(a) The Public Utility Commission, upon application of any electric company, municipal, cooperative, or privately owned, engaged or authorized to engage in the manufacture, transmission, distribution, or sale of electric energy, may by order direct an electric company, municipal, cooperative, or privately owned, engaged in the manufacture, transmission, distribution, or sale of electric energy, to establish physical connection of its transmission or distribution facilities with the facilities of one or more other such electric company or companies, to sell energy to, to exchange energy with, to transmit or distribute energy for any other such electric company or companies. In addition, the Commission, upon application of the Department of Public Service, may by order direct an electric company engaged in the transmission of electric energy to transmit energy for the Department. For the purposes of this section, a company "authorized to engage" means a municipal company authorized under chapter 79 of this title, a cooperative authorized under chapter 81 of this title, or a privately owned company authorized by its articles of association, charter, or bylaws. However, the Commission shall have no authority to compel any electric company to sell or exchange, transmit, or distribute energy when to do so would impair its ability to render adequate service to its customers. The Commission's order may only be issued after due notice to all interested parties and findings based upon adequate evidence that the Commission's action will be consistent with the general good of the State and that it is not detrimental to the interest of investors or consumers. The Commission may prescribe the terms and conditions of the arrangement to be made between the electric companies, including the Department of Public Service, affected by the order, including the compensation or reimbursement reasonably due to any of them, and in the case of a new physical connection the apportionment of costs between or among them, provided that a company making application for a connection which will inure to its sole benefit shall assume the entire cost of the connection.

(b) The Commission shall have authority to arbitrate disputes between or among users or prospective users of transmission facilities located within the State, where such disputes arise under any agreement or under any State or federal tariff relating to the provision of or entitlements to transmission services and providing for arbitration by the Commission. In conducting such arbitration, the Commission shall apply the terms and conditions set forth in the agreement or tariff; provided that where a user or prospective user proposes a change in the provision of entitlements to transmission services, it shall bear the burden of proving that the proposed change, including any reduction in or adverse effect upon the transmission services of or entitlements held by any other user, promotes the general good of the State.

(c) In any arbitration proceeding conducted pursuant to this section, the Commission shall give notice to all Vermont electric companies, the Department, and any other persons or entities that have notified the Commission that they hold entitlements to the transmission services that will be the subject of the proceeding. Upon proper application, all persons and entities entitled to notice under this subsection shall be permitted to participate in the proceeding.

(d) The provisions of 12 V.S.A. §§ 5671(6)-(9) and 5676-5679 shall not apply to any arbitration proceeding conducted pursuant to the provisions of this section if the agreement or tariff under which arbitration is being conducted provides for direct appeal of questions of law to the Supreme Court. In such cases, any award, order, or decree of the Commission shall, solely for purposes of proceedings subsequent to the issuance of the same, be treated as if it were an order of the Commission acting in a quasi-judicial capacity in a contested case, except that the Commission shall have no power of enforcement. The provisions of sections 12, 14, and 15 of this title shall also apply in such cases.

(e) Notwithstanding 12 V.S.A. § 5652(b), a provision to arbitrate transmission disputes is enforceable if contained in a validly filed state or federal tariff. Unless otherwise provided, a provision to arbitrate contained in a validly filed tariff creates a duty to arbitrate and is valid and enforceable, except upon such grounds as exist for the termination or revocation of the tariff. (Added 1967, No. 185, § 22, eff. April 17, 1967; amended 1981, No. 149 (Adj. Sess.), eff. April 13, 1982; 1987, No. 65, § 6, eff. May 28, 1987; 1987, No. 237 (Adj. Sess.), eff. May 24, 1988.)