
costs have not been finally determined and such approval may be of
an indeterminate amount.
(e) Municipalities and joint agencies may jointly or severally own,
operate and maintain projects with any public utility. Any
municipality or joint agency shall have for such purposes all powers
conferred upon them by the provisions of this chapter including the
power to issue revenue bonds pursuant to the provisions of this
chapter to finance its share of the cost of any such project. The
definitions and all other terms and provisions of this chapter shall be
construed so as to include such undivided ownership interest in order
to fully effectuate the power and authority conferred by the foregoing
provisions of this section. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.2.
IC 8-1-2.2-5 Sale of capacity or output by a municipality
Sec. 5. Sale of Capacity or Output by a Municipality. Whenever
a municipality has capacity or output derived from its ownership
share of a project or otherwise in excess of its current needs or which
cannot be economically utilized immediately, it may sell or exchange
the excess capacity or output, by agreement, to any municipality
owning electric distribution facilities in this state, to any joint
agency, or to any public utility. Sales of excess capacity or output of
a project to public utilities shall not be made in such amounts, for
such periods of time, and under such conditions as will cause the
interest on bonds issued to finance the cost of a project to become
taxable by the federal government. As added by Acts 1980, P.L.68, SEC.1. IC 8-1-2.2-6 Licenses and approvals
Sec. 6. Licenses and Approvals. Municipalities and joint agencies
proposing to jointly plan, finance, develop, and operate a project are
authorized to jointly or separately apply to any agency of the state or
federal government for licenses, permits, certificates, or approvals. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-7 Authority to contract for energy exchange
Sec. 7. Authority to Contract for Energy Exchange. Municipalities
participating in a project or projects are hereby authorized to enter
into contracts for the exchange, interchange, wheeling, pooling, and
transmission of electric power and energy produced by the project or
projects with any municipality, joint agency, or public utility. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-8 Joint agency
Sec. 8. (a) The governing bodies of two (2) or more municipalities
may, by resolution or ordinance, determine that it is in their best
interests to create a joint agency, for the purpose of undertaking the
planning, financing, ownership, and operation of a project or projects
to supply electric power and energy for their present or future needs.
Any joint agency created under this chapter shall be a body corporate
and politic and a political subdivision of the state, and in exercising
its powers under this chapter, it shall be deemed to be exercising a
part of the sovereign powers of the state. The activities of the joint
agency in carrying out the purposes of this chapter shall constitute
state action.
(b) In determining whether or not the creation of a joint agency is
in their best interests, the governing bodies shall consider the
following:
(1) Whether cost reduction, efficiencies, or other advantages
may be realized by creating a joint agency.
(2) Whether better financial market acceptance may result if a
joint agency is responsible for issuing all of the bonds for the
project or projects in a timely and orderly manner and with
uniform credit ratings as opposed to multiple municipalities
making separate issues of bonds.
If each governing body determines that it is in the best interests of
the municipality to create a joint agency, each governing body shall
adopt a mutually acceptable resolution or ordinance so finding
(which need not prescribe in detail the basis for the determination),
which shall set forth the names of the municipalities proposed to be
members of the joint agency and shall authorize any two (2) or more
of such municipalities to enter into a contract for the creation of the
joint agency. After the execution of the contract, each municipality
shall cause notice of the execution of the contract to be given to the
presiding officer of the governing body of the municipality. The
governing body shall thereupon appoint in writing one (1)
commissioner of the joint agency.
(c) The appointed commissioners shall convene and issue a
statement containing:
(1) a brief description of the resolution creating the joint
agency;
(2) the name of the agency;
(3) the participating municipalities; and
(4) the names and addresses of the appointed commissioners.
The commissioners shall file copies of the statement with the
commission, the secretary of state, and with the recorder of each
county in which the member municipal utilities provide service.
(d) The joint agency shall consist of a board of commissioners.
The governing body of each municipality shall appoint one (1)
commissioner who may be an officer or employee of the municipality
or a member or employee of the board described in IC 8-1.5-3-3(a).
The appointment of a commissioner shall be made by resolution or
ordinance. Each commissioner shall have not less than one (1) vote
and may have such number of additional votes as a majority of the
members of the joint agency shall determine. Each commissioner
shall serve at the pleasure of the governing body by which he was
appointed. Each appointed commissioner before entering upon his
duties shall take and subscribe to an oath before a person authorized
by law to administer oaths to execute the duties of his office
faithfully and impartially, and a record of the oath shall be filed with
the governing body of the appointing municipality and entered in its
minutes.
