Utah Code
Utah Code § 10-8-14 (2026)
Utility and telecommunications services -- Service beyond municipal limits -- Retainage -- Notice of service and agreement
✓ current as of May 2026
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As used in this section, "communications service facility" means the same as that term is defined in Section 10-18-102.
A municipality may:
construct, maintain, and operate waterworks, sewer collection, sewer treatment systems, gas works, electric light works, broadband services, telecommunications lines, cable television lines, public transportation systems, or communications service facilities;
authorize the construction, maintenance, and operation of the works or systems described in Subsection (2)(a)(i) by others;
purchase or lease the works or systems described in Subsection (2)(a)(i) from any person or corporation; and
The sale and delivery of the surplus product or service capacity described in Subsection (2)(a)(iv) in relation to:
retail electricity beyond the municipal boundary is governed by Subsections (3) through (7);
broadband services, cable television services, or public telecommunications services is governed by Subsection (11); and
If any payment on a contract with a private person, firm, or corporation to construct waterworks, sewer collection, sewer treatment systems, gas works, electric works, broadband services, telecommunications lines, cable television lines, public transportation systems, or communications service facilities is retained or withheld, it shall be retained or withheld and released as provided in Section 13-8-5.
Except as provided in Subsection (4)(b), (5), or (9), a municipality may not sell or deliver the electricity produced or distributed by the municipality's electric works constructed, maintained, or operated in accordance with Subsection (2) to a retail customer located beyond the municipality's municipal boundary.
A municipality that provided retail electric service to a customer beyond the municipality's municipal boundary on or before June 15, 2013, may continue to serve that customer if:
on or before December 15, 2013, the municipality provided the electrical corporation, as defined in Section 54-2-1, that is obligated by the municipality's certificate of public convenience and necessity to serve the customer with an accurate and complete verified written notice identifying each customer served by the municipality beyond the municipality's municipal boundary;
no later than June 15, 2014, the municipality entered into a written filing agreement for the provision of electric service with the electrical corporation; and
the Public Service Commission approved the written filing agreement in accordance with Section 54-4-40.
A municipality may submit to the electrical corporation a request to provide electric service to an electric customer who is located outside the municipal boundary and who was not identified in accordance with Subsection (4)(b)(i).
If a municipality submits a request described in Subsection (5)(a), the electrical corporation shall respond to the request within 60 days.
If the electrical corporation agrees to allow the municipality to provide electric service to the customer:
the electrical corporation and the municipality shall enter into a written agreement;
the municipality shall agree in the written agreement to subsequently transfer service to the customer described in Subsection (5)(a) if the electrical corporation notifies, in writing, the municipality that the electrical corporation has installed a facility capable of providing electric service to the customer; and
the municipality may provide the service if:
except as provided in Subsection (5)(c)(iii)(B), the Public Service Commission approves the agreement in accordance with Section 54-4-40; or
for an electrical cooperative that meets the requirements of Subsection 54-7-12(7), the governing board of the electrical cooperative approves the agreement.
The municipality or the electrical corporation may terminate the agreement for the provision of electric service if the Public Service Commission imposes a condition authorized in Section 54-4-40 that is a material change to the agreement.
If the municipality and electrical corporation make a transfer described in Subsection (5)(c)(ii):
the municipality shall transfer the electric service customer to the electrical corporation; and
the electrical corporation shall provide electric service to the customer; and
the municipality shall transfer a facility in accordance with and for the value as provided in Section 10-2-817.
In accordance with Subsection (7)(b), the municipality shall establish a reasonable mechanism for resolving potential future complaints by an electric customer located outside the municipality's municipal boundary.
The mechanism shall require:
that the rates and conditions of service for a customer outside the municipality's boundary are at least as favorable as the rates and conditions of service for a similarly situated customer within the municipality's boundary; and
if the municipality provides a general rebate, refund, or other payment to a customer located within the municipality's boundary, that the municipality also provide the same general rebate, refund, or other payment to a similarly situated customer located outside the municipality's boundary.
The municipality is relieved of any obligation to transfer a customer described in Subsection (5)(a) or facility used to serve the customer in accordance with Subsection (5)(c)(ii) if the municipality annexes the property on which the customer is being served.
A municipality may provide electric service outside of the municipality's municipal boundary to a facility that is solely owned and operated by the municipality for municipal service.
A municipality's provision of electric service to a facility that is solely owned and operated by the municipality does not expand the municipality's electric service area.
Nothing in this section expands or diminishes the ability of a municipality to enter into a wholesale electrical sales contract with another municipality that serves electric customers to sell and deliver wholesale electricity to the other municipality.
A municipality's actions under this section related to works or systems involving broadband services, public telecommunications services, or cable television services are subject to the requirements of Chapter 18, Municipal Cable Television and Communications Services Act.
