10-13 Electric Cooperative Corporations

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CHAPTER 10-13ELECTRIC COOPERATIVE CORPORATIONS10-13-01. Purposes of electric cooperatives. A cooperative may be organized andoperated as an electric cooperative under the general law governing cooperatives and this<br>chapter for the purpose of engaging in rural electrification by any one or more of the following<br>methods:1.The furnishing of electric energy to persons in rural areas who are not receiving<br>central station service.2.The furnishing of assistance in the wiring of the premises of persons in rural areas or<br>in the acquisition, supply, or installation of electrical or plumbing equipment therein.3.The furnishing of electrical energy, wiring facilities, electrical or plumbing equipment,<br>or services to any other corporation, limited liability company, or cooperative<br>organized under this chapter or to the members thereof.4.The operation and maintenance of electrical cold storage and electrical processing<br>plants.5.The establishment and operation by itself or with any one or more electric<br>cooperatives of an electric generation or transmission cooperative for the purpose of<br>providing electric energy to other cooperatives, public utilities, municipalities, or any<br>department or agency of the state or federal government.10-13-02. Name of electric cooperative. The name of an electric cooperative mustinclude the words "electric cooperative". The name must be such as to distinguish it from any<br>other cooperative organized and existing under the laws of this state or authorized to do business<br>in this state. Only a cooperative organized subject to this chapter or authorized to do business<br>under this chapter may use the words "electric cooperative" in its name.10-13-03. Powers of electric cooperatives. In addition to the powers granted by thegeneral law governing cooperatives, electric cooperatives have the power:1.To generate, manufacture, purchase, acquire, and accumulate electrical energy and<br>to transmit, distribute, sell, furnish, and dispose of such electrical energy to its<br>members, and to other persons not in excess of ten percent of the number of its<br>members. However, a cooperative that acquires existing electrical facilities may<br>continue service to persons, not in excess of twenty percent of the number of its<br>members, who are already receiving service from such facilities without requiring<br>such persons to become members but such persons may become members upon<br>such terms as may be prescribed in the bylaws.An electric generation ortransmission cooperative providing electric energy to other cooperatives, public<br>utilities, municipalities, or any department or agency of the state or federal<br>government shall not be limited to the ten percent and twenty percent limitation on<br>the transmission, distribution, sale, furnishing, and disposal of electric energy as<br>provided in this subsection.2.To establish, maintain, and operate electrical cold storage and electrical processing<br>plants.3.To construct, erect, purchase, lease as lessee, and in any manner acquire, own,<br>hold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage<br>plants,buildings,works,machinery,supplies,equipment,apparatus,andtransmission and distribution lines or systems necessary and proper for the<br>operation of its business.Page No. 14.To assist only its members to wire their premises and install therein electrical and<br>plumbing fixtures, machinery, supplies, apparatus, and equipment of any and all<br>kinds and character, and in connection therewith and for such purposes, to<br>purchase, acquire, lease, sell, distribute, install, and repair electrical and plumbing<br>fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and<br>character, and to receive, acquire, endorse, pledge, hypothecate, and dispose of<br>notes, bonds, and other evidences of indebtedness.5.To furnish to other corporations, limited liability companies, or cooperatives<br>organized under this chapter, or to the members thereof, electrical energy, wiring<br>facilities, electrical and plumbing equipment, and services.6.To use any highway, right of way, easement, or other similar property right owned or<br>held by the state or any political subdivision thereof in connection with the<br>acquisition, construction, improvement, operation, or maintenance of its lines, with<br>the consent of the local authorities having control of the street or highway proposed<br>to be used for such purpose.7.Subject to chapter 32-15, to have and exercise the power of eminent domain to<br>acquire private property for its use, such right to be paramount except as to property<br>of the state or any political subdivision thereof.8.To fix, regulate, and collect rates, fees, rents, or other charges for electrical energy<br>and other facilities, supplies, equipment, or services furnished by it.9.To make contracts with other cooperatives, with public utilities, with municipalities, or<br>with any department or agency of the state or federal government, for the sale at<br>wholesale to, or interchange of electric energy with, such cooperatives, public<br>utilities, municipalities, or department or agency of the state or federal government,<br>and, notwithstanding any provisions of this chapter, such cooperatives, public<br>utilities, municipalities, or department or agency of the state or federal government<br>shall be eligible to membership in cooperatives organized under this chapter.10.To establish and operate by itself or with any one or more electric cooperatives an<br>electric generation or transmission cooperative for the purpose of providing electric<br>energy to other cooperatives, public utilities, municipalities, or any department or<br>agency of the state or federal government.10-13-04. Members of electric cooperatives. All persons who are not receiving centralstation service and who reside in rural areas proposed to be served by a cooperative