§ 6-k. Electric utility depreciation reserve funds. The governing\nboard of any municipal corporation operating an electric public utility\nservice shall establish solely by appropriations from the revenues of\nsuch service, a depreciation reserve fund, the assets of which shall be\nused solely for, and for no other purpose than, the improvement,\nextension, or replacement of such service, or the payment of\nindebtedness incurred in relation to the construction, improvement,\nextension or replacement of such service, except as otherwise provided\nin section 123.00 of the local finance law and section eight of this\narticle. Such governing board shall require that out of the revenues of\nsuch service there shall be deposited in the reserve fund, annually,\nquarterly, or monthly in its discretion, the amounts entered in the\ndepreciation reserve account of such service as the depreciation\naccruals for any such period. A depreciation reserve account is an\naccount in which the original cost of the service is being distributed\nto expenses in substantially equal annual, quarterly or monthly amounts\nduring the expected service life of the component parts of the service,\nby direction of the public service commission. The moneys in the fund\nshall be deposited and secured in the manner provided by section ten of\nthis article. The governing board, or the chief fiscal officer of such\nmunicipal corporation if the governing board shall delegate such duty to\nhim, may invest the moneys of such fund in the manner provided in\nsection eleven of this article. Any interest earned or capital gains\nrealized on the moneys so deposited or invested shall accrue to and\nbecome part of the fund. The separate identity of the fund shall be\nmaintained whether its assets consist of cash or investments or both.\n
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