A city that provides utility service in accordance with section 13501.1 (relating to right to furnish water, lighting, electric, gas or other similar utility service) may provide utility service in a surrounding municipality that is not provided with utility service by another municipality, local or regional public authority or private company, subject to and in accordance with applicable law and the rules and regulations of the Pennsylvania Public Utility Commission with regard to the character of service, extensions and rates.
11 Pa.C.S. § 13540.1