(By Delegates Perry, Fahey and Keener)

[Introduced February 22, 2002 ; referred to the

Committee on the Judiciary.]

A BILL to amend article two, chapter twenty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section nineteen, relating to prohibiting rural electric cooperatives from entering into the retail propane and fuel oil business.

Be it enacted by the Legislature of West Virginia:
That article two, chapter twenty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section nineteen, to read as follows:

§24-2-19. Prohibiting rural electric cooperatives from entering into the retail propane and fuel oil business.

(a) It is unlawful for a rural electric cooperative to engage in the business of retail propane or fuel oil distribution in this state. Notwithstanding any other provision of this code to the contrary, the commission may not promulgate any rule, or otherwise approve any request or plan permitting a rural electric cooperative operating in the state of West Virginia to engage in the business of retail propane or fuel oil distribution in this state. This section does not prevent a rural electric cooperative from operating a gas grill refilling or exchange station if permitted under the rules and regulations of the commission. This section does not apply to municipalities or other public utilities.
(b) For the purposes of this section:
(1) "Rural electric cooperative" means any cooperative or association organized under the Rural Electrification Act of 1936 or pursuant to the statutes of a state for the purpose of supplying electric service to rural citizens, and includes any subsidiary entity in which a cooperative or association has an ownership or voting-rights interest greater than five percent;
(2) "Retail propane business" means any business that sells or
delivers liquefied petroleum products, more commonly referred to as propane, LP gas or butane, to the end user of the product. This does not include retail motor fuel dispensing stations;
(3) "Retail fuel oil business" means any business which sells or delivers fuel oil, kerosene, or other home heating oils, to the end user of the product. This does not include retail motor fuel dispensing stations, other fuels used for nonheating purposes, or fuels used for the generation of electricity by regulated utilities or their affiliates;
(4) "Gas grill refilling or exchange station" means any business which refills or exchanges LP gas cylinders of thirty pounds or less for household and recreational use, but does not include businesses that deliver liquefied petroleum products or fuel oil to customers.
(c) Any retailer of liquefied petroleum or fuel oil products, or any trade association representing any such retailer, has standing to petition the courts of this state for any remedy available at law or in equity, including injunctive relief, for a violation of this section.

NOTE: The purpose of this bill is to

prohibit rural electric cooperatives from entering into the retail propane and fuel oil business.

This section is new; therefore, strike-throughs and underscoring have been omitted.