49-37-3.1. Criteria considered in development of power systems--Alternative sources--Board determination as to size of facility.

In order to provide electric power and energy to the people of this state at a more economical cost and with greater reliability, the board of directors of a consumers power district in providing for development of power plants, lines and systems or interest therein, for the generation, transmission, and transformation of electric power and energy, shall take into account, among other things, the reliability and availability of existing alternative supply sources and economies and exigencies to be achieved in developing large scale facilities for the generation and transmission of electric power and energy, whether or not such facilities have a capacity or capability in excess of the present or foreseeable needs of such district. A determination by a board of directors as to the size of the facility to be developed shall be made by resolution, and shall be final.

Source: SL 1976, ch 298, § 4.

49-37-4. Contractual powers--Sale of electrical appliances or equipment prohibited.

Subject to the limitations of the petition for its creation and all amendments thereto, a consumers power district may engage in, or transact business, or enter into any kind of contract or arrangement with any person, firm, corporation, limited liability company, association or labor union, state, county, municipality, governmental subdivision, or agency, or with the government of the United States, the Rural Electrification Administration, or with any officer, department, bureau, or agency thereof, or with any corporation organized by federal law, including the Reconstruction Finance Corporation, or any successor thereof, or with any body, politic or corporate, for any of the purposes mentioned in §§ 49-37-2 and 49-37-3.1 or for or incident to the exercise of any one or more of the foregoing powers, or for the generation, distribution, transmission, sale, purchase, exchange, interchange, wheeling, and pooling of electric power and energy for lighting, power, heating, and for any and every service involving, employing, or in any manner pertaining to the use of electric power and energy, by whatever means generated or distributed, or for the financing or payment of the cost and expense incident to the acquisition or operation of any such power plant or system or incident to any obligation or indebtedness entered into or incurred by the district. However, the district may not engage in the sale of electrical appliances or equipment.

Source: SL 1950 (SS), ch 17, § 40; SDC Supp 1960, § 52.1740; SL 1975, ch 286; SL 1994, ch 351, § 137; SL 2021, ch 200, § 5.

49-37-4.1. Contract to designate party as agent for itself and district--Delegation of contractual powers to agent.

Any consumers power district may contract, in cooperation with others in an electric generation or transmission facility, for the designation of one of the contracting parties as agent on behalf of itself and a consumers power district. Such contract may provide that one of the participants as agent of a consumers power district may make, execute and enter into contracts and let contracts without bids, settle claims, and perform the powers, duties and functions delegated to the agent by the consumer power district with respect to the construction, operation, and maintenance of an electric generation and transmission facility.

Source: SL 1977, ch 394, § 3.

49-37-4.2. Validation of prior contracts providing for designation of agent.

All contracts heretofore made, executed, and entered into by a consumers power district which consumers power district is participating in cooperation with others in an electric generation or transmission facility are in all things legalized, cured, and declared valid notwithstanding the fact that the contracts provides for the designation of one of the participants to such contract as agent on behalf of itself and a consumers power district, and notwithstanding the fact that the contract provides that one of the participants as agent of a consumers power district may make, execute and enter into contracts and let contracts without bids, settle claims, and perform the powers, duties, and functions delegated to the agent by the consumers power district with respect to the construction, operation, and maintenance of an electric generation and transmission facility.

Source: SL 1977, ch 394, § 2.

49-37-4.3. Cooperation in generation and transmission facilities--Permissible terms of contract.

Any consumers power district may contract in cooperation with others in an electric generation and transmission facility. Such contract may provide that the parties to the contract may be exempted from responsibilities of their respective negligence to the other party or parties with respect to the construction, operation, maintenance and management of an electric generation and transmission facility. Such contract may further provide for nonpartitionment and that the contract may be governed by the laws of the state in which such electric generation and transmission facilities are located.

Source: SL 1978, ch 348.

49-37-5. Duty to sell at wholesale to municipalities or other political subdivisions.