(e) The board of commissioners of the joint agency shall annually
elect, from among its membership, a chairman and a vice chairman.
It shall also annually elect another person or persons, who may be
commissioners, as treasurer and secretary. It may also annually elect,
if desired, one (1) or more assistant secretaries. The office of
treasurer may be held by the secretary or an assistant secretary. The
board of commissioners may also appoint additional officers. The
secretary or assistant secretary of the joint agency shall keep a record
of its proceedings and the secretary shall be the custodian of all
records, books, documents, and papers filed with the joint agency,
the minute book or journal of the joint agency and its official seal.
Either the secretary or an assistant secretary of the joint agency may
cause copies to be made of all minutes and other records and
documents of the joint agency and may give certificates under the
official seal of the joint agency to the effect that such copies are true
copies, and all persons dealing with the joint agency may rely upon
such certificates.
(f) A majority of the commissioners of a joint agency constitute
a quorum. A vacancy in the board of commissioners of the joint
agency shall not impair the right of a quorum to exercise all the
rights and perform all the duties of the joint agency. Any action taken
by the joint agency under the provisions of this chapter may be
authorized by resolution at any regular or special meeting, and each
resolution takes effect immediately and need not be published or
posted. A contract that is approved by a resolution of the board of
commissioners may provide that an action may be taken under a
delegation provision in the contract if the action taken is consistent
with prudent utility practice. A majority of the votes which the
convened commissioners are entitled to cast shall be sufficient to
take any action or to pass any resolution, so long as the convened
commissioners are entitled to cast a majority of the total number of
votes held by the full board.
(g) Except as provided in this subsection, no commissioner of a
joint agency may receive from the joint agency any compensation for
the performance of his duties under this chapter. However, each
commissioner may be paid his necessary expenses incurred while
engaged in the performance of his duties. In addition, a municipality
may pay the commissioner it appoints up to fifteen dollars ($15) per
day for each day or fraction of a day the commissioner is engaged in
the performance of duties under this chapter, but only if the
commissioner is not a person holding a lucrative office.
(h) The board of commissioners of the joint agency may create an
executive committee of the board of commissioners. The board may
provide for the composition of the executive committee. The
executive committee shall have and shall exercise such of the powers
and authority of the board of commissioners during the intervals
between the board's meetings as shall be prescribed in the bylaws of
the joint agency. The terms of office of the members of the executive
committee and the method of filling vacancies therein shall be fixed
by the bylaws of the joint agency.
(i) Additional municipalities may join a joint agency upon such
terms and conditions as shall be provided in the contract for the
creation of the joint agency. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.90-1985,
SEC.1; P.L.82-1988, SEC.3; P.L.81-1997, SEC.3.
IC 8-1-2.2-9 General powers of joint agencies
Sec. 9. (a) Each joint agency shall have all of the rights and
powers necessary or convenient to carry out the purposes and
provisions of this chapter, including but not limited to the following:
(1) To adopt bylaws for the regulation of the affairs and the
conduct of its business, and to prescribe rules, regulations, and
policies in connection with the performance of its functions and
duties.
(2) To adopt an official seal and alter the same at pleasure.
(3) To maintain an office at such place or places as it may
determine.
(4) To sue and be sued in its own name and to plead and be
impleaded.
(5) To receive, administer, and comply with the conditions and
requirements respecting any gift, grant, or donation of any
property or money.
(6) To acquire by purchase, lease, gift, or otherwise, or to
obtain options for the acquisition of, any property, real or
personal, improved or unimproved, including an interest in land
less than the fee thereof.
(7) To sell, lease, exchange, transfer, or otherwise dispose of,
or to grant options for any such purposes with respect to, any
real or personal property or interest therein.
(8) To pledge or assign any money, rents, charges, or other
revenues and proceeds derived by the joint agency from the
sales of bonds or property and insurance or condemnation
proceeds and any contracts or other rights of the joint agency.
(9) To issue bonds of the joint agency for the purpose of paying
all or any part of the costs of any of the projects or purposes
authorized by this chapter.
(10) To study, plan, finance, construct, reconstruct, acquire,
improve, enlarge, better, own, operate, and maintain
individually or jointly with one (1) or more other joint agencies,
municipalities or public utilities one (1) or more projects and to
pay all or any part of the costs thereof from the proceeds of
bonds of the joint agency or from any other funds available to
the joint agency.
