BILL 59
An Act to Amend the
Municipalities Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 The
Municipalities Act, chapter M-22 of the Revised Statutes, 1973, is
amended by adding after section 111 the following:
GENERATION OF ELECTRICITY
Definitions
111.1 The following definitions apply in sections 111.2 to 111.6.
“distribution electric utility”
has the same meaning as in the Electricity
Act. (entreprise de distribution d’électricité)
“generation facility” has the
same meaning as in the Electricity
Act. (installation de production)
“municipal distribution utility”
has the same meaning as in the Electricity
Act. (entreprise de distribution d’électricité
municipale)
Generation of electricity
111.2(1) A municipality may construct, own and operate a generation facility
and may use the electricity for its own purposes or sell it to a distribution
electric utility or another person, but shall not distribute it or
provide it as a service to its residents.
111.2(2) Subsection (1) does not apply to a municipal distribution utility
with respect to the distribution or provision of electricity as a
service to its residents within the territorial limits provided for
in section 69 of the Electricity
Act.
111.2(3) A municipality may, for the purposes
of subsection (1),
(a) acquire land or an interest in land
that is adjacent to the municipality and use the land for the purposes
stated,
(b) enter into an agreement with one
or more municipalities or rural communities or with any person, including
the Crown, where the costs of construction and operation of a generation
facility may be shared by the parties to the agreement, and
(c) enter into an agreement with one
or more municipalities or rural communities or with any person, including
the Crown, to provide for the joint acquisition, ownership, development,
extension, management or operation of a generation facility.
Generation facility fund
111.3 A municipality that constructs, owns or
operates a generation facility shall establish a generation facility
fund.
Budget
for generation facility
111.4(1) A municipality that operates a generation facility shall annually,
on or before the date fixed pursuant to subsection 87(2), submit to the Minister the budget
with respect to its operation of the facility for that year.
111.4(2) When operating a generation facility, a municipality shall produce,
with respect to such operation,
(a) an annually balanced budget, or
(b) a quadrennially balanced budget.
111.4(3) If the proceeds from the operation are insufficient to produce
a balanced budget as provided for under subsection (2), the municipality
may make a charge against other operating funds of the municipality
at the discretion of the council.
111.4(4) When in the operation of a generation facility a municipality
has a deficit at the end of the fiscal year,
(a) it shall cause such deficit to be
debited against the budget for that activity for the second next ensuing
year, or
(b) it shall spread the deficit over
a four year period commencing with the second next ensuing year.
111.4(5) When in the operation of a generation facility the municipality
has a surplus at the end of the fiscal year,
(a) it shall cause such surplus to be
credited to the budget for that activity for the second next ensuing
year, or
(b) it shall spread the surplus over
a four year period commencing with the second next ensuing year.
111.4(6) A municipality may transfer some or all of any audited surplus
of the generation facility fund to other operating funds of the municipality
at the discretion of the council, commencing with the second next
ensuing year.
Reserve funds
111.5 A municipality may, in accordance with
the regulations, with respect to its ownership or operation of a generation
facility
(a) establish, manage and contribute
to an operating reserve fund, and
(b) establish, manage and contribute
to a capital reserve fund.
Borrowing
111.6(1) A municipality may borrow temporarily in each year for current
expenditures in respect of the operation of a generation facility
a sum or sums of money not exceeding 50% of the budgeted revenue for
that year.
111.6(2) For the purposes of section 89, any money borrowed by a municipality
for the construction or renovation of a generation facility is not
considered as money borrowed.
Application to rural communities
111.7 Sections 111.1 to 111.6 apply with the necessary
modifications to a rural community.
2 Subsection
192(1) of the Act is amended by adding after paragraph (k.1) the following:
(k.2) respecting agreements under subsection 111.2(3), including the sharing of the
cost and other matters related to the construction, ownership or operation
of a generation facility and the use or sale of the electricity generated;
(k.3) respecting the establishment and
management of and contributions to an operating reserve fund and a
capital reserve fund under section 111.5 and the amounts of each fund;
3 This
Act comes into force on a day to be fixed by proclamation.