[HISTORY: Adopted by the Town Board of the Town of Parma 4-26-1982 by L.L. No. 1-1982. Amendments noted where applicable.]
The purpose of this chapter is to comply with the provisions of § 360 of the General Municipal Law of the State of New York, which section requires that a town fix by law:
The Town Board of the Town of Parma hereby establishes a Town of Parma Electric Agency ("Agency") for the purpose of operating a public utility electric service within the territorial limits of the town at rates estimated to be less than those now charged, and anticipated to be charged in the future, by the existing electric service provider ("existing provider").
The method of acquiring and operating the necessary elements to provide such electric service shall be as follows:
The Agency shall acquire hydroelectric power from the Power Authority of the State of New York (PASNY) to be delivered to the existing provider's service area in the Town of Parma.
The Agency shall have the authority to contract with the existing provider to deliver PASNY power to customers in the Town of Parma over its distribution, substation and transmission facilities ("facilities") in the town and/or to use or lease the existing provider's facilities in the town for the purpose of delivering such power to customers in the Town of Parma.
The method of furnishing such electric service shall consist of:
Acquiring PASNY hydroelectric power.
Delivering said power to the existing provider over the transmission and distribution facilities of PASNY and over other such entities at transmission or distribution voltages as may be required to ensure proper power availability to the existing provider.
Delivering said power over the existing provider's transmission, substation and distribution facilities, for compensation, to electric customers in the existing provider's service area within the Town of Parma. The existing provider may, by agreement with the Agency, deliver said power and collect and remit to the Agency the charges thereof or, in the alternative, agree with the Agency to bill the customers within the town at rates to be agreed upon between the existing provider and the Agency.
All agreements entered into in furtherance of acquisition and operation of the Agency's service shall first be approved by the Town Board. Rates for the sale of PASNY hydroelectric power by the Agency shall be established by the Board and shall be sufficient to permit the Agency to recover its costs of doing business, but shall not provide any profit or return on investment to the Agency. Any reduction in utility gross receipts tax revenues received by the Town of Parma as a result of the implementation of this section may be paid by the Agency as an in-lieu-of-tax payment to the Town of Parma. Any reduction in property tax revenues received by the Town of Parma from the existing provider as a result of the implementation of this section shall be paid by the existing provider or the Agency as an in-lieu-of-tax payment to the Town of Parma.
Except as otherwise required by PASNY pursuant to applicable law, and to the maximum extent practicable, the PASNY hydroelectric power acquired by the Agency shall be furnished first to fulfill the electric energy requirements of Town of Parma residential consumers, and then may be furnished to fulfill the electric energy requirements of the Town of Parma and other municipal corporations, and to fulfill the electric energy requirements of all other classes of electric customers, including commercial and industrial customers. Nothing contained in this section provides or is intended to provide or shall be construed or interpreted as providing that the furnishing of PASNY hydroelectric power by the Agency to purchasers who are also electric customers of the existing provider shall diminish the geographic boundaries of the existing provider's service area, or the legal status of said purchasers as customers of the existing provider.
The method of acquiring and operating the electrical service described in this chapter authorizes neither the exercise of any power of condemnation by the Town of Parma or the Agency of the existing provider's generation, distribution and transmission system, nor the establishment by the Town of Parma or the Agency of transmission or distribution facilities separate from those of the existing provider.
The maximum estimated cost of acquiring ownership through construction or otherwise of facilities for the transmission of PASNY hydroelectric power to customers within the Town of Parma is nothing. The estimated annual cost of acquiring PASNY hydroelectric power and delivering of the same to customers within the Town of Parma over the existing provider's facilities is as follows:
It is estimated that the maximum annual cost of the Agency's acquiring PASNY hydroelectric power for the Town of Parma electric customers will be $93,832 at $0.005 per kilowatt-hour.
It is estimated that the total annual cost of using the existing provider's facilities to deliver PASNY hydroelectric power to Town of Parma electric customers will be $469,163 at $0.025 per kilowatt-hour.
Any material amendment of this chapter, including any attempt by the Agency to exercise the power of condemnation of the existing provider's generation, distribution and transmission system or to establish generation, transmission or distribution facilities separate from the existing provider for the purpose of this chapter, shall not be effective unless approved by the voters at a subsequent referendum.
This chapter shall become effective following its final passage by the Board after a public hearing thereon; its approval by the qualified electors of the Town of Parma at a special election; and the filing of the same with the office of the Secretary of State and the State Comptroller as required by law.
Editor's Note: This local law was approved at referendum 4-20-1982.
No person shall be qualified to vote upon said chapter unless he or she is a qualified elector of the town entitled to vote for an officer of the town or otherwise qualified to vote according to law.