(11) To generate, produce, transmit, deliver, exchange,
purchase, or sell for resale only, electric power or energy or
steam, and transmission and related services and to enter into
contracts for any or all such purposes.
(12) To fix, charge and collect rents, rates, fees and charges for
electric power or energy and other services, facilities, and
commodities sold, furnished or supplied by it.
(13) To negotiate and enter into contracts with each of its
member municipalities whereby each municipality may
purchase power and energy and related services from the joint
agency derived from any project or projects or without
designation as to source and pursuant to which contracts each
municipality shall agree to make payments from the revenues of
its electric system adequate:
(A) to pay when due (whether at maturity, upon acceleration,
or by sinking fund requirements) the principal, premium, if
any, and interest on all bonds issued by the joint agency to
finance any service provided to such member municipality,
and to establish reserves therefor; and
(B) to pay the necessary expenses of the joint agency
(including, without limitation, all amounts required to be
collected pursuant to the trust agreement or resolution
providing for the issuance of bonds) and to establish reserves
therefor.
(14) To make and execute contracts and other instruments
necessary or convenient for the operation, maintenance, and
management of a regional transmission system, including
transmission facilities owned by a municipality or a joint
agency. Such a contract may not be for a term that is more than
fifty (50) years. Such a contract may not make the state, a
political subdivision, or a municipality a shareholder in a public
utility. Such a contract may delegate responsibilities if the
delegation and action taken are consistent with prudent utility
practice.
(15) To make and execute contracts and other instruments
necessary or convenient in the exercise of the powers and
functions of the joint agency under this chapter, including
contracts with persons, firms, corporations, limited liability
companies, and others.
(16) To employ engineers, attorneys, financial advisors, and
such other consultants, agents, and employees as may be
required in the judgment of the joint agency and to fix and pay
their compensation from funds available to the joint agency
therefor.
(17) To do all acts and things necessary, convenient, or
desirable to carry out the purposes of, and to exercise the
powers granted to, the joint agency herein.
(b) No joint agency may finance a project or projects, in whole or
in part, without first obtaining the approval of the commission as
provided in section 19 of this chapter.
(c) No joint agency may construct any transmission line without
first obtaining the approval of the commission as provided in section
19 of this chapter.
(d) A determination by the joint agency approved by the
commission shall be conclusive unless a party to the proceeding
aggrieved by the determination of the commission shall file notice of
appeal pursuant to IC 8-1-3. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.4; P.L.8-1993, SEC.116; P.L.81-1997, SEC.4.
IC 8-1-2.2-10 Contracts with municipality
Sec. 10. Contracts with Municipality. (a) Any municipality which
is a member of a joint agency may contract to purchase power and
energy and related services from the joint agency derived from any
project or projects or without designation as to source and pursuant
to which contracts such municipality shall agree to make payments
to the joint agency from the revenues of its electric system adequate:
(1) to pay when due (whether at maturity, upon acceleration, or
by sinking fund requirements) the principal, premium, if any,
and interest on all bonds issued by the joint agency to finance
any service provided to such member municipality, and to
establish reserves therefor; and
(2) to pay the necessary expenses of the joint agency (including,
without limitation, all amounts required to be collected pursuant
to the trust agreement or resolution providing for the issuance
of bonds) and to establish reserves therefor.
Since the creation of a joint agency is an alternative method whereby
a municipality may obtain the benefits of a joint project or projects,
any contract may provide: (A) that the contracting municipality shall
be obligated to make the payments required by the contract whether
or not a project is completed, operable or operating and
notwithstanding the suspension, interruption, interference, reduction
or curtailment of the output of a project or the power and energy
contracted for; and (B) that the payments under the contract may not
be subject to any reduction whether by offset or otherwise, and may
not be conditioned upon the performance or nonperformance of the
joint agency or any other member of the joint agency under the
contract or any other instrument. Any contract may also provide that
if one (1) or more of the municipalities should default in the
performance or discharge of its obligations under its contract, the
other contracting municipalities shall assume, pro rata, or otherwise,
the obligations of the defaulting municipality or municipalities and
may succeed to the rights and interests of the defaulting municipality
or municipalities as may be agreed upon in the contract. Any such
contract may also provide for requirements, purchases or exclusive
dealing arrangements if the joint agency determines that such
provisions are necessary to obtain financing on favorable terms.