organized<br>under this chapter shall be eligible to membership in the cooperative. No person other than the<br>incorporators shall be, become, or remain a member of a cooperative unless such person shall<br>use or agree to use electrical energy or the facilities, supplies, equipment, and services furnished<br>by a cooperative."Rural area" means any area not included within the boundaries of an incorporated cityhaving a population in excess of twenty-five hundred inhabitants at the time a corporation or<br>cooperative commences to operate electric facilities or to furnish electric energy in such an area,<br>and includes both the farm and nonfarm population thereof.No change thereafter in thepopulation of a rural area, as defined herein, regardless of the reason for such change, shall<br>operate to affect in any way its status as a rural area for the purposes of this chapter.An electric cooperative organized under this chapter may become a member of anothersuch electric cooperative and may avail itself fully of the facilities and services thereof.10-13-05.Nonprofit basis - Rates and fees.Each electric cooperative shall beoperated without profit to its members, but the rates, fees, rents, or other charges for electrical<br>energy and for any other facilities, supplies, equipment, or services furnished by the cooperative<br>shall be sufficient at all times:Page No. 21.To pay all the operating and maintenance expenses necessary or desirable for the<br>prudent conduct of its business and the principal and interest on the obligations<br>issued or assumed by the cooperative in the performance of the purpose for which it<br>was organized.2.For the creation of reserves.10-13-06. Use of revenue - Dividends. The revenues of an electric cooperative shall bedevoted first to the payment of operating and maintenance expenses and the principal and<br>interest on outstanding obligations, and thereafter, to such reserves for improvement, new<br>construction, depreciation, and contingencies as the board of directors from time to time may<br>prescribe. Revenues not required for the purposes set forth in this section shall be returned from<br>time to time to the members of the cooperative in cash, in abatement of current charges for<br>electrical energy, or otherwise as the board of directors may determine on a pro rata basis<br>according to the amount of business done with each during the period. Such return may be<br>made by way of general rate reduction to the members if the board of directors so elects.10-13-07. Excise tax exemption - License fee. Repealed by S.L. 1965, ch. 97,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t10/pdf/t10c13.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 10-13ELECTRIC COOPERATIVE CORPORATIONS10-13-01. Purposes of electric cooperatives. A cooperative may be organized andoperated as an electric cooperative under the general law governing cooperatives and this\u003cbr\u003echapter for the purpose of engaging in rural electrification by any one or more of the following\u003cbr\u003emethods:1.The furnishing of electric energy to persons in rural areas who are not receiving\u003cbr\u003ecentral station service.2.The furnishing of assistance in the wiring of the premises of persons in rural areas or\u003cbr\u003ein the acquisition, supply, or installation of electrical or plumbing equipment therein.3.The furnishing of electrical energy, wiring facilities, electrical or plumbing equipment,\u003cbr\u003eor services to any other corporation, limited liability company, or cooperative\u003cbr\u003eorganized under this chapter or to the members thereof.4.The operation and maintenance of electrical cold storage and electrical processing\u003cbr\u003eplants.5.The establishment and operation by itself or with any one or more electric\u003cbr\u003ecooperatives of an electric generation or transmission cooperative for the purpose of\u003cbr\u003eproviding electric energy to other cooperatives, public utilities, municipalities, or any\u003cbr\u003edepartment or agency of the state or federal government.10-13-02. Name of electric cooperative. The name of an electric cooperative mustinclude the words \u0026quot;electric cooperative\u0026quot;. The name must be such as to distinguish it from any\u003cbr\u003eother cooperative organized and existing under the laws of this state or authorized to do business\u003cbr\u003ein this state. Only a cooperative organized subject to this chapter or authorized to do business\u003cbr\u003eunder this chapter may use the words \u0026quot;electric cooperative\u0026quot; in its name.10-13-03. Powers of electric cooperatives. In addition to the powers granted by thegeneral law governing cooperatives, electric cooperatives have the power:1.To generate, manufacture, purchase, acquire, and accumulate electrical energy and\u003cbr\u003eto transmit, distribute, sell, furnish, and dispose of such electrical energy to its\u003cbr\u003emembers, and to other persons not in excess of ten percent of the number of its\u003cbr\u003emembers. However, a cooperative that acquires existing electrical facilities may\u003cbr\u003econtinue service to persons, not in excess of twenty percent of the number of its\u003cbr\u003emembers, who are already receiving service from such facilities without requiring\u003cbr\u003esuch persons to become members but such persons may become members upon\u003cbr\u003esuch terms as may be prescribed in the bylaws.An electric generation ortransmission cooperative providing electric energy to other cooperatives, public\u003cbr\u003eutilities, municipalities, or any department or agency of the state or federal\u003cbr\u003egovernment shall not be limited to the ten percent and twenty percent limitation on\u003cbr\u003ethe transmission, distribution, sale, furnishing, and disposal of electric energy as\u003cbr\u003eprovided in this subsection.2.To establish, maintain, and operate electrical cold storage and electrical processing\u003cbr\u003eplants.3.To construct, erect, purchase, lease