(1) An irrigation district may enter into any contract or agreement with, or form a separate legal entity with, one or more of the entities or utilities specified in subsection (3) of this section for any of the following purposes:

     (a) Purchasing and selling electric power; and

     (b) Developing or owning, or both, electric power generating or transmitting facilities, or both, including, but not limited to, facilities for generating or transmitting electric power generated by wind.

     (2) The contract or agreement may provide:

     (a) For purchasing the capability of a project to produce or transmit electric power, in addition to actual output of a project;

     (b) For making payments whether or not a project is completed, operative, or operating, and notwithstanding the suspension, interruption, interference, reduction, or curtailment of output or use of a project or the use, power, and energy contracted for or agreed to;

     (c) That payments are not subject to reduction, whether by offset or otherwise; and

     (d) That performance is not conditioned upon performance or nonperformance of any party or entity.

     (3) Pursuant to authority granted under this section, irrigation districts may contract or enter into agreements with one or more:

     (a) Agencies of the United States government;

     (b) States;

     (c) Municipalities;

     (d) Public utility districts;

     (e) Irrigation districts;

     (f) Joint operating agencies;

     (g) Rural electric cooperatives;

     (h) Mutual corporations or associations;

     (i) Investor-owned utilities; or

     (j) Associations or legal entities composed of any such entities or utilities.

[2009 c 145 § 4.]