(b) Notwithstanding the provisions of any other law to the
contrary, any contract with respect to the sale or purchase of power
and energy, transmission and related services, from a joint agency
may extend for a period not exceeding fifty (50) years from the date
service is estimated to be first rendered under the contract; and the
execution and effectiveness of the contract may not be subject to any
authorizations or approvals by the state or any agency, commission
or instrumentality or political subdivision thereof except as
specifically required and provided in this chapter, nor shall it be
subject to any publication requirements.
(c) Payments by a municipality under any contract with a joint
agency shall be payable solely from the revenues derived from the
ownership and operation of the electric system of that municipality
and may be treated as an expense of the operation and maintenance
thereof if the contract so provides, and any obligation under that
contract may not constitute a legal or equitable pledge, charge, lien,
or encumbrance upon any property of the municipality or upon any
of its income, receipts, or revenues, except the revenues of its electric
system, and neither the faith and credit nor the taxing power of the
municipality are, or may be, pledged for the payment of any
obligation under any such contract. A municipality shall be obligated
to fix, charge and collect rents, rates, fees and charges for electric
power and energy and other services, facilities and commodities,
sold, furnished or supplied through its electric system in an amount
sufficient to provide revenues adequate to meet its obligations under
any such contract and to pay any and all other amounts payable from
or constituting a charge and lien upon such revenues. In any
proceeding before the commission for the approval of rates set by a
municipality subject to its jurisdiction, the commission shall make
specific findings of the revenue requirements referred to in the prior
sentence and shall provide rates sufficient for such requirements.
(d) Any member of a joint agency may furnish the joint agency
with money derived solely from the ownership and operation of its
electric system or facilities and provide the joint agency with
personnel, equipment and property, both real and personal. Any
municipality may also provide any services to a joint agency.
(e) Any member of a joint agency may contract for, advance or
contribute funds derived solely from the ownership and operation of
its electric system or facilities to a joint agency as may be agreed
upon by the joint agency and the member, and the joint agency shall
repay such advances or contributions from proceeds of bonds, or
from any other funds of the joint agency, together with interest
thereon as may be agreed upon by the member and the joint agency.
(f) In the exercise of the powers enumerated in this chapter,
including without limitation, the execution of contracts as provided
in this section, a municipality and a joint agency shall be deemed to
be exercising a part of the sovereign powers of the state and shall be
exempt from any and all laws, rules and regulations prohibiting,
limiting or conditioning anticompetitive conduct. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-11 Issuance of bonds
Sec. 11. Issuance of Bonds. (a) Each municipality or joint agency
is hereby authorized to issue at one (1) time, or from time to time, its
bonds for the purpose of paying all or any part of the cost of any of
the purposes authorized by this chapter including, without limitation,
the funding or refunding of the principal, interest or other obligation
on any bonds issued by the municipality or joint agency whether or
not such bonds to be funded or refunded have or have not become
due, the establishment or increase of reserves to secure or to pay
such bonds, the provision of working capital and the payment of all
other costs or expenses incident to and necessary or convenient to
carry out the purposes and powers authorized by this chapter. The
principal of, premium, if any, and the interest on these bonds shall be
payable solely from the revenues and other available funds of the
issuer pledged or specified for their payment in accordance with this
chapter. The bonds of each issue shall bear interest at a rate or rates
determined by the issuer and shall not be subject to any other law of
this state limiting the same. The bonds of each issue shall be dated
and shall mature in amounts and at a time or times, not exceeding
fifty (50) years from their respective date or dates, as may be
determined by the governing body of the issuer. The bonds of each
issue may be made redeemable before maturity at a price or prices,
and under terms and conditions, as may be fixed by the governing
body of the issuer prior to issuance of the bonds. The governing body
of the issuer shall determine the form and manner of execution of the
bonds, including any interest coupons to be attached, and shall fix
the denomination or denominations of the bonds and the place or
places of payment of principal and interest, which may be at any
bank or trust company within or without the state, provided that at
least one (1) place of payment is within the state. In case any officer
whose signature, or a facsimile of whose signature, appears on any
bonds or coupons shall cease to hold that office before the delivery
of his bond, that signature or facsimile shall nevertheless be valid
and sufficient for all purposes as if he had remained in office until
delivery. The governing body of the issuer may also provide for the
authentication of the bonds by a trustee or fiscal agent. The bonds
may be issued in coupon or in fully registered form, or both, as the
governing body of the issuer may determine, and provisions may be
made for the registration of any coupon bonds as to principal alone
and also as to both principal and interest, and for the reconversion
into coupon bonds of any bonds registered as to both principal and
interest, and for the interchange of registered and coupon bonds. The
bonds of each issue, issued by a joint agency, shall be sold either by
public or negotiated sale at such price as may be determined by the
joint agency.
