77-5-711 - Sale or exchange by municipality of excess capacity or output.
§ 77-5-711. Sale or exchange by municipality of excess capacity or output.
Capacity or output or related services derived by a municipality from its ownership share of a project not then required by such municipality for its own use and for the use of its consumers may be sold or exchanged by such municipality, for such consideration and for such period and upon such other terms and conditions as may be determined by the parties, either within or without the state, to any state, federal or municipal or private agency or corporation, including joint agencies created pursuant to this article and to any person, firm, association or corporation, public or private, engaged in the generation, transmission or distribution of electric power and energy within this state or any other state. Provided, however, that sales of excess capacity or output of a project to electric power associations, public utilities and other persons, the interest on whose securities and other obligations is not exempt from taxation by the federal government, shall not be made in such amounts, for such periods of time, and under such terms and conditions as will cause the interest on bonds issued to finance the cost of a project to become taxable by the federal government.
Sources: Laws, 1978, ch. 363, § 6, eff from and after passage (approved March 14, 1978).