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Coops Advocate Water Heater Rule Change

Wed, 15 May 2013 17:30:00 GMT

Electric cooperatives are advocating that the Department of Energy (DOE) make changes to a new rule that would phase out large-capacity electric storage water heaters from demand management programs. These water heaters save time and energy for cooperatives and provide significant reductions in wholesale power costs. Currently, the DOE has offered one-year waivers for the water heater efficiency standards set to take effect in 2015, but cooperatives have argued that the waiver would not protect the water heaters used in load management. Click here for more.

Massachusetts Solar Project Obtains Important Financing

Wed, 15 May 2013 17:28:00 GMT

On May 13, Broadway Electrical Co., Inc. announced that its financial partner, Rockland Capital, LLC of Texas and New York, has secured $120 million in financing from Deutsche Bank and Key Bank for its solar energy projects planned for Cape Cod and Martha’s Vineyard. This financing will provide for 37 MW of solar energy, including 24 MW for Cape & Vineyard Electric Cooperative, Inc. Read more here.

Texas Coop Positioned for Long-Term CFC Relationship

Tue, 14 May 2013 17:46:00 GMT

Bluebonnet Electric Cooperative, located in Bastrop, Texas, has refinanced $92 million of debt to borrow wholly from the National Rural Utilities Cooperative Finance Corporation (CFC). Bluebonnet has decades of experience with the CFC, which has accommodated the coop’s changing financial plans and borrowing needs. To learn more, click here.

Obama Administration Proposes New Restrictions on RUS Financing

Tue, 14 May 2013 17:44:00 GMT

The Department of Agriculture announced a fiscal 2014 budget of $4 billion for the Rural Utilities Service (RUS) Electric Loan Program. Of that amount, $3 billion would be earmarked for renewable energy projects with the remaining $1 billion held for environmental upgrades. The proposed budget provides no money for other distribution or transmission projects, a void that lawmakers hope will be filled by banks and not-for-profit organizations. Read more here.

Coop Leaders Meet with President Obama to Discuss Response to Grid Reliability

Tue, 14 May 2013 17:42:00 GMT

On May 8, nearly three dozen electric utility executives met with President Obama to discuss ways to improve the industry’s ability to respond to major disruptions or threats to grid reliability, such as the outages that occurred with Superstorm Sandy. The group discussed ways to better aid the collective response required at such times, including providing adequate food and lodging to out-of-area crews, ensuring the delivery and availability of fuel and other critical supplies to affected areas, and facilitating cooperation between industry and the government. Read more here.

EIA Expects Near-Term Upswing in Coal Generation

Thu, 09 May 2013 12:35:00 GMT

The Energy Information Administration (EIA) reports that the electric industry will see an increase in coal usage in 2013 and 2014 due to higher natural gas prices. While coal will rise to approximately 40 percent of the industry’s fuel sources, production levels are expected to decline, largely due to reduced exports. Click here for more information.

Delaware Coop Agrees to Purchase Power from LFG Project

Thu, 09 May 2013 12:27:00 GMT

Delaware Electric Cooperative (DEC) has entered into an agreement to purchase 2 MW of power produced at the Delaware Solid Waste Authority’s landfill in Sandtown, Delaware. This is the first time that DEC will purchase energy directly from a landfill gas project. The landfill gas project at the site is operated by Ameresco, which will expand the project by adding two new methane-fueled engines. Once completed, the expanded project will be capable of producing 5 MW of power. To read more about this story, click here.

Texas Utilities May Buy Surplus Solar Energy from Customers

Tue, 07 May 2013 14:54:00 GMT

A bill passed in the Texas Senate proposes that utilities pay Texas customers that generate excess solar energy a fair market price for their contributions to the electrical grid. Under current law, if a utility does not voluntarily offer to buy excess solar energy, customers must negotiate directly with their providers to be compensated for the energy they add to the grid. Read more here (subscription required).

Illinois Coops Merge

Tue, 07 May 2013 14:52:00 GMT

Two Illinois electric coops, Jo-Carroll Energy, Inc. and Farmers Mutual Electric Company, have merged. The integrated coop, Jo-Carroll Energy, will serve a combined 21,372 electric members and will be a 100-percent Cooperative Finance Corporation borrower. Click here for more.

Coop Building Peaking Stations in North Dakota

Mon, 06 May 2013 14:12:00 GMT

Basin Electric Power Cooperative (Basin), with headquarters in Bismarck, North Dakota, is building two new 45-MW, natural gas-fired peaking stations to help meet the increased demand for electricity. The Pioneer Generation Station, which is being built about 15 miles northwest of Williston, is scheduled for commercial operation in June. The Lonesome Creek Station, which is being constructed about 15 miles west of Watford City, is scheduled for commercial operation in late July. Basin’s recent 2013 load forecast showed that the majority of growth is in northwest North Dakota and northeast Montana. Minot Daily News has the full story.

Four Coops to Receive RUS Loans

Mon, 06 May 2013 14:10:00 GMT

Colorado-based Tri-State Generation and Transmission Association (Tri-State), Georgia-based Blue Ridge Mountain Electric Membership Corporation, Texas-based Rio Grande Electric Cooperative and Ohio-based Logan County Cooperative Power & Light Association will receive more than $126 million in loans from the Rural Utilities Service (RUS) for infrastructure upgrades, including $20 million for smart grid projects. The four coops serve eight states. Tri-State, which delivers electricity to its 44-member systems in Colorado, Nebraska, New Mexico and Wyoming, will receive $73 million, the largest loan of the group. Click here for more.

Delaware Coop Announces Power Purchase from Landfill Gas Facility

Mon, 06 May 2013 14:00:00 GMT

Delaware Electric Cooperative recently signed a 20-year power purchase agreement with the Delaware Solid Waste Authority for 2 MW of power generated from a landfill in Sandtown. The purchase is part of the coop’s long-term strategy of procuring a mix of energy sources at competitive prices. Click here for the full story.

Colorado May Double Renewable Energy Goals for Rural Electric Coops

Wed, 01 May 2013 16:17:00 GMT

The Colorado House of Representatives has passed a bill which would increase the amount of renewable energy rural electric cooperatives in the state must use. The mandate would require these cooperatives to get 20 percent of their electricity from renewable sources by 2020. The bill also increased the amount that electric cooperatives can charge customers for the new power sources to two percent of a customer’s bill. To read more about the status of the bill and the impact it may have on rural electric cooperatives in Colorado, click here.

Coops Rise to Meet New Data Center Load Challenges

Tue, 30 Apr 2013 17:42:00 GMT

The deserts of the Pacific Northwest have become popular locations for data centers, and this trend is changing the way some electric coops do business. Companies including Google, Amazon, and Facebook have chosen locations in or around Oregon because of the state’s tax breaks, cheap abundant power, and cool, dry weather that can accommodate large-scale data centers. To maintain 24/7 operations of video streaming, messaging, and Internet purchasing, each data center requires an uninterrupted source of power. Estimated electric demand in Oregon by 2030 is nearly 2,500 MW—enough power for 239,000 homes—unless the data centers adopt more energy-efficient operations. Coops in the state are rapidly evolving to meetthe influx of demand, although concerns have arisen about meeting the demand while complying with state Renewable Portfolio Standard requirements. For more on this story, click here.

Georgia Coop Coal Plant Developers Change Plans

Tue, 30 Apr 2013 17:40:00 GMT

The Georgia electric membership coops that intended to develop a $2.1 billion, 850-MW, coal-fired power plant in Sandersville, Georgia, are foregoing ownership stakes in the project. This planned restructuring does not mean that the project will not be funded, however. The group, Power4Georgians, did not report a new source of financing but did state that its members all intend to remain as customers. Click here for more.

USDA to Provide More Rural Electric Project Funding

Tue, 30 Apr 2013 17:39:00 GMT

The U.S. Department of Agriculture (USDA) is providing funding for four rural electric projects in eight states to enhance reliable, affordable electricity for rural residents. These projects, which will employ smart grid technology, are the latest in approximately 650 rural electric utility projects funded since 2009. Specifically the USDA is providing more than $126 million in loans to upgrade rural electric infrastructure, including more than $20 million in smart grid funding. Recipients include Colorado’s Tri-State Generation and Transmission Association, Inc. and Ohio’s Logan County Cooperative Power & Light Association, Inc. Read more here.

Kentucky Coops Tentatively Agree to Power Provider Setup

Mon, 29 Apr 2013 14:40:00 GMT

Century Aluminum of Kentucky, Big Rivers Electric Corporation and Kenergy Corp. have agreed to a framework for providing market-priced power to the Hawesville smelter located in Hancock County, Kentucky. Under the agreement, which is subject to further negotiations and approval by various third parties, the coops would purchase power on the open market and pass it through to Century at market price plus additional costs incurred by the coops. The parties hope to finalize the agreement before the expiration of the current power contract on August 20, 2013. To read the parties’ full press release, click here.

Customer Satisfaction Index Finds High Levels of Satisfaction with Coops

Mon, 29 Apr 2013 14:39:00 GMT

For the second year in a row, electric cooperatives scored an average of 83 points out of 100 possible points for customer satisfaction as measured by the American Customer Satisfaction Index (ACSI). Coops maintained higher scores than energy utilities, which increased for the seventh straight year—to 77.4 out of 100 possible points. The ACSI found that increased energy efficiency and relatively mild weather led to lower energy bills and more content customers. Click here to read more.

Kansas Coop Votes on Whether to be Self-Regulated

Mon, 29 Apr 2013 14:34:00 GMT

Members of Midwest Energy, a gas and electric coop, are voting on whether they want the Kansas Corporation Commission to continue having regulatory authority over their coop. The coop expects to realize a number benefits if its members approve giving authority to a local board of directors and operating as a self-regulated entity. If approved, Midwest Energy would be the 27th out of 29 coops in Kansas to become self-regulated. The Hutchinson News has the full story.

Colorado Renewable Energy Bill Passes House Committee

Thu, 25 Apr 2013 18:28:00 GMT

A Colorado bill that would significantly raise renewable energy requirements for Colorado coops was referred out of the state House Committee on Transportation & Energy for consideration by the entire House of Representatives. Senate Bill 13-252 was passed by the Colorado Senate in mid-April. Click here for the current status of the bill.

Out With the Old, in With the New – CIP Version 5 on the Horizon

Thu, 25 Apr 2013 18:26:00 GMT

The Federal Energy Regulatory Commission (FERC) has proposed a rule to approve the long-awaited Version 5 of the North American Electric Reliability Corporation’s Critical Infrastructure Protection (CIP) Reliability Standards, which will overhaul the CIP regulatory framework and trigger new and revised compliance obligations for many users, owners and operators of the bulk electric system. While Version 5 establishes “a more robust cyber security posture for the industry,” FERC seeks input on certain ambiguous aspects of Version 5. Coops should start their internal compliance reviews with a view toward meeting the final, approved Version 5 and consider submitting comments to FERC. Read the full Sutherland Legal Alert.

Old Dominion Electric Cooperative to Build 1,000-MW Power Plant

Wed, 24 Apr 2013 18:09:00 GMT

Old Dominion Electric Cooperative (ODEC) has announced plans to build a 1,000-MW, gas-fired generating plant in Maryland. This plant will be built on an existing site at an estimated cost of $675 million. ODEC will file an application with the Maryland Public Service Commission in May and plans to begin construction in late 2014. ODEC announced that the new plant, which will be known as the Wildcat Point Generation Facility, will generate enough power to serve 390,000 homes annually. To read more about this story, click here.

Two Electric Cooperatives Rank in Top 10 for Solar Generation Wattage Per Member

Wed, 24 Apr 2013 18:07:00 GMT

The Solar Electric Power Association included two electric cooperatives in its list of top 10 utilities incorporating solar generation wattage per member. Kaua’i Island Utility Cooperative, which had been ranked at twelfth place in 2011, moved to second place, adding 282 watts of solar electricity capacity per member last year. Chickasaw Electric Cooperative, ranked fifth on the list, largely thanks to its connection to the West Tennessee Solar Farm, which is the largest supplier of solar power to the Tennessee Valley Authority. Read more here.

Information Sharing Cyber Security Bill to Go to Senate

Tue, 23 Apr 2013 12:28:00 GMT

The Cyber Intelligence Sharing and Protection Act, a bill that could help electric coops defend against threats, has cleared the U.S. House of Representatives. The bill would encourage the sharing of cyber threat information between the federal government and the private sector, including coops. The next step is for the bill to clear the Senate. For more information, click here.

Colorado Coop Positioned to Obtain More Wind Power

Thu, 18 Apr 2013 17:02:00 GMT

The 67-MW Colorado Highlands Wind project will provide 24 MW of additional generation output this July. Tri-State Generation and Transmission Association (Tri-State) will purchase the expanded generation output pursuant to its 20-year power purchase agreement. Tri-State already purchases the full 67-MW output from this wind facility. Click here for more information.

Colorado Senate Passes Bill to Raise Renewable Energy Requirements

Wed, 17 Apr 2013 11:14:00 GMT

Colorado Senators passed a bill 18-17 this week that would dramatically raise renewable energy requirements for the state’s electric coops. The bill would require the electricity coops to get 25 percent of their energy from renewable sources by 2020, which is a 10 percent increase from present requirements. The bill also would limit consumer rate increases for these upgrades to 2 percent. The bill now heads to the House. Click here for more information.

President’s 2014 Budget Includes Restrictions on Amounts and Use of RUS Loans

Fri, 12 Apr 2013 14:08:00 GMT

Under the proposed 2014 federal budget, the lending authority of the Rural Utilities Service (RUS) would be decreased from $6.5 billion to $4 billion, which RUS projects will be sufficient to meet the demand from borrowers. Of this new amount, $3 billion will be earmarked for generation with carbon sequestration and renewable energy, including peaking plants to complement intermittent renewable resources. The remaining $1 billion in lending authority will be available for pollution controls. The National Rural Electric Cooperative Association has pledged that it will work with members of Congress to ensure that coops have the financing flexibility to provide affordable, reliable electricity. Electric Co-op Today has the full story.

USDA Announces Funding for Rural Electric Cooperatives

Wed, 10 Apr 2013 17:43:00 GMT

Today the U.S. Department of Agriculture (USDA) announced plans to provide nearly $280 million in funding for projects designed to improve rural electric service. The funds, which will address service in rural areas across 13 states, will contribute to the construction of more than 1,900 miles of new or improved transmission and distribution lines. For a complete list of rural electric cooperatives receiving this USDA funding, click here.

Colorado Seeks to Increase Coop Renewable Power Target

Tue, 09 Apr 2013 17:52:00 GMT

A Colorado state committee approved legislation this week that would require that 25 percent of Colorado’s electric coop electricity come from renewable sources by 2020. Investor-owned utilities in the state — Xcel Energy Inc. and Black Hills Energy — must by state law generate 30 percent of their electricity from renewable sources by 2020. Tri-State Generation and Transmission Association and rural electric coop officials sought to block the legislation in its current form, stating that the 25 percent target by 2020 was not feasible. For more on this story, click here.

Coop Enters the Computer Repair Business

Tue, 09 Apr 2013 17:44:00 GMT

Wyoming-based High West Energy, Inc., is getting into the computer repair business, through new subsidiary High West Digital Solutions. The coop, which provides electricity to 10,000 customers in Wyoming, Nebraska and Colorado, believes there is unmet demand for computer repair services in its geographical area. High West Digital Solutions will repair computers, remove viruses, build websites and provide other networking and programming services. Customers can even sign up for house calls. Click here for more.

Wind Projects Cause Instability in Vermont Grid

Tue, 09 Apr 2013 17:42:00 GMT

The CEO of Vermont Electric Cooperative (VEC) has indicated that the coop will oppose any new large wind projects in northern Vermont because existing wind projects have introduced instability in the grid, prompting grid operator ISO-New England to order existing wind projects in Vermont and New Hampshire to curtail electricity output. As a result, wind farm turbines are not being allowed to operate at capacity. VEC and its partner Green Mountain Power, which own the Lowell wind project called Kingdom Community Wind, have lost approximately $1 million in electricity sales because of curtailment this winter. VEC is advocating a three-year moratorium to study these problems to find out how to introduce renewable green electricity into the existing grid. The Caledonian-Record has the full story (subscription required).

CFC Finalizes “Amend and Extend” Deal for Ohio G&T

Tue, 09 Apr 2013 17:41:00 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) recently closed an “amend and extend” (A&E) transaction for Columbus, Ohio-based Buckeye Power Inc. An A&E transaction allows the borrower to change the terms of an existing credit agreement, such as the maturity date and pricing, typically in exchange for a fee and, unlike refinancing, the original loan remains in place. The A&E transaction arranged for Buckeye amends a $200 million syndicated transaction that CFC arranged in 2011. Click here for more on this story.

Utilities Victorious in Case Asserting Utility Poles Should be Subject to Environmental Regulation

Tue, 09 Apr 2013 17:34:00 GMT

A federal appeals court ruled against the Ecological Rights Foundation in finding that utility poles should not be regulated under the Clean Water Act. With fewer customers per mile of line than the industry average, coops would have felt a disproportionate impact of any regulation. The National Rural Electric Cooperative Association filed a brief in this case supporting the position that preservatives in the wood used in utility poles are not point sources of pollution as defined under the Clean Water Act. Electric Co-op Today has the full story.

Coops Gain Exemption From CFTC Regulations

Tue, 02 Apr 2013 18:44:00 GMT

The Commodity Futures Trading Commission (CFTC) voted unanimously on March 28 to exempt electric coops from certain regulations under the financial reform laws. Specifically, certain non-financial energy derivative transactions between and among coops and municipal utilities, federal power agencies, federal entities with electric assets, and Indian tribes will be exempt from most of the requirements of the Commodity Exchange Act. However, financially settled swaps done for speculative purposes between these entities would not be exempt. For more information, click here.

Two Hawaiian Islands Consider Possibility of Creating a Coop

Tue, 02 Apr 2013 18:43:00 GMT

The governments of the islands of Maui and Molokai in Hawaii are considering creating a new coop or municipal utility. A representative said that Maui County Mayor Alan Arakawa has stated that his preference is to continue working with Maui Electric Co. (MECO), a subsidiary of Hawaiian Electric Co. However, the county may try to form a municipal utility if MECO does not upgrade its facilities to add more solar and wind power capabilities. Pacific Business News has more on this story.

Arkansas Coop Settles Religious Discrimination Suit

Tue, 26 Mar 2013 12:53:00 GMT

Arkansas-based Ozarks Electric Cooperative Corporation (Ozarks) has agreed to settle a lawsuit filed by a former employee and the U.S. Equal Employment Opportunity Commission (EEOC) for alleged religious discrimination. The EEOC alleged that Ozarks denied the employee a requested day off to attend a Jehovah's Witness convention, then terminated her when she chose to attend the convention rather than report to work. The settlement includes a $95,000 payment for the former employee. Read more here.

CFC Arranges $100 Million Credit Facility for Indiana Coop

Tue, 26 Mar 2013 00:52:00 GMT

Indianapolis-based Wabash Valley Power Association recently closed on a $100 million syndicated transaction arranged by the National Rural Utilities Cooperative Finance Corporation (CFC). In addition to CFC, four other lenders participated in the five-year senior unsecured revolving credit facility, but CFC will serve as administrative agent for the facility, which consolidates the G&T’s bilateral lines of credit with CFC and several commercial banks. Click here to read more.

Rural Areas May Be Redefined

Tue, 19 Mar 2013 11:45:00 GMT

If the U.S. Department of Agriculture (USDA) has its way, the definition of “rural” would be amended to include areas with as many as 50,000 people. The goal of this recommendation, according to the USDA, is to make rural development programs more consistent. Others are concerned that such a change could be detrimental to less-populated, needy areas. The recommendation, if it passes, could affect NRECA-member coops. Read more here.

New Mexico Coops, Regulators and Power Supplier Clash Over Rates

Mon, 18 Mar 2013 12:58:00 GMT

Last week, the New Mexico Public Regulation Commission (PRC) denied a trio of requests from Tri-State Generation and Transmission Association (Tri-State) for interim rate increases that would have affected 12 New Mexico coops. Tri-State provides wholesale power to 44 rural cooperatives in New Mexico, Colorado, Wyoming and Nebraska, and each coop has a representative on the Tri-State board. Three New Mexico coops – Kit Carson Electric Cooperative, Springer Electric Cooperative, Inc. and Continental Divide Electric Cooperative – filed protests with the PRC after Tri-State sought to raise its rates last year. Tri-State is disputing the PRC’s authority over its rates in court and, in the meantime, has asked for an interim rate increase, which is higher for the three coops that protested the original increase. The PRC voted unanimously last week to deny Tri-State’s interim rate hike requests. Click here for more on the controversy.

FERC Issues License for Hydroelectric Project in Alaska

Wed, 13 Mar 2013 16:35:00 GMT

The Federal Energy Regulatory Commission (FERC) has issued a license for Inside Passage Electric Cooperative’s Gartina Falls project near Hoonah, Alaska. The project, which is fully funded at less than $8 million, will replace 30 percent of the diesel use in Hoonah. Local businesses, which are not eligible for the state’s power-cost equalization program, stand to benefit from the expected lower rates. Read more here.

Breach of Contract Suit Brought by Texas Coop Removed to Federal Court

Wed, 13 Mar 2013 16:34:00 GMT

In January, East Texas Electric Cooperative, Inc. (ETEC) filed suit against Entergy Texas, Inc. (Entergy) in Texas state court claiming that Entergy breached multiple agreements between the parties and seeking $8 million in damages. Entergy filed its Notice of Removal last week, which removed the action to the United States District Court for the Eastern District of Texas. To read more about the suit, including the original complaint filed in state court, click here.

