§ 17-20-1201 — Sale or disposition of assets of a cooperative utility

(a) A cooperative utility shall not sell, lease or
otherwise dispose of all or any substantial portion of its
property, when the action is not in the regular course of
activities, except as provided in this section.
(b) Before a meeting is held to vote on approval of
disposition of all or a substantial portion of cooperative
utility property, the board of directors shall:
(i) Have the proposed disposition analyzed with
respect to the effect on rates for utility services and the
equity position of members. The analyses shall be performed by
at least two (2) independent analysts with experience in utility
rate setting and valuation of utility property;
(ii) Notify all cooperative utility members, at least
ninety (90) days in advance, of a meeting to vote on disposition
of cooperative utility property, enclosing a summary of the
proposals for disposition of the property with the notice, and
make available to any member the full proposal for inspection
and copying at the principal office of the cooperative utility;
and
(iii) The cooperative utility shall mail to all
members of the cooperative utility a summary of any alternate
purchase proposals that have been submitted within thirty (30)
days of the meeting date, and make available to any member the
full proposal for inspection and copying at the principal office
of the cooperative utility.
(c) A two-thirds (2/3) affirmative vote of all the members
of the cooperative utility is required for any sale or
disposition under this article.
(d) This section is subject to the contractual obligations
of the cooperative utility with power suppliers and other third
parties.