Development of hydropower generating works -- Power offered to public utilities or municipalities.
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(1) In association with a project authorized under this chapter, the division may:
(a) construct and own hydroelectric generating works and incidental electrical facilities for the purposes stated in Subsection (2); or
(b) enter into an agreement with a public utility or municipality for the development and operation of hydroelectric generating works and incidental electrical facilities.
(2) Power and energy derived from any hydroelectric generating works owned by the division, except for power and energy needed for project operations, must be offered to public utilities or municipalities in the state for distribution to electric consumers.