A consumers power district which is engaged in the generation and transmission of electrical energy shall sell electrical energy at wholesale directly to any municipality or political subdivision or rural electrical associations and electrical distribution cooperatives or any person, firm, association, or corporation which in turn generates, transmits, or distributes electricity on a nonprofit basis in the state which is engaged in the distribution and sale of electrical energy when any such person or organization makes application for the purchase of electrical energy, if the district has the requested amount of electrical energy available for sale, and the applicant agrees to make or pay for the necessary physical connection with the electrical facilities of the district.

Source: SL 1950 (SS), ch 17, § 41; SDC Supp 1960, § 52.1741; SL 1989, ch 403, § 20.

49-37-6. Joint action with other districts.

A consumers power district shall have and may exercise any one or more of the powers, rights and privileges mentioned in §§ 49-37-1 to 49-37-5, inclusive, either alone or jointly with one or more other such districts.

Source: SL 1950 (SS), ch 17, § 42; SDC Supp 1960, § 52.1742.

49-37-7. District as having no power to tax.

A consumers power district shall have no power of taxation, and no governmental authority shall have the power to levy or collect taxes for the purpose of paying, in whole or in part, any indebtedness or obligation of or incurred by the district or upon which the district may be or become in any manner liable.

Source: SL 1950 (SS), ch 17, § 43; SDC Supp 1960, § 52.1743.

49-37-8. State and other political subdivisions not liable for district's obligations.

Neither the State of South Dakota, nor any county, municipality, school district, or other political subdivision of the state, nor any individual person, nor the property of any of such, shall ever be in any manner liable or responsible for any obligation of any consumers power district.

Source: SL 1950 (SS), ch 17, § 44; SDC Supp 1960, § 52.1744; SL 1992, ch 60, § 2.

49-37-9. Duty to cause estimates before entering into contract--Joint projects excepted--Minimum number of bids.

Before any consumers power district enters into any contract for the construction, building, alteration, extension, or improvement of any power plant or system, or any part or section thereof, for the use of the district, or for the purchase of any materials, machinery, or equipment, excluding the purchase of electric power and energy, the district shall cause estimates of the cost thereof to be made by a competent engineer. If the estimated cost exceeds the sum of fifty thousand dollars, no contract may be entered into without advertising for sealed bids. However, this section does not apply to any consumers power district if the district, jointly with others, contracts for construction, building, alteration, extension, improvement, or leasing of any power plant or system. As far as practicable the board of directors shall secure at least two competitive quotations and retain them for their files. The board shall enter in the minutes a statement of the quotations received, identifying the bidder and the amount of the bid.

Source: SL 1950 (SS), ch 17, § 52; SDC Supp 1960, § 52.1752; SL 1973, ch 286, § 3; SL 1975, ch 287; SL 1983, ch 344; SL 1989, ch 403, § 21.

49-37-9.1. Prior joint acts validated despite bid law noncompliance.

All acts and proceedings had prior to January 1, 1975, and all contracts, expenditures and acquisitions made prior to January 1, 1975, by any consumers power district of the state where the consumers power district jointly with others contracted for the construction, building, alteration, extension, improvements, or the leasing of any power plant or system are in all things legalized, cured, and declared valid.

Source: SL 1975, ch 289; SL 2021, ch 200, § 6.

49-37-10. Competitive bidding requirements suspended during emergency.

In the event of sudden or unexpected damage, injury or impairment of such plant, works, system, or other property belonging to a consumers power district, the board of directors may, in its discretion, declare an emergency, and proceed with the necessary repairs, alterations, extensions, additions, or other work, without first complying with the provisions of § 49-37-9.

Source: SL 1950 (SS), ch 17, § 53; SDC Supp 1960, § 52.1753.

49-37-11. Competitive bidding requirements suspended during war.

