WASHINGTON -- A recent letter ruling published by the Internal Revenue Service will make it easier for issuers to sell tax-exempt governmental bonds to partly finance facilities that produce electricity, gas, or water for use by both public and private entities, lawyers said yesterday.

The IRS ruling, published last week, concludes that a municipal utility district could issue tax-exempt governmental bonds to finance improvements to the portion of its hydroelectric generating facilities that supplies power to other public utilities under take-or-pay contracts.

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