353.410 Gas sale contracts by gas acquisition authority.

297 words·~1 min read·/ky/chapter-353/353-410

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Contracts for the sale of gas from projects or undertakings of a gas acquisition

authority shall contain such terms and provisions as the authority determines

necessary to provide revenues sufficient to enable the authority to pay its operation,

maintenance, and debt service costs. Any municipal utility of the Commonwealth

that owns or operates a municipal utility system is hereby authorized to contract to

purchase gas from a gas acquisition authority upon such terms as the parties may

agree, including full or partial requirements contracts, contracts for the purchase of

specified quantities of gas, and contracts requiring minimum payments, regardless

of whether gas is made available by the authority or taken by the municipal utility.

(2)Any gas sale contract between a gas acquisition authority and a municipal utility of

the Commonwealth shall provide that the municipal utility shall be obligated to

make payments solely from the available revenues and income from the operation

of a designated municipal utility, or other revenues when applicable, as an operation

and maintenance expense and a cost of purchased natural gas. Neither the full faith

and credit nor the taxing power of the municipal utility shall be pledged for the

payment of any obligation under any such contract. A municipal utility shall

establish, charge, and collect rates and charges for the services provided by its

utility facilities sufficient to provide revenues sufficient to meet its obligations

under any gas sale contract with an authority and to pay its obligations payable from

or constituting a charge against such revenues.

(3)No municipal utility that purchases gas from a gas acquisition authority shall in any

event be liable for the payment of bonds issued by the authority or for the

performance by the authority of its contractual obligations in connection with any

project.