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353.410 Gas sale contracts by gas acquisition authority.
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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.
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.
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.
Effective:July 15, 2008
History: Created 2008 Ky. Acts ch. 159, sec. 6, effective July 15, 2008.
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