N.Y. General Municipal Law § 94: Earnings of municipal corporations from certain municipally operated public utility services

§ 94. Earnings of municipal corporations from certain municipally

operated public utility services. Any municipal corporation operating a

gas, electric or water public utility service may earn from and out of

such operation an amount equivalent to taxes which the said service, if

privately owned, would pay to such municipal corporation; and, in

addition, such municipal corporation may earn from and out of such

operation a fair return on the value of the property used and useful in

such public utility service, over and above costs of operation and

necessary and proper reserves. Profits resulting from the operation of

such a public utility service may be used for the payment of expenses or

obligations incurred by such municipal corporation for municipal

purposes or for the payment of refunds to consumers. The provisions of

this section shall not apply to any gas, electric or water public

utility service operated by the city of New York or any agency thereof.