Can cities and counties be legally shielded from the actions of MCE?
Yes. Cities and the County have firewalled their general funds through the formation of a joint powers authority (JPA). The debts and liabilities of the JPA do not extend to the member cities and county. This firewall is protected by state law. The key elements for repayment are rate-setting authority and the ability to recover costs from customers leaving the system, both of which MCE has authority to do.