Bipartisan Group of Senators Express Concern Over Potential Hike in Shipping Rates

Mon, 11 Mar 2013 16:51:00 GMT

Several U.S. senators, led by Sen. Al Franken, D-Minn., have asked federal regulators to make sure that an investment giant’s purchase of BNSF Railway Co. does not saddle shippers with unfair costs. Specifically, Sen. Franken, along with Sens. Mark Pryor, D-Ark.; Tim Johnson, D-S.D.; Amy Klobuchar, D-Minn.; Tammy Baldwin, D-Wis.; and David Vitter, R-La, told the Surface Transportation Board that Berkshire Hathaway violated the board’s multiple carrier rules because it owned two other railroads when it bought BNSF for $43 billion in 2010. Although Berkshire has since dissociated itself from two smaller lines, it still wants to include an $8 billion premium that it paid for BNSF in the railroad’s asset base. This move, the senators say, could artificially inflate the railroad’s books and result in increased rates passed on to shippers. Currently the STB is reviewing the case. Click here to read more.

Coops Ask DOE Chief to Drop Grid Restructuring Plan

Mon, 11 Mar 2013 16:49:00 GMT

Coops and other utilities want the new Department of Energy chief, Ernest Moniz, to drop his predecessor’s requirements to integrate renewable energy into the grid. Utility groups want Moniz to rescind a plan proposed by outgoing DOE Secretary Steven Chu to restructure federally controlled power systems in the Western United States that would enable deployment of renewable energy, electric vehicles and other advanced resources. Multiple rural electric coops and municipal utilities as well as a group of lawmakers assert that the grid restructuring plan will increase costs for utilities buying power and raise costs for consumers. EPA’s Clean Energy Report has more on this story (subscription required).

North Carolina Coop Seeking Addition of Transmission Line in a Wilderness Area

Mon, 11 Mar 2013 16:47:00 GMT

A Rutherford County coop may end up in conflict with ecologists after seeking to run a 12-mile, high-voltage power line through an area of unbroken forest that is currently part of a conservation zone. Rutherford Electric Membership Corporation says the proposed line would prevent brownouts in a rural community of 1,900 families but ecologists counter that the line would run a 100-foot-wide dagger through the heart of some of the rarest plant and wildlife habitats in North Carolina. Click here to read more on this story.

Missouri Coop to Shut Down Chamois Power Plant

Fri, 08 Mar 2013 14:55:00 GMT

Central Electric Power Cooperative’s (Central) board has decided to cease operations at the Chamois Power Plant in Missouri effective September 30. Since 1962, Associated Electric Cooperative, Inc. (AECI), the wholesale supplier of Central, has been paying all of the expenses of the plant in exchange for a right to all of the output. The plant is the smallest and the oldest of AECI’s coal plants. Central’s board based its decision on a number of factors, including environmental regulations, slower than expected load growth and the expiration of a coal supply contract. The News Tribune has the full story.

House and Senate Introduce Bills to Prevent Theft of Metals from Critical Infrastructure, Businesses

Thu, 07 Mar 2013 17:14:00 GMT

On February 28, several senators introduced a bipartisan legislation designed to prevent the growing problem of metal theft. Among other things, the bipartisan legislation would make it metal theft, explicitly identifying theft of metal from critical infrastructure, a federal crime and would require recyclers of scrap metal to keep detailed documentation of metal purchases and make such records available to law enforcement agencies. The House introduced a similar bill February 27, 2013. Read the full press release.

Coop May Be Sued by Cape Coral, Florida, Again

Tue, 05 Mar 2013 17:20:00 GMT

The city of Cape Coral, Florida, may sue Lee County Electric Cooperative again in connection with millions spent on moving utility equipment during roadway expansions. Cape Coral expects the coop to pay for costs associated with relocating its utility equipment during the projects, but the coop disagrees. The city was successful in a similar lawsuit filed in 2005, and that case was upheld by an appeals court last year. Click here for the full story.

Bills Would Exempt Hawaii Coop from Some State Regulations

Tue, 05 Mar 2013 17:18:00 GMT

Hawaii lawmakers are considering legislation that would allow the Hawaii Public Utilities Commission to exempt the Kaua’i Island Utility Cooperative, the only electric coop in the state, from certain state regulations governing for-profit utilities. Senate Bill 1045 and House Bill 815 are up for consideration this week. Read the full story here.

Montana Coop to Participate in Battery Test

Tue, 05 Mar 2013 17:15:00 GMT

Flathead Electric Cooperative, Inc.’s (Flathead Electric) Kalispell, Montana, campus will be the first test site for the Zinc Air Inc. (Zinc Air) battery storage technology. The tests are expected to last about six months and will allow Zinc Air and Flathead Electric to assess applications for both utility and end-user benefits, such as peak demand reduction and load shifting. Click here for more.

Judge Bars Documents in Power Plant Case Despite Coop’s Objections

Tue, 05 Mar 2013 17:14:00 GMT

Despite objections by American Municipal Power, Inc. (AMP), a federal judge has ruled that emails between AMP and contractor Bechtel Corporation (Bechtel) are subject to the attorney-client privilege, thereby barring the mistakenly disclosed documents from a lawsuit. AMP is suing Maryland-based Bechtel over a $1 billion unexpected increase in estimated power plant construction costs. An in-camera review of the emails convinced the court that “[t]here is enough in the circumstances surrounding the communications to support the inference that the employees were aware the information was being solicited for legal advice purposes.” Read more about the case here (subscription required).

Sequestration to Cause CREBs Payments to be Reduced by 8.7%

Mon, 04 Mar 2013 17:12:00 GMT

The Office of Management and Budget has issued its Report to the Congress on the budget sequestration for federal fiscal year 2013 required by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011. Interest subsidy payments for New Clean Renewable Energy Bonds (New CREBs) are among the federal programs impacted by sequestration. According to IRS guidance, issuers of qualified tax credit bonds should continue to request reimbursement for their interest payments on Form 8038-CP in accordance with the instructions for that form, but affected issuers of qualified tax credit bonds will be notified that a portion of their requested payment was subject to the sequester reduction. Read the full Sutherland Legal Alert.

Copper Theft Continues to Impact Coops

Mon, 04 Mar 2013 13:11:46 GMT

Ongoing international demand for copper could result in another rise in copper prices, followed by a rise in copper theft, according to Maurice Martin, a program manager at NRECA’s Cooperative Research Network. Coops like Missouri-based N.W. Electric Power Cooperative, Inc. have tried multiple ways to thwart copper theft. For example, Northwest long ago switched to tin-coated copper. The coop is now moving to copper-clad products and is putting up signs in substations alerting would-be thieves that the material has no scrap value. In addition, 48 states have metal theft laws. To read more on the tactics to reduce copper theft, click here.

Georgia EMC to Purchase Power from New Solar Project

Fri, 01 Mar 2013 13:17:00 GMT

Cobb Electric Membership Corporation has entered into a 25-year power purchase agreement with Dominion to purchase power from a solar project near Augusta, Georgia. Dominion recently acquired the development project, which will produce approximately 7.7 megawatts using photovoltaic technology. The project is expected to begin commercial operations on December 1. 2013. To read more, click here.

Maryland PSC Raises Reliability Standards in Wake of Storm

Thu, 28 Feb 2013 17:47:00 GMT

The Maryland Public Service Commission (PSC) will require utilities to file plans by May 31 outlining improved response efforts after severe storms. The order stems from last year’s “derecho” storm during which almost one million customers lost power. The PSC will not impose penalties on any utility based on its reaction to the 2012 storm. For the full story, click here.

Two Wind Coops Take Top Honors

Thu, 28 Feb 2013 17:45:00 GMT

East River Electric Power Cooperative of South Dakota and Golden Valley Electric Association of Alaska took home top honors when a panel of industry experts selected the two coops as the Department of Energy’s 2012 Wind Cooperatives of the Year. See the Energy Department’s press release to learn more about the coops’ wind energy achievements and future plans.

North Dakota Coop Sends Carbon Dioxide Packing

Thu, 28 Feb 2013 17:44:00 GMT

Basin Electric Power Cooperative recently shipped a milestone amount of carbon dioxide to Canadian oil fields for use in forcing oil to the surface. The coop’s Great Plains Synfuels Plant has been capturing carbon dioxide since 2000 and just sent the 25 millionth metric ton to southern Saskatchewan. Click here for more information.

New DOE Solar Funding Available to Cooperatives

Wed, 27 Feb 2013 17:49:00 GMT

Cooperatives are eligible for two funding opportunities from the Department of Energy designed to make solar energy more competitive with other forms of energy. The programs are part of DOE’s SunShot Initiative and will each provide up to $12 million for administrative and physical costs associated with installation, interconnection and efficiency. To read more about these funding programs, click here.

Former Employee Steals Funds from Florida Coop

Wed, 27 Feb 2013 17:46:00 GMT

Three men have been charged with grand theft after allegedly defrauding Glades Electric Cooperative of Glades County, Florida, out of $211,419 between 2008 and 2011. One of the three arrested used his employment at the coop to orchestrate the theft. For more information, click here.

Proposed Kentucky Legislation Would Force Coop Merger

Fri, 22 Feb 2013 16:48:00 GMT

A proposed Kentucky legislative bill would force Big Rivers Electric Corporation (Big Rivers) and East Kentucky Power Cooperative to merge “as quickly as can be reasonably and economically accomplished.” House Bill 423 is intended to address the significant rate hike Big Rivers customers may face due to the coop’s impending loss of approximately 70 percent of its power sales to two aluminum smelters. As The Gleaner reports, the bill is highly controversial among industry participants and lawmakers.

PSC Ends Management Review of Kentucky Coop

Wed, 20 Feb 2013 16:44:00 GMT

On February 19, the Kentucky Public Service Commission (PSC) announced that it had ended its management review of East Kentucky Power Cooperative (EKPC). The PSC commended EKPC for its efforts to implement recommendations made an outside consulting group’s management audit in 2010. Read more here.

Texas Coop to Own and Operate Experimental Wind Energy Storage System

Wed, 20 Feb 2013 16:34:00 GMT

South Plains Electric Cooperative will own and operate an experimental battery energy storage system at the Reese Technology Center in Lubbock, Texas. The storage system will focus on combining utility scale energy storage with wind generation and will be installed by Samsung SDI and Xtreme Power as part of a $27 million smart grid demonstration project. To read more about the project, click here.

New Mexico Electric Rates Still in Limbo

Wed, 20 Feb 2013 16:27:00 GMT

Kit Carson Electric Cooperative and its power supplier, Tri-State Generation and Transmission Association, Inc. (Tri-State), continue their battle over electric rates before the New Mexico Public Regulation Commission (PRC). The PRC has responded to Tri-State’s arguments that this issue is beyond state regulator jurisdiction by claiming that Tri-State is trying to circumvent the law. See the Sutherland Coop team’s December 26, 2012, post for more background on this controversy. Click here for more information on this rate case.

Alaska Bill Could Allow Coop Activity in Protected Area

Mon, 18 Feb 2013 17:11:00 GMT

A bill moving through Alaska’s legislature would eliminate wilderness restrictions in a portion of a Bristol Bay region state park to allow a utility to study a hydroelectric project on a lake where development now is banned. So far, in observance of a 10-year-old management plan approved by local residents, state park officials have refused to allow Nuvista Light & Electric Cooperative to fly helicopters into the area and conduct drilling and seismic work under a $10 million legislative grant approved in 2011. Senate Bill 32, sponsored by Republican Sen. Lesil McGuire, would reverse that ruling. Click here to read more.

Government Announces New Funding for Rural Coops

Mon, 18 Feb 2013 17:06:00 GMT

In a recent announcement, John Padalino, USDA Rural Utilities Acting Administrator, stated that rural electric cooperatives and utilities in 12 states will receive loan guarantees to improve generation and transmission facilities and implement smart grid technologies. The statement was made during the annual meeting of the National Rural Electric Cooperative Association on behalf of Agriculture Secretary Tom Vilsack and includes support for more than $8 million in smart grid technologies. For more on this story and, click here.

New Regulation Under Cybersecurity Executive Order

Fri, 15 Feb 2013 17:04:00 GMT

President Obama has issued an Executive Order to address the growing cyber threat to the Nation’s “critical infrastructure.” The energy industry should pay attention, both for regulatory compliance purposes and also as a matter of sound business practice, in the face of the increasing security threat posed by cyber attacks. Read the full Sutherland Legal Alert.

Proposed Texas Bill Would Give Customers Grounds to Sue

Thu, 14 Feb 2013 16:38:00 GMT

In addition to creating a cause of action against utilities for theft and improper use of data, a proposed Texas bill, H.B. 1171, also provides customers with the right to opt out of smart meter programs and the right to have previously installed meters removed. This bill differs from a prior Senate bill in that H.B. 1171 provides customers with this cause of action but does not provide utilities with the right to charge removal fees and monitoring fees for customers that continue to use traditional metering. Law360 has the full story (subscription required).

Departing Pedernales CEO Offers Explanation for Resignation

Thu, 14 Feb 2013 16:36:00 GMT

Although the Pedernales Electric Cooperative board voted to table a consumer choice resolution pending further research and analysis, the coop’s CEO, R.B. Sloan cited the proposal as one reason for his resignation. In announcing his resignation to the board, Sloan reiterated that adopting consumer choice would be a damaging move for the coop. The Austin American-Statesman has the full story.

NRECA Asks FERC to Clarify Revised Bulk Electric System Rule

Mon, 11 Feb 2013 15:46:00 GMT

The National Rural Electric Cooperative Association (NRECA) has asked the Federal Energy Regulatory Commission (FERC) for a clarification of its final rule on a revised definition of Bulk Electric System. Issued in late December 2012, the final rule approved most elements of the revised definition by the North American Electric Reliability Corporation, but FERC also ordered some additional modifications and interpretations. The NRECA also filed a rehearing request related to a final rule that requires regular reporting of complete electronic tagging. To read more, click here.

Coop CFO Provides Insight on Capital Credits Strategy

Mon, 11 Feb 2013 15:46:00 GMT

In a recent interview, Frank Skube, the chief financial officer of Texas-based Pedernales Electric Cooperative (PEC), discussed the challenges surrounding a revamp of the coop’s capital credits policy. PEC completed its capital credit retirement and distribution in December 2011, issuing nearly 217,000 bill credits to current members and 72,000 checks to former members. To read the complete interview, click here.

South Carolina Town Receives Land Donation

Tue, 05 Feb 2013 17:25:00 GMT

The town of Bluffton, South Carolina, is offering seven acres of land in its May River Technology Park to attract more private businesses. However, Bluffton did not have to tap into tax revenues to buy this land. It was donated by Palmetto Electric Cooperative and Hargray Communications. In return, these entities will be allowed to forgo state license fees. Bluffton also is expected to receive another $80,000 from other coops. Since 1996, state law has allowed utility companies and electric cooperatives to redirect funds, used for state fees, to local infrastructure projects for municipalities and counties. Bluffton hopes to use this land to attract high-tech businesses and industry. Read more here.

Arizona Appealing EPA Decision Requiring Upgrades to Coal Plants

Fri, 01 Feb 2013 14:16:00 GMT

The Arizona Attorney General is seeking an appellate court review of an Environmental Protection Agency (EPA) decision requiring pollution control upgrades at three coal plants. One of the coal plants in question, the Apache Power Plant, is owned by the Arizona Electric Power Cooperative. The Arizona Daily Star is following this story.

Coop Considers Closing Coal Plant Citing Regulations and Other Costs

Fri, 01 Feb 2013 14:14:00 GMT

Central Electric Power Cooperative of Jefferson City, Missouri, is considering closing its Chamois power plant because of regulations and other costs. The coop held a meeting on Thursday to discuss whether it should make $17 million in improvements to comply with Environmental Protection Agency regulations for air quality and to build a new railroad siding to bring coal to the plant. Given these costs and the current member base, closure is one option being seriously considered. Connect MidMissouri is covering this story.

Members and Other Customers Intervene in Big Rivers' Request for a Rate Increase

Fri, 01 Feb 2013 14:12:00 GMT

To make up for the loss of its biggest customer, Century Aluminum in Hawesville, Kentucky, Big Rivers Electric Corporation has requested a rate increase in a filing with the Kentucky Public Service Commission. Some of the coop’s distribution members and industrial customers have filed as interveners seeking to have more input into the process. The Owensboro Messenger-Inquirer has the full story.

Coop and IOU Strike Deal to End Territorial Dispute

Wed, 30 Jan 2013 15:05:00 GMT

The city council of Cheyenne, Wyoming, has approved a franchise agreement between High West Energy, Inc. (High West) and Cheyenne Light, Fuel and Power Company that ends a 35-year territorial dispute between the coop and the investor-owned utility. Over the years, the coop has lost service territory and customers as the city expanded into unincorporated territory serviced by High West. The franchise agreement allows High West to continue serving certain commercial and industrial accounts currently in an unincorporated area of Cheyenne, even if city officials decide to further expand the city’s boundaries. To read more, click here.

Delaware Coop Breaks Ground on New Solar Farm

Tue, 29 Jan 2013 18:24:00 GMT

The Delaware Electric Cooperative (Delaware Electric) has begun construction of a 20-acre, 16,000-solar-panel, solar energy farm in Sussex County, Delaware. It will be one of the largest solar farms in the state and is expected to cost $14 million. Delaware Electric hopes the project will be online by May 2013. Read more here.

Court Rules that LCRA Did Not Violate Wholesale Agreements

Mon, 28 Jan 2013 18:14:00 GMT

The Lower Colorado River Authority (LCRA) was victorious last Thursday when a Travis County, Colorado, district judge held that LCRA had not violated power agreements with four of its wholesale electric customers because it had not breached a contract clause requiring that all of its customers be offered the same rate. The customers, which are utilities that sell electricity throughout Central Texas, accused LCRA of setting up a pricing structure that discriminated against them because they did not sign extensions of long-term wholesale power agreements with the authority. The judgment affects the city of Seguin, Central Texas Electric Cooperative, Fayette Electric Cooperative and San Bernard Electric Cooperative. Click here to read more.

Federal Court Rejects Rehearing on EPA Cross-State Air Pollution Rule

Mon, 28 Jan 2013 18:12:00 GMT

Last Thursday, the U.S. Court of Appeals for the District of Columbia Circuit issued a two-sentence order in which it declined to reopen a decision that struck down the Environmental Protection Agency’s (EPA) sweeping Cross-State Air Pollution Rule. The decision striking down the rule was issued last August by a three-judge panel of the circuit court after the National Rural Electric Cooperative Association and several electric cooperatives filed lawsuits, arguing that the rule treated different parts of the country in an arbitrary and unfair manner. The rule would have set new limits on sulfur dioxide and nitrogen oxide in 27 states, mostly east of the Mississippi River. To read more on this story, click here.

Tri-State to Challenge Jurisdiction of New Mexico Public Regulation Commission Over Rates

Mon, 28 Jan 2013 11:44:00 GMT

The board of Tri-State Generation and Transmission Association, Inc. recently voted to move forward with a legal challenge of the Public Regulation Commission’s (PRC) jurisdiction over rate increases for distribution coops in New Mexico. This move comes after the PRC determined in December 2012 that the distribution coops had raised valid concerns regarding the rate increases. The Taos News is covering this story.

Kansas Coop Brings Attention to Private Transmission Considerations

Thu, 24 Jan 2013 16:03:00 GMT

Wheatland Electric Cooperative of Kansas is alerting others to potential concerns regarding the construction of private transmission lines to meet increased oil and gas exploration in the Mississippi Lime Play, which is an underground formation across southern and western Kansas and northern Oklahoma. If energy companies begin building their own electric transmission infrastructure, Wheatland warns that public utilities may have trouble building their own transmission lines across or near the private rights of way acquired by these companies. Problems may arise in reliability. If multiple companies build infrastructure in an area that is hit by bad weather, repairs to public utility lines in that area may be adversely affected. Read more here.

EPA Passes New Rule Related to Generator Use

Wed, 23 Jan 2013 17:42:00 GMT

On January 15, the U.S. Environmental Protection Agency (EPA) announced a new rule that will allow electric cooperatives to use small emergency generators for various purposes in order to ensure a stable flow of electricity at the local and regional level. Kirk Johnson, senior vice president of the National Rural Electric Cooperative Association (NRECA), stated that the combined advocacy efforts of NRECA and member coops led to improved emergency demand-response provisions in the rule. However, Johnson also said that NRECA was disappointed that the rule will only permit the use of generators for peak-shaving purposes through May 3, 2014, rather than for the four-year period included in an earlier EPA proposal. For more information, click here.

Colorado Coop Looks to Expand Transmission Line Capacity

Tue, 22 Jan 2013 19:06:00 GMT

San Luis Valley Rural Electric Cooperative plans to expand the capacity of a 32-mile transmission line from 69 kV to 115 kV. The project will improve reliability in the San Luis Valley by reducing the risk of outages. The Pueblo Chieftain has the full story.

Hefty Rate Increase in Kentucky on the Horizon

Thu, 17 Jan 2013 18:57:00 GMT

Western Kentucky-based Big Rivers Electric Corporation has requested a wholesale rate hike from the Kentucky Public Service Commission. Under the proposal, residential customers would see up to a $24 per month increase on their power bills and large industrial consumers would face between a 15 and19 percent rate increase. The move comes in reaction to Big Rivers’ largest customer, an aluminum smelter, terminating its power purchase agreement with the coop. Read the full story here.

