70-1002.03. New transmission facilities or interconnection; agreement by affected parties; disputes submitted to board; insure prudent utility practice; rate determination; effect.

When any electric generation facility or transmission facility over seventy thousand volts is constructed or acquired, either within or without the State of Nebraska, and the output of the generation or transmission facility would be transmitted over existing transmission facilities of others within this state or transmitted over new transmission facilities to be constructed or acquired within this state or through an interconnection with existing facilities of others within this state, and such transmission of the output would substantially affect the reliability, operation, or safety of the transmission system of a generating power agency or a distribution power agency in this state, as defined in section 70-626.01, the party or parties that would jointly or individually receive the output from such electric generation or transmission facility and the party or parties whose existing transmission system would be so affected shall determine, pursuant to prudent utility practice, what new transmission facilities or interconnection, if any, should be constructed or acquired so that the output of the generation or transmission facility will be transmitted in a reliable and safe manner. As used in this section, prudent utility practice shall mean any of the practices, methods and acts at a particular time which, in the exercise of reasonable judgment in the light of the facts, including but not limited to the practices, methods, and acts engaged in or approved by a significant portion of the electrical utility industry prior thereto, known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety, and expedition. If the parties determine that new transmission facilities or interconnection are to be required, the parties will determine what new transmission facilities should be constructed or acquired and what interconnection should be provided, utilizing to the fullest extent possible the existing transmission facilities for the maximum benefit of the electric ratepayers of this state. In the event that the parties are unable to agree, before construction begins or the acquisition is finalized, but after having made a reasonable effort to reach agreement, upon any of the terms or conditions of (1) what new transmission facilities are to be constructed or acquired, (2) who shall construct or acquire such new transmission facilities, or (3) agreement for the electrical interconnection of transmission facilities, the matter shall be submitted to the Nebraska Power Review Board for hearing and determination, before construction begins or the acquisition is finalized, in accordance with prudent utility practice as defined in this section and the provisions of sections 70-626.04 and 70-1014, utilizing to the fullest extent possible the existing transmission facilities for the maximum benefit of the electric ratepayers of this state. Any determination by such board regarding rates shall be advisory only and not binding upon the parties. Rates, tolls, and charges shall be as provided for in section 70-655.

Source:Laws 1975, LB 104, § 11; Laws 1981, LB 181, § 45.