The Austin Utilities board may, from time to time, for the purpose of furnishing a full supply of water to the inhabitants of the City of Austin, extend said water works or make new lines of works, and as it shall from time to time extend its said works or make new lines of works, it may draw water from any lake, spring, or creek by means of pipes, drains, conduits, aqueducts, or other means of conducting water so as to connect such lakes, springs, or creeks with its water works, and may erect and construct dams, bulkheads, gates, and other needed structures and means for controlling of water and its protection. Said board shall have the power to purchase at public or private sale all land and water rights necessary to secure to said city a full supply of water, and to do all things necessary for securing such lands or water rights, and may also for the purpose of furnishing electricity for lighting the streets of the city and for commercial lighting and power, extend its electric lines, poles, and wires and erect such poles, lines, and wires, and purchase such new or additional machinery as it may deem necessary for the purpose of furnishing electricity for uses in said city, both for lighting and power purposes. Said board shall have the right to dispose of surplus electricity outside of the corporate limits of the City of Austin, and to that end may do all things necessary or convenient to enable it to dispose of said surplus; and may also, for the purpose of furnishing gas for lighting or heat for the streets or commercial use, build and construct a gas plant, lay and extend pipes and mains for conducting gas, and purchase such machinery, pipes and other material as may be necessary for such construction, extension, and operation; and may also, for heating purposes, in connection with the water works and electric plant, construct pipe lines for conducting hot water or steam to the various parts of the city, and to that end purchase pipe, machinery and appliances necessary for such construction, extension, and operation, and in general do any other act necessary or convenient for accomplishing the purpose contemplated by this chapter.
Said Austin Utilities board shall have the power and authority to engage in the sale and distribution of natural gas to the inhabitants of said city. To that end said board shall have the power to enter into contracts for the purchase of natural gas (both for distribution and for use in its own power house) and to construct and maintain a distribution system for distributing said gas to the inhabitants of said city, consisting among other things storage facilities, pipes, mains, service pipes, reducing valves, meters and other accessories; provided that notwithstanding anything to the contrary contained herein, the board may extend the gas distribution system outside the corporate limits of Austin and sell and distribute gas to consumers in such area including the right to sell and distribute gas to other municipal corporations as well as to their residents; all gas distributed and sold outside the corporate limits shall be sold at such rates and upon such terms and conditions as the board shall determine.
Said Austin Utilities board shall have the power and authority to purchase a distribution system from any person or corporation to whom the city council may grant a franchise, upon such terms as said board may deem advisable, and the city council permit or prescribe in the franchise granted, notwithstanding any provision to the contrary in the Charter or any applicable statutes contained.