(a) The district may enter into a contract to sell waterpower privileges if power can be generated from water flowing from the district’s reservoirs or within its canal system.
(b) The sale of waterpower privileges may not interfere with the district’s obligation to furnish an adequate supply of water for the purpose for which the district was organized and for municipal purposes in districts which furnish water for municipal purposes.

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Terms Used In Texas Water Code 51.187

  • Contract: A legal written agreement that becomes binding when signed.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.