(a) Upon a finding by the Commission that the retail sale will promote the general good of the State under section 212c of this title, Vermont electric utility companies shall enter into negotiations for contracts with the Department that are necessary for sale and distribution, including lease of facilities, provision of services to the Department to distribute electric energy, and the assurance of adequate reliability. The rates, charges, terms, or other conditions of such contracts shall be established by negotiations or pursuant to subsection (b) of this section. No electric utility company with which the Department shares a service territory may unreasonably deny replacement power needed by the Department to assure adequate reliability of service.

(b) If, pursuant to subsection (a) of this section, the Department and a company are unable to negotiate the rates, charges, terms, or other conditions of such contracts including the assurance of adequate reliability, either may petition the Public Utility Commission to establish the rates, terms, charges, or conditions thereunder, or resolve any other related matter, as the Commission determines to be just and reasonable. The Commission shall establish rates or charges under this section to compensate or reimburse such company for all costs reasonably and necessarily incurred by it to provide such arrangements. The Commission shall offer an opportunity for commencing a hearing within 45 days of filing of the petition and shall make either a final decision or, if unable to do so, an interim decision within three months of filing of the petition. If, within three months of filing, the Commission is unable to reach a final decision on the petition, the Commission shall direct the company to provide to the Department the necessary arrangements, including if necessary or appropriate, backup reliability, and access to facilities to allow the Department to distribute the electric energy involved in its proposal on an interim basis under such interim terms and conditions as the Commission finds to be reasonable pending a final Commission decision on the petition. The Commission shall render a final decision on the petition within six months from the date it is filed. (Added 1987, No. 65, § 4, eff. May 28, 1987; amended 1999, No. 157 (Adj. Sess.), § 4.)