Laserfiche WebLink
Page 28 of 37 <br />security and insurance agreements in relation to fuel oil, natural <br />gas, coal, nuclear fuel, and electric energy to protect against loss <br />due to price fluctuations. A hedging transaction must comply with <br />the 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 <br />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 of <br />fuel oil, natural gas, coal, nuclear fuel, and electric energy <br />futures or options or similar contracts on those commodities and <br />related transportation costs as a protection against loss due to <br />price fluctuation. <br />Added by Acts 1999, 76th Leg., ch. 405, Sec. 48, eff. Sept. 1, 1999. <br />Amended by: <br />Acts 2007, 80th Leg., R.S., Ch. 7 (S.B. 495), Sec. 1, eff. April <br />13, 2007. <br />Sec. 2256.0202. AUTHORIZED INVESTMENTS: MUNICIPAL FUNDS FROM <br />MANAGEMENT AND DEVELOPMENT OF MINERAL RIGHTS. (a) In addition to <br />other investments authorized under this subchapter, a municipality <br />may invest funds received by the municipality from a lease or <br />contract for the management and development of land owned by the <br />municipality and leased for oil, gas, or other mineral development in <br />any investment authorized to be made by a trustee under Subtitle B, <br />Title 9, Property Code (Texas Trust Code). <br />(b) Funds invested by a municipality under this section shall <br />be segregated and accounted for separately from other funds of the <br />municipality. <br />4/18/2018 <br />