(a) A municipality owning and operating a municipal plant and conducting itself as a utility pursuant to chapter 79 of this title, when authorized as provided in 24 V.S.A. chapter 53, subchapters 1 and 2 or municipal charter, may pledge its credit or the net revenues of its municipal plant by issuing negotiable orders, warrants, notes, or bonds for the acquisition of equity ownership in Vermont Transco LLC or Vermont Electric Power Company or both pursuant to subsection 604(e) of this title. In addition, an acquisition of equity ownership may be effected through any instrument permitted under 24 V.S.A. § 1789. Acquisition costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of equity ownership under this chapter. Acquisition of equity ownership is an improvement as defined in 24 V.S.A. § 1751(3).

(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53 or municipal charter. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the municipality.

(c) Any contract entered into and any debt obligation issued under this section for any purpose pursuant to this chapter shall have been issued for an essential government purpose and shall not be deemed to be a pledge of private credit for public benefit nor a delegation of municipal authority, responsibility, or discretion. (Added 2007, No. 83 (Adj. Sess.), § 1, eff. Jan. 28, 2008.)