Introduced By: Representative Kilmartin
Date Introduced : April 8, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Sections 39-3-24 and 39-3-26 of the General Laws in Chapter 39-3 entitled "Regulatory Powers of Administration" are hereby amended to read as follows:
39-3-24. Transactions between utilities for which approval required. -- With the consent and approval of the division, but not otherwise:
(1) Any two (2) or more public utilities doing business in the same municipality or locality within this state, or any two (2) or more public utilities whose lines intersect or parallel each other within this state, or furnish a like service or product within this state, may enter into contracts with each other that will enable the public utilities to operate their lines or plants in connection with each other.
(2) Any public utility may purchase or lease all or any part of
the property, assets, plant, and business of any other public
utility {ADD or merge with any other public utility ADD}, and in
connection therewith may exercise and enjoy all of the rights,
powers, easements, privileges, and franchises theretofore exercised
and enjoyed by any other public utility with respect to the property,
assets, plant, and business so purchased {ADD , ADD} {DEL or DEL}
leased {ADD , or merged ADD}.
(3) Any public utility may {ADD merge with any other public utility ADD} or sell or lease all or any part of its property, assets, plant, and business to any other public utility, provided that {ADD such merger or ADD} a sale or lease of all or substantially all of its property, assets, plant, and business shall be authorized by a vote of at least two-thirds ( 2/3) in interest of its stockholders at a meeting duly called for the purpose. Any stockholder who shall not have voted in favor of the {ADD merger, ADD} sale or lease, either in person or by proxy, shall be entitled to the rights, and the corporation shall be subject to the duties, obligations, and liabilities set forth in sections 7-1.1-73 and 7-1.1-74 with respect to dissenting stockholders and to corporations which sell, lease, or exchange their entire assets respectively.
(4) Any public utility may directly or indirectly purchase the stock of any other public utility.
(5) This section shall not apply to, and a public utility shall not be required to obtain the consent and approval of the division for, the issuance of transition bonds or engaging in any other transactions that are set forth in an application for a securitization order that is approved by the commission pursuant to section 39-1-46.
39-3-26. Charters amended to authorize approved transactions. -- The charters of all corporations subject to regulation by the division are hereby amended to the extent necessary to authorize the carrying out of any agreement, {ADD merger, ADD} purchase, sale, or lease approved by the division as provided in sections 39-3-24 and 39-3-25.
SECTION 2. This act shall take effect upon passage.
