(1)  Except as provided by Subsection (2) or (4), without prior written approval of the commission, no electrical corporation may:

Terms Used In Utah Code 54-4-31

  • Commission: means the Public Service Commission. See Utah Code 54-2-1
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: includes an association and a joint stock company having any powers or privileges not possessed by individuals or partnerships. See Utah Code 54-2-1
  • Electrical corporation: includes every corporation, cooperative association, and person, their lessees, trustees, and receivers, owning, controlling, operating, or managing any electric plant, or in any way furnishing electric power for public service or to its consumers or members for domestic, commercial, or industrial use, within this state. See Utah Code 54-2-1
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means :Utah Code 68-3-12.5
  • Public utility: includes every railroad corporation, gas corporation, electrical corporation, distribution electrical cooperative, wholesale electrical cooperative, telephone corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation, and independent energy producer not described in Section 54-2-201 where the service is performed for, or the commodity delivered to, the public generally, or in the case of a gas corporation or electrical corporation where the gas or electricity is sold or furnished to any member or consumers within the state for domestic, commercial, or industrial use. See Utah Code 54-2-1
(a)  issue any security; or

(b)  assume any obligation or liability as guarantor, endorser, surety, or otherwise, for any security of another person relating to the financing of pollution control revenue bonds.

(2) 

(a)  Authorization of the commission is not required for the issuance or renewal of, or assumption of liability on, a note or draft if:

(i)  the maturity date of the note or draft is not more than one year after the date of the issue, renewal, or assumption of liability; and

(ii)  the aggregate value of the note or draft together with all other outstanding notes and drafts of a maturity of one year or less on which the public utility is primarily or secondarily liable is not more than 5% of the par value of the other outstanding securities of the public utility.

(b)  In the case of securities having no par value, the par value for the purpose of this section is the fair market value as of the date of issue.

(3)  Any securities issued pursuant to an order entered by authority of this section shall be valid notwithstanding the outcome of any further proceedings, unless:

(a)  application for stay is filed with a court of competent jurisdiction within five days following the issuance of the order; and

(b)  a stay is entered by the commission or a court of competent jurisdiction within 10 days after the order is issued.

(4)  The commission may by rule, or by order pursuant to standards promulgated by rule, exempt any security, class of securities, electrical corporation, or class of electrical corporation from the requirement of Subsection (1), subject to any terms and conditions prescribed in the order or rule, if it finds that the application of Subsection (1) to the security, class of securities, electrical corporation, or class of electrical corporation is not required by the public interest.

Amended by Chapter 206, 1997 General Session

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