(b) The proceeds of the bonds of each issue shall be used solely
for the purposes for which such bonds have been issued, and shall be
disbursed in such manner and under such restrictions, if any, as the
governing body of the issuer may provide in the resolution
authorizing the issuance of those bonds or in any trust agreement
securing the bonds. The municipality or joint agency may issue
interim receipts or temporary bonds, with or without coupons,
exchangeable for definitive bonds when those bonds have been
executed and are available for delivery. The municipality or joint
agency may also provide for replacement of any bonds which have
become mutilated, destroyed, or lost.
(c) Except as provided in section 19 of this chapter, bonds may be
issued under the provisions of this chapter without obtaining the
consent of the state or of any political subdivision, or of any agency,
commission or instrumentality of either of them, and without any
other approvals, proceedings or the happening of any conditions or
things other than those approvals, proceedings, conditions or things
specifically required by this chapter, and provisions of the resolution
authorizing the issuance of the bonds or the trust agreement securing
them. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-12 Trust agreement or resolution on bondholders' rights
Sec. 12. Trust Agreement, or Resolution, on Rights of
Bondholders. In the discretion of the governing body of the issuer,
any bonds issued under the provisions of this chapter may be secured
by a trust agreement by and between the issuer and a corporate
trustee, which may be any trust company or bank having the powers
of a trust company within or without the state. That trust agreement,
or the resolution providing for the issuance of bonds, may contain
provisions for protecting and enforcing the rights and remedies of the
bondholders and of the trustee as may be reasonable and proper and
not in violation of law, and may restrict the individual right of action
by bondholders. The trust agreement or the resolution providing for
the issuance of bonds may contain covenants including, but not
limited to, the following:
(1) the pledge of all or any part of the revenues derived or to be
derived from the project or projects to be financed by the bonds
or from the electric system or facilities of a municipality or
joint agency, or in the case of a joint agency from the revenues
received from the municipalities;
(2) the rents, rates, fees and charges to be established,
maintained and collected, and the use and disposal of revenues,
gifts, grants and funds received or to be received by the
municipality or joint agency;
(3) the setting aside of reserves and the investment, regulation
and disposition of reserves;
(4) the custody, collection, securing, investment, and payment
of any moneys held for the payment of bonds;
(5) limitations or restrictions on the purposes to which the
proceeds of sale of bonds then or thereafter to be issued may be
applied;
(6) limitations or restrictions on the issuance of additional
bonds; the terms upon which additional bonds may be issued
and secured; or the refunding of outstanding or other bonds;
(7) the procedure, if any, by which the terms of any contract
with bondholders may be amended, the percentage of bonds the
bondholders of which must consent to an amendment, and the
manner in which consent may be given;
(8) events of default and the rights and liabilities arising upon
default, the terms and conditions upon which bonds issued
under this chapter shall become or may be declared due before
maturity, and the terms and conditions upon which the
declaration and its consequences may be waived;
(9) the preparation and maintenance of a budget;
(10) the retention or employment of consulting engineers,
independent auditors, and other technical consultants;
(11) limitations on or the prohibition of free service to any
person, firm, limited liability company, or corporation, public
or private;
(12) the acquisition and disposal of property, provided that no
project or part thereof may be mortgaged by such trust
agreement or resolution;
(13) provisions for insurance and for accounting reports and for
their inspection and audit; and
(14) the continuing operation and maintenance of the project. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.8-1993,
SEC.117.