Vermont Coop Among Opponents to Proposed Wind Moratorium

Thu, 17 Jan 2013 18:55:00 GMT

Washington Electric Cooperative is among a long list of renewable energy supporters opposing a recent state legislative proposal to ban for three years the development of wind generation projects with a capacity greater than 500 kW. Legislators proposed the bill in reaction to environmental and aesthetic concerns raised by constituents. However, opponents say the move contradicts efforts to increase renewable energy in the state. Click here for more.

Tri-State Generation and Transmission Association to Consider Alternative Transmission Project

Thu, 17 Jan 2013 18:53:00 GMT

Tri-State Generation and Transmission Association plans to consider an alternative route for its planned transmission project to provide new infrastructure for its electric system. Tri-State’s decision is in response to Xcel Energy’s indication that it will likely withdraw from the previously proposed joint transmission project. The project will help provide reliable power to San Luis Valley Rural Electric Cooperative, which serves Colorado. Read more here.

Illinois G&T Coop Receives Long-Term Rating of A- for Senior Secured Bonds

Tue, 15 Jan 2013 19:20:00 GMT

Prairie Power, Inc. (PPI) recently received a long-term rating of A- with a stable outlook by Kroll Bond Rating Agency (KBRA) for all of its $471.3 million of senior secured debt as of November 1, 2012. PPI is an electric generation and transmission coop that serves central Illinois. This is KBRA’s first G&T coop rating and marks its entry into this market. Read more here.

Kroll Bond Rating Agency Issues Updated Report on Fracking

Tue, 15 Jan 2013 19:14:00 GMT

Kroll Bond Rating Agency (KBRA) has issued an update to its report on the state and local credit risks of high-volume hydraulic fracking of the Marcellus and Utica Shale Basins, located below New York, Ohio, Pennsylvania and West Virginia. The report, available here, discusses the estimated economic impact from the recovery of these fossil fuel resources. These resources are so large that many economists predict they could materially reduce unemployment and add to the nation’s GDP for decades, as well as pose environmental and regulatory risks. Click here for the full report.

Coop Seeks Expedited Ruling to Prevent Tribal Takeover

Mon, 14 Jan 2013 17:42:00 GMT

After filing an amended complaint on December 14, the Northern Rio Arriba Electric Cooperative is asking a federal judge for an expedited ruling to prevent a New Mexico tribal authority from potentially taking ownership of its electric distribution system on a Northern New Mexico Indian reservation as early as next month. The coop is also seeking an order that would compel the Jicarilla Apache Nation to enter into mandatory binding arbitration. The Nation, which consumes 48 percent of the coop’s electrical load, is upset with the electric service it has been receiving and plans to terminate its business relationship with NORA by June 2014, when a franchise agreement between the two entities expires. Click here to read more about the parties’ claims and the Nation’s motion to stay or dismiss the case.

Michigan Agency Extends Permit for Installation of Coal Plant

Mon, 14 Jan 2013 17:41:00 GMT

A coalition of Michigan electric utilities, which includes Cherryland Electric Cooperative, recently received an extended permit from the Michigan Department of Environmental Quality for the construction of a contested coal plant project However, utility officials, including those representing Cadillac-based Wolverine Power Cooperative, have not announced if they intend to follow through with construction. To read more about the potential plant, click here.

Colorado Coop Closes on Syndicated Line of Credit

Mon, 14 Jan 2013 17:40:00 GMT

Brighton-based United Power, Inc. (UPI), which is a 100-percent National Rural Utilities Cooperative Finance Corporation (CFC) borrower, has closed on a $30 million syndicated line of credit arranged by CFC. The three-year unsecured line of credit replaces an existing perpetual line, and it is the second line of credit arranged by CFC for an electric distribution coop. The first line of credit was for Marietta, Georgia-based Cobb EMC in June 2012. Click here for more on this story.

Maryland PSC Calls for Smart Metering Options

Thu, 10 Jan 2013 15:24:00 GMT

The Maryland Public Service Commission (PSC) will require Southern Maryland Electric Cooperative (SMECO), among other electricity providers, to provide customers with additional smart metering options. Customers cited health-related concerns about certain smart metering technology and now will have the option of opting out of smart meter installations for an increased price. Click here for more.

Pennsylvania Wind Farm Begins Commercial Operation

Wed, 09 Jan 2013 15:28:00 GMT

A wind farm jointly owned by Sempra U.S. Gas & Power, LLC and BP Wind Energy has been placed in full commercial operation. The 141-MW wind farm, located in Mehoopany, Pennsylvania, will provide power to Old Dominion Electric Cooperative and Southern Maryland Electric Cooperative. The coops will each purchase the output of the facility under long-term power purchase agreements. To read more, click here.

FERC Notes Coop Smart Grid Growth

Tue, 08 Jan 2013 17:57:00 GMT

The use of smart grid technologies by coops is being recognized on a national level. A report issued in December 2012 by the Federal Energy Regulatory Commission (FERC) stated that coops are still national leaders in implementing advanced metering. According to the FERC report, advanced metering use among coops increased from 16.4 percent in 2008 to 24.7 percent in 2010 to 30.9 percent in 2012. The coop numbers were consistently higher than similar statistics for investor-owned utilities, municipal systems, political subdivisions, and state and local utilities. These results came from a survey in which 230 electric coops participated. Click here for more.

Finnish Company to Supply Engines to Gas Plant in Texas

Tue, 08 Jan 2013 17:55:00 GMT

Finnish power company Wärtsilä has won a deal to supply 12 engines for a new 225-MW gas plant, the South Texas Electric Cooperative (STEC) Red Gate power plant, to be located in Hidalgo County, Texas. This plant is scheduled to be operational by summer 2014. Wärtsilä has supplied components to three other power plants in Texas, including a 200-MW facility at Pearsall, Texas, which is also owned and operated by STEC. Read more here.

NRECA Speaks Out Against EPA Turbine Plan

Tue, 08 Jan 2013 17:47:00 GMT

The National Rural Electric Cooperative Association (NRECA) is urging the Environmental Protection Agency (EPA) to back off on its proposed revisions to New Source Performance Standards (NSPS) for stationary gas turbines and stationary combustion turbines. According to the NRECA, the revisions are flawed because the revised standards would be made retroactive to February 2005 and would impose too many reconstruction requirements on existing structures, thus increasing the costs of combustion turbine facilities. The proposed revisions seek to adopt a radically narrow definition of a “combustion turbine,” and that definition would determine whether “reconstruction” has been triggered under the NSPS clean air regulatory program. To read more about the potential consequences of this proposal to coops, click here.

Louisiana Utility Honors Patronage Capital Credits

Mon, 07 Jan 2013 17:59:00 GMT

Shreveport-based Southwestern Electric Power Company (SWEPCO), which completed the purchase of Valley Electric Membership Corporation (Valley) in October 2010, recently mailed out a second round of refund payments to members of the former coop. Valley’s board of directors pledged to honor Valley’s estimated $25 million in patronage capital credits owed to its members. These credits are accumulated by coop members as their share of the coop’s earnings. Click here for the full story.

AECC to Purchase Wind Power

Fri, 04 Jan 2013 17:28:00 GMT

Arkansas Electric Cooperative Corporation (AECC) announced that it has entered into an agreement to purchase up to 51 MW of power from a portion of the Flat Ridge 2 Wind Farm located in Kansas. This agreement is AECC’s first purchase of wind power from an outside company. Although AECC has not disclosed the specific financial terms, an AECC representative described the deal as being both economic and a good fit for AECC’s resource mix. The Southwest Times Record has the full story.

SMECO Looks to Expand Solar

Thu, 03 Jan 2013 13:55:00 GMT

A 5.5-MW solar farm developed by Southern Maryland Electric Cooperative (SMECO) has proved worthwhile, and the coop is now looking to build a second solar facility. SMECO’s efforts will help it satisfy a Maryland state law, which requires utilities to generate 20 percent of their electricity from renewables by 2022, with two percent of that portion coming from solar energy produced in Maryland. SMECO’s first solar farm began generating electricity in late November. Southern Maryland Newspapers Online has the details.

Alaskan Gas Shortages Call for Conservation

Thu, 03 Jan 2013 13:53:00 GMT

Due to anticipated natural gas shortages in the Cook Inlet area of Alaska, local coops, utilities and regional governments are banding together to raise public awareness about the problem and to promote demand-side conservation efforts. Chugach Electric Association, Homer Electric Association and Matanuska Electric Association are three coops involved in the Energy Watch effort. Click here for more information.

New Reliability Compliance Opportunities in 2013

Wed, 02 Jan 2013 15:48:00 GMT

The Federal Energy Regulatory Commission (FERC) closed out 2012 with several orders affecting reliability compliance. FERC adopted a revised definition of the “bulk electric system,” authorized FERC access to e-Tags used to schedule power transmission, and affirmed the authority of the North American Electric Reliability Corporation (NERC) to assess monetary penalties against federally owned utilities. Industry participants should use the New Year as an opportunity to review facilities, information-sharing processes and contracts to help ensure compliance with these new reliability requirements. Read the full Sutherland Legal Alert here.

Vermont’s Second Largest Utility Seeks Moratorium on Renewable Energy Projects

Wed, 02 Jan 2013 15:41:00 GMT

The board of directors of Vermont Electric Cooperative (VEC) has approved a resolution calling for a two-year moratorium on renewable energy projects following a large controversial wind project. VEC has several large wind projects in its portfolio, including the Lowell wind project, which has been the source of some complaints because of the noise created by the wind turbines. Click here for the full story.

New Power Plant Begins Commercial Operation in Arkansas

Wed, 26 Dec 2012 14:50:00 GMT

The 600-MW John W. Turk Jr. Power Plant, the nation’s first ultra-supercritical, coal-fired facility, began commercial operation this month after four years of construction and numerous legal challenges. The co-owners, including Southwestern Electric Power Company, Arkansas Electric Cooperative Corporation and East Texas Electric Cooperative, herald the plant as a shining example of advances in coal technology that result in fewer emissions. Reuters has more on this story.

Commission Suspends Planned Rate Increase for New Mexico Electric Coops

Wed, 26 Dec 2012 14:49:00 GMT

The New Mexico Public Regulation Commission (PRC) has suspended a planned rate increase for several New Mexico electric cooperatives that are part of the Tri-State Generation and Transmission Association (Tri-State). Tri-State will likely file suit protesting the decision, arguing that the New Mexico PRC has no jurisdiction over interstate wholesale power sales. During the pendency of the decision, Tri-State can file for an emergency rate increase. Tri-State’s rate increase was set to take effect January 1, 2013. Read more here.

Sutherland Advises South Mississippi Electric on Purchase of LSP Energy’s Batesville Plant

Fri, 21 Dec 2012 10:48:00 GMT

Sutherland Asbill & Brennan LLP has advised South Mississippi Electric (SME) on the purchase of LSP Energy LP’s Batesville, Mississippi, plant. The transaction closed this week and involved the acquisition of three gas-fired, combined-cycle generating units with the capacity to produce up to 837 megawatts of electricity at a purchase price of approximately $332/kW. Read more here.

USDA Announces $6.1 Million in Rural Project Funding

Thu, 20 Dec 2012 17:15:00 GMT

The U.S. Department of Agriculture has announced its most recent series of grants and loans designed to boost economic development in rural communities. This latest round of funding will serve communities in seven Midwestern and Southern states and involves more than $6.1 million. See the press release for further details.

Report Finds Renewables on the Rise

Thu, 20 Dec 2012 17:13:00 GMT

A preliminary version of the Energy Information Administration’s Annual Energy Outlook Report finds that renewable energy production, particularly wind and solar, is expected to rise over the next 30 years. The increase is largely attributed to state renewable energy requirements and heightened environmental regulations The final version of the annual report is scheduled to be released in spring 2013. For more information, click here.

Alaskan Coop Decides Not to Buy Plant

Thu, 20 Dec 2012 17:12:00 GMT

Golden Valley Electric Association (GVEA) will not purchase a 22.5-MW, coal-fired generation plant located at Clear Air Force Station about 80 miles from Fairbanks. Citing cost concerns, both from an environmental and efficiency perspective, GVEA determined that purchasing the plant was not in the best interest of its customers. Clear Air Force Station hopes to connect to the GVEA grid and begin purchasing power from the coop in 2014. Click here for the full story.

Judge Denies Sierra Club’s Challenge to $3 Billion Mississippi Coal Plant

Wed, 19 Dec 2012 14:39:00 GMT

A Mississippi judge has ruled against the Sierra Club’s attempt to invalidate the licensing for a $3 billion coat plant granted to Mississippi Power Co. Inc. and South Mississippi Electric Power Association by the Mississippi Public Service Commission. The court held that policy decisions on long-term solutions for fuel diversity and price stability of fuels used in electric generation should be left to the Public Service Commission and not the judicial branch. The Sierra Club intends to appeal to the Mississippi Supreme Court. Read more here (subscription required).

New EPA Rule May Delay Plant Expansions

Wed, 19 Dec 2012 14:37:00 GMT

The U.S. Environmental Protection Agency (EPA) recently adopted a rule that reduces the limits on fine particle emissions by 20 percent. Experts say that this limit reduction could delay power plant expansions and similar projects in certain regions of the country. While most of the country’s counties will not need to adjust regulatory requirements to meet the new standard, the new EPA rule may result in delayed permitting of new power facilities and other projects. To read more about the new rule’s possible effects, click here (subscription required).

Colorado Cooperatives Increase Solar Portfolios

Wed, 19 Dec 2012 14:36:00 GMT

Two Colorado electric cooperatives are adding to their renewable energy portfolios by constructing solar arrays expected to generate a maximum of 3 MW of solar power for their member-consumers. United Power, Inc.'s 2-MW solar array was brought online last week, and San Miguel Power Association, Inc.’s (San Miguel) 1-MW “community” solar array will begin operations by the end of the year. Additionally, the San Miguel array is currently the country’s largest community-owned solar project, and it will allow customers to purchase the solar panels at a price of $700 each. Click here for more.

Southern Power to Supplement Cobb EMC

Wed, 19 Dec 2012 14:35:00 GMT

Starting in 2016, Georgia-based Cobb Electric Membership Corporation (EMC) will receive electricity from Southern Power, a subsidiary of Southern Company. The 325 megawatts of electricity to be provided annually will supplement Cobb EMC’s current generation resources for a seven-year period. Read more here.

Iowa Coops to Attend Workshop on Preventing Cyber-Attacks

Fri, 14 Dec 2012 18:15:00 GMT

The heads of electric cooperatives in Iowa will meet for a three-day workshop and training session at Iowa State University in Ames. The goal of the workshop is to protect the state’s electric coops from cyber-attacks, which are becoming an increasingly important topic of grid reliability. Organizers say the first line of defense is ensuring that the workforce is adequately trained. A workforce that understands “the importance of cyber security” is the key, according to Craig Miller, project manager for the National Rural Electric Cooperative Association. To read more about the workshop, click here.

New Study Finds Credit Quality of G&T Coops on the Rise

Fri, 14 Dec 2012 18:11:00 GMT

Kroll Bond Rating Agency recently released the results of a multi-month study related to its development of a new rating methodology for rural generation and transmission (G&T) cooperatives. The study found that the credit quality and strength of G&Ts have improved significantly over the past 20 years. The findings also indicated that many market participants give disproportionate weight to the financial metrics of G&Ts while often failing to give proper weight to the strong security features which they possess. The study said that long-term member contracts, minimal regulatory interference with rate increases, and the G&T coops’ position as monopoly providers of an essential service contributed to the credit quality of G&Ts. To access the full rating methodology from Kroll, click here (free registration required).

Study Finds Northwest Needs More Generation

Thu, 13 Dec 2012 14:40:00 GMT

A study conducted by the Northwest Resource Adequacy Forum for the Northwest Power and Conservation Council said that utilities in Idaho, Montana, Oregon and Washington will need approximately 350 MW of additional capacity by 2017. The additional generation will likely be needed because California plans to retire certain power plants, which will upset the region’s current import/export regime. Click here for the full story.

New Mexico Coop Sees Insurance Premiums Spike

Thu, 13 Dec 2012 14:38:00 GMT

Jemez Mountains Electric Cooperative faces an almost 33 percent increase in its overall insurance premiums resulting from a significant increase in general liability, workers’ compensation and executive officer-specific claims. The coop plans to explore other insurance providers and quotes to avoid an almost $200,000 increase in insurance premiums. The Rio Grande Sun has more.

Tri-State Authorizes Capital Credits

Thu, 13 Dec 2012 14:36:00 GMT

The Tri-State Generation and Transmission Association, Inc. (Tri-State) board of directors has authorized $10 million in capital credits to be refunded to members. The board has approved a reimbursement for 24 straight years. Tri-State makes the refunds when it meets equity capital ratios and other financial objectives. Click here for more.

Hawaii Regulators Approve Kaua’i Island Solar Power Purchase Agreement

Tue, 11 Dec 2012 16:15:00 GMT

The Hawaii Public Utilities Commission has approved a 20-year power purchase agreement between the Kaua’i Island Utility Cooperative and REC Solar for its 300-kilowatt, MP2 Hawaii Solar Project in Koloa. This will be the 36th-largest renewable energy project in Hawaii. Read more here.

New Mexico Coops and Tri-State G&T in Rate Battle

Tue, 11 Dec 2012 16:13:00 GMT

Kit Carson Electric Cooperative and two other New Mexico coops are battling a rate increase proposed by Tri-State Generation and Transmission Association, Inc. (Tri-State). Specifically, the coops filed a protest calling for a public hearing on the rate increase. The coops cited a New Mexico law that allows the Public Regulation Commission to call a hearing on rates if three or more coops protest. In response, Tri-State has filed an objection, arguing that this law violates the Commerce Clause of the U.S. Constitution because Tri-State is solely involved in interstate commerce. Read more here.

Coop and River Authority Reach Preliminary Settlement in Pending Lawsuit

Mon, 10 Dec 2012 15:18:00 GMT

Guadalupe Valley Electric Cooperative (GVEC) and the Lower Colorado River Authority (LCRA) have reached a preliminary settlement of the lawsuit filed by LCRA after GVEC notified the authority of GVEC’s intent to terminate its wholesale electric contract with LCRA. GVEC is one of 10 wholesale customers of LCRA that chose not to extend contracts expiring in June 2016. The non-extending customers contended that LCRA allowed customers that extended their contracts to purchase a portion of their wholesale power on the competitive market while customers that did not agree to the extensions are required to get 100 percent of their load from LCRA. Although the final details of the settlement are still being worked out, reports indicate that GVEC will remain a wholesale electric customer of LCRA until June 2016 under the agreement and that no cash payment will be paid by either party as consideration for the settlement. Read more here.

Utah Coop May Challenge California Greenhouse Gas Trading System

Mon, 10 Dec 2012 15:15:00 GMT

Utah-based Deseret Power Electric Cooperative (Deseret) may file a lawsuit challenging California’s greenhouse gas trading system. Although the coop has declined to comment on the potential lawsuit, “one informed source” asserts that Deseret may be seeking other businesses to join in this effort. The lawsuit would likely claim that the trading system violates either the Constitution’s Commerce Clause by regulating interstate power trades or the Federal Power Act that gives the federal government jurisdiction over power pricing. Click here for the full story (subscription required).

Emerson to Lead NRECA

Wed, 05 Dec 2012 13:15:00 GMT

The National Rural Electric Cooperative Association (NRECA) has a new leader. U.S. Rep. Jo Ann Emerson, a Missouri Republican, announced that she will be retiring from Congress in February to take the helm of the NRECA. When asked about the decision, Emerson stated, “. . . [t]hese are the people who provide electricity to my constituents…and the rural electric coops are what built America, the rural part of our country.” Emerson will officially resign from the House on February 8, 2013, and start her job at the NRECA on February 11, 2013. Read more here.

Annual Survey Finds Customers More Satisfied with Coops than IOUs

Mon, 03 Dec 2012 17:41:00 GMT

The American Customer Satisfaction Index (ACSI), which annually surveys some 70,000 consumers, found that energy coops scored, on average, several points higher than investor-owned utilities (IOUs) in customer satisfaction. Touchstone Energy coops tied their all-time high showing in ACSI with a score of 83 compared to the IOU average of 76. The top utility, with a score of 85, was Atmos Energy, which provides only natural gas. Click here for more.

Lawsuit Filed Against New Mexico Coop

Thu, 29 Nov 2012 15:07:00 GMT

The Jicarilla Apache Nation filed a lawsuit in federal court claiming eminent domain rights over a portion of the Northern Rio Arriba Electric Cooperative’s (NORA) electric system that runs across tribal land. NORA responded to the complaint claiming that the Jicarilla Apache Nation lacked jurisdiction and failed to satisfy arbitration procedures in place under the parties’ franchise agreement. NORA could be significantly impacted if it loses its tribal customers. ABQ Journal has the details.

Alaskan Coop to Move Forward with LNG Project

Thu, 29 Nov 2012 15:03:00 GMT

Golden Valley Electric Association plans to move forward with a liquefied natural gas project after the termination of its joint venture with Flint Hills Resources. However, construction of the proposed $200 million plant will largely depend on whether Golden Valley can secure a state grant. The state governor is also considering an alternative plan under which the state would build the plant. Read more here.

Basin Electric Gears Up for Power Plant Expansion

Thu, 29 Nov 2012 15:02:00 GMT

Basin Electric Power Cooperative plans to construct a 90-MW, gas-fired addition to a 45-MW facility currently under construction in western North Dakota. Construction of the expansion project should begin in April 2014 with an operational date of January 2015. While the cost of the project and the number of jobs to be created are yet unknown, the transmission infrastructure is already in place to serve the facility. The Bismarck Tribune has the full story.

