§ 13134 Electric System Sale Restrictions

• •The electric system of a district cannot be sold off entirely unless there's a plan to keep paying the debts (bonds) related to it.
• •If they sell it, they must make sure there's still enough money coming in to pay back what they owe, including any extra fees.
• •This rule is to protect the money owed to people who bought the district's bonds.

Imagine a town owns a big power plant but owes a lot of money to people who lent them cash to build it. The town wants to sell the power plant to a big company.

The town can’t just sell the power plant and forget about the money they owe. They have to make sure the sale includes a way to keep paying back the people they borrowed from. Otherwise, the sale isn’t allowed.