§ 2902. Powers of municipalities

(a) In accordance with this chapter, a municipality may buy and sell electric current for domestic use and for commercial purposes and construct, purchase or lease, and maintain and operate one or more plants for the manufacture, distribution, purchase, and sale of gas or electricity for the use of such municipality and for the use of the residents of such municipality and for such other customers outside such municipality as the Commission may approve unless otherwise provided for in this chapter. For such purposes a municipality may purchase and hold in fee simple or otherwise any real or personal estate and any rights therein, including water rights and may do all other things necessary for carrying into effect the purposes of this chapter and may excavate and dig conduits and ditches in any highway or other land or place, and erect poles, place wires, and lay pipes for the transmission and distribution of electricity and gas, in such places as may be deemed necessary and proper and in all such respects such municipality shall have the same privileges and be subject to the same restrictions as are provided for public service corporations in chapters 71, 73, and 75 of this title. Such municipality may change, enlarge, and extend the same from time to time and maintain the same, having due regard for the safety and welfare of its citizens and security of the public travel.

(b) The obligations of any municipal electric utility under any contract authorized by this section or other applicable law shall not be deemed to constitute an indebtedness or a lending of credit of the municipal electric utility, nor shall such obligations be included in computing the borrowing capacity of any such municipal electric utility. These obligations of municipal electric utilities shall be treated as expenses of operating their electric plants, and shall constitute special obligations of such municipal electric utilities payable solely from the revenues and other moneys derived by them from their electric departments or systems. The liability of these municipal electric utilities from other funds is limited to obligations undertaken by them to pay for the electric power and energy used by them. (Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1989, No. 112, § 3a, eff. June 22, 1989.)