New York Consolidated Laws, Public Authorities Law - PBA § 1034. Sale of surplus

Whenever the productive capacity of the plants and properties of the authority together with any gas or electrical energy which it may acquire from other sources, creates a surplus over the amount of light, heat and power, in any of such services, required by the municipalities and residents of the district to which such service is contracted, the authority may sell such surplus in territory outside the district, either within or outside the county, to persons, public or private corporations or other municipalities. In acquiring, by purchase or condemnation, any plant or property in the district which also serves any municipality or territory outside the district, the authority, if it deems it advantageous and economical so to do, may, with the approval of the public service commission and the consent of the board of supervisors, serve any such municipality or territory or sell gas, heat, power or electrical energy to persons, public or private corporations in such territory or to such municipality. The authority shall not in any case duplicate any service already existing in any municipality or territory outside the district, without the approval of the public service commission.