Sham transactions prohibited

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  1. (a) An authority created pursuant to this subchapter shall be prohibited from engaging in any sham transaction.

  2. (b) For the purposes of this section, a “sham transaction” means the acquisition or construction of an electric project authorized by this subchapter for the purpose of:

    1. (1) A subsequent sale or transfer of the electric project to any municipal electric utility, public utility, or other person engaged in the selling or distributing of electricity to consumers other than a municipal electric utility, public utility, or other person engaged in selling or distributing electricity to consumers that was selling or distributing electricity to consumers on July 16, 2003; or

    2. (2) Providing electric service directly to an end user.


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