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security and insurance agreements in relation to fuel oil, natural <br />gas, and electric energy to protect against loss due to price <br />fluctuations. A hedging transaction must comply with the <br />regulations of the Commodity Futures Trading Commission and the <br />Securities and Exchange Commission. If there is a conflict between <br />the municipal charter of the municipality and this chapter, this <br />chapter prevails. <br />(b) A payment by a municipally owned electric or gas utility under a hedging contract or related agreement in relation to fuel <br />supplies or fuel reserves is a fuel expense, and the utility may <br />credit any amounts it receives under the contract or agreement <br />against fuel expenses. <br />(c) The governing body of a municipally owned electric or gas <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 />against loss due to price fluctuation. <br />Added by Acts 1999, 76th Leg., ch. 405, Sec. 48, eff. Sept. l, <br />1999. <br />Sec. 2256.0205. AUTHORIZED INVESTMENTS; DECOMMISSIONING <br />TRUST. (a) In this section: <br />Page -35 - <br />