Act on the Establishment of a Cantonal Electricity Utility

1. The Cantonal Council is authorized to decide on a financial participation of the Canton of Appenzell A.Rh. in power plants or to establish its own power plant for the supply of electrical energy.

1. The cantonal electricity works to be established shall be a public law corporation and as such shall possess legal personality. It shall be administered separately from the general state budget.

1. The cantonal electricity company can purchase existing power generation facilities and power distribution networks and establish new such facilities, lease electrical power from other facilities, or participate in the purchase and operation of other facilities.

2. The Cantonal Council is authorized to sell the distribution networks of individual municipalities to the respective municipalities or public corporations within them and to restrict itself to supplying electricity to these entities.

1. The cantonal electricity works shall be self-sustaining. The funds necessary for the establishment, expansion, and operation are to be provided by the state to the electricity works, and the latter shall repay the state with interest corresponding to the cost price.

1. The cantonal electricity utility is under the supervision of the Cantonal Council.

2. The Cantonal Council elects a board of directors annually consisting of at least 7 members, in which the Executive Council must be represented by at least 1 member.

1. The Cantonal Council approves the regulations to be issued concerning the organization, administration, and operation of the company.

2. Constructions, expansions, and participations that exceed the amount of 30,000 francs require the approval of the Cantonal Council.

1. The Board of Directors is required to submit a report and accounts to the Cantonal Council annually. When preparing the annual financial statements, sufficient depreciation and appropriate allocation to the necessary reserves must be taken into consideration.

1. The revenues resulting hereafter from the business shall be used for the improvement and expansion of the operation. Moreover, consideration shall be given to providing consumers of the cantonal electricity works with lower electricity prices corresponding to the progressive amortization or to securing revenue for the state.

2. The decision-making authority regarding any potential operating surplus rests with the Cantonal Council.

1. The payment of shares or bonds assumed by the state shall be made in accordance with the statutes of the respective companies.

1. Applications for subsidies, accompanied by general plans and cost estimates, are to be submitted to the Government Council, which forwards them with an assessment to the Cantonal Council.

1. The Cantonal Council decides on the subsidy application. The funds necessary for subsidization are raised by issuing bonds. The bonds are to be amortized.

1. Concerning the right of repurchase by the canton, the provisions of the federal legislation are decisive.

1. This law shall enter into force upon adoption by the Landsgemeinde.