When, by reason of disturbed or disrupted economic conditions due to the prosecution of war or due to the operation of laws, rules, or regulations of governmental authorities, whether enacted, passed, promulgated, or issued under or due to the emergency or necessities of war or national defense, the contracting or purchasing by a consumers power district, for any one or more of the purposes mentioned in § 49-37-9 is so restricted, prohibited, limited, allocated, regulated, rationed, or otherwise controlled, that the letting of contracts therefor, pursuant to the requirements of said section, is legally or physically impossible or impractical, the provisions of said section shall not apply to such contract or purchases.

Source: SL 1950 (SS), ch 17, § 54; SDC Supp 1960, § 52.1754.

49-37-12. Private industry prohibited from owning assets of district--Consent of voters--Sale of individual items permitted.

Neither by sale under foreclosure, receivership or bankruptcy proceedings, nor by alienation in any other manner, may the property of a consumers power district become the property or come under the control of any private person, firm or corporation engaged in the business of generating, transmitting or distributing electricity for profit, by action of the directors of said district without consent of the voters of the district as expressed by a majority vote at any regular or special election called and held for such purpose. But nothing in this section contained shall prevent the district from selling any individual item of equipment, machinery, supplies or facilities which shall be considered by the directors as surplus, obsolete, or no longer necessary to the operation of the district.

Source: SL 1950 (SS), ch 17, § 61; SDC Supp 1960, § 52.1760.

49-37-13. Privilege tax levied against district.

For the privilege of engaging in the business of generating, distributing, transmitting, purchasing, selling electric energy for public use, or any other business as provided in chapters 49-35 to 49-40, inclusive, there is levied upon, and shall be collected from, each consumers power district an occupational excise tax equal to all the taxes, including, but not limited to, licenses, excise, property, and special assessment taxes, except federal taxes, which a person, partnership, limited liability company, association, or private corporation engaged in a similar business would be required to pay.

Source: SL 1950 (SS), ch 17, § 66; SDC Supp 1960, § 52.1765; SL 1994, ch 351, § 138.

49-37-14. Computation and payment of tax.

For the purpose of determining the occupational excise tax levied by § 49-37-13:

(1)    All property owned, leased, operated, or controlled by any district shall be assessed and the tax equivalent computed, collected, paid, and apportioned in the same manner and for the same purposes as may now or hereafter be provided by law for the assessment and taxation of similar property similarly used by a private electric public utility; and

(2)    Each district shall comply in the same manner and for the same purposes as may now or hereafter be provided by law for the return, assessment, collection, payment, and apportionment of all occupational, privilege, excise, or special assessment taxes, or licenses, levied or imposed upon any person, partnership, limited liability company, association, or private corporation engaged in a similar business.

Source: SL 1950 (SS), ch 17, § 66; SDC Supp 1960, § 52.1765; SL 1994, ch 351, § 139.

49-37-15. Taxes on districts qualifying as rural electric companies.

Notwithstanding §§ 49-37-13 and 49-37-14, if a consumers power district comes within the classification of rural electric companies as defined in chapter 10-36, then the provisions of that chapter shall apply to said district.

Source: SL 1950 (SS), ch 17, § 66; SDC Supp 1960, § 52.1765.

49-37-16. Charges for services--Discrimination prohibited.

The board of directors of any district organized under chapter 49-35 shall have the power and be required to fix, establish and collect adequate rates, tolls, rents, and other charges, for electrical energy, and for any services or facilities sold, furnished or supplied by the district, which rates, tolls, rents, and charges shall be fair, reasonable, nondiscriminatory, and so adjusted as in a fair and equitable manner to confer upon and distribute among the users and consumers of services furnished or sold by the district the benefits of a successful operation and conduct of the business of the district.

Source: SL 1950 (SS), ch 17, § 67; SDC Supp 1960, § 52.1766.

49-37-17. Districts not within jurisdiction of Public Utilities Commission.

The South Dakota Public Utilities Commission shall have no jurisdiction over the districts organized under chapter 49-35, or over their rates, charges, or operations.

Source: SL 1950 (SS), ch 17, § 68; SDC Supp 1960, § 52.1767.

49-37-18. District as franchised to use streets of municipality for transmission lines.

