N.Y. General Municipal Law § 361: Service beyond territorial limits

§ 361. Service beyond territorial limits. 1. Whenever a surplus of

such public utility service exists over the amount thereof required by

the municipal corporation and the residents thereof, such municipality

may sell such surplus outside the municipal corporation to persons,

public or private corporations or other municipal corporations. Any such

municipal corporation, by agreement with any other municipal corporation

which is authorized to exercise the powers specified in the preceding

section, may extend such service to such other municipal corporation

under such terms and conditions as may be agreed upon between them

provided that if at the time of such extension, a public utility service

is actually being furnished in such other municipal corporation, such

extension shall not be effected without the approval of the public

service commission.

2. Agreements may also be made between two or more municipal

corporations, authorized as provided in this article to exercise the

powers specified in the preceding section, for the joint ownership,

leasing, construction, acquisition, use or operation of a public utility

service, within the combined territorial limits of such contracting

parties. The method of operation of and the rates, rentals and charges

for such service and the procedure for their collection shall be fixed

by such agreements.