Section 6-K. Electric utility depreciation reserve funds

The governing
  board of any municipal corporation operating an electric public  utility
  service  shall  establish  solely by appropriations from the revenues of
  such service, a depreciation reserve fund, the assets of which shall  be
  used  solely  for,  and  for  no  other  purpose  than, the improvement,
  extension,  or  replacement  of  such  service,  or   the   payment   of
  indebtedness  incurred  in  relation  to  the construction, improvement,
  extension or replacement of such service, except as  otherwise  provided
  in  section  123.00  of  the local finance law and section eight of this
  article. Such governing board shall require that out of the revenues  of
  such  service  there  shall  be deposited in the reserve fund, annually,
  quarterly, or monthly in its discretion,  the  amounts  entered  in  the
  depreciation  reserve  account  of  such  service  as  the  depreciation
  accruals for any such period.  A  depreciation  reserve  account  is  an
  account  in  which the original cost of the service is being distributed
  to expenses in substantially equal annual, quarterly or monthly  amounts
  during  the expected service life of the component parts of the service,
  by direction of the public service commission. The moneys  in  the  fund
  shall  be deposited and secured in the manner provided by section ten of
  this article. The governing board, or the chief fiscal officer  of  such
  municipal corporation if the governing board shall delegate such duty to
  him,  may  invest  the  moneys  of  such  fund in the manner provided in
  section eleven of this article. Any interest  earned  or  capital  gains
  realized  on  the  moneys  so  deposited or invested shall accrue to and
  become part of the fund. The separate identity  of  the  fund  shall  be
  maintained whether its assets consist of cash or investments or both.