Nebraska § 70-501 - Extension authorized; electric energy; sale; contracts authorized; payments from net earnings and profits.

§ 70-501. Extension authorized; electric energy; sale; contracts authorized; payments from net earnings and profits.

Any city, village, or public electric light and power district within the state, which may own or operate, or hereafter acquire or establish, any electric light and power plant, distribution system and transmission lines may, at the time of or at any time after such acquisition or establishment, extend the same beyond its boundaries, and for that purpose is hereby authorized and empowered to construct, purchase, lease, or otherwise acquire, and to maintain, improve, extend and operate electric light and power plants, distribution systems and transmission lines, outside of the boundaries of such city, village, or public electric light and power district, for such distance and over such territory within this state as may be deemed expedient. In the exercise of the powers granted by this section any such city, village, or public electric light and power district may enter into contracts to furnish and sell electrical energy to any person, firm, association, corporation, municipality, or public electric light and power district. However, no such construction, purchase, lease, acquisition, improvement or extension of any such additional plant, distribution system or transmission lines shall be paid for except out of the net earnings and profits of one or more or all of the electric light and power plants, distribution systems and transmission lines of such city, village, or public electric light and power district. The provisions of sections 70-501 to 70-515 shall be deemed cumulative, and the authority herein granted to cities, villages, and public electric light and power districts shall not be limited or made inoperative by any existing statute.

Provisions of this section did not operate to prevent a public power district from contracting with second-class city to furnish electric power at wholesale for period of twenty-five years. City of O'Neill v. Consumers P. P. Dist., 179 Neb. 773, 140 N.W.2d 644 (1966).

Scope of this section was limited by title to original act. Schroll v. City of Beatrice, 169 Neb. 162, 98 N.W.2d 790 (1959).

City cannot issue revenue bonds without an authorizing election for purchase of completely new electric power plant. Nacke v. City of Hebron, 155 Neb. 739, 53 N.W.2d 564 (1952).

Where a municipality is given power to furnish public utility service beyond its corporate limits, it has the right to provide service within the corporate boundaries of another municipal corporation. City of Curtis v. Maywood Light Co., 137 Neb. 119, 288 N.W. 503 (1939).

Constitutionality of this and succeeding sections in this article was raised but not decided since defendants were estopped to assail statute. State ex rel. Sorensen v. Southern Nebraska Power Co., 131 Neb. 472, 268 N.W. 284 (1936).

Neither express nor implied power is conferred upon municipal corporations not already engaged in generation or distribution of electrical energy to acquire an electric light and power plant and to pay for it by pledge of future earnings therefrom. Interstate Power Co. v. City of Ainsworth, 125 Neb. 419, 250 N.W. 649 (1933).

This section empowers a city to acquire by condemnation power plant properties and distribution systems located outside its territorial limits but it cannot be compelled to extend its facilities inside the corporate boundaries of another municipality. Central Power Co. v. Nebraska City, 112 F.2d 471 (8th Cir. 1940).