CFTC Issues No-Action Relief for Coops

Thu, 29 Nov 2012 15:00:00 GMT

The Commodity Futures Trading Commission’s Division of Clearing and Risk granted qualifying coops no-action relief from the mandatory clearing requirement for swaps that meet certain conditions as further delineated in the no-action letter. The conditions are similar to those offered in the proposed coop exemption rule issued by the CFTC last summer. The relief is effective until the earlier of April 1, 2013, or the date the CFTC rules on the proposed coop exemption. Click here for more information.

Texas Coop Opposes New Emergency Drought Order

Wed, 28 Nov 2012 15:15:00 GMT

Pedernales Electric Cooperative (PEC), the nation’s largest electric coop, may be faced with an inadequate water supply after the Lower Colorado River Authority (LCRA) decided last week to approve a new drought emergency order. The new emergency order reduces the amount of water required to be in certain reservoir lakes used by PEC to cool its generators. Before the new emergency order was implemented, PEC officials said the reduced water supply could put its members at risk. To read more about the LCRA’s decision, click here.

Oklahoma, Kansas Face Power Line Shortage During Oil and Gas Boom

Tue, 27 Nov 2012 14:05:00 GMT

The developers working in the oil and natural gas fields in the Mississippi Lime formation in northwest Oklahoma and western Kansas need electric generators to drill, but the electricity for these generators has proven to be insufficient in parts of the region. These rural areas do not usually have load problems, so new infrastructure needs to be built rapidly, according to Western Farmers Electric Cooperative. This coop is building 135 miles of new transmission lines in northern Oklahoma to help meet some of the new power needs. Read more here.

Wolverine and We Energies to Jointly Own Presque Isle Power Plant

Tue, 27 Nov 2012 14:03:00 GMT

Wolverine Power Cooperative and We Energies will pursue joint ownership of the Presque Isle power plant in Marquette, Michigan. This decision also included the addition of state-of-the-art emission controls at the plant. Wolverine will acquire a minority interest in the facility by funding and constructing the air quality control additions, a job estimated to cost $130 to $140 million. We Energies will continue to operate the plant as well as the air quality control system. Click here for more.

House Democrat Calls for Grid Security Legislation

Mon, 26 Nov 2012 14:06:00 GMT

Massachusetts Representative Ed Markey, a top House Democrat, has called on the House Energy and Commerce Committee’s Republican chairman, Michigan Representative Fred Upton, to help corral GOP support and pass an electrical grid security bill the pair co-sponsored. Markey says that physical and cyber threats to power infrastructure were increasing and that the Grid Reliability and Infrastructure Defense Act, or GRID Act, is critical to guard against known risks to the nation’s electrical system. GRID, H.R. 5026, was introduced during the last Congress and would direct the Federal Energy Regulatory Commission to issue regulations to protect the nation’s grid from cyber attacks and other security breaches. The full story is available here (subscription required).

Federal Judge Clears the Way for Alaskan Coal Plant

Mon, 26 Nov 2012 14:05:00 GMT

A federal judge has approved an agreement among the U.S. Environmental Protection Agency, the state of Alaska and an Alaskan power company that will allow a coal plant to reopen by 2015. Under the agreement, Golden Valley Electric Association agreed to install the most rigorous emission controls available on coal-fired electric generating units at the Healy Clean Coal Plant at an estimated cost of $40 million and will also install additional nitrous oxide controls on a second unit at the plant, which is estimated to cost about $5 million. Additionally, the coop will pay $250,000 to help fund the Fairbanks North Star Borough and Denali Borough Woodstove Change-out program, which it said will help alleviate the particulate matter problems in the interior portion of the state. The full story is available here (subscription required).

Department of Energy and Western Area Power Administration Issue New Proposals on Hydropower

Mon, 26 Nov 2012 14:03:00 GMT

On November 27, the U.S. Department of Energy and the Western Area Power Administration’s joint outreach team laid out a set of proposals in a Federal Register notice that are aimed at reforming Western’s hydropower marketing amid electrical grid upgrades. The DOE and Western say their recommendations would improve Western’s operations and optimize its transmission services but some lawmakers assert that the measures will drive up electricity prices. The new proposals are the result of a directive from DOE Secretary Steven Chu calling on Colorado-based Western and the other three power marketing administrations — the agencies that oversee the nation’s hydropower distribution — to update their strategic and capital plans to accommodate grid upgrades. The proposals are open for public comment until January 22. The full story is available here (subscription required).

Cost of Transporting Coal on the Rise

Mon, 26 Nov 2012 14:01:00 GMT

According to a new study conducted by the U.S. Energy Information Administration (EIA), power plant owners are paying nearly 50 percent more to haul coal to their units than they did a decade ago. The EIA’s annual analysis of coal transportation costs said electric generators spent an average of $17.25 per ton in 2010, a 46 percent hike from $11.83 per ton in 2001. Most of the cost increase was attributable to freight railroads. In fact, the long distances involved in transporting coal from certain source areas means that hauling coal can cost more than the coal itself. Click here for more on this story.

Federal Analysts Find that Natural Gas Costs are Climbing

Mon, 19 Nov 2012 18:07:00 GMT

According to federal analysts at the Energy Information Administration (EIA), historically low natural gas prices are starting to increase. The EIA is projecting an average 22 percent jump in the price of natural gas delivered to generators in 2013. The agency reports that record-high natural gas inventories are expected to decline, leading to tighter demand and higher prices as the heating season approaches. Spot market prices for natural gas will average about $3.49 per million BTU in 2013, up from $2.77 per million BTU in 2012, and the average cost of coal is likely to increase by only 1 percent. Read more here.

Two Illinois Coops Plan to Merge

Mon, 19 Nov 2012 18:06:00 GMT

Members of Farmers Mutual Electric Company approved a merger with fellow electric cooperative Jo-Carroll Energy, Inc. last Tuesday. Under the agreement, Farmers Mutual members will become members of Jo-Carroll Energy. Jo-Carroll Energy’s bylaws do not require its members to vote on a merger with another coop. Farmers Mutual will return $936,000 in capital credits to its members over a two-year period, the release said. Click here for more.

Some Members Challenge Rate Increases in Wake of Utility Merger

Fri, 16 Nov 2012 16:21:00 GMT

Following the merger of Central Vermont Public Service with and into Green Mountain Power, two members of the surviving Green Mountain Power are protesting certain transmission-related rate increases before the Federal Energy Regulatory Commission. Although the rate increases are to be phased-in over time, the new transmission rates represent an increase of more than 75 percent. According to Green Mountain Power spokeswoman, Dottie Schnure, the new rates address the fact that the two member coops challenging the increase have been paying under-market rates subsidized by Green Mountain Power’s other members. Burlingtonfreepress.com has the full story.

Member Cooperatives Considering Legal Action Over Rate Hike

Fri, 16 Nov 2012 16:13:00 GMT

Three member cooperatives of Tri-State Generation and Transmission Association Inc. (Tri-State) have objected to a 4.9 percent wholesale rate increase by filing a written complaint with the New Mexico Public Regulation Commission. The Santa Fe New Mexican is covering this story.

Dairyland Power Coop Rebuilding Transmission Line

Wed, 14 Nov 2012 17:40:00 GMT

In September, Dairyland Power Cooperative (Dairyland) began a $22.5 million project to rebuild the 65-year-old, 20-mile Q1 transmission line that provides power to La Crosse, Wisconsin, and its surrounding areas. The project includes the addition of steel poles and a new conductor and foundations. Dairyland officials said that when the project is completed, it will eliminate overloading and greatly increase the transmission line’s efficiency. Read more here.

New Partners Sought for Wolf Creek Nuclear Power Plant

Tue, 13 Nov 2012 14:47:41 GMT

Kansas City Power & Light Co. and Kansas Electric Power Cooperative, two of the owners of the Wolf Creek Nuclear Power Plant located near Burlington, Kansas, are seeking new partners to help operate the plant. Citing operational issues such as extended outages and increased regulatory oversight as reasons, the owners are soliciting proposals to fill this role. Click here for more.

Border Facility Finally Getting Power

Mon, 12 Nov 2012 13:40:58 GMT

A new outpost to house U.S. Customs and Border Protection officers and Border Patrol agents in southern New Mexico is finally getting a power line upgrade from the Columbus Electric Cooperative in Deming. The project has experienced a year-long delay because federal planners failed to make sure the local power coop could provide enough electricity. It wasn’t until final construction plans were in place that the U.S. Army Corps of Engineers realized the new facility would require more than twice the amount of electricity than the old power system could provide. The outpost is expected to open early next year but the delay has added an extra $500,000 to the project’s $15.6 million price tag. Click here for more.

Kentucky PSC Accepts Settlement in Big Sandy RECC Rate Case

Wed, 07 Nov 2012 13:53:00 GMT

The Kentucky Public Service Commission (PSC) accepted a proposed settlement in a rate adjustment case filed by Big Sandy Rural Electric Cooperative Corporation (Big Sandy RECC). The agreement allows Big Sandy RECC to receive its requested 3.7 percent increase in annual revenue. However, less of this increase will come from flat monthly customer charges and more will come from usage-based energy charges. Big Sandy RECC will also be required to continue its existing demand-side management and energy efficiency programs and expand those programs in the future. Click here for the full press release.

MFA Oil Acquires Propane Business of Two Missouri Regional Electric Cooperatives

Wed, 07 Nov 2012 13:49:00 GMT

Platte-Clay Electric Cooperative and United Electric Cooperative, Inc. recently sold their propane businesses to MFA Oil, a farmers cooperative based in Columbia, Missouri. The propane businesses, originally formed as a response to electricity deregulation, no longer fit with the business plans of the electric cooperatives. Read more here.

Power Wholesaler Predicts Slow Growth in Energy Demand

Mon, 05 Nov 2012 15:23:00 GMT

According to a planning outlook filed with state regulators last week, Great River Energy (GRE), a large power wholesaler to Minnesota coops, projects slow growth in electrical demand and no need to build new power plants for at least 15 years. The Maple Grove-based utility is the state’s second-largest electricity producer behind Xcel Energy. GRE supplies power to 28 retail cooperatives serving 645,000 customers from the Arrowhead region to southwest Minnesota, including the outer suburbs of the Twin Cities. The StarTribune has more.

Nevada Coop Wins Bid to Supply Government Site

Mon, 05 Nov 2012 15:20:00 GMT

Valley Electric Association, Inc. recently won a bid to provide power to the Federal Radiological Monitoring and Assessment Center—the former test site where hundreds of nuclear weapons were tested—and other facilities at the Nevada National Security Site. The nearly 1,400-square-mile installation, one of the most secure government installations in the world, is larger than the state of Rhode Island. Click here to read more about the terms of the parties’ contract.

Golden Valley Electric Association Wind Farm Produces Power

Thu, 01 Nov 2012 15:50:00 GMT

The largest wind project in Alaska began producing power this week in a key milestone toward beginning commercial operation. The $93 million project called the Eva Creek Wind Farm near Healy, Alaska, is part of Golden Valley Electric Association’s (GVEA) plan to produce 20 percent of its power from renewable sources by 2014. The project is expected to produce 77 million kilowatt-hours per year and could save consumers more than $10 million over the next 20 years. To read more about the Eva Creek Wind Farm project, click here.

Louisiana PSC Approves Contract Extensions

Thu, 01 Nov 2012 15:46:00 GMT

The Louisiana Public Service Commission (PSC) has approved an 11-year contract extension for Louisiana Generating to provide power to two cooperatives, Claiborne Electric Cooperative, Inc. (Claiborne) and Washington - St. Tammany Electric Cooperative, Inc. (WSTE), through 2025. The two cooperatives combined have contracted for more than 450 megawatts of peak electrical power for their customers. Claiborne and WSTE both attribute their ability to charge competitive residential rates to their respective contracts with Louisiana Generating. Click here to read more about the approval of these contract extensions.

Coops Lend Aid to Others in Sandy Aftermath

Thu, 01 Nov 2012 15:41:00 GMT

In the aftermath of Hurricane Sandy, cooperative crews have banded together to help restore service to the millions of people who were affected by the massive storm. Crews from the Gulf Coast, Midwest and Southeast were dispatched to the areas in the mid-Atlantic and New England where service was disrupted due to the storm. Arkansas Electric Cooperative Inc. (AECI), based in Little Rock, Arkansas, is one of many coops that have sent crews and equipment to assist efforts to restore power. According to Pat McClafferty, vice president of utility sales and services for AECI, cooperatives “have a strong tradition of pulling together to help others in times of crisis.” For more information and a state-by-state update on the efforts to restore service, click here.

Electrical Demand Expected to Triple in the North Dakota Oil Patch

Wed, 24 Oct 2012 18:30:00 GMT

The Mountrail-Williams Electric Cooperative (MWEC) in North Dakota will energize six new substations today in an effort to keep up with rapidly increasing demand spurred by increased oil production in the state. According to a recent study, the electrical demand in the Williston Basin and surrounding areas is expected to triple by 2032. MWEC reported that it has seen its peak load grow from 30 megawatts to nearly 200 megawatts in just the past five years. This demand is projected to grow between 800 and 900 megawatts by 2025. To read more about the oil industry’s impact on electrical demand in the area, click here.

Georgia Coop Protects Endangered Fish

Wed, 24 Oct 2012 18:16:00 GMT

Georgia Transmission Corporation (GTC), based in Tucker, GA, and federal wildlife officials have partnered together to protect the Cherokee darter, a one- to two-inch fish, by preventing sediment from entering its primary habitat. The fish, which has been on the U.S. Fish and Wildlife Service’s Endangered Species List since 1994, is found only in streams in the Etowah River basin, which are located in two counties of GTC’s service area. Read more here.

Hawaii Coop Reveals Solar Facility Progress

Tue, 23 Oct 2012 16:06:00 GMT

Kaua’i Island Utility Cooperative of Hawaii is building a $40 million, 12-MW solar project on 67 acres on the south side of its island territory. The project site, a former sugar cane farm, will be leased from the Grove Farm Co. The coop hopes to obtain the necessary regulatory approvals by July 2013, and the goal is to have the site online by late 2014. Read more on this story here.

CFTC Provides Temporary Exemption for Coops

Tue, 23 Oct 2012 16:05:00 GMT

The Commodity Futures Trading Commission (CFTC) has passed a temporary “no-action relief” provision exempting most transactions among and between electric coops and other not-for-profit electric utilities from most Commodity Exchange Act regulations. Deals exempted include those involved with the physical delivery of electricity, generation capacity, transmission services, fuel, and environmental rights and attributes. Certain cross-commodity transactions and other goods and services also are included. This exemption is currently effective until March 31, 2013. Read more here.

Lowell Mountain Wind Project Survives Legal Challenge

Mon, 22 Oct 2012 18:13:00 GMT

Green Mountain Power and Vermont Electric Cooperative, Inc. can proceed with the construction of an industrial wind project on Lowell Mountain, as the Vermont Supreme Court has dismissed a legal challenge to the project. The 21-turbine Kingdom Community Wind project is due to come on line in December 2012. The project’s challengers, Lowell Mountains Group Inc. and the towns of Albany and Craftsbury, Vermont, claimed the project ignored or departed from plans to minimize environmental disruption. The Supreme Court disagreed, upholding the project's certificate of public good, granted last year by the Public Service Board, which determined that the wind farm's benefits outweighed its negative impacts. Burlingtonfreepress.com has more on the story.

Texas Coop Finalizes Financing for Biomass Plant

Mon, 22 Oct 2012 18:10:00 GMT

East Texas Electric Cooperative, based in Nacogdoches, Texas, has finalized long-term financing for a 49.9-MW biomass plant currently under construction. The coop will fund the project with $55 million in Clean Renewable Energy Bonds issued by the National Rural Utilities Cooperative Finance Corporation and a loan from the Rural Utilities Service through the Federal Financing Bank. Click here for more.

Public Regulation Commission Rescinds Internet Spin-off Order

Wed, 17 Oct 2012 17:24:00 GMT

On October 16, the Public Regulation Commission (PRC) voted to rescind an order it made last year requiring Kit Carson Electric Cooperative (Kit Carson) to spin-off its Internet division in order to protect electric ratepayers from potential losses. Kit Carson did not provide official notice of the PRC order to the Rural Utilities Service (RUS), and as a result, RUS instituted a funding freeze on Kit Carson’s $64-million broadband project. Kit Carson officials are hopeful that the rescission of the PRC’s order will lift the funding freeze. Click here for more.

Ninth Circuit Upholds Power Rate Contract

Wed, 17 Oct 2012 17:18:00 GMT

On October 16, the Ninth Circuit denied requests by utility cooperatives to review a power rate contract between Alcoa, Inc. (Alcoa) and Bonneville Power Administration (BPA). The coops argued that BPA was selling power to Alcoa at the statutorily mandated industrial firm power rate, thereby forgoing profits that could have been used to lower rates to its customers. The Ninth Circuit held that BPA is not required by law to maximize its profits and that BPA’s decision not to sell power to Alcoa at the market rate was not arbitrary and capricious. To read more about the Ninth Circuit’s decision in this case, click here (subscription required).

An Activist Framework for Cybersecurity Oversight

Tue, 16 Oct 2012 12:16:00 GMT

Three recent initiatives by different arms of the federal government intended to help combat cyber threats to the nation’s critical energy infrastructure reveal an activist approach to regulating cybersecurity. At this juncture, it is difficult to ascertain the legal and political ramifications of the three initiatives, but members of the energy sector should pay attention — the current legislative impasse will not preclude efforts to address the cybersecurity risks facing the nation’s critical energy infrastructure. Read the full Sutherland Legal Alert.

Federal Grants to Boost Smart Grid Development

Mon, 15 Oct 2012 17:11:00 GMT

The U.S. Department of Agriculture (USDA) recently announced $134 million in grant funding for rural electric coops and utilities to develop smart grid technologies. These funds will be added to the $250 million in financing announced by the USDA in August. (See previous Sutherland Coop team reports on this USDA grant funding from August 6, August 10, September 10, October 5 and October 9, 2012.). To read more about the rural utilities set to receive federal funding, click here.

Increased Solar Access on Horizon for Texas Coop

Mon, 15 Oct 2012 16:53:00 GMT

Pedernales Electric Cooperative, Inc. (Pedernales) plans to boost its solar generation portfolio beginning with new pilot programs in 2013. The programs will offer interested coop members the option to purchase a portion of large-scale solar projects or lease rooftop solar panels as part of Pedernales’ efforts to attain 30 percent of its generation requirements from renewable resources. Click here for more.

Shippers Push Against Increased Coal Dust Costs

Mon, 15 Oct 2012 16:48:00 GMT

The National Rural Electric Cooperative Association (NRECA) was among the filers opposing a BNSF Railway tariff that would cost shippers $50 to $150 million annually to control coal dust from rail cars. In the filings, submitted to the Surface Transportation Board, opponents argued that these costs are unreasonable and result in double-payment obligations for shippers. Read more here.

NRECA Supports Delay of Dodd-Frank Rulemakings

Thu, 11 Oct 2012 17:17:00 GMT

The National Rural Electric Cooperative Association (NRECA) filed comments requesting that the Commodity Futures Trading Commission delay the effective dates of its rulemakings implementing new financial reform under the Dodd-Frank Act. The NRECA noted that no-action relief is necessary while uncertainty surrounding the rules and regulations persist. Without such relief, market liquidity may suffer and result in higher energy prices. Read the full story here.

Nonpublic Electric Utilities Subject to FERC Quarterly Reports

Thu, 11 Oct 2012 16:57:00 GMT

The Federal Energy Regulatory Commission (FERC) will begin requiring certain nonpublic electric utilities to submit Electric Quarterly Reports (EQRs) providing details on their energy and capacity transactions. Sales by electric coops to their members are excluded from the reporting requirement, which should be in effect by the third quarter of 2013. Click here for more (subscription required).

Sutherland Coop Webinar Series – Webinar III: Natural Gas Transactions

Wed, 10 Oct 2012 13:04:00 GMT

With natural gas prices at historic lows and unconventional domestic supplies on the rise, natural gas usage is increasing for power generation. In Sutherland’s Electric Cooperative Webinar Series, “Natural Gas Transactions,” on October 9, 2012, David Wochner highlighted optimal transportation and storage arrangements available for natural gas and related regulatory and compliance issues. Click here to access a copy of the event recording or a PDF copy of the presentation.

NHEC Says Smart Meters Do Not Infringe on Privacy

Wed, 10 Oct 2012 13:01:00 GMT

Residents in Bristol, New Hampshire, have spoken out regarding their opposition to the installation of smart meters in their homes, claiming that such meters are an invasion of privacy. The residents, groups such as the New Hampshire Coalition Against Smart Meters, and even state representatives claim that information about individual device use may be obtained with these smart meters. The New Hampshire Electric Cooperative (NHEC) has refuted these claims, stating that these smart meters cannot record anything other than the amount of electricity being used by an entire household. NHEC has nearly completed its installation of roughly 83,000 smart meters in its service territory, which it began in June 2011. Click here for the full story.

NRECA Recommends Amendments to the USDA Efficiency Plan

Tue, 09 Oct 2012 16:52:00 GMT

The National Rural Electric Cooperative Association (NRECA) has announced its support for the proposed Energy Efficiency and Conservation Loan Program, an Agriculture Department initiative that would fund electric coops to help rural residents with the upfront cost of energy-efficiency upgrades. However, the NRECA caveated this support with a recommendation that the program provide enhanced flexibility and discretion. The program will initially make $250 million available to coops, which would then make microloans to members for efficiency improvements. For more information on the program and how the funding will be made available to coops, click here.