Notes of Decisions
Cited in 19
cases (1 in the last 5 years), 1954–2023 · leading case: Platt v. Town of Torrey, 949 P.2d 325 (Utah 1997).
Platt v. Town of Torrey, 949 P.2d 325 (Utah 1997). “We begin by observing that Utah Code Ann. § 10-8-14 (1996) authorizes municipalities to construct and operate "waterworks, sewer collection, sewer treatment systems, gas works, electric light works, telephone lines or public transportation systems" and to "deliver the surplus…”
CP Nat'l Corp. v. Pub. Serv. Comm'n, 638 P.2d 519 (Utah 1981). “They cite § 10-8-2, § 10-8-14 and § 10-13-14 and conclude, without arguing, that the ownership by a city or town of a power system is undoubtedly a public use which benefits the inhabitants.”
Heber Light & Power Co. v. Utah Pub. Serv. Comm'n, 2010 UT 27 (Utah 2010). “See Utah Code Ann. § 10-8-14 (1)(d) (2007). Heber Light admitted in its answer to Rocky Mountain's complaint that it regularly provides power to customers outside of its municipal boundaries.”
Mountain States Tel. & Tel. Co. v. Salt Lake Cnty., 702 P.2d 113 (Utah 1985). “Such delineation and limits would be superfluous and without meaning if, with a general statutory reference to "terms, conditions and restrictions," the Legislature were determined to have given counties a new and general source of power to tax for revenue purposes. The County…”
Laney v. Fairview City, 2002 UT 79 (Utah 2002). “Under Utah Code Ann. § 10-8-14 (Supp.2001), the City is authorized to own and operate an electric utility.”
Banberry Dev. Corp. v. South Jordan City, 631 P.2d 899 (Utah 1981). “I arrive at this conclusion *906 in view of the authority invested in cities and towns to "construct, maintain and operate waterworks," § 10-8-14 U.C.A. 1953; to "fix the rates to be paid for the water use," § 10-8-22; and to "enact ordinances, rules and regulations for the…”
Cnty. Water Sys., Inc. v. Salt Lake City, 278 P.2d 285 (Utah 1954). “The authority of a city to engage in the business of supplying water is found in Section 10-8-14, U.C.A.1953, which provides : “They [cities] may construct, maintain and operate water works * * * [or] electric light works * * * or authorize the construction, maintenance and…”
Haik v. Salt Lake City Corp., 567 F. App'x 621 (10th Cir. 2014). “2d at 330 (emphases added) (quoting Utah Code Ann. § 10-8-14 (1996)). The purpose of allowing the municipal sale of excess water to people in adjacent areas is to avoid “shameful waste,” see Cnty.”
Salt Lake City Corp. v. Haik, 2019 UT App 4 (Utah Ct. App. 2019). “Utah Code Ann. § 10-8-14 (1)(d) (LexisNexis 2015) ("A municipality may .”
Salt Lake City Corp. v. Big Ditch Irrigation Co., 2011 UT 33 (Utah 2011). “In addition, municipalities may purchase corporate stock of irrigation companies and are authorized to "take the necessary steps to bring the land owned or controlled by" an irrigation company "within any conservation or conservancy district formed" by the municipality. Id. §…”
Barlow v. Clearfield City Corp., 268 P.2d 682 (Utah 1954). “last assessment for city purposes, provided, that no part of the indebtedness allowed in this section shall be incurred for other than strictly county, city, town or school district purposes; provided further, that any city of the first and second class when authorized as…”
Mountain States Tel. & Tel. Co. v. Ogden City, 487 P.2d 849 (Utah 1971). “The power of a city to grant the franchises must emanate, if at all, from the provisions of Section 10-8-14, U.C.A. 1953, which provides as follows: They may construct, maintain and operate waterworks, gas works, electric light works, telephone lines or street railways, or…”
— Utah Code § 10-8-14(1) — 1 case
Thompson v. Salt Lake City Corp., 724 P.2d 958 (Utah 1986).
— Utah Code § 10-8-14(1)(d) — 2 cases
Salt Lake City Corp. v. Big Ditch Irrigation Co., 2011 UT 33 (Utah 2011). “In addition, municipalities may purchase corporate stock of irrigation companies and are authorized to "take the necessary steps to bring the land owned or controlled by" an irrigation company "within any conservation or conservancy district formed" by the municipality. Id. §…”
Heber Light & Power Co. v. Utah Pub. Serv. Comm'n, 2010 UT 27 (Utah 2010). “See Utah Code Ann. § 10-8-14 (1)(d) (2007). Heber Light admitted in its answer to Rocky Mountain's complaint that it regularly provides power to customers outside of its municipal boundaries.”
— Utah Code § 10-8-14(2) — 1 case
Salt Lake City Corp. v. Haik, 2020 UT 29 (Utah 2020).
— Utah Code § 10-8-14(2)(a) — 1 case
Larson v. Pleasant Grove City, 2023 UT 2 (Utah 2023).
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