                                 CODE OF VIRGINIA

SALE OF POWER AND ENERGY, INCLUDING CAPACITY AND OUTPUT TO MEMBER GOVERNMENTAL
UNITS BY AUTHORITY; DURATION OF CONTRACTS; SOURCE OF PAYMENTS; FURNISHING OF
MONEY, PROPERTY OR SERVICES BY MEMBER GOVERNMENTAL UNITS (§ 15.2-5408)

Any member governmental unit of an authority may contract to buy from the
authority power and energy required for its present or future requirements,
including the capacity and output of one or more specified projects. Any such
contract may provide that the governmental unit so contracting shall be
obligated to make payments required by the contract whether or not a project is
completed, operable or operating and notwithstanding the suspension,
interruption, interference, reduction or curtailment of the output of a project
or the power and energy contracted for, and that such payments under the
contract shall not be subject to any reduction, whether by offset or otherwise,
and shall not be conditioned upon the performance or nonperformance by the
authority or any other member governmental unit under the contract or any other
instrument. Such contracts with respect to any project may also provide, in the
event of default by any member governmental unit which is a party to any such
contract for such project in the performance of its obligations thereunder, for
other member governmental units which are parties to any such contract for such
project to succeed to the rights and interests and assume the obligations of the
defaulting party, pro rata or otherwise as may be agreed upon in such contracts.

Notwithstanding the provisions of any other law or local charter provision to
the contrary, any such contracts with respect to the sale or purchase of
capacity, output, power or energy from a project may extend for a period not
exceeding fifty years from the date a project is estimated to be placed in
normal continuous operation; the execution and effectiveness thereof shall not
be subject to any authorizations or approvals by the Commonwealth or any agency,
commission or instrumentality or political subdivision thereof except as
specifically required and provided in this chapter.

Payments by a governmental unit under any contract for the purchase of capacity
and output from an authority shall be made solely from, and may be secured by a
pledge of and lien upon, the revenues derived by such governmental unit from the
ownership and operation of the electric system of such governmental unit, and
such payments may be made as an operating expense of such electric system. No
obligation under such contract shall constitute a legal or equitable pledge,
charge, lien or encumbrance upon any property of the governmental unit or upon
any of its income, receipts or revenues, except the revenues of its electric
system, and neither the faith and credit nor the taxing power of the
governmental unit are, or may be, pledged for the payment of any obligation
under any such contract. A governmental unit shall be obligated to fix, charge
and collect rents, rates, fees and charges for electric power and energy and
other services, facilities and commodities sold, furnished or supplied through
its electric system sufficient to provide revenues adequate to meet its
obligations under any such contract and to pay any and all other amounts payable
from or constituting a charge and lien upon such revenues, including amounts
sufficient to pay the principal of and interest on bonds of such governmental
unit heretofore or hereafter issued for purposes related to its electric system.
Any pledge made by a governmental unit pursuant to this paragraph shall be
governed by the laws of the Commonwealth.

Any member governmental unit of an authority may furnish the authority with
money and provide the authority with personnel, equipment and property, both
real and personal. Any member governmental unit may also provide any services to
an authority. Any member governmental unit may contract for, advance or
contribute funds to an authority as may be agreed upon by the authority, and the
member governmental unit and the authority shall repay such advances or
contributions from proceeds of bonds, from operating revenues or from any other
funds of the authority, together with interest thereon as may be agreed upon by
the member governmental units and authority.

HISTORY: 1979, c. 416, § 15.1-1611; 1997, c. 587.