New Hampshire Coop Avoids Employee Strike

Mon, 08 Oct 2012 18:02:00 GMT

New Hampshire Electric Cooperative and its unionized employees ratified a new contract last Friday, which allowed the coop to avoid a looming strike at the utility that serves some 83,000 homes and businesses in all parts of the state. The vote to ratify the agreement came after months of negotiations between the utility and the International Brotherhood of Electrical Workers (IBEW) Local 1837 over wages and pensions. IBEW Assistant Business Manager Tom Ryan said the new agreement provides wage increases and preserves a defined benefit pension plan for new and existing employees. Click here for more.

Oklahoma Coop Becomes Latest 100-Percent CFC Borrower

Mon, 08 Oct 2012 18:00:00 GMT

Cimarron Electric Cooperative (Cimarron Electric), based in Kingfisher, Oklahoma, has closed on long-term financing from the National Rural Utilities Cooperative Finance Corporation (CFC), becoming the CFC’s latest 100-percent borrower. Cimarron Electric has enjoyed continued growth in the past few years due to renewed oil and gas production and saw CFC as a useful partner in helping it meet increasing demand from members. The coop’s annual growth has equaled 18 percent in the past two years, greatly outpacing its typical annual growth, which averages 2.5 percent. Click here to read more about this financing agreement.

Alaskan Coop to Restart Coal Facility

Fri, 05 Oct 2012 16:24:00 GMT

After reaching an agreement with federal regulators over an air permit, Golden Valley Electric Association plans to restart the 50-MW Healy Clean Coal Plant. While restarting the plant will require additional pollution controls and other work, the coop plans to have the plant online within 18 to 24 months. Restarting the plant is part of the coop’s long-term plan to move away from the use of oil-fired generation. Read more here.

USDA Announces Continued Funding and Support for Rural Electric Systems

Fri, 05 Oct 2012 16:22:00 GMT

In a speech before the National Rural Electric Cooperative Association, Under Secretary for Rural Development Dallas Tonsager announced that the U.S. Department of Agriculture (USDA) will continue to make funding available for modernization and efficiency improvements, including smart grid technologies. This annoucement follows USDA’s success in meeting its goal to finance $250 million in smart grid technologies in fiscal year 2012. For a list of projects beings supported by the USDA, see the full press release.

Wisconsin Coop Receives Huge Federal Loan Guarantee for Renewable Power

Thu, 04 Oct 2012 18:23:00 GMT

Dairyland Power Cooperative (Dairyland) was awarded a $261.9 million loan guarantee from the federal government to reduce environmental impacts, update technology and improve distribution in a swath of the rural Midwest. Renewable energy sources make up about 12 percent of Dairyland’s electricity sales, which exceeds the state’s 2015 requirement that all Wisconsin utilities have at least 10 percent renewable generation. The loan guarantee will allow the La Crosse-based coop to add 81 miles of transmission line, increase efficiency and cut coal emissions. The guarantee also allows for $3.5 million for smart grids. The La Crosse Tribune has more on this story.

Mohave Electric Cooperative Explains Necessary Rate Increase

Wed, 03 Oct 2012 17:36:00 GMT

Mohave Electric Cooperative (MEC) has explained its recent rate increase, stating that it was necessary in order to accommodate increased operating expenses. MEC’s new system has a tiered rate structure, which will yield a higher rate when more power is used, a practice commonly used by power companies. Read more here.

North Dakota’s Electricity Case against Minnesota Survives First Legal Challenge

Wed, 03 Oct 2012 17:34:00 GMT

A federal judge has ruled that the state of North Dakota’s case against Minnesota can move forward, as North Dakota has a “plausible” claim that a 2007 Minnesota energy law is invalid due to preemption by federal law. Minnesota’s Next Generation Energy Act bars new coal-fired power plants in Minnesota and restricts out-of-state imports of new coal-based power generation unless the carbon dioxide is offset with reductions elsewhere. North Dakota filed suit because the law hinders its ability to utilize its deposits of lignite coal to generating electricity in new power plants and sell such electricity across state lines. Read more here.

Kentucky PSC Accepts Settlement in Big Rivers Environmental Case

Wed, 03 Oct 2012 17:33:00 GMT

The Kentucky Public Service Commission (Kentucky PSC) has accepted a regarding a proposed environmental compliance plan and environmental surcharge request submitted by Big Rivers Electric Corporation (Big Rivers). Under the proposed plan, Big Rivers will not be required to construct the most costly emission control projects from its original plan, reducing the total cost from $283.5 million to $58.5 million. This decrease will greatly lessen the associated rate increases. Most of the changes in the plan occurred due to a federal court decision overruling certain U.S. Environmental Protection Agency emission control rules. Read more on this story here.

New Hampshire Electric Coop Lineworkers Threaten Strike

Tue, 02 Oct 2012 19:24:00 GMT

The union representing New Hampshire Electric Cooperative lineworkers says it is considering a strike after 117 bargaining sessions have failed to result in an agreement in the renegotiation of the lineworkers’ contract. The dispute involves wage and pension issues, and negotiators are scheduled to meet again Thursday. Read more here.

PSC Examines Smart Grid and Smart Meter Opportunities

Tue, 02 Oct 2012 19:22:00 GMT

The Kentucky Public Service Commission (PSC) is examining Smart Grid technologies, to include smart meters and electric prices that are tied to the time of usage, through an administrative proceeding. All electric utilities in Kentucky have been named as parties to the proceeding. For more on this story, including the complete list of utilities, click here.

California ISO Approves Participation by Nevada Coop

Mon, 01 Oct 2012 19:41:00 GMT

The California Independent System Operator (California ISO) recently approved Nevada-based Valley Electric Association, Inc.’s (VEA) participation agreement to join the California ISO in January 2013. VEA is the first utility outside of California to join the regional market. The coop’s renewable generation portfolio will be used to satisfy California’s aggressive renewable energy standards, which requires California utilities obtain 33% of their power from renewable sources by 2020. Click here for the full story.

NRECA Supports Expansion of the “Small Business” Definition

Mon, 01 Oct 2012 19:37:00 GMT

The National Rural Electric Cooperative Association (NRECA) commented on the Small Business Administration’s proposed update to the definition of a “small business,” expressing the need for a size standard based on the number of employees and specific sector of the energy industry. Coops currently classified as small businesses will not be affected by any new standard, but additional coops that do not currently qualify may fall within the four corners of the definition, which is critical to how coops are viewed by other federal regulatory agencies. Read more here.

Patent Litigation Defense Center for Innovatio Claims

Mon, 01 Oct 2012 19:34:00 GMT

We are pleased to announce the launch of the Patent Litigation Defense Center for Innovatio Claims. Sutherland Asbill & Brennan LLP defends clients against claims brought by the entity Innovatio IP Ventures, LLC, a non-practicing entity that contends it controls the patents on some of the most common means of wireless data transmission in commercial use today, including wireless internet "hot spots," WLAN networks and mesh technology. To learn more please click here.

FERC Receives Mixed Responses Over Proposed Change in Merchant Transmission Policy

Wed, 26 Sep 2012 16:58:00 GMT

The Federal Energy Regulatory Commission (FERC) has received mixed responses over its proposed change in policy regarding merchant transmission project capacity allocation. The proposed policy would allow merchant transmission project developers to bilaterally negotiate market-based, rather than cost-based, rates for up to 100 percent of their projects’ capacity. If implemented, this proposal would eliminate the open season process, which requires the merchant project owners to offer project capacity at the same price to every customer. While several power companies were supportive of the proposal, the National Rural Electric Cooperative Association, which represents more than 900 not-for-profit rural electric utilities, filed an objection with FERC, expressing concern over the bias that could result from eliminating the open season requirement. Read more here.

Electricity Groups Claim New CFTC Reporting Rules Too Confusing

Wed, 26 Sep 2012 16:54:00 GMT

The National Rural Electric Cooperative Association (NRECA) and two other electricity trade groups sent a letter to the US Commodity Futures Trading Commission (CFTC) earlier this week complaining about new reporting rules for traders of physical commodities and commodity derivatives. The groups claim that the new rules, particularly the new form that traders will be required to file with the CFTC, contain confusing language and complex regulatory terms and concepts. The groups are seeking to persuade the CFTC to ease the regulatory burdens created by the new rules for certain groups. Read the full story here.

Missouri Coop Sued for Breach of Contract

Tue, 25 Sep 2012 16:04:00 GMT

Atlantic Engineering Group, Inc. (AEG) filed a complaint this week in a Missouri district court against Ralls County Electric Cooperative (RCEC) for breach of a construction agreement related to the Ralls County Electric Fiber-to-the-Home Project. AEG is suing for the unpaid balance plus interest under the contract. Read the complaint here.

Oklahoma Coops Race to Accommodate Increased Load Due to Oil and Gas Boom

Tue, 25 Sep 2012 15:20:00 GMT

Oklahoma coops are seeing their loads double, and triple in some cases, due to the growing oil and gas industries. Kay Electric Cooperative, for example, currently serves 80 megawatts, which is about double the size of its load two years ago, and projects its possible growth to 400 megawatts over the next two years. Coops are also under pressure to add new infrastructure-like substations and transmission to meet the booming demand. Read more here.

APSC Dismisses Class Action Complaint against Carroll Electric

Tue, 25 Sep 2012 15:10:00 GMT

The Arkansas Public Service Commission (APSC) has dismissed a class action complaint against Carroll Electric Cooperative Corporation (Carroll Electric) filed on behalf of all Carroll Electric’s members. The complaint sought declaratory and injunctive relief for a number of what plaintiffs say are violations of Carroll Electric against its own bylaws and against contract law. These alleged violations included concealment and withholding of patronage capital, unjust enrichment of board members, "incompatible" accounting practices, withholding of access to books, records, meeting minutes and mailing lists, and use of herbicides without member input and in violation of rights-of-way. Carroll Electric asserted, and the ASPC agreed, that, under state law, the ASPC has no jurisdiction over any of the complaints against Carroll Electric except in the matter of patronage capital. However, the ASPC also declined to treat the matter of patronage capital as a class action because any relief awarded regarding the retirement of patronage capital would extend to all members. Read the full story here.

CFC Report Provides National Overview of Renewable Energy Projects

Tue, 25 Sep 2012 15:05:00 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) provided a report on the progress of various renewable energy projects at the National Renewables Cooperative Organization’s (NRCO) September meeting. John List, the CFC senior vice president of Member Services, discussed the funding behind current and future renewable energy projects. Mr. List reported that since 2008, CFC has provided funding for more than 60 electric cooperative renewable projects in 22 states. The majority of CFC-funded projects are biomass projects at 41 percent, followed by solar projects at 25 percent of funding and wind projects at 13 percent. The remainder of funding is spread between hydropower, landfill gas and geothermal projects. To read more about the development of these projects, click here.

FERC Launches New Cybersecurity Office

Fri, 21 Sep 2012 11:14:00 GMT

The Federal Energy Regulatory Commission (FERC) is creating a new office to address cyber and physical security risks to FERC-jurisdictional facilities, such as electric generation and transmission facilities, oil and gas pipelines, and LNG terminals. The new Office of Energy Infrastructure Security (OEIS) will rely on FERC’s existing statutory authority in providing “leadership, expertise and assistance” to identify and mitigate such risks. While electric utilities will be familiar with FERC’s efforts to address cybersecurity risks, such oversight will be new to companies in the oil and gas sectors. Read the full Sutherland Legal Alert.

Plan to Bury Transmission Lines Met With Opposition from Mid-Atlantic Coops

Thu, 20 Sep 2012 16:14:00 GMT

Old Dominion Electric Cooperative and North Carolina Electric Membership Corporation are among the wholesalers disputing whether they must help pay to bury three Virginia transmission lines as currently proposed by the Virginia Electric and Power Co. in transmission rate agreements with the wholesalers. The wholesalers argue that burying the lines is a purely local retail decision that provides no benefits to the wholesales. Read more here (subscription required).

Utility Coop Reaches Critical Supply Agreement

Wed, 19 Sep 2012 17:26:00 GMT

Golden Valley Electric Association (GVEA) and BP Exploration have reached a natural gas supply contract, which will allow GVEA to purchase up to 23 billion cubic feet (bcf) of natural gas per year. Since GVEA will likely not use more than 3.5 bcf of natural gas for local generation, the remaining gas will be available for other distribution purposes. The agreement represents an important step toward implementing GVEA’s plan to truck natural gas to the Fairbanks area and provide additional gas to the Interior. Read more here.

New Mexico Coop Sued for Property Damages Resulting from Fire

Wed, 19 Sep 2012 17:20:00 GMT

Jemez Mountains Electric Cooperative (JMEC) has been sued in New Mexico state court by three landowners as a result of the 2011 Las Conchas Fire. The fire, which burned over 150,000 acres of land and destroyed 63 homes, was sparked after a fallen tree knocked down a power line owned by JMEC. The complaint alleges that JMEC was negligent and violated state law by failing to protect its power lines against the dangers of falling trees. The Santa Fe New Mexican has the full story.

Coop Affected by Court’s Grant of EPA Request to Stall MACT Lawsuits

Tue, 18 Sep 2012 17:15:00 GMT

A federal appeals court has granted the U.S. Environmental Protection Agency’s (EPA) request to hold pending lawsuits over its utility maximum achievable control technology (MACT) air toxics rule in abeyance until the EPA completes its reconsideration of the rule. The lawsuits being held in abeyance were filed by developers of new power plants, including Deseret Power Electric Cooperative. As a result of the court’s decision, these developers have become concerned that performing the requirements under the utility MACT rule could limit the ability to claim a waiver from the EPA for the proposed greenhouse gas NSPS. They are also concerned that the EPA’s reconsideration is broad enough to warrant the court scrapping the rule altogether. Read more here (subscription required).

Sutherland Coop Webinar Series – Webinar II: Current Issues in Energy Trading Agreements

Fri, 14 Sep 2012 15:18:00 GMT

David McIndoe, Tom Warren and J.J. Kubicek discussed current topics in master agreements for physical and financial energy trading and highlighted best practices and pitfalls in negotiating ISDA, EEI and NAESB Agreements. The presentation included issues raised by new rules under the Dodd-Frank Act. To view the webinar, click here.

NRECA Recommends Approval of Revised “Bulk Electric System” Definition

Thu, 13 Sep 2012 15:41:00 GMT

The National Rural Electric Cooperative Association (NRECA) recently submitted a filing with the Federal Energy Regulatory Commission (FERC) (Docket Nos. RM12-6, RM12-7) supporting the revised definition of the term “Bulk Electric System” as approved by the North American Electric Reliability Corporation (NERC) in January. The NRECA noted that the revised definition would better focus regulatory resources and more clearly identify those entities subject to the NERC Reliability Standards. Read the full story here.

MPSC Orders Opt-Out Right for Smart Meters

Thu, 13 Sep 2012 15:34:00 GMT

Due to cost concerns raised by customers, the Michigan Public Service Commission (MPSC) has ordered certain investor-owned electric utilities to provide an opt-out option for Advanced Metering Infrastructure (AMI), based on cost-of-service principles, for their customers if the utility elects to implement AMI. The entire order, including the list of applicable electric utilities, can be found here.

Refurbished Montana Plant Goes Online

Mon, 10 Sep 2012 17:08:00 GMT

The city of Whitefish, Montana, once again has its own hydroelectric plant. Last year, city officials negotiated a deal with an electric cooperative that outlined power delivery terms for a 20-year period, in two separate phases. The 30-year-old plant, which was recently rebuilt, now has a refurbished generator, turbine and controls. Flathead Electric Cooperative paid the city $400,000 in advance for energy to be generated and delivered to the power grid during the first phase. A $200,000 American Recovery and Reinvestment Act grant provided through the Montana Department of Environmental Quality was also used to rebuild the hydroelectric facility. The Daily Inter Lake has more on this story.

USDA Meets Goal for Smart Grid Funding

Mon, 10 Sep 2012 17:03:00 GMT

Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture has reached its $250 million goal to finance smart grid technologies. The Secretary also said that nine rural electric cooperatives and utilities in 10 states will receive loan guarantees to make improvements to generation and transmission facilities and implement smart grid technologies. Click here to read more about the ongoing smart grid funding.

CFC Annual Report Shows High Performance Among Coops

Mon, 10 Sep 2012 16:51:00 GMT

Electric coops performed well against a backdrop of challenging economic times in 2011, according to the G&T Key Performance Indicators (KPI) report by the National Rural Utilities Cooperative Finance Corporation (CFC). Energy sales and peak growth slowed in 2011, while wholesale rates continued to increase. The report shows that, over the last five years, the median G&T reported a 15.9-percent increase in total cost of service per kilowatt hour sold. To read more about the trends among coops, click here.

Western Coop to Cut Costs Based on Consultants’ Report

Fri, 07 Sep 2012 14:54:00 GMT

The board of financially distressed Jemez Mountains Electric Cooperative has voted to enact several measures identified in an operational assessment prepared by Henry Cano of the National Rural Electric Cooperative Association and two other consultants with solid coop experience. While the details of the plan have not yet been made public, the plan purportedly involves some layoffs, a rate increase and cutting expenses on items such as travel. Some board members had concerns and did not vote in favor of the measures. The Rio Grande Sun has the full story.

DOE Plans to Change PMAs Met with Opposition

Wed, 05 Sep 2012 16:34:00 GMT

The National Rural Electric Cooperative Association (NRECA) is among the opponents to the Department of Energy’s March 16 directive to alter the roles of the four federal power marketing administrations (PMAs). The directive would require that, among other things, PMAs design new rate structures, incentivize renewable energy development and expand transmission for third parties. NRECA argued that the directive could violate the PMAs’ statutory requirement to charge cost-based rates. Electric Co-op Today has more.

New Mexico Coop Utilizes Unique Generation Facility

Wed, 05 Sep 2012 16:32:00 GMT

Lea County Electric Cooperative, Inc. (Lea County) constructed a 47-MW, gas-fired generation facility that can tap into a nearby 27-MW wind farm, the first tie-in of its kind in the country. The setup will help Lea County meet New Mexico’s upcoming renewable portfolio standard while preserving reliable service. Click here for the full story.

Coops Assist in Hurricane Issac Restoration Efforts

Fri, 31 Aug 2012 15:24:00 GMT

Coops from across the Southeast have sent repair crews to areas affected by Hurricane Issac. A wide variety of coops, both those directly affected by the storm and otherwise, are lending a hand to help restore power to more than 1 million people, including 200,000 coop members, who lost power as a result of the storm. Electric Co-op Today has the full story.

Permitting Issue for Coal Plant Headed to Kansas Supreme Court

Fri, 31 Aug 2012 15:22:00 GMT

A plan by Sunflower Electric Power Corporation to build a 895-MW, coal-fired plant near Holcomb, Kansas, faces continuing opposition from the Sierra Club over environmental permitting issues. The coop and Tri-State Generation and Transmission Association, Inc., which plans to buy a significant amount of energy from the plant, are hopeful that the permitting issues can be resolved. The Wichita Eagle is following this story.

Coop to Fund Energy Optimization Plan Through Retirement of Capital Credits

Fri, 31 Aug 2012 15:20:00 GMT

In a recent order issued by the Michigan Public Service Commission, Cherryland Electric Cooperative received approval for its energy optimization plan. According to its July 30, 2012, application, the coop plans to retire some of each participating member’s capital credits to fund the energy optimization efforts. See the order for more on the coop’s program and funding mechanisms.

LCRA Withdraws Request for Temporary Injunction

Thu, 30 Aug 2012 17:14:00 GMT

The Lower Colorado River Authority (LCRA) has withdrawn its request for a temporary injunction that would have prevented Central Texas Electric Cooperative (CTEC) from terminating an exclusive power agreement precluding CTEC’s purchase of power in the open market. CTEC plans to purchase less expensive power beginning September 13. The full story can be found here.

Prairie State Customers Paying More than Planned

Thu, 30 Aug 2012 17:12:00 GMT

Customers receiving energy from the Prairie State Energy Campus in Washington County, Illinois, are being charged 40 to 100 percent more for energy than originally planned. Approximately 95 percent of the 1,600-MW coal-fired plant is owned by 217 municipalities and 17 electric membership cooperatives in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, Virginia and West Virginia. Click here for additional details.

Proposed CFTC Order to Exempt Coops from Regulations

Thu, 30 Aug 2012 17:10:00 GMT

The Commodity Futures Trading Commission (CFTC) has proposed an order that would exempt certain electricity transactions involving electric cooperatives from most Commodity Exchange Act regulations. The order would exempt transactions between and among coops and government-owned electric utilities, including state and municipal utilities and the federal power marketing administrations. Additional information regarding the proposed order can be found here.

Michigan Coop to be Member-Regulated

Wed, 29 Aug 2012 17:59:00 GMT

The Michigan Public Service Commission has approved the transition of Presque Isle Electric & Gas Co-op (Presque Isle) to member-regulation in accordance with a resolution adopted by Presque Isle’s board. This transition was approved once Presque Isle met all prerequisites required for exercising authority over its rates, charges, accounting standards, billing practices, and terms and conditions of service. Member-regulation will begin on Sept. 23. Click here for more information.

Georgia Coops to Help Restore Power after Hurricane

Wed, 29 Aug 2012 17:56:00 GMT

Georgia coops are swooping in to assist the Gulf Coast’s power restoration efforts in the aftermath of Hurricane Isaac. Experienced power crews from eight electric coops are being sent to parts of Mississippi and possibly Louisiana to help restore power in the areas hardest hit. Read more here.

NERC Audit Draws Concern

Wed, 29 Aug 2012 17:53:00 GMT

The Federal Energy Regulatory Commission (FERC) has approved a staff audit of the expenses of its certified electric reliability organization, the North American Electric Reliability Corporation (NERC). The coop community has expressed concerns that this oversight by FERC will hamper NERC’s ability to do its job. Click here for more.

