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<br />security and insurance agreements in relation to fuel oil, natural <br /> <br />gas, and electric energy to protect against loss due to price <br /> <br />fluctuations. <br /> <br />A hedging transaction must comply with the <br /> <br />regulations of the Commodity Futures Trading Commission and the <br /> <br />Securities and Exchange Commission. If there is a conflict between <br /> <br />the municipal charter of the municipality and this chapter, this <br />chapter prevails. <br /> <br /> <br />(b) A payment by a municipally owned electric or gas utility <br /> <br /> <br />under a hedging contract or related agreement in relation to fuel <br /> <br /> <br />supplies or fuel reserves is a fuel expense, and the utility may <br /> <br /> <br />credi t any amounts i t receives under the contract or agreement <br /> <br /> <br />against fuel expenses. <br /> <br />(c) The governing body of a municipally owned electric or gas <br /> <br />utility or the body vested with power to manage and operate the <br />municipally owned electric or gas utility may set policy regarding <br />hedging transactions. <br />(d) In this section, "hedging" means the buying and selling <br />of fuel oil, natural gas, and electric energy futures or options or <br />similar contracts on those commodity futures as a protection <br /> <br />against loss due to price fluctuation. <br /> <br />Added by Acts 1999, 76th Leg., ch. 405, Sec. 48, eff. Sept. 1, <br />1999. <br /> <br />Sec. 2256.0205. AUTHORIZED INVESTMENTS; <br />TRUST. (a) In this section: <br /> <br />DECOMMISSIONING <br /> <br />Page -35 - <br />