N.Y. Village Law § 12-1204
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.
N.Y. Village Law § 12-1204