N.Y. General Municipal Law § 6-k: Electric utility depreciation reserve funds

§ 6-k. Electric utility depreciation reserve funds. The governing

board of any municipal corporation operating an electric public utility

service shall establish solely by appropriations from the revenues of

such service, a depreciation reserve fund, the assets of which shall be

used solely for, and for no other purpose than, the improvement,

extension, or replacement of such service, or the payment of

indebtedness incurred in relation to the construction, improvement,

extension or replacement of such service, except as otherwise provided

in section 123.00 of the local finance law and section eight of this

article. Such governing board shall require that out of the revenues of

such service there shall be deposited in the reserve fund, annually,

quarterly, or monthly in its discretion, the amounts entered in the

depreciation reserve account of such service as the depreciation

accruals for any such period. A depreciation reserve account is an

account in which the original cost of the service is being distributed

to expenses in substantially equal annual, quarterly or monthly amounts

during the expected service life of the component parts of the service,

by direction of the public service commission. The moneys in the fund

shall be deposited and secured in the manner provided by section ten of

this article. The governing board, or the chief fiscal officer of such

municipal corporation if the governing board shall delegate such duty to

him, may invest the moneys of such fund in the manner provided in

section eleven of this article. Any interest earned or capital gains

realized on the moneys so deposited or invested shall accrue to and

become part of the fund. The separate identity of the fund shall be

maintained whether its assets consist of cash or investments or both.