as lessee, and in any manner acquire, own,\u003cbr\u003ehold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage\u003cbr\u003eplants,buildings,works,machinery,supplies,equipment,apparatus,andtransmission and distribution lines or systems necessary and proper for the\u003cbr\u003eoperation of its business.Page No. 14.To assist only its members to wire their premises and install therein electrical and\u003cbr\u003eplumbing fixtures, machinery, supplies, apparatus, and equipment of any and all\u003cbr\u003ekinds and character, and in connection therewith and for such purposes, to\u003cbr\u003epurchase, acquire, lease, sell, distribute, install, and repair electrical and plumbing\u003cbr\u003efixtures, machinery, supplies, apparatus, and equipment of any and all kinds and\u003cbr\u003echaracter, and to receive, acquire, endorse, pledge, hypothecate, and dispose of\u003cbr\u003enotes, bonds, and other evidences of indebtedness.5.To furnish to other corporations, limited liability companies, or cooperatives\u003cbr\u003eorganized under this chapter, or to the members thereof, electrical energy, wiring\u003cbr\u003efacilities, electrical and plumbing equipment, and services.6.To use any highway, right of way, easement, or other similar property right owned or\u003cbr\u003eheld by the state or any political subdivision thereof in connection with the\u003cbr\u003eacquisition, construction, improvement, operation, or maintenance of its lines, with\u003cbr\u003ethe consent of the local authorities having control of the street or highway proposed\u003cbr\u003eto be used for such purpose.7.Subject to chapter 32-15, to have and exercise the power of eminent domain to\u003cbr\u003eacquire private property for its use, such right to be paramount except as to property\u003cbr\u003eof the state or any political subdivision thereof.8.To fix, regulate, and collect rates, fees, rents, or other charges for electrical energy\u003cbr\u003eand other facilities, supplies, equipment, or services furnished by it.9.To make contracts with other cooperatives, with public utilities, with municipalities, or\u003cbr\u003ewith any department or agency of the state or federal government, for the sale at\u003cbr\u003ewholesale to, or interchange of electric energy with, such cooperatives, public\u003cbr\u003eutilities, municipalities, or department or agency of the state or federal government,\u003cbr\u003eand, notwithstanding any provisions of this chapter, such cooperatives, public\u003cbr\u003eutilities, municipalities, or department or agency of the state or federal government\u003cbr\u003eshall be eligible to membership in cooperatives organized under this chapter.10.To establish and operate by itself or with any one or more electric cooperatives an\u003cbr\u003eelectric generation or transmission cooperative for the purpose of providing electric\u003cbr\u003eenergy to other cooperatives, public utilities, municipalities, or any department or\u003cbr\u003eagency of the state or federal government.10-13-04. Members of electric cooperatives. All persons who are not receiving centralstation service and who reside in rural areas proposed to be served by a cooperative organized\u003cbr\u003eunder this chapter shall be eligible to membership in the cooperative. No person other than the\u003cbr\u003eincorporators shall be, become, or remain a member of a cooperative unless such person shall\u003cbr\u003euse or agree to use electrical energy or the facilities, supplies, equipment, and services furnished\u003cbr\u003eby a cooperative.\u0026quot;Rural area\u0026quot; means any area not included within the boundaries of an incorporated cityhaving a population in excess of twenty-five hundred inhabitants at the time a corporation or\u003cbr\u003ecooperative commences to operate electric facilities or to furnish electric energy in such an area,\u003cbr\u003eand includes both the farm and nonfarm population thereof.No change thereafter in thepopulation of a rural area, as defined herein, regardless of the reason for such change, shall\u003cbr\u003eoperate to affect in any way its status as a rural area for the purposes of this chapter.An electric cooperative organized under this chapter may become a member of anothersuch electric cooperative and may avail itself fully of the facilities and services thereof.10-13-05.Nonprofit basis - Rates and fees.Each electric cooperative shall beoperated without profit to its members, but the rates, fees, rents, or other charges for electrical\u003cbr\u003eenergy and for any other facilities, supplies, equipment, or services furnished by the cooperative\u003cbr\u003eshall be sufficient at all times:Page No. 21.To pay all the operating and maintenance expenses necessary or desirable for the\u003cbr\u003eprudent conduct of its business and the principal and interest on the obligations\u003cbr\u003eissued or assumed by the cooperative in the performance of the purpose for which it\u003cbr\u003ewas organized.2.For the creation of reserves.10-13-06. Use of revenue - Dividends. The revenues of an electric cooperative shall bedevoted first to the payment of operating and maintenance expenses and the principal and\u003cbr\u003einterest on outstanding obligations, and thereafter, to such reserves for improvement, new\u003cbr\u003econstruction, depreciation, and contingencies as the board of directors from time to time may\u003cbr\u003eprescribe. Revenues not required for the purposes set forth in this section shall be returned from\u003cbr\u003etime to time to the members of the cooperative in cash, in abatement of current charges for\u003cbr\u003eelectrical energy, or otherwise as the board of directors may determine on a pro rata basis\u003cbr\u003eaccording to the amount of business done with each during the period. Such return may be\u003cbr\u003emade by way of general rate reduction to the members if the board of directors so elects.10-13-07. Excise tax exemption - License fee. 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