Article 3. General Authorization of California Public Utilities Code >> Division 6. >> Chapter 6.5. >> Article 3.
A district may borrow money from time to time for the
purpose of constructing, reconstructing, replacing, extending or
improving its system for supplying the district and its inhabitants
with electric energy, and may issue and sell bonds to evidence the
indebtedness created by such borrowing. No such money may be used:
(1) For constructing or improving works located outside the
district boundaries which exist on the date this Chapter 6.5 is
(2) For acquiring any property owned by a public utility.
(3) For constructing or improving works for generating
(4) For constructing or improving works used, or to be used, in
whole or in part either for the receipt, transmission and delivery of
electric energy for any supplier of electric power or for the
exchange of electric power with any person or entity. This provision
shall not prevent the district from using such money for the purposes
set forth in the initial sentence of this section.
Such bonds shall not be issued for a term in excess of 20 years
after the date of such bonds; provided, that this sentence shall not
limit the power of a district to refund such bonds.
A district may also refund from time to time, whether at or
prior to maturity, any outstanding indebtedness evidenced by its
bonds, and may issue, and sell or exchange, bonds so to refund such
indebtedness. Refunding bonds which are to be sold may be issued and
sold at such time in advance of the time at which the bonds to be
redeemed or paid out of the proceeds of such refunding bonds are to
be so redeemed or paid as the board may determine.
Whenever a district exercises the power to borrow money
pursuant to this chapter the board may authorize the issuance of
bonds in any amount which, when added to the aggregate amount of
bonds of the district issued under this chapter and outstanding at
the time of the acceptance of a proposal for the purchase of the
bonds so authorized and payable out of the revenues out of which the
bonds so authorized are to be payable shall not exceed the amount of
the earned surplus derived from the operation of the electric system
to which those revenues pertain, as of the end of the last fiscal
year which ended not less than four months prior to the making of the
finding and determination provided for in Section 13161. The
aggregate amount of bonds issued under this chapter shall not exceed
in face value the sum of ten million dollars ($10,000,000) in any one
calendar year. The term "earned surplus" whenever used in this
chapter means the excess of revenues from the inception of operation
of the electric system over related expenses thereof, plus
accumulated price-level depreciation, plus or minus any additional
amounts credited to or charged against customers' equity employed in
the business of the electric system, as determined in accordance with
the then current accounting practice of the district. The term
"accumulated price-level depreciation" as used in this section means
the accumulated additional amounts by which depreciation based on the
cost of depreciable property adjusted to reflect current price
levels exceeds depreciation computed on cost.
The limitations prescribed in Section 13093 shall not be
applicable to the issuance of any refunding bonds pursuant to this
chapter, and the amount of any issue of such refunding bonds may
equal, but shall not exceed, the amount required for the payment or
redemption of the bonds to be refunded thereby, including the
premiums, if any, due upon such redemption, but excluding any
interest due upon such redemption.
Any bond for the payment and discharge of which, upon
maturity or upon redemption prior to maturity, provision has been
made through the setting apart in a reserve fund or special trust
account created pursuant to this chapter to insure the payment
thereof, of moneys sufficient for that purpose, or through the
irrevocable segregation for that purpose, in some sinking fund or
other fund or trust account, of moneys sufficient therefor, shall be
deemed to be no longer outstanding within the meaning of any
provision of this chapter.
The board shall have power to determine all the terms and
conditions of the issuance and sale of bonds pursuant to this
chapter, excepting only as such power is limited by express
provisions of this chapter.