Coop Group Announces Construction of Gas-Fired Plant

Tue, 28 Aug 2012 15:15:00 GMT

The Mid-Kansas Electric Company (Mid-Kansas), an entity comprised of five coops and one subsidiary, plans to construct a new 110-MW, gas-fired generating facility near Ulysses, Kansas. The plant will cost approximately $130 million and is estimated to be in commercial operation by April 2014. Mid-Kansas will use the facility to benefit from the future Southwest Power Pool Day 2 market as well as to address variable loads due to increased wind generation in the region. The Hutchinson News has more.

Coops among Recipients of Rural Economic Development Grants and Loans

Thu, 23 Aug 2012 18:01:00 GMT

The United States Department of Agriculture recently announced the list of recipients of grants and zero-interest loans issued through the Rural Economic Development Loan and Grant program (REDLG), and several electric coops were among the recipients. The REDLG program aims to promote economic development in rural areas. Click here for more.

NRECA Lobbies to Avoid Fee on Smart Meters

Thu, 23 Aug 2012 17:56:00 GMT

In early August 2012, the National Rural Electric Cooperative Association (NRECA) argued before the Federal Communications Commission that electric cooperatives should not be required to pay a federal fee on smart meters and smart grid technologies. The fee would go to the Universal Service Fund, which was established to provide universal telecommunications service. Click here for more information.

Federal Court Invalidates EPA Clean Air Act Rule

Thu, 23 Aug 2012 17:54:00 GMT

In a 2-to-1 ruling, the U.S. Court of Appeals for the District of Columbia Circuit struck down an EPA air quality rule related to emissions crossing state lines. The Court held that the EPA had impermissibly exceeded its authority under the rule by requiring upwind states to bear more than their share of reductions and failing to give states the opportunity handle emissions reductions through a state implementation plan, effectively dictating to the states how to achieve the emissions reductions. Click here for additional details.

Vermont Utility Merger May Lead to Higher Rates for Coop

Tue, 21 Aug 2012 18:20:00 GMT

A merger between Central Vermont Public Service Corporation and Canadian-owned Green Mountain Power , Vermont's two largest power companies, may cause retail rates to rise at one of Vermont's smallest utilities, Washington Electric Cooperative (Washington Electric). The merger will produce a new, higher transmission charge, which Washington Electric estimates will be about 1.25 percent. Read more here.

Kentucky Aluminum Plant Notifies Big Rivers of Contract Termination

Tue, 21 Aug 2012 18:17:00 GMT

Century Aluminum Company (Century) has decided to terminate its power contract with Big Rivers Electric Corporation (Big Rivers) for Century’s 480-MW aluminum smelter in Hawesville, Kentucky. Closure of the smelter, which is one of the possible outcomes of ending the power contract, has great implications for all in the area. Not only would it affect the 700 employees of the plant, but also the remaining customers of Big Rivers would have to help shoulder the millions of dollars of fixed costs associated with the contract. The coop estimates that this would require a 20 percent increase on residential customers and 21 percent on industrial customers. Click here for more.

Tennessee Coop Opens New Solar Farm

Mon, 20 Aug 2012 19:35:00 GMT

Duck River Electric Membership Cooperative (DREMC), based in Shelbyville, Tennessee, is now the first electric coop in the seven state TVA service territory to offer members access to green power through a newly constructed solar farm. The DREMC Solar Farm, located in Shelbyville, allows its members to invest in solar energy without the cost of installing or maintaining their own system. Members can invest in one unit of interest for as little as $600. Click here for the full story.

NRECA Asks EPA to Tweak Standards for Small Emergency Generators

Mon, 20 Aug 2012 19:32:00 GMT

The National Rural Electric Cooperative Association (NRECA) and a number of coops argued to the Environmental Protection Agency (EPA) that fine-tuning the standards for small emergency generators could help coops ensure that the flow of electricity to rural America remains steady and reliable. The August 9 comments will likely be the final opportunity in writing to influence EPA’s rule governing emissions and use of the devices, known as reciprocating internal combustion engines. Click here for more.

CFTC Head Issues Statement in Support of Exemption for Coops

Mon, 20 Aug 2012 19:23:00 GMT

The head of the Commodities Futures Trading Commission (CFTC) issued a statement last Friday in support of the proposed relief from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) swaps provisions for certain electricity and electricity-related energy transactions between rural electric cooperatives and federal, state, municipal, and tribal power authorities. Click here to read the full statement.

Alaska Coop Breaks Ground on New Plant

Mon, 20 Aug 2012 19:20:00 GMT

Matanuska Electric Association (MEA), Alaska’s oldest and second-largest electric cooperative, recently broke ground on a new plant site. The dual-fuel generation plant will sit on a 70-acre site northeast of Anchorage at Eklutna. MEA has been a CFC 100-percent Independent Borrower since 1995. Construction of the plant is being supported by bridge financing from the National Cooperative Services Corporation, which is an affiliate of CFC. Click here for more.

Rate Increase for New Mexico Coop Customers on the Horizon

Thu, 16 Aug 2012 16:22:00 GMT

The New Mexico Public Regulation Commission (PRC) approved a controversial rights-of-way agreement which will result in a rate increase for customers of Jemez Mountains Electric Cooperative. The PRC and members of the public had previously raised concerns that Native American tribes and other pueblos had not been properly notified of the negotiations leading up to the agreement. The Santa Fe New Mexican has more.

Colorado Coop Encourages Geothermal Installation

Thu, 16 Aug 2012 16:19:00 GMT

San Isabel Electric Association is offering rebates to customers who install geothermal heating and cooling systems. The systems are touted as being significantly more efficient at heating and cooling compared to ordinary systems. Read the full story.

Coops Team Up for Illinois Landfill Gas-to-Energy Facility

Thu, 16 Aug 2012 16:16:00 GMT

Wabash Valley Power Association and Hendricks Power Cooperative teamed up with Waste Management to construct a 3.2-MW landfill gas-to-energy facility located in Danville, Illinois. The facility is the fourth of its kind at the site and can be expanded in the future as the landfill’s methane gas generation increases. Click here for more.

Discounting of Capital Credits of Deceased Members Upheld in North Carolina

Thu, 16 Aug 2012 16:14:00 GMT

On August 8, 2012, the North Carolina Business Court held that electric cooperatives may lawfully discount capital credits of deceased members when they are retired early. The court also held that electric cooperatives do not owe a fiduciary duty to those members with respect to the timing and procedures for retiring capital credits. Read the full Sutherland Legal Alert.

Two New Patronage Capital Cases Hit Alabama Coops

Tue, 14 Aug 2012 16:47:00 GMT

Click here to read a Sutherland Legal Alert about two class action patronage capital cases that were recently filed in Alabama courts.

PRC and New Mexico Coop Face Off over Internet Spin Off

Mon, 13 Aug 2012 18:41:00 GMT

Kit Carson Electric Cooperative (Kit Carson) is pushing back against the New Mexico Public Regulation Commission (PRC) order to spin off the coop’s subsidiary Internet business. In September 2011, the PRC approved a rate increase for Kit Carson but ordered the coop to create a separate internet company within nine months based on potential liabilities associated with the its Internet and broadband services. Kit Carson is arguing that reorganizing its internet company would violate contractual obligations associated with a $64 million grant/loan from the federal government. The PRC will likely issue a procedural order in the next few weeks and a public hearing may be held next fall. Click here for more.

Kentucky Coop Becomes CFC 100-Percent Borrower

Mon, 13 Aug 2012 18:39:00 GMT

Nolin Rural Electric Cooperative Corporation, based in Elizabethtown, Kentucky, became the National Rural Utilities Cooperative Finance Corporation’s (CFC) latest 100-percent borrower. The coop took out its first loan with CFC in February 1972 and became a 100-percent borrower last month. To read more about the Nolin’s choice to become a 100-percent borrower, click here.

Iowa Nuclear Plant Will Dredge River for Water Access

Fri, 10 Aug 2012 16:54:03 GMT

The Duane Arnold Energy Center, Iowa’s only nuclear power plant which is co-owned by Central Iowa Power Cooperative and Corn Belt Power Cooperative, plans to dredge a section of the drought-stricken Cedar River to ensure access to enough water to operate the plant. Click here for the full story.

New Mexico Coop Likely to Raise Rates in Response to Financial Strains

Fri, 10 Aug 2012 16:52:53 GMT

Jemez Mountains Electric Cooperative may have to raise rates to cover deals it made years ago with local tribes for right-of-way easements for transmission lines that cross the property of eight pueblos and two tribes. The coop is facing another financial strain – it has only a month’s worth of cash left in the bank and is in default on $29 million owed to two lenders. The New Mexican has more here.

Virginia Coop Suspends Efforts to Acquire Permits for Surry Coal Plant

Fri, 10 Aug 2012 16:51:12 GMT

Virginia-based Old Dominion Electric Cooperative is suspending its efforts to obtain the environmental permits needed to build what would have been the state’s largest coal-fueled power plant in Surry County. The coop’s decision to pull back from the proposed $6 billion Cypress Creek Power Station was based in large part on the Environmental Protection Agency’s new, more stringent environmental regulations. The Daily Press has the full story.

Coops in 18 States to Receive Federal Funding to Improve Services

Fri, 10 Aug 2012 16:49:58 GMT

Agriculture Secretary Tom Vilsack has announced that multiple rural electric utilities will receive loan guarantees to make improvements to electric lines and transmission facilities, and to reduce peak electric loads by deploying smart grid technologies. The funds include nearly $29 million in smart grid projects. Click here for a list of the rural utilities that will receive USDA funding.

Patronage Capital Remains Sticking Point for New Mexico Coop

Thu, 09 Aug 2012 13:42:12 GMT

As litigation continues between Socorro Electric Cooperative (SEC) and its members, patronage capital appears to be an ongoing sticking point. Coop members want at least $10 million refunded back to them over the next five years and are concerned with how SEC is handling the capital account. Click here for the full story.

Basin Electric Opens First Cogeneration Plant

Thu, 09 Aug 2012 13:40:52 GMT

Basin Electric Power Cooperative’s Deer Creek Station cogeneration plant began commercial operations on August 1. The 300-MW facility, located in eastern South Dakota, is Basin Electric’s first cogeneration plant. Read more on the story here.

Arkansas Electric Cooperative Corporation Seeks Rate Increase

Thu, 09 Aug 2012 13:39:08 GMT

Arkansas Electric Cooperative Corporation has submitted a request to the Arkansas Public Service Commission to increase its wholesale rates by five percent to cover the costs of two new power plants and other costs (which would total $33.4 million). If approved, the new wholesale rate would increase an average customer’s electric bill by $1.50 per month. Click here for additional details.

Agriculture Secretary Announces REDLG Funding Awards

Mon, 06 Aug 2012 16:43:44 GMT

Through the USDA’s Rural Economic Development Loan and Grant program (REDLG), the Department of Agriculture is funding projects in 12 states, including projects undertaken by a number of coops. For a list of projects, see the USDA’s press release.

Alaskan Coop Closes Deal with CFC for $100 Million Facility

Mon, 06 Aug 2012 16:42:02 GMT

Chugach Electric Association, an Anchorage, Alaska-based coop, closed an “Amend and Extend” syndicated transaction with the National Rural Utilities Cooperative Finance Corporation (CFC). The coop’s CFO, Mike Cunningham, spoke highly of the experience with CFC stating that “[t]his facility provided us with low-priced, short-term financing for our power plant construction.” See the CFC press release for more on this story.

Coops to Purchase Electricity from Pennsylvania’s Largest Wind Farm

Tue, 31 Jul 2012 19:19:00 GMT

Old Dominion Electric Cooperative and Southern Maryland Electric Cooperative will purchase electricity produced from the future Mehoopany Wind Farm, a 141-MW wind generation project located near Scranton, Pennyslvania. The National Renewables Cooperative Organization assisted the coops with the long-term power purchase agreements. BP Wind Energy and Sempra U.S. Gas & Power have partnered to construct the $250 million wind farm. Read more here.

Pennsylvania Coop to Use $40 Million in Loans for Grid Upgrades

Tue, 31 Jul 2012 19:16:00 GMT

The Adams Electric Cooperative, which serves counties in southeastern Pennsylvania, plans to use $40 million in low-interest loans recently awarded from the federal government to build and improve 200 miles of distribution line and to upgrade several substations. A portion of the money will also go to smart grid projects, such as the installation of automated switches that will allow the cooperative to shift electricity when there is an interruption of service. The loan money is part of $287 million in loan guarantees being provided through the Department of Agriculture’s Rural Utilities Service to help utilities upgrade, expand, maintain and replace rural America’s electrical infrastructure. Click here for more.

New Mexico Coop to Add 18 MW of Wind Power This Year

Fri, 27 Jul 2012 18:10:00 GMT

Farmers’ Electric Cooperative recently announced that it plans to buy the output from Broadview Energy’s wind project in Curry County, New Mexico. The coop plans to make the necessary filing with the New Mexico Public Regulation Commission by month’s end. The 18 MW of wind power is part of Broadview Energy’s plan to build projects to supply as much as 500 MW of wind power in eastern New Mexico and western Texas. See Electric Co-op Today for the full story.

Montana Seeks Federal Assistance for Wildfire Affecting Coop

Fri, 27 Jul 2012 18:08:00 GMT

The governor of Montana recently requested that the area affected by the Ash Creek Fire be declared a Presidential Disaster Area. Tongue River Electric Cooperative suffered the most with $1.6 million in damages to its infrastructure. KTVQ has more on this story.

Indiana Coop Continues Presence in Biomass Arena

Thu, 26 Jul 2012 18:37:00 GMT

Indianapolis-based Wabash Valley Power Association has eight landfill gas plant sites in Indiana and is looking to expand project development into neighboring states. Wabash generates roughly 44 MW of energy, which is the result of a $52 million investment in Wabash’s landfill gas-to-energy program. Click here for more.

Syndicated Transaction First of its Kind

Thu, 26 Jul 2012 18:36:00 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) along with three other financial institutions arranged a $100 million syndicated transaction for Georgia-based Cobb Electric Membership Corporation (Cobb EMC). This is the first syndication arranged by the CFC for a distribution coop and will replace Cobb EMC’s multiple lines of credit with local banks. Click here for the full story.

Federal Entities Face Monetary Penalties for Reliability Standards Violations

Thu, 26 Jul 2012 18:34:00 GMT

As reported by Sutherland attorneys in a July 24 Legal Alert, federal entities, such as power marketing administrations, may be assessed monetary penalties for violating the North American Electric Reliability Corporation’s (NERC) Reliability Standards. Read more about FERC’s groundbreaking order here.

CFTC Exempts Electric Cooperatives from Dodd-Frank Clearing Requirements

Wed, 25 Jul 2012 16:51:40 GMT

The Commodity Futures Trading Commission has approved a final rule exempting electric cooperatives from mandatory clearing requirements if they use swaps to hedge or mitigate commercial risk. This rule would allow coops to avoid the additional costs of the clearance organization administering these transactions. Click here for additional details.

Iowa Coop to Receive $4.7 Million in Disaster Aid

Wed, 25 Jul 2012 16:50:02 GMT

Hawkeye Rural Electric Cooperative has been awarded $4.7 million from the Federal Emergency Management Agency’s Hazard Mitigation Grant Program. Hawkeye is proposing to repair 142.7 miles of overhead electrical distribution lines damaged by storms, tornadoes and heavy rains that hit the state in 2008. Read more here.

Government Push for Grid Upgrades Receives Pushback from Coops

Thu, 19 Jul 2012 13:53:19 GMT

Several Montana-based coops called on the Secretary of the Department of Energy to withdraw a federal plan to upgrade portions of the nation’s power grid. The plan aims to move more renewable energy from rural areas like Montana to load centers like those found in California. The coops fear that the costs to modernize the grid will unfairly fall to rural communities, resulting in significant increases in transmission rates. The Great Falls Tribune has more.

Montana Lawmakers Propose Legislation to Increase Transparency of Cooperative Decisions

Thu, 19 Jul 2012 13:51:15 GMT

In reaction to the bankruptcy of Southern Montana Electric Generation and Transmission Cooperative, Montana lawmakers are proposing legislation designed to increase the transparency of Montana’s electric cooperatives. The proposed legislation would require a two-thirds vote of the member coops before financing certain power generation proposals. Each of the member coops would be required to obtain approval from two-thirds of its board members. More details on the proposed legislation may be found here.

Federal Loans Could Cut Rural Electric Bills

Tue, 17 Jul 2012 17:34:00 GMT

The U.S. Department of Agriculture is proposing a new federal loan program that would make federal loans available for rural electric coops to distribute to customers who want to make their homes and businesses more energy-efficient. A version of the program was piloted in South Carolina. There, 125 rural homeowners received loans averaging $7,200 to seal air leaks and replace inefficient heating and air-conditioning systems. The electric coops of South Carolina secured the federal funds for the loans and are billing customers for repayment on their monthly utility statements. The Pittsburgh Post-Gazette has more on this story.

Radioactive Waste to be Removed from Inactive Dairyland Power Nuclear Plant

Tue, 17 Jul 2012 17:32:00 GMT

Dairyland Power Cooperative’s La Crosse nuclear power plant in western Wisconsin, inactive since 1987, is finally being emptied of its nuclear waste. The waste has been maintained on site in “wet storage.” The transfer of the waste to sealed concrete-lined storage tanks is estimated to cost as much as $45 million, which includes careful planning for contingencies such as earthquakes or power outages. Read more here.

Georgia Coops No Longer Investing in Plant Washington

Tue, 17 Jul 2012 17:30:00 GMT

Power4Georgians has announced that Colorado-based private investment group Taylor Energy Fund LLC has assumed the cost of bringing a new coal-fired power plant, Plant Washington, to construction, relieving 10 Georgia coops of that obligation. The 850-megawatt plant is estimated to cost $2.1 billion and would be the first coal-fired plant built in Georgia in more than a quarter century. The plant has already received all of its state environmental permits, but the extent of its environmental requirements is not entirely clear. Click here for more.

Utility Industry Groups Sue Over FERC Demand Rule

Mon, 16 Jul 2012 20:20:00 GMT

Utility industry groups are claiming that the Federal Energy Regulatory Commission (FERC) exceeded its regulatory power when it introduced the compensation policy for power demand resources. The final rule allows demand response providers to receive the same compensation as conventional power plants, regardless of the type of power generated. The Electric Power Supply Association (ESPA), the American Public Power Association (APPA), the National Rural Electric Cooperative Association (NRECA) and a host of other utility industry groups have filed suit in the U.S. Court of Appeals for the District of Columbia claiming that FERC’s rule also violates the Federal Power Act’s requirements that rates be “just and reasonable and not unduly preferential or discriminatory, and are not the product of reasoned decision-making,” because it appears to favor demand response over retail generation. The Clean Energy Report has more here (subscription required to access original story).

Concerns Remain About Coops’ Potential Liability Under New CFTC Swap Rule

Mon, 16 Jul 2012 20:18:00 GMT

The National Rural Electric Cooperative Association (NRECA) has expressed concerns that the Commodity Futures Trading Commission’s (CFTC) long-awaited final rule on which energy transactions it will regulate as “swaps” leaves many questions unanswered. Several types of energy sector contracts, such as capacity, reserve sharing, renewable energy certificates and emission attributes, could be considered as regulated swaps, according to the NRECA. However, Russ Wasson, the NRECA director of tax, finance and accounting policy, says the CFTC’s new “products definition” issuance does contain some positive elements. Click here for more on the concerns expressed about the new CFTC rule.

Coops Conduct Meeting to Prepare for Potential Merger

Mon, 16 Jul 2012 20:17:00 GMT

Western Illinois Electrical Cooperative (WIEC) and Adams Electric Cooperative are considering a merger that could lower power supply costs and shorten the duration of outages for members of both coops. At a June 28 meeting with WIEC coop members, managers from both coops discussed the benefits of a possible consolidation. The merger would ultimately be decided by a two-thirds vote of the quorum of members present at a meeting that would be scheduled for next spring. Click here for more details.

Rural Coops Positioned for Loan Guarantees

Thu, 12 Jul 2012 17:54:16 GMT

Coops in 15 states will receive loan guarantees from the U.S. Department of Agriculture’s Rural Development program. The funds will help coops improve generation and transmission facilities and implement smart grid technologies. This batch of funding provides more than $10 million in smart grid technologies and is part of a larger USDA Rural Development funding goal of approximately $250 million. Read the full story here.

Western Farmers Electric Coop and Other Oklahoma Utilities Seek Regional Marketplace

Thu, 12 Jul 2012 17:52:22 GMT

Western Farmers Electric Cooperative and other Oklahoma utilities are working to create a regional marketplace to buy additional power. Southwest Power Pool, a regional transmission organization, would be responsible for getting more power, at the best price, under the program. A Southwest Power Pool representative explained the move as akin to a “carpool system.” NewsOK has more details.

Oklahoma Coop Puts 18-Mile Transmission Line and Substation into Service

Thu, 12 Jul 2012 17:49:50 GMT

Western Farmers Electric Cooperative, an Oklahoma coop, in conjunction with ITC Great Plains LLC, has energized its Hugo-Valliant high-voltage electric transmission line and substation. The 18-mile, 345,000-volt line and 345 kV/138 kV substation are located in southeastern Oklahoma. The Sacramento Bee has additional details.

Coops Tell Department of Energy Why Water Heaters Justify New Classification

Thu, 12 Jul 2012 17:48:36 GMT

The Department of Energy (DOE) has solicited comments from coops across the country to explain whether the cost-saving benefits of their demand response programs justify a new classification for large-capacity electric resistance water heaters under DOE regulations. Read more, including some of the specific comments, at Electric Co-op Today.

