§ 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.