§ 124-3. Method of operation.

The proposed method of operation of the Service shall be as follows:

A. 

The city on behalf of the Service shall contract for or otherwise purchase or acquire hydroelectric and/or such other economical forms of adequate and reliable energy as may be available from the Power Authority of the State of New York, the State of New York and any state agency, any other municipal corporation and any private enterprise and public corporation.

B. 

The city on behalf of the Service shall use (in accordance with FERC and PSC regulatory guidelines), lease or acquire the transmission, substation and distribution facilities and/or rights necessary to furnish such power to the city and/or for compensation to the inhabitants of the city and beyond the city. The acquisition of such facilities by condemnation will not be exercised by the city on behalf of the Service unless specifically authorized by further local law requiring public referendum.