FERC Transmission Rule Source of Controversy

Thu, 12 Jul 2012 17:46:53 GMT

An investor-owned utility association, Edison Electric Institute, has requested that a federal court review the Federal Energy Regulatory Commision’s (FERC) controversial rule meant to spur new transmission investment. The rule requires utilities to create regional plans and a framework for cost allocation. The rule also introduces competitive bidding and new compliance requirements. FERC has justified the rule on the basis that a more “top down” approach to regional planning is better and would foster more renewable power projects. Law360 has more (subscription required).

Colorado Coop Rebuilds After Fire Losses

Thu, 12 Jul 2012 17:45:32 GMT

Poudre Valley Rural Electric Association, based in Fort Collins, Colorado, is now facing the daunting task of rebuilding a portion of its distribution system that the High Park fire destroyed. Worse yet, the coop recently completed a costly reliability update on this distribution system. The coop estimates it could take four to six weeks and more than $3.5 million to repair the damages. Click here for more.

More Wind Power for Oklahoma Coop

Thu, 05 Jul 2012 15:36:30 GMT

The Rocky Ridge wind farm located in Kiowa and Washita counties is operational, producing up to 150 MW of electricity being purchased by Western Farmers Electric Cooperative. The Oklahoma wind farm increased Western Farmers’ wind portfolio to approximately 16 percent of its entire combined generating and purchased power capacity. NewsOK has the full story.

CFC Funds Hydropower Plant 100 Years in the Making

Thu, 05 Jul 2012 15:34:33 GMT

Delta-Montrose Electric Association, based in Colorado, has broken ground on a hydropower plant whose plans date back to a visit from President William Taft in 1909. The $22 million in CREB financing will help pay for interest expenses for the plant. Natural Rural Utilities Cooperative Finance Corporation (CFC) applied for the CREBs on Delta-Montrose’s behalf in 2009. The CFC Solutions News Bulletin has additional information.

NRECA Asks EPA to Withdraw Rule for Greenhouse Gas Emissions

Thu, 05 Jul 2012 15:32:03 GMT

The National Rural Electric Cooperative Association (NRECA) has asked the U.S. Environmental Protection Agency to withdraw a proposed rule for greenhouse gas emissions for new fossil-fuel-based power plants. According to the NRECA, the EPA is violating the law by classifying coal and natural gas baseload generation as interchangeable fuel sources. The NRECA says only some natural gas plants can meet the single emissions standard set by the EPA–essentially eliminating coal as a future baseload generation source. You can read more about the NRECA’s objections here.

Coops Continue Post-Storm Restoration Efforts

Thu, 05 Jul 2012 15:30:05 GMT

Electric coops in the regions hit hard by storms have been working nonstop to restore power, all during one of the worst heat waves in history. An estimated 4 million people were left without power from Indiana to New Jersey. Some coops have taken advantage of social media or press releases to communicate with their members about expected outage times. For state-by-state details, read the entire story here.

Coop Reaches Deal with Tribe on Easement

Fri, 29 Jun 2012 15:27:29 GMT

Jemez Mountains Electric Cooperative and the Ohkay Owingeh Tribe are seeking approval from the New Mexico Public Regulation Commission on a deal allowing the coop to maintain its infrastructure on tribal land for 25 years at a cost of $11.25 million. The negotiated agreement ends a previous arrangement that was largely based on oral agreements between the parties. The coop says it hopes to use the deal with Ohkay Owingeh as a model for negotiations with other tribes. Read more here.

Dairyland Power Announces Settlement with Sierra Club and EPA

Fri, 29 Jun 2012 15:26:21 GMT

In a press release, Dairyland Power Cooperative, based in LaCrosse, Wisconsin, outlined the terms of its settlement of alleged emissions violations. Without conceding any violations of law, the coop has agreed to move forward with a number of emission reduction plans. Click here for more.

New Mexico Litigation Involving Coop Moves Forward

Mon, 25 Jun 2012 13:15:47 GMT

A district court judge has allowed the filing of an amended complaint to replace an SEC board of trustees member with two other member-owners in litigation involving Socorro Electric Cooperative. The judge ruled that Carol Auffrey of Quemado and Herbert Myers of Socorro could replace SEC Trustee Charlie Wagner as representatives of the class in the countersuit despite protests that they were never actually a party to the litigation against Socorro. Coop members stand to gain damages in the amount of patronage capital that the complaint claims should have been retired and paid to them during the relevant time period. The El Defensor Chieftain has the full story.

Colorado Coop Rebuilds During Ongoing Fire

Mon, 25 Jun 2012 13:14:36 GMT

Poudre Valley Rural Electric Association is assessing fire damage and recovery efforts in the face of an ongoing wildfire that has burned more than 68,200 acres and destroyed 189 homes through June 21. Nearly 2,000 firefighters from several states are on the ground trying to control the fire which has caused nearly $20 million in damage. About 700 of the coop’s nearly 36,000 meters are currently without power. However, crews have restored service to some areas that were previously evacuated due to the fire threat. Click here for more on this ongoing story.

Missouri Coop Closes Deal with CFC

Mon, 25 Jun 2012 13:11:43 GMT

Butler-based Osage Valley Electric Cooperative recently became The National Rural Utilities Cooperative Finance Corporation’s (CFC) newest 100-percent borrower, closing two transactions this spring. The 30-year loans, totaling approximately $33 million, will reportedly be used to refinance existing debt. To read more about the deal, click here.

Coops Seek Exemption from CFTC Reporting

Thu, 21 Jun 2012 15:54:49 GMT

The National Rural Electric Cooperative Association (NRECA) is among the electric coop and municipal utility groups requesting exemption from new Commodity Futures Trading Commission (CFTC) new reporting requirements. As part of its implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFTC has developed a set of recordkeeping obligations that not-for-profit electric utilities say should not apply to them. Read the full story here.

U.S. Senate Rejects Measure to Overturn MACT Standard

Thu, 21 Jun 2012 15:50:55 GMT

The U.S. Senate rejected a Republican-backed resolution that would have overturned the Environmental Protection Agency’s utility maximum achievable control technology (MACT) standard. This rule will require coal-fired power plants to reduce their emissions of mercury and other pollutants by more than 90 percent in four years. Click here for additional details (subscription required).

Coal Makes a Comeback?

Wed, 20 Jun 2012 13:43:43 GMT

The Energy Information Administration (EIA) is predicting a slight rebound for coal’s share of U.S. baseload generation in 2013 due to projected higher natural gas costs and record coal stocks. In its July 12 energy forecast, the EIA calculated that electricity powered by coal will increase about 3 percent in 2013, compared to a projected 13 percent decrease predicted for 2012. This news may be particularly pleasing for end users, who are predicted to enjoy lower electricity prices based on depressed coal costs. Click here for more.

North Dakota Coop to Open Natural Gas Plant

Mon, 18 Jun 2012 15:37:40 GMT

Basin Electric Power Cooperative, based in Bismarck, North Dakota, recently started work on a natural gas-fueled plant being built about 15 miles northwest of Williston. Project manager Myron Steckler says the new plant will be capable of generating 45 megawatts of power. The coop hopes to have the new facility operating by early 2013. Bloomberg BusinessWeek has the full story.

Illinois Coop Closes $65 Million Syndication

Mon, 18 Jun 2012 15:36:10 GMT

Marion-based Southern Illinois Power Cooperative (SIPC) and The National Rural Utilities Cooperative Finance Corporation (CFC) recently arranged a four-year, $65 million unsecured revolving credit facility. CFC acted as lead arranger and lead lender in the transaction, which replaced a portion of an earlier syndication for SIPC. The funds will be used for general corporate purposes, including issuing letters of credit. Click here for more.

Financing Secured for Two Iowa Wind Projects

Mon, 18 Jun 2012 15:33:49 GMT

With Rabobank and BayernLB providing credit facilities, the 36-MW Hawkeye and 50-MW Rippey wind farm projects continue to move forward. RPM Access, the developer, anticipates that the projects will be completed this fall. Central Iowa Power Cooperative has agreed to purchase energy from the facilities under long-term power purchase agreements. Read more here.

Rayburn Electric Receives ‘A-’ Credit Rating from S&P

Wed, 13 Jun 2012 16:14:53 GMT

Rayburn Country Electric Cooperative, Inc. has received ‘A-‘ Issuer credit rating from Standard & Poor’s Ratings Services (S&P). Click here for additional details .

Energy Secretary Urged to Consult Coops Over Hydropower Reform

Wed, 13 Jun 2012 16:12:30 GMT

Energy Secretary Steven Chu is being urged by 166 members of Congress to consult coops and utilities before reforming the four agencies that oversee the nation’s hydropower marketing: the Bonneville Power Administration, the Southeastern Power Administration, the Southwestern Power Administration and the Western Area Power Administration. The proposed reforms largely target the strategic and capital improvement plans of these entities to accommodate efforts to upgrade the nation’s electrical grid. Congress expressed concern that the proposed reforms have not been vetted adequately by the industry, namely the 1,100 utilities to which these entities market hydropower. Read more here.

Alaska Coop to Reduce Costs With New Fuel Delivery Boats

Mon, 11 Jun 2012 15:26:03 GMT

Anchorage-based Alaska Village Electric Cooperative (AVEC) christened two sets of tugs and barges, which will help the coop cut fuel costs. AVEC serves 54 remote villages and spends more than half of its gross revenue on diesel fuel for generation. AVEC entered into a long-term delivery contract with Anchorage-based Vitus Marine, LLC (Vitus), agreeing to provide upfront costs for its first sets of tugs and barges. Under the contract, Vitus will deliver fuel to AVEC member villages, saving the coop an estimated $2.5 million over the next five years. The National Rural Utilities Cooperative Finance Corporation has the full story in its newsletter.

Kentucky Coop Seeks Proposals for Alternative Energy Sources

Mon, 11 Jun 2012 15:23:32 GMT

East Kentucky Power Cooperative (EKPC) is seeking proposals for electric-generating resources to replace power plants that could be shut down when the federal Mercury and Air Toxics Standards take effect in 2015. As a result of the new regulations, EKPC is facing the possibility of replacing some large coal-fueled units. Proposals are due by Aug. 30, 2012, and EKPC expects agreements to be in place by January 2013. Click here for more.

U.S. Representatives Continue Pressing EPA on Utility Regulations

Mon, 11 Jun 2012 15:20:58 GMT

The Republican chairs of the House Energy and Commerce Committee sent another letter to the Environmental Protection Agency demanding another accounting of the compliance costs associated with the Utility Maximum Achievable Control Technology (Utility MACT) rule. The Utility MACT rule requires power plant operators to reduce toxic air emissions by some 90 percent over the next three years. Last month, the EPA told the committee that the capital cost of the Utility MACT rule was an estimated $35 billion. However, committee Republicans claim the capital and noncapital costs combined could total more than $108 billion. Click here for more on this story (subscription required).

DOE Extends $8 Billion Loan Guarantee for Nuclear Plant

Mon, 11 Jun 2012 15:18:42 GMT

The Department of Energy has extended its conditional commitment to the end of the year to provide an $8.3 billion federal loan guarantee to help finance the nuclear expansion of Plant Vogtle in Georgia. Southern Company officials initially said the agreement would be finalized by the end of June. Southern Company subsidiary Georgia Power Company and nuclear partners Oglethorpe Power and MEAG were conditionally approved in February 2010 to receive the guarantee through a loan-guarantee program under which the government promises to assume a company's debt if the company defaults. The Augusta Chronicle has the full story.

Proposed San Diego Coop to Offer Green Energy Alternative

Mon, 11 Jun 2012 15:15:59 GMT

The San Diego Energy District Foundation (SDED) hopes to create a local coop in which current customers of San Diego Gas & Electric would be given a choice to purchase local green power from a non-profit Community Choice Aggregation (CCA) plan. The SDED is discussing a proposed CCA plan with officials in San Diego County and the cities of Solana Beach and Santee. Click here for more information.

Blue Ridge Mountain Electric Membership Corporation Included in Solar Power Survey

Wed, 06 Jun 2012 15:38:53 GMT

Blue Ridge Mountain Electric Membership Corporation (Blue Ridge Mountain) of Young Harris, Georgia, ranked second in the Solar Electric Power Association's (SEPA) Utility Solar Rankings for 2011. SEPA included more than 240 utilities in this survey of solar growth. For more information, click here.

Electric Coops Adding New Members Despite U.S. Rural Population Declines

Wed, 06 Jun 2012 15:35:38 GMT

Recent demographical statistics show that the population of rural parts of the United States is slowly declining, and the percentage of rural population is at an all-time low. In 2011, only 16.4 percent of the nation’s population lived in rural areas. In spite of this shift, electric cooperatives have continued to add members, adding 187,000 new members in 2010. For more information on these changes, click here.

John W. Turk Jr. Power Plant Almost Complete

Wed, 06 Jun 2012 15:34:05 GMT

AEP Southwestern Electric Power Company’s (SWEPCO) John W. Turk Jr. Power Plant in Hempstead County, Arkansas, is almost complete. The plant, on which SWEPCO began construction in late 2008, received its first shipment of coal on May 30 and is expected to go into service later this year. The Longview News-Journal has additional details.

Grand Canyon State Electric Coop Association CEO Testifies on Federal Policies

Tue, 05 Jun 2012 14:43:48 GMT

Tom Jones, CEO of Arizona’s Grand Canyon State Electric Coop Association (GCSECA), warned that proposed regulations may significantly increase energy prices for coops in the region when he recently addressed the Committee on House Natural Resources Subcommittee on Water and Power regarding the U.S. Environmental Protection Agency’s proposed federal regulations governing the disposal of Coal Combustion Residuals under the Resource Conservation and Recovery Act. GCSECA is a regional service organization representing the interests of electric coops and their consumers. Click here for the entire testimony transcript.

Alabama Coops Hope to Benefit from Copper Theft Law

Tue, 05 Jun 2012 13:00:00 GMT

Alabama’s electric coops, long fighting against copper theft, now have a valuable ally. The state just signed into law a new bill that targets the illegitimate recycling of copper, including a list of limits and requirements on the activity, which they hope will hinder all but the legitimate dealers of copper. Read the full story here.

Colorado Hydroelectric Project Breaks Ground

Thu, 31 May 2012 16:26:52 GMT

Construction of a $22 million hydroelectric project located in Montrose, Colorado, began last week. The project is expected to generate roughly 7.5 MWh of energy and be completed by July 2013. Learn more here.

Idaho Coop Constructs Landfill-to-Gas Generator

Thu, 31 May 2012 16:22:00 GMT

Kootenai Electric Cooperative teamed up with Kootenai County to develop a landfill-to-methane gas generation facility at the Fighting Creek Landfill. The coop leases the land for the facility and purchases the methane gas produced there from the county. The coop then uses the gas to produce electricity and power local homes. The Kootenai coop funded the $6.5 million plant with Clean Renewable Energy Bonds. It is the first generator facility the coop has constructed and operated. The Coeur d’Alene Press has the full story.

Coops Call for Shipping Reforms

Thu, 31 May 2012 16:18:24 GMT

Several coops and the National Rural Electric Cooperative Association (NRECA) are among the signatories to a letter from rail shippers to U.S. House Transportation Committee members requesting support for freight industry reforms. The proposed changes would be included in an extensive surface transportation bill and would aid shippers that face high rates and poor service from a single rail provider. For more information, click here.

Michigan Coops Avoid Personal Property Tax Hike

Tue, 29 May 2012 16:41:03 GMT

Body: The Michigan State Tax Commission will continue recognizing system economic factors (SEFs) used to calculate personal property taxes imposed on coops. SEFs take into consideration the economic disadvantages coops face when serving rural customers. The decision will save Michigan coops around $2.8 million a year. Click here for more.

Georgia Coop Shines in Solar Rankings

Tue, 29 May 2012 16:35:04 GMT

Blue Ridge Mountain Electric Membership Corporation placed second in the nation in the category of annual solar watts delivered per customer. These rankings are compiled by the trade group Solar Electric Power Association. Solar power did well in 2011, compared to 2010, and new solar capacity jumped 120 percent as utilities interconnected more than 62,500 photovoltaic systems. Read more here.

Surface Transportation Board Denies Coop’s Challenge of Shipping Rates

Wed, 23 May 2012 17:48:58 GMT

The Surface Transportation Board (STB) has declined to order two railroad carriers to charge a single shipping rate as requested by Arizona Electric Power Cooperative. In 2011, the STB issued an opinion in favor of the coop, finding that the railroad companies, BNSF Railway Company and Union Pacific Railroad Company, had charged unreasonable rates. The full text of the most recent STB opinion can be seen here.

Electric Coops Gaining Stake in Nuclear Generation Plants

Wed, 23 May 2012 17:39:12 GMT

Electric cooperatives in Arkansas and Missouri are getting involved in the development of small modular nuclear electric generation plants. The Little Rock-based Arkansas Electric Cooperative Corp. and Associated Electric Cooperative of Springfield, Missouri, are among a group of 13 utilities committed to collaborating with Westinghouse, which develops small modular reactors. Click here for more details.

Lawmakers Press for Details on EPA Proposal to Cap Emissions

Mon, 21 May 2012 16:36:33 GMT

On Thursday, Representatives Fred Upton and Ed Whitfield sent a letter to EPA Administrator Lisa Jackson asking a host of questions regarding the agency's Carbon Pollution Standard for New Power Plants as well its plans for future regulations on utilities. In March, the EPA released a proposal to set the country's first-ever limits on greenhouse gas emissions from new facilities. Law360 has more on the story (subscription required).

Kansas Coop, NCSC and CFC Finalize $100 Million Credit Deal

Mon, 21 May 2012 16:34:55 GMT

The National Cooperative Services Corporation (NCSC) recently finalized a $100 million credit deal for Mid-Kansas Electric Company, LLC. NCSC acted as the lead lender in a syndicated credit facility. The National Rural Utilities Cooperative Finance Corporation (CFC) was lead arranger and will serve as administrative agent for the three-year unsecured revolving credit facility. The coop plans to use the funds for general corporate purposes, such as investment in generation and transmission assets, other capital expenditures and the issuance of letters of credit. Click here for more details on the deal.

NRECA Report Highlights Biogas Opportunities for Coops

Mon, 21 May 2012 16:32:24 GMT

With 2,136 wastewater treatment facilities located in coop service areas, a report by the National Rural Electric Cooperative Association’s (NRECA) Cooperative Research Network estimates that biogas from these facilities could be used to generate approximately 445 megawatts of base load power. As the technology improves for harnessing and using biogas as a renewable source of energy, the opportunities for coops to use this energy source should continue to improve. Electric Co-op Today is covering this story.

Lake Worth Approves Settlement with Florida Coop

Wed, 16 May 2012 16:27:55 GMT

Lake Worth City Commissioners approved an $850,000 settlement on Tuesday to end the city's lawsuit against the Florida Municipal Power Agency. The settlement must still be accepted by FMPA, the Orlando-based power cooperative that supplies electricity to Lake Worth Utilities. The dispute arose from gas-transmission fees that FMPA quit paying in 2009 after the City Commission voted to end its power-supply agreement with the coop in 2014. The Palm Beach Post has more on the settlement here.

Construction Begins on 250-Mile Transmission Line in North Dakota

Wed, 16 May 2012 16:26:33 GMT

Construction began this week on Minnkota Power Cooperative’s $312 million, 250-mile transmission line, which will run from Center to Grand Forks, North Dakota. The 345-kilovolt transmission line is the longest line built in North Dakota in more than 30 years and should be completed by the end of 2013. The line will deliver coal-fired power from a plant near Center, which will allow Minnkota to designate an existing transmission line for wind energy. Click here to read more about the ongoing construction.

North Dakota Coop Awarded 50-Year Federal Contract

Wed, 16 May 2012 16:24:42 GMT

Verendrye Electric Cooperative will officially take over the electrical facilities at Minot Air Force Base on June 1. In 2010, the coop was awarded a 50-year federal contract to purchase, maintain and operate the electrical distribution infrastructure on the base. According to Air Force estimates, the contract will be worth nearly $85 million over the 50-year period. The Minot Daily News has more on this story here.

Florida Coop and City Utility to Consider $850,000 Settlement

Wed, 16 May 2012 16:23:20 GMT

Florida Municipal Power Agency, an Orlando-based power coop that supplies electricity to City of Lake Worth, has proposed a $850,000 settlement with Lake Worth to end a dispute over natural gas transmission fees. The city board will consider the settlement at its next meeting. Click here for more information.

With Help of CFC, Texas Coop Secures $115 Million in Financing for Renewable Projects

Mon, 14 May 2012 14:21:47 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) recently helped Nacogdoches, Texas-based East Texas Electric Cooperative (ETEC) secure $115 million through a syndicated credit facility. CFC and Regions Bank, based in Birmingham, Alabama, participated in a four-year, unsecured revolving credit transaction in which CFC will serve as the administrative agent. ETEC will use the funds to construct a 50-MW biomass plant and a 24-MW hydroelectric facility on the Trinity River near Livingston, Texas. Click here for more.

Update on Wisconsin Transmission Project

Mon, 14 May 2012 14:19:55 GMT

As expected, the Public Service Commission of Wisconsin approved a new high-voltage power line that is designed to reduce grid congestion in the Midwest power grid. The Journal Sentinel has more on the project and the approval.

Wisconsin Regulators to Decide on Transmission Project

Thu, 10 May 2012 15:06:43 GMT

At a meeting Thursday, the Public Service Commission of Wisconsin was expected to decide whether to approve a power line that would run between Alma and Holmen in western Wisconsin. Northern States Power Company, Dairyland Power Cooperative and WPPI Energy are all working on this $234 million project. Read more here.