IC 8-1-2.2-13 Revenues
Sec. 13. Revenues. (a) A municipality or joint agency may fix,
charge and collect rents, rates, fees and charges for electric power
and energy and other services, facilities and commodities sold,
furnished or supplied through the facilities of its electric system or
its interests in any project. For so long as any bonds of a municipality
or joint agency issued under this chapter are outstanding and unpaid,
the rents, fees and charges shall be so fixed as to provide revenues
sufficient to pay (1) all costs of and charges and expenses in
connection with the proper operation and maintenance of the
municipality's or joint agency's electric system, (2) its interest in any
project, (3) all necessary repairs, replacements or renewals thereof,
(4) when due (whether at maturity, upon acceleration, or by sinking
fund requirements), the principal, premium, if any, and interest on all
bonds payable from said revenues, (5) to create and maintain
reserves as may be required by any resolution or trust agreement
authorizing and securing bonds, (6) when due (whether at maturity,
upon acceleration, or by sinking fund requirements), the principal,
premium, if any, and interest on all general obligation bonds
heretofore or hereafter issued to finance additions, and improvements
to its electric system, (7) any and all amounts which the municipality
may be obligated to pay from these revenues by law or contract, and
(8) any additional amounts which must be realized in order to meet
the requirements of any rate covenant imposed by any resolution or
trust agreement authorizing and securing bonds.
(b) Any pledge made by a municipality or joint agency pursuant
to this chapter shall be valid and binding from the date the pledge is
made. The revenues, securities, and other moneys so pledged and
then held or thereafter received by the municipality or joint agency
or any fiduciary shall immediately be subject to the lien of the pledge
without any physical delivery thereof or further act, and the lien of
the pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
municipality or joint agency without regard to whether such parties
have notice thereof. The resolution or trust agreement or any
financing statement, continuation statement or other instrument by
which a pledge is created need not be filed or recorded in any
manner. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-14 Trust funds
Sec. 14. Trust Funds. Notwithstanding any other provisions of law
to the contrary, all moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of bonds or as revenues,
shall be considered trust funds to be held and applied solely as
provided in this chapter. The resolution authorizing the bonds of any
issue, or the trust agreement securing such bonds, may provide that
any of those moneys may be temporarily invested and reinvested
pending the disbursements of those moneys in securities and other
investments as shall be provided in the resolution or trust agreement,
and shall also provide that any officer with whom, or any bank or
trust company with which, such moneys shall be deposited shall act
as trustee of those moneys and shall hold and apply them as directed,
subject to such regulation as this chapter and the resolution or trust
agreement may provide. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-15 Remedies
Sec. 15. Remedies. Any holder of bonds issued under the
provisions of this chapter or any of the bond coupons, and the trustee
under any trust agreements, except to the extent that his rights are
restricted by the trust agreement or the resolution authorizing the
issuance of the bonds, may, (a) either at law or in equity, by suit,
action, or other proceeding, protect and enforce any and all rights
under the laws of the state or, to the extent permitted by law, under
the trust agreement or resolution authorizing the issuance of the
bonds or under any agreement or other contract executed by the
municipality or joint agency pursuant to this chapter, and (b) may
enforce and compel the performance of all duties required by this
chapter or by the trust agreement or resolution to be performed by
any municipality or joint agency or by any officer of any
municipality or joint agency, including the fixing, charging, and
collecting of rents, rates, fees, and charges. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-16 Bond eligibility for investment
Sec. 16. Bond Eligibility for Investment. Bonds issued by a
municipality or joint agency under the provisions of this chapter are
hereby made securities in which all public officers and agencies of
the state, all insurance companies, banking associations, investment
companies, executors, administrators, trustees and other fiduciaries
may properly and legally invest funds, including capital in their
control or belonging to them. These bonds are hereby made securities
which may properly and legally be deposited with and received by
any officer or agency of the state for any purpose for which the
deposit of bonds or obligations of the state is now or may hereafter
be authorized by law. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-17 Agreement of state with bondholders
Sec. 17. Agreement of the State. The state hereby covenants and
agrees with the holders of any bonds that so long as any bonds of a
municipality or joint agency issued under this chapter are
outstanding and unpaid, the state will not limit or alter the rights
vested in such municipality or joint agency to acquire, construct,
reconstruct, improve, enlarge, extend, own, operate and maintain its
electric system or any project or interest in any project, or to
establish, maintain, revise, charge, and collect the rents, rates, fees
and charges referred to in this chapter and to fulfill the terms of any
agreements made with the holders of the bonds or in any way impair
the rights and remedies of the bondholders, until the bonds, together
with interest thereon, interest on any unpaid installment of interest,
and all costs and expenses in connection with any action or
proceedings by or on behalf of the bondholders, are fully paid, met
and discharged. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-18 Limited liability on bonds
Sec. 18. Limited Liability. (a) The bonds issued under the
authority of this chapter by a municipality shall not be general
obligations of the municipality issuing them. The principal of,
premium, if any, and interest on the bonds shall not be payable from
the general funds of the municipality, nor shall they constitute a legal
or equitable pledge, charge, lien, or encumbrance upon any of its
property or upon any of its income, receipts, or revenues, except the
funds which are pledged under the resolution authorizing the bonds
or the trust agreement securing the bonds. Neither the faith and credit
nor the taxing power of a municipality or of the state are, or may be,
pledged for the payment of the principal of, premium, if any, or
interest on the bonds, and no holder of the bonds shall have the right
to compel the exercise of the taxing power by the state or a
municipality or the forfeiture of any of its property in connection
with any default. Every bond shall recite in substance that the
principal of, premium, if any, and interest on the bond is payable
solely from the revenues and other funds pledged to its payment and
that the municipality is not obligated to pay the principal, premium,
if any, or interest except from such revenues and other funds.
