Federal Judge Dismisses Lawsuit against Alabama Cooperative

A federal judge dismissed a class action suit against Arab Electric Cooperative brought by its members for failing to refund profits back to members, as required by state law.  The judge ruled that, because the cooperatives have contracts with the Tennessee Valley Authority (TVA) that restrict the cooperatives in terms of changing rates, the cooperatives cannot independently reduce rates without TVA consent or issue refunds under Alabama law and still comply with the TVA contract.

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