§ 159B-6. Sale of capacity and output by a municipality. - North Carolina Statutes

§ 159B‑6.  Sale ofcapacity and output by a municipality.

Capacity or output derived by a municipality from its ownership shareof a project not then required by such municipality for its own use and for theuse of its consumers may be sold or exchanged by such municipality, for suchconsideration and for such period and upon such other terms and conditions asmay be determined by the parties, to any municipality owning electricdistribution facilities in this State, to any electric membership corporation orpublic utility authorized to do business in this State, or to any state,federal or municipal agency which owns electric generation, transmission ordistribution facilities. Provided, however, that the foregoing limitationsshall not apply to the temporary sale of excess capacity and energy without theState in cases of emergency or when required to fulfill obligations under anypooling or reserve‑sharing agreements reasonably related to its needs forpower and energy. Provided further, however, that sales of excess capacity oroutput of a project to electric membership corporations, public utilities, andother persons the interest on whose securities and other obligations is notexempt 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 theinterest on bonds issued to finance the cost of a project to become taxable bythe federal government. (1975, c. 186, s. 1.)