12-825j. Municipalities owning or operating utility; contracts for purchase of water, gas or electricity.
12-825j
12-825j. Municipalities owning or operating utility; contracts for purchase
of water, gas or electricity.
(a) Any municipality which owns or operates, or which hereafter owns or
operates, a utility furnishing water, gas or electricity is hereby authorized
and empowered to enter into contracts for the purchase of water, gas or
electricity from any person, firm, corporation or other municipality, upon
such terms and conditions as may be deemed necessary and reasonable by the
governing body of such municipality. Any such contract may include an agreement
for the purchase of water, gas or electricity not actually received. No
such contract shall be made for a period in excess of forty (40) years,
but renewal options in favor of the purchasing municipality may be included
therein. Nothing in this section shall be construed to authorize the levy
of a tax by any municipality entering a contract as herein provided.
(b) As used in this act, the term "municipality" shall mean and include
any city, county or township.
History: L. 1976, ch. 67, § 1; July 1.