Sec. 2256.0201. AUTHORIZED INVESTMENTS; MUNICIPAL UTILITY. (a) A municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may enter into a hedging contract and related security and insurance agreements in relation to fuel oil, natural gas, coal, nuclear fuel, and electric energy to protect against loss due to price fluctuations. A hedging transaction must comply with the regulations of the Commodity Futures Trading Commission and the Securities and Exchange Commission. If there is a conflict between the municipal charter of the municipality and this chapter, this chapter prevails.
(b) A payment by a municipally owned electric or gas utility under a hedging contract or related agreement in relation to fuel supplies or fuel reserves is a fuel expense, and the utility may credit any amounts it receives under the contract or agreement against fuel expenses.
(c) The governing body of a municipally owned electric or gas utility or the body vested with power to manage and operate the municipally owned electric or gas utility may set policy regarding hedging transactions.
(d) In this section, "hedging" means the buying and selling of fuel oil, natural gas, coal, nuclear fuel, and electric energy futures or options or similar contracts on those commodities and related transportation costs as a protection against loss due to price fluctuation.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 48, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 7 (S.B. 495), Sec. 1, eff. April 13, 2007.
Structure Texas Statutes
Subtitle F - State and Local Contracts and Fund Management
Chapter 2256 - Public Funds Investment
Subchapter A. Authorized Investments for Governmental Entities
Section 2256.003. Authority to Invest Funds; Entities Subject to This Chapter
Section 2256.004. Applicability
Section 2256.005. Investment Policies; Investment Strategies; Investment Officer
Section 2256.006. Standard of Care
Section 2256.007. Investment Training; State Agency Board Members and Officers
Section 2256.008. Investment Training; Local Governments
Section 2256.009. Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities
Section 2256.010. Authorized Investments: Certificates of Deposit and Share Certificates
Section 2256.011. Authorized Investments: Repurchase Agreements
Section 2256.0115. Authorized Investments: Securities Lending Program
Section 2256.012. Authorized Investments: Banker's Acceptances
Section 2256.013. Authorized Investments: Commercial Paper
Section 2256.014. Authorized Investments: Mutual Funds
Section 2256.015. Authorized Investments: Guaranteed Investment Contracts
Section 2256.016. Authorized Investments: Investment Pools
Section 2256.017. Existing Investments
Section 2256.019. Rating of Certain Investment Pools
Section 2256.020. Authorized Investments: Institutions of Higher Education
Section 2256.0201. Authorized Investments; Municipal Utility
Section 2256.0203. Authorized Investments: Ports and Navigation Districts
Section 2256.0204. Authorized Investments: Independent School Districts
Section 2256.0205. Authorized Investments; Decommissioning Trust
Section 2256.0206. Authorized Investments: Hedging Transactions
Section 2256.0208. Local Government Investment of Bond Proceeds and Pledged Revenue
Section 2256.021. Effect of Loss of Required Rating
Section 2256.022. Expansion of Investment Authority
Section 2256.023. Internal Management Reports
Section 2256.024. Subchapter Cumulative