(b) The bonds issued under the authority of this chapter by a joint
agency shall constitute obligations of the joint agency issuing them
and neither the state nor any political subdivision thereof, other than
the joint agency, shall be obligated to pay the principal of, premium,
if any, or interest on the bonds and neither the faith and credit nor the
taxing power of the state or any such political subdivision thereof or
of any such municipality shall be pledged to the payment of the
principal of, premium, if any, or interest on the bonds.
(c) Payments made under a transmission contract under section
9(a)(14) of this chapter must be paid solely from revenues of the
joint agency entering into the contract. The obligation to make these
payments does not constitute an indebtedness, or lend the credit of
the state, a political subdivision, or a municipality to a public utility. As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.81-1997,
SEC.5.
IC 8-1-2.2-19 Approval of commission
Sec. 19. (a) Prior to the acquisition or the commencement of
construction of any project to be financed by the issuance of bonds
under this chapter, the municipality or municipalities or joint agency
shall file a verified petition with the commission for approval of the
project, for approval of participation of the municipality or
municipalities or joint agency in the project, and for approval of any
bonds to be issued under this chapter. If the commission shall
determine:
(1) that the participation of the municipality or municipalities
or joint agency in the project is economically and technically
feasible;
(2) that the project will be integrated with existing or planned
transmission line facilities in the state in a manner that will
avoid economic and physical duplication of existing or planned
transmission line facilities;
(3) that the municipality or municipalities or joint agency own
or have access to the transmission facilities to transmit such
power and energy from the project to the municipality or
municipalities or joint agency;
(4) that for a project involving a coal-consuming facility, the
facility utilizes Indiana coal or is justified, because of economic
considerations or governmental requirements, in utilizing
non-Indiana coal;
(5) that for a project involving the acquisition or participation
in the ownership of an electric generating facility located
outside Indiana, the municipality, municipalities, or joint
agency has been unable to acquire or participate in the
ownership of a comparable generating facility in Indiana at a
comparable cost and unable to purchase sufficient amounts of
electricity in Indiana at a comparable cost giving due
consideration to all factors, including but not limited to the
length and terms of available purchases and the expected useful
life of the facility;
(6) that for a project involving the acquisition or participation
in the ownership of an electric generating facility located
outside Indiana, acquisition of or participation in the ownership
of the facility provides the municipality, municipalities, or joint
agency with greater economic benefits than either:
(A) the acquisition or participation in the ownership of a
comparable generating facility in Indiana available for
ownership; or
(B) the purchase of sufficient amounts of electricity in
Indiana at a comparable cost giving due consideration to all
factors, including but not limited to the length and terms of
available purchases and the expected useful life of the
facility; and
(7) that the determinations of the governing body or bodies with
respect to the items listed in section 3(c) or 8(b) of this chapter
have been or should be approved;
then the commission shall issue an order approving the project and
the participation of the municipality or municipalities or joint agency
in the project and the issuance of bonds by the municipality or
municipalities or by the joint agency. For the purpose of enabling it
to determine whether it should issue such an order, the commission
shall make such inquiry or investigation, hold such hearings, and
examine such witnesses, books, papers, documents, or contracts as
it may deem of importance in enabling it to reach a determination.
The determinations required by this subsection are in addition to the
requirements of IC 8-1-8.5-4 and IC 8-1-8.5-5.
(b) A joint agency is not a public utility (as defined in IC 8-1-2).
However, with respect to proceedings initiated by a joint agency
under this section, the commission is given jurisdiction to proceed in
the same manner and with like power as is provided by IC 8-1-2 in
the case of public utilities (as defined in IC 8-1-2). As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.82-1988,
SEC.5; P.L.54-1992, SEC.3; P.L.81-1997, SEC.6.
