CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES BY PUBLIC ENTITIES

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Statutes > Texas > Utilities-code > Title-4-delivery-of-utility-services > Chapter-164-joint-ownership-of-electric-facilities-by-public-entities

UTILITIES CODE

TITLE 4. DELIVERY OF UTILITY SERVICES

SUBTITLE A. UTILITY CORPORATIONS AND OTHER PROVIDERS

CHAPTER 164. JOINT OWNERSHIP OF ELECTRIC FACILITIES BY PUBLIC

ENTITIES

Sec. 164.001. JOINT OWNERSHIP OF ELECTRIC UTILITY FACILITIES

AUTHORIZED. (a) Political subdivisions may join together to

finance, construct, complete, acquire, or operate electric

utility facilities so that the facilities or an undivided

interest in the facilities is jointly owned by the political

subdivisions as cotenants or co-owners.

(b) The ownership shares in the facilities are those approved by

the governing bodies of the political subdivisions, as set forth

in an agreement authorized by the governing bodies.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 164.002. PUBLIC PURPOSE. The exercise by a political

subdivision of the authority granted by this chapter, including

the exercise of the power to issue bonds, notes, or other

obligations to accomplish the purposes of this chapter, and the

performance of an agreement entered into under this chapter are

considered to be additional public purposes of the political

subdivision, without regard to any express or implied limitation

on the authority or purposes of the political subdivision under

any other general or special law or charter provision.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 164.003. APPROVAL OF AGREEMENT BY ATTORNEY GENERAL. (a)

An agreement between political subdivisions establishing an

interest in electric utility facilities that is executed under

this chapter shall be submitted to the attorney general in

connection with any proceeding to finance the contractual

obligation by the issuance of bonds.

(b) An agreement submitted under Subsection (a) is incontestable

on approval as to legality by the attorney general.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 164.004. INCREASE IN OWNERSHIP SHARES. (a) An agreement

under this chapter may provide for a political subdivision to

increase its present or future ownership share of the electric

utility facilities by installment purchase payments and for

another political subdivision that is a party to the agreement to

transfer, in consideration of those payments, any portion of its

present or future ownership share of the facilities to the

purchasing political subdivision.

(b) A payment made by a political subdivision to acquire an

ownership interest is not treated as a maintenance and operating

expense but is treated as a capital cost as if the political

subdivision had issued bonds to construct or acquire the

ownership interest, unless otherwise specified in the agreement.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 164.005. CONTRACTUAL OBLIGATIONS AS LIEN ON SYSTEM REVENUE.

(a) If the electric utility facilities financed, acquired,

constructed, or completed are a part of a utility system of a

political subdivision, the obligation to make the contract

payments to acquire an ownership interest is a lien on the

revenue of the system on a parity with the outstanding bonds of

the system to the extent permitted in the ordinance or resolution

authorizing or the deed of trust or indenture securing the

payment of the outstanding bonds.

(b) If the ordinance or resolution authorizing or the deed of

trust or trust indenture securing the revenue bonds of a utility

system provides for the subsequent issuance of additional bonds

or the creation of a contractual obligation described by Section

164.004 and provides that the payments to be made for the

security or payment of the subsequent bonds or contractual

obligation are to be on a parity with the previously issued bonds

or bonds then to be issued, the political subdivision may,

subject to any conditions contained in that ordinance,

resolution, deed of trust, or trust indenture, authorize, issue,

and sell additional bonds or incur the contractual obligation in

a different series payable from the entire revenue of the utility

system on a parity with the previously issued bonds or bonds then

to be issued and secured by a lien on the revenue of the system

on a parity with the lien securing the previously issued bonds or

bonds then to be issued. This subsection applies without regard

to whether the previously issued bonds:

(1) were issued before August 29, 1977; or

(2) are an original issue or a refunding issue.

system to pay contract payments to acquire an ownership interest

in an electric utility facility under this chapter.

(d) In this section, "utility system" includes a combined

utility system.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 164.006. CONSTRUCTION WITH OTHER LAWS. To provide full

authority for the execution of an agreement under this chapter,

this chapter applies to a municipality as if this chapter were

originally contained in Chapter 1501 or 1502, Government Code, or

Chapter 552, Local Government Code. This chapter prevails over

any charter provision or general or special law.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.405, eff. Sept.

1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.77(30), eff. April 1, 2009.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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