If the majority of the voters of any municipality voting thereon shall vote in favor of the formation of a consumers power district, the annexation of territory or a municipality to an existing district, or the consolidation of two or more districts, as the case may be, such action shall be construed as the granting of a franchise to occupy any of the streets, alleys, or public places of the municipality to transmit and distribute electrical energy for heat, light and power.

Source: SL 1950 (SS), ch 17, § 70; SDC Supp 1960, § 52.1769.

49-37-19. Contracts with municipality for sale at wholesale--Authority of municipality.

A consumers power district shall have authority to contract with municipalities for the sales, transmission, and delivery of electrical energy at wholesale; and a municipality shall have authority to purchase at wholesale electrical energy from a district without the granting of a franchise to such district.

Source: SL 1950 (SS), ch 17, § 71; SDC Supp 1960, § 52.1770.

49-37-20. Other contracts with municipalities--Authority of municipality.

Contracts, other than franchises, which any municipality is empowered to make with any consumers power district to furnish such municipality, or its inhabitants, with electrical energy, shall be made in the same manner and upon the same terms and conditions as such municipality is now or hereafter empowered to make with any private corporation to furnish such municipality, or its inhabitants, with electrical energy.

Source: SL 1950 (SS), ch 17, § 72; SDC Supp 1960, § 52.1771.

49-37-21. Districts as works of internal improvement--Applicability of laws respecting internal improvements.

All power plants and systems, constructed or otherwise acquired, or used or operated by any consumers power district under the provisions of chapters 49-35 to 49-40, inclusive, or proposed by such district to be so constructed, acquired, owned, used, or operated, are hereby declared to be works of internal improvement. All laws applicable to works of internal improvement, and all provisions of law now applicable to electric light and power corporations, as regards the exercise of the power of eminent domain, the use and occupation of state and other public lands and highways, the appropriation, or other acquisition, for any of the purposes contemplated in said chapters, the manner or method of construction and physical operation of power plants, systems, and transmission lines, as hereby contemplated, shall be applicable as nearly as may be, to districts organized under chapter 49-35, and in the performance of the duties conferred or imposed upon them under the provisions of chapters 49-35 to 49-40, inclusive.

Source: SL 1950 (SS), ch 17, § 78; SDC Supp 1960, § 52.1777.

49-37-22. Just compensation for use of state waters--Amount of compensation.

No inferior right to the use of the waters of this state shall be acquired by a superior right without just compensation therefor to the inferior user. The just compensation paid to those using water for power purposes shall not be greater than the cost of replacing the power which would be generated in the plant or plants of the power user by the water so acquired.

Source: SL 1950 (SS), ch 17, § 79; SDC Supp 1960, § 52.1778.

49-37-23. Liability of district respecting use of water.

Any consumers power district shall be liable for all breaks, overflow, and seepage damage.

Source: SL 1950 (SS), ch 17, § 80; SDC Supp 1960, § 52.1779.

49-37-24. Investment of district funds--Regulations--Investment officer.

A consumer power district may invest, deposit or administer its public funds, moneys, and securities in the classes of securities and investments approved for investment of state public funds under the provisions of chapter 4-5. The board of directors of a district may promulgate investment policy regulations pertaining to the kind or nature of investments of any of the moneys, funds, or securities and any restrictions on the methods for investment which govern the person or firm designated by the board of directors to invest the district's moneys. The board may designate an officer, employee, other person or firm to act as its investment officer.

Source: SL 1981, ch 339.

49-37-25. Indemnification of directors, officers, employees or agents.

A consumers power district may indemnify any person who was or is a party or is threatened to be made a party to any pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative by reason of the fact that he is or was a director, officer, employee, or agent of the consumers power district or is or was serving at the request of the consumers power district as a director, officer, employee, or agent or other enterprise, against expenses including attorneys' fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the consumers power district and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. However, this section does not apply to any action by or in the right of the consumers power district.

Source: SL 1989, ch 403, § 22.