(a)

(1) A municipality is authorized and empowered to acquire, construct, reconstruct, enlarge, equip, operate, and maintain an interest in a project, jointly with one (1) or more municipalities, persons, or public utilities, and is authorized and empowered to enter into agreements for the joint or cooperative ownership, financing, construction, or operation and maintenance of any project, and to enter into agreements for the exchange of, and to exchange with, other municipalities, persons, or public utilities an interest in one (1) or more portions of a project for an interest in one (1) or more other portions of the project.

(2) In particular, but without limiting the generality of subdivision (a)(1) of this section, any municipality may participate in the financing of any project owned or to be owned by the other party or parties to the agreement, in exchange for the ownership of a portion thereof, for the use of the project or for an agreed upon portion of the power and energy output thereof.

(3) Any agreement may provide for the creation of a joint board or committee for administration of the undertaking covered by the agreement or for the delegation of authority to administer an undertaking to one (1) or more parties to the agreement and may contain such other terms and conditions as the parties consider appropriate.

(b) Prior to exercising any such authority or power, the governing body of the municipality shall determine the needs of the municipality for power and energy for the present and a reasonable period in the future as shall be determined by the governing body of the municipality. In determining the desirability of a proposed project, there shall be taken into account the following:

(1) The economies, efficiencies, and revenues estimated to be achieved in acquiring, constructing, and operating the proposed project;

(2) The municipality's estimated requirements for power and energy from the project and for reserve capacity and to meet obligations under pooling and reserve sharing agreements reasonably related to its needs for power and energy to which it is or is anticipated to become a party;

(3) The cost of existing or alternative power supply sources; and

(4) The marketability of electric power in excess of the power requirements of the municipality.

(c) Any municipality is authorized to make, or cause to be made, and pay for engineering and other studies as it may deem necessary or desirable.

(d) A municipality shall not undertake the acquisition, construction, enlarging, or equipping of an interest in the project which will result in the municipality's owning electric power capacity that shall exceed two hundred fifty percent (250%) of the power requirements of the municipality.