IC 8-1-2.2-20 Acquisition and construction contracts
Sec. 20. Acquisition and Construction Contracts. A municipality
or joint agency may contract for the planning, acquisition,
construction, reconstruction, operation, maintenance, repair,
extension, and improvement of generation and transmission facilities
within or without its corporate limits or those of its members, or may
contract with other public or private entities to perform these
functions, without advertising for bids or securing performance and
payment bonds, except to the extent that its governing body
determines that these actions are desirable in furtherance of the
purposes of this chapter. Except as otherwise provided by this
section, no contract shall be invalid or unenforceable by reason of
nonperformance of the conditions required by any other law relating
to public contracts. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-21 Tax exempt status
Sec. 21. Tax Exempt Status. Bonds, their transfer and the income
therefrom (including any profit made on the sale thereof), shall at all
times be free from taxation by the state or any political subdivision
or any agency of either thereof, excepting inheritance or gift taxes. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-22 Payments in lieu of taxes
Sec. 22. Payments in Lieu of Taxes. That part of a project owned
by a municipality or municipalities or joint agency shall be exempt
from property taxes. However, each municipality participating in a
project or joint agency owning all or any part of a project shall, in
lieu of property taxes, pay to any governmental unit authorized to
levy property taxes the amount which would be assessed as taxes on
real and personal property of a project if such project were otherwise
subject to valuation and assessment. Such payments in lieu of taxes
shall be due and shall bear interest if unpaid, as in the cases of taxes
on other property. Payments in lieu of taxes made under this section
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
Except as expressly provided in this section with respect to jointly
owned projects, no other property of a municipality used or useful in
the generation, transmission and distribution of electric power and
energy shall be subject to payments in lieu of taxes. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-23 Personnel
Sec. 23. Personnel. Personnel employed or appointed by a
municipality or joint agency to work on a project shall have the same
authority, rights, privileges and immunities which officers, agents
and employees of municipalities enjoy, when they are acting within
the scope of their authority or in the course of their employment. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-24 Dissolution of joint agencies
Sec. 24. Dissolution of Joint Agencies. Whenever the board of
commissioners of a joint agency and the governing bodies of its
member municipalities by resolution or ordinance determine that the
purposes for which the joint agency was formed have been
substantially fulfilled and that all bonds issued and all other
obligations incurred by the joint agency have been fully paid or
satisfied or provision for the payment thereof has been made in
accordance with the terms of the resolution or trust agreement
securing the same, the board of commissioners and governing boards
may declare the joint agency to be dissolved. On the effective date
of the resolution or ordinance, the title to all funds and other property
owned by the joint agency at the time of the dissolution shall vest in
the member municipalities of the joint agency as provided in this
chapter and the bylaws of the joint agency. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-25 Annual reports
Sec. 25. Annual Reports. The municipal utilities or joint agencies
possessing ownership interests in a project shall, following the
closing of each fiscal year, submit a consolidated or combined annual
report of their activities (including the activities of any joint agency)
with respect to such project for the preceding year to the respective
governing bodies of such municipalities and to the commission. Each
report shall set forth in a form prescribed by the commission a
complete operating and financial statement covering the operations
of the project during the year. The municipalities or joint agencies
possessing ownership interests in a project shall cause an audit of the
books of record and accounts relating to such project (including any
joint agency) to be made at least once in each year by a certified
public accountant or accountants and the cost of the audit may be
treated as a cost of construction of the project, or otherwise as part
of the expenses of the administration of the project covered by such
audit. As added by Acts 1980, P.L.68, SEC.1.
IC 8-1-2.2-26 Government grants and loans
Sec. 26. Government Grants and Loans. The governing body of
any municipality or the joint agency is hereby authorized to make
application and to enter into contracts for and to accept grants-in-aid
and loans from the federal and state governments and their agencies
for planning, acquiring, constructing, expanding, maintaining and
operating any project or facility, or participating in any research or
development program, or performing any function which such
municipality or joint agency may be authorized by general or local
law to provide or perform.
In order to exercise the authority granted by this section, the
governing board of any municipality or joint agency may:
(1) enter into and carry out contracts with the state or federal
government or any agency or institution thereof under which
such government, agency or institution grants financial or other
assistance to the municipality or joint agency;
