Section 12-1204. Supervision and extension of system

The lighting system
  acquired or established under this article shall be  under  the  control
  and  supervision  of  the  board of light commissioners. The board shall
  keep it in repair and shall have authority to purchase such supplies and
  materials as may be needed for the operation  and  maintenance  of  such
  system  for periods not exceeding one year. Such board may, from time to
  time extend, alter or reconstruct  such  system  and  may  use  therefor
  surplus  funds  it  has  on  hand.    However, nothing contained in this
  section shall be construed to prevent the  village  from  financing,  in
  whole or in part, expenditures for any such improvements pursuant to the
  local  finance  law. Such system may with the permission and approval of
  the public service commission be so extended, altered  or  reconstructed
  outside  the  village  wherever  franchises  are first obtained from the
  local authorities. If such system  shall  be  so  extended,  altered  or
  reconstructed  outside  of  a village into a town or a lighting district
  thereof, the board of light commissioners of the  village  may  contract
  with  the  town  board  of such town for lighting the streets, highways,
  public grounds and public buildings of such town or  lighting  district,
  in  pursuance of the provisions of article twelve of the town law, which
  shall be applicable to such contract and to the levying of a tax for the
  payment of  the  amounts  which  shall  be  payable  thereunder  to  the
  treasurer  of  the village.   Wherever such system shall be so extended,
  altered or reconstructed outside of a  village,  occupants  of  premises
  adjacent  to  such  extended, altered or reconstructed system outside of
  the village shall be entitled to be supplied with light therefrom  under
  such  conditions  and  at such rates as the board of light commissioners
  shall determine.