Update on American Municipal Power Lawsuit

Thu, 10 May 2012 15:05:21 GMT

American Municipal Power, Inc., an Ohio coop, sued a company last year for breach of contract and two torts, seeking $97 million in damages per claim. The suit alleges that Bechtel Power Corp. lowballed its estimate of the construction costs for a coal-fired supercritical power plant in Ohio by more than $1 billion, and then unexpectedly raised its estimate by $1 billion, forcing the coop to scrap the project. The judge recently ruled that the facts alleged by the coop support a plausible claim that Bechtel wantonly failed to inform the coop of the price increase in a timely manner, but found the tort claims redundant. For more information about this case, click here.

Hoosier Energy to Shutter Coal-Fired Plant in 2015

Wed, 09 May 2012 15:16:03 GMT

Hoosier Energy, a cooperative based in Bloomington, Indiana, will retire a 250-MW coal-fired plant in Petersburg, Indiana, in 2015. Hoosier explained that the costs associated with new and proposed U.S. Environmental Protection Agency rules motivated the company to close the plant. Additional details may be found here.

Kentucky Coop Files Request to Join PJM

Wed, 09 May 2012 15:13:43 GMT

East Kentucky Power Cooperative (EKPC) is seeking approval from the Kentucky Public Service Commission to join PJM Interconnection (PJM), a regional transmission organization that coordinates the movement of wholesale electricity in 13 states and the District of Columbia. Citing operational and regulatory constraints, EKPC says PJM membership would allow for more efficient and economic coop operations. Click here for more.

North Dakota Wind Farm Faces Unexpected Taxes

Mon, 07 May 2012 14:29:15 GMT

Basin Electric Power Cooperative, based in Bismarck, North Dakota, is paying nearly $800,000 in new tax revenue to school districts, counties and other governmental entities, which is about $300,000 more than projected by the South Dakota Public Utilities Commission two years ago. Taxes for the $363 million, 108-turbine wind project, located on 40,000 acres in three counties, are based on energy production and are paid in addition to preexisting property taxes. However, power generation from the project has been very strong, and because the taxes are tied to generation, the generation rates may have pushed tax revenues higher. The Daily Republic has the full story here.

Rural Coops to Receive Millions in Loans to Improve Infrastructure and Install Smart Grid Technologies

Mon, 07 May 2012 14:23:18 GMT

Agriculture Secretary Tom Vilsack has announced that rural electric coops in 10 states will receive loans, worth $334 million total, to install smart grid technologies and make improvements to their facilities. The loans will be provided by the USDA Rural Development's Rural Utilities Service. The new funding includes almost $20 million to install smart grid technologies. In Georgia, Jefferson-based Jackson Electric Membership Corporation will receive a $102.8 million guaranteed loan to build and improve more than 850 miles of distribution line and make other system improvements. Click here for a full list of the rural utilities that will receive USDA funding, which is contingent upon the recipient meeting the terms of the loan agreement.

Coops’ Financial Positions Remain Strong According to 2011 Key Ratio Trend Analysis

Fri, 04 May 2012 12:35:34 GMT

Although load growth remains tepid, the various financial ratios that are used to evaluate the financial strength of coops continue to improve. According to the annual Key Ratio Trend Analysis by the National Rural Utilities Cooperative Finance Corporation (CFC), equity as a percent of assets increased to a five-year high of 42.24, percent and payments from consumers remained reliable. See the CFC’s press release for more.

SMECO Ready to Construct Transmission Project

Fri, 04 May 2012 12:33:26 GMT

The Southern Maryland Electric Cooperative (SMECO) announced it anticipates breaking ground on a $100 million transmission project this May, which will feature upgraded line poles able to carry more power with a more aesthetically pleasing appearance. Developers expect a project in-service date of March 2015. Click here for the full story.

North Dakota Cooperatives Pay Coal Conversion Tax Under Protest

Thu, 03 May 2012 14:41:42 GMT

Basin Electric Power Cooperative and Minnkota Power Cooperative have each paid a North Dakota “coal conversion” tax under protest in anticipation of an upcoming vote by North Dakotans regarding whether to abolish property taxes, which would include the coal conversion tax. If approved, the change would apply retroactively to January 1. The coal conversion tax is assessed based on the amount of power produced from coal facilities. Additional details can be found here.

Minnesota Coops to Test Smart-Grid Technology

Thu, 03 May 2012 14:39:53 GMT

Three Minnesota cooperatives (Great River Energy, Minnesota Valley Electric Cooperative and Lake Region Electric Cooperative) are participating in a $5 million demonstration project to pay for new smart-grid software in attempts to smooth (and track) their customers’ demand. The Minneapolis Star-Tribune has more on the story.

Carbon Dioxide Rules Unlikely to Affect Coop Credit Quality

Mon, 30 Apr 2012 15:21:45 GMT

According to a report from Standard & Poor’s Research (S&P), the proposed U.S. Environmental Protection Agency (EPA) restrictions on carbon dioxide emissions from new coal plants are unlikely to affect the credit quality of electric cooperatives. The EPA has proposed new emissions restrictions that will require modification at some coal-fired plants. The S&P report predicts that the new regulations will put coal at even more of an economic disadvantage. Click here for the full story.

Kansas Coops Become 100-Percent Borrowers of CFC

Mon, 30 Apr 2012 15:20:01 GMT

Meade-based CMS Electric Cooperative, Inc. and nearby Pratt-based Ninnescah Rural Electric Cooperative, Inc. have both closed deals to become 100-percent borrowers of the National Rural Utilities Cooperative Finance Corporation (CFC). Both coops cited CFC’s high level of customer service and the low interest rates and savings that CFC could provide by refinancing their existing debt as reasons behind this decision. CMS is expected save about $7 million over the life of the new notes. More details about the deals are available here.

Montana Senators Seek Upgrades to State’s Power Grid

Mon, 30 Apr 2012 15:18:16 GMT

Two Montana senators, Max Baucus and Jon Tester, are asking U.S. Energy Secretary Steven Chu to create a timeline for implementing upgrades to the state's power grid in order to aid cooperatives. The plan, if implemented, would affect the Bonneville Power Administration and the Western Area Power Administration, which serve electric coops that provide electricity to more than 400,000 Montana citizens. To read more about the key issues highlighted by Sens. Baucus and Tester, click here.

House Committee Blocks Funding for Energy Department Plans for PMAs

Mon, 30 Apr 2012 15:16:28 GMT

On April 25, the House Appropriations Committee approved by voice vote an amendment to the fiscal 2013 Energy and Water spending bill that blocks funding for proposed changes that would affect power marketing administrations (PMAs) and their customers. In testimony before the House Committee, NRECA CEO Glenn English raised concerns that the proposed plans would impose high costs on PMAs. Energy Secretary Steven Chu had proposed several initiatives, which called for the PMAs to promote renewable energy, serve as research grounds for cyber security technologies, respond to solar flares and design rate structures that encourage the use of electric vehicles. Both political parties were opposed to the directive, arguing that it took PMAs out of their traditional role as power marketers. Click here for more.

Senate Agriculture Committee Approves RESPA

Mon, 30 Apr 2012 10:33:42 GMT

The Rural Energy Savings Program Act (RESPA), sometimes referred to as the Conrad-Lugar Amendment, includes four policy improvements designed to help rural families, farms and small businesses save money on their energy bills. Generally, the proposed legislation: (1) authorizes coops to provide low-interest loans to members for energy efficiency improvements; (2) changes the definition of “biomassed manufacturing” as it relates to the Biorefinery Assistance Program; (3) streamlines rules and provisions of the Biomass Crop Assistance Program; and (4) eliminates the requirement under the Rural Energy for America Program that farmers install an additional meter for onsite power generation. See Sen. Richard Lugar’s press release for more.

North Dakota Approves Minnkota Line Route

Thu, 26 Apr 2012 17:03:48 GMT

The North Dakota Public Service Commission approved a final route for the state’s largest transmission line project in decades. Minnkota Power Cooperative will construct the 250-mile line from Center, North Dakota, to Grand Forks. The project is estimated to cost approximately $312 million. Construction is expected to be completed by the end of 2013. Click here for the full story.

House Bill Offers Coop Lenders Relief from Dodd-Frank

Thu, 26 Apr 2012 17:01:19 GMT

The Small Business Credit Availability Act passed the U.S. House of Representatives this week and moves on to the Senate. The bill would revise the Dodd-Frank Act to exempt smaller banks, including those offering financing to rural coops, from certain provisions of the major regulatory reform law. With less red tape and new costs to deal with, smaller banks and similar financial institutions should be able to extend more loans and create jobs. Read more here.

Kansas Coop Customers See Green for Being Green

Thu, 26 Apr 2012 16:59:15 GMT

The Heartland Rural Electric Cooperative is kicking off a program to encourage its customers to save power during the summer peak season. The Peak Savers Program will pay customers $1 for every kilowatt-hour saved during peak hours between July and August. The coop tested this program with a small group last year, but more than 1,000 customers are expected to participate this summer. Click here for more.

Five New Copper Theft Bills Signed Into Law

Mon, 23 Apr 2012 13:09:27 GMT

Governors in Georgia, West Virginia, Iowa, Washington and Kentucky have signed copper theft bills into law. The Washington bill was partially vetoed by Gov. Christine Gregoire who objected to the creation of a 24-member task force to study the issue of metal theft and make recommendations to the legislature. Gov. Gregoire did, however, approve the parts of the bill that make it first-degree theft to take metal wire from a utility, including a “consumer-owned utility,” if the resulting property damage is at least $5,000. The new Georgia law prohibits cash payments for these materials, and requires the registration of recyclers and the maintenance of a statewide database. Click here to read more about the content of the newly enacted laws.

New York Regulator Approves Low-Cost Power Incentive Deal for Aerospace Company

Mon, 23 Apr 2012 13:07:59 GMT

The New York Power Authority (NYPA) Board of Trustees has approved an allocation of 2,300 kilowatts of low-cost power for the Amphenol Aerospace Operations of Sidney, New York. The $20 million incentive package to Amphenol is intended to keep the company in Sidney and save nearly 1,000 jobs. The power allocation request was submitted to NYPA by the Delaware County Electric Cooperative on behalf of Amphenol and will be contingent upon service interconnection between the coop and the Company. Click here for the full story.

Colorado Coop Sues EPA Over New Emissions Standards

Mon, 23 Apr 2012 13:05:19 GMT

Tri-State Generation and Transmission Association, Inc. has filed suit in the U.S. Court of Appeals for the District of Columbia Circuit, challenging the U.S. Environmental Protection Agency’s new mercury and air-toxics emissions standards for coal-fired power plants. The coop, Colorado's second-largest power utility, serves some 1.5 million customers in Colorado, New Mexico, Wyoming and Nebraska. Tri-State claims the EPA standards, which took effect Monday, will drive up electricity costs because of expensive technology needed to meet the rules. Several other entities, including the American Public Power Association, the National Mining Association and the Utility Air Regulatory Group, have also filed suit. The new emissions standards are the first federal rules that require coal- and oil-fired power plants to limit their emissions of these pollutants. The Denver Business Journal has the full story.

Electric Coops Get High Marks from Utility Customers in Annual Poll

Mon, 23 Apr 2012 13:03:59 GMT

Electric cooperatives continue to receive high marks from utility customers, according to the latest reading of the American Customer Satisfaction Index. Electric cooperatives collectively earned a score of 81 while investor-owned and municipal utilities each received a score of 76. Natural gas distributor Atmos Energy and gas-and-electric supplier Sempra Energy were the two top-ranking energy utilities. Click here for more.

Massachusetts Coop Awards Contract for Solar Projects

Fri, 20 Apr 2012 14:46:29 GMT

Cape and Vineyard Electric Cooperative, a Massachusetts coop, awarded contracts to Broadway Electrical Company, Inc. for 44 solar projects totaling 50 MW. The projects, backed by Rockland Capital, will cost roughly $200 million to complete. A number of obstacles remain, and the interconnection of at least some of the projects will have to be approved by Boston utility NStar. The Cape Cod Times is following this story.

Investment Fund Provides New Financing for Coal Plant in Georgia

Fri, 20 Apr 2012 14:43:49 GMT

Power4Georgians, a group of electric cooperatives, signed a letter of intent with Taylor Energy Fund LLC to provide financing for a 40% stake in Plant Washington, an 850-MW, coal-fired facility, after Cobb EMC withdrew from the project early this year. The financing comes at a key time in the project development process. Power4Georgians recently reached an agreement with environmental groups over challenges related to Plant Washington’s air permit. Power4Georgians will still need to obtain additional financing to begin construction. The Telegraph has the full story.

Colorado Transmission Line Re-Energized

Thu, 19 Apr 2012 14:51:02 GMT

Mountain View Electric Association’s Big Sandy-Lincoln-Midway transmission line is back online after upgrades were made to improve resilience against storm damage. The improvements were completed in time to serve the irrigation loads expected along the eastern and southern Colorado power path. Read more here.

Mississippi Coop Contemplates Nuclear Purchase

Thu, 19 Apr 2012 14:49:23 GMT

The South Mississippi Electric Power Association may enter a power purchase agreement and opt for a minority ownership share in the 2,200-MW expansion of the Virgil C. Summer Nuclear Generating Station in South Carolina. Santee Cooper, South Carolina’s state-owned utility, wants to sell a portion of its interest in the project in response to forecasts of reduced capacity needs in the future. The two-unit project is scheduled to be operational in 2017 and 2018. Click here for more.

Oregon Coop Copes with Disasters; FEMA Helps

Tue, 17 Apr 2012 15:07:18 GMT

West Oregon Electric Cooperative, Inc., with help from the Federal Emergency Management Agency (FEMA), has found a way to keep the lights on through storms. FEMA’s hazard mitigation funds have helped the coop repair storm-related transmission line damage and install new underground lines. As nonprofit agencies providing essential services, coops are eligible for federal disaster assistance during a presidentially declared disaster. For more information on how to benefit from these funds, read the article here.

New Mexico Coop to Develop 1.5 MW Solar Field

Tue, 17 Apr 2012 15:05:35 GMT

Kit Carson Electric Cooperative recently broke ground on a project to build a 1.5-MW solar field, along with developer Standard Solar, in north-central New Mexico. The coop plans to buy solar output from the new facility under a 25-year agreement. When the solar field comes online, it is expected that every business and residence in that part of New Mexico will be entirely solar-powered. Continue reading here.

Minnesota Coop Members to Choose Method of Rate Increase

Tue, 17 Apr 2012 15:02:44 GMT

Lake Country Power Cooperative, the electricity supplier for much of rural northeastern Minnesota, is asking its members to vote on how rates should increase to cover a projected $1.5 million shortfall. Unlike other coops in the area, Lake Country Power’s 48,500 customers are often located far off of the main lines. The coop serves an average of only six consumers per mile of line. Lake Country Power will hold several information meetings for members prior to mailing a ballot, which will contain three rate increase options. The Duluth News Tribune has more here.

Minnesota Coop Hit with Stray Voltage Verdict

Thu, 12 Apr 2012 15:56:18 GMT

A jury awarded $750,000 to a Minnesota dairy farmer for damages caused by stray voltage from the Wright-Hennepin Cooperative Electric Association electric system. The court also determined that electricity may be considered a trespass on property under certain circumstances. Whether the coop will appeal the verdict is not yet known. Click here for more information.

Idaho Battle Over RECs Heats Up

Thu, 12 Apr 2012 15:52:28 GMT

The renewable energy credits (RECs) associated with renewable energy generation projects in Idaho are in high demand by the utilities that purchase power from the projects and the small power producers that generate it. Kootenai Electric Cooperative is one of many small generators trying to retain the marketable RECs, claiming the RECs are a separate product from the actual power produced. The Spokesman-Review has the full story.

Approved Rate Increase for Kentucky Coop Less Than Expected

Thu, 12 Apr 2012 15:50:16 GMT

The Kentucky Public Service Commission (PSC) approved a $3.7 million rate increase for South Kentucky Rural Electric Cooperative Corporation (Kentucky RECC), less than half the amount originally applied for by the coop. Residential and small commercial customers will see an increase in monthly charges, but usage charges will remain the same. Citing current economic strains on consumers, the PSC refused to grant a larger increase, which Kentucky RECC had planned to use for capital credit payments to member-owners. Read more.

Settlement May Be Last Hurdle for Construction of Plant Washington

Thu, 12 Apr 2012 15:40:11 GMT

Power4Georgians, a consortium of four Georgia electric membership cooperatives, has reached settlement terms with environmental groups opposed to the development of one of its projects, Plant Washington (an 850-megawatt, coal-fired plant in Sandersville, Georgia). Once the opposition groups sign the settlement, Power4Georgians will have the final state permit for construction of Plant Washington. Under the settlement, Power4Georgians agreed to comply with safeguards for mercury pollution and other air pollutants, forego building another coal-fired plant in Ben Hill County and invest $5 million in energy-efficient and renewable projects. The Telegraph has additional details.

Coop Helps Jump Start Job Growth in South Carolina

Tue, 10 Apr 2012 17:14:31 GMT

South Carolina company Pee Dee Electricom, a subsidiary of Pee Dee Electric Cooperative, and Marion County have announced a partnership to build a 50,000-square-foot building in the Marion County Industrial Park. This building will be used to attract industry and jobs to Marion County. Construction is expected to be completed by September. Click here for more.

IRS Form Change Affects Coops

Tue, 10 Apr 2012 17:13:01 GMT

An Internal Revenue Service (IRS) change could affect the way that electric coops report capital credits on federal tax forms. The change affects Form 990, which organizations exempt from federal income taxes must file annually to provide their financial information to the government. New language in the instructions of Form 990 states that “patronage dividends paid” by tax-exempt electric coops should be reported as “benefits paid to or for members” (Form 990, part IX, line 4). Uncertainty surrounding this language means that coops should consult their tax advisers. The form is due May 15 for most coops. Read more here.

Western Coops Face Unpredictable Outages Due to Wild Weather

Mon, 09 Apr 2012 17:34:48 GMT

Several Western states have faced unpredictable weather this spring, which has caused ongoing challenges for electric coops attempting to keep power flowing to customers. In New Mexico, Springer Electric Cooperative, Inc., has been working to replace at least 150 poles and restore service to about one-third of the coop’s more than 3,000 consumer-members after snow and high winds battered its service territory on April 2. Many coops have experienced damages due to windstorms, such as Montana-based Flathead Electric Cooperative, which faced a loss of power to thousands of members after a March 28 windstorm. Click here for more.

Nuclear Regulatory Commission Issues New Licenses for Nuclear Reactors

Mon, 09 Apr 2012 17:32:54 GMT

The Nuclear Regulatory Commission has approved a license for two new nuclear reactors in South Carolina. The new licenses come less than two months after the NRC issued its first new permit in more than 30 years for two units at the Alvin W. Vogtle Nuclear Plant in eastern Georgia. Marvin Fertel, president and CEO of the Nuclear Energy Institute, predicts that there will be an additional 5,600 megawatts of nuclear generating capacity on the Southeast’s electricity grid by the end of the decade. In South Carolina, two new reactors are expected to begin operating in 2017 and 2018 at the Summer plant, which is co-owned by Santee Cooper and South Carolina Gas & Electric. Read more here.

National Rural Utilities Cooperative Finance Corporation Makes First Loan Sale to Bank

Mon, 09 Apr 2012 17:28:35 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) has finalized a $25 million loan sale to KeyBank National Association on behalf of KAMO Power, an Oklahoma-based cooperative. Although CFC has made more than $1 billion in loan sales to Farmer Mac over the past five years, this three-year, unsecured loan is the first loan sale made to a bank. KAMO plans to use the funds for a 345-kV transmission project that will stretch from the northeast corner of Oklahoma into Missouri. Click here for more.

AECC Agrees to Long-Term Power Purchase Agreement for Wind Energy

Fri, 06 Apr 2012 17:16:19 GMT

Arkansas Electric Cooperative Corporation issued a press release yesterday announcing its agreement to purchase 51 MW of wind energy from the Flat Ridge 2 South Wind Farm in Kansas. The project is in the construction phase and is part of a larger 419-MW facility financed by BP and Sempra U.S. Gas & Power. Read more here.

Wildfire Litigation Against Texas Coop Pushed to 2013

Fri, 06 Apr 2012 17:13:44 GMT

A large number of civil claims were filed against Bluebonnet Electric Cooperative following a fire in September 2011. Plaintiffs allege that the coop failed to remove dead trees and branches near power lines and that this failure contributed to the fire. A number of pretrial tasks, motions and proceedings are still outstanding, and it is expected the case won’t go to trial until summer 2013 at the earliest. The Bastrop Advertiser is covering this story.

Iowa Coop Members Vote to Merge

Thu, 05 Apr 2012 15:48:49 GMT

Coop members have overwhelmingly approved the merger of Humboldt County Rural Electric Cooperative and Midland Power Cooperative. Merged operations are slated to begin in January 2013 under the name Midland Power Cooperative. Supporters of the merger cite it as a means to control operating costs and increase resources. Read more here.

Texas Coop Lowers Price of Power, Cites Low Gas Prices

Tue, 03 Apr 2012 15:14:05 GMT

Historically low natural gas prices have again had a direct impact on electric coop rates. Texas-based Bluebonnet Electric Cooperative has lowered the cost of power for its members for the second time in six months, citing gas costs as the main contributing factor. Natural gas is used to generate about half of the electricity in Texas. (Subscription required for full article.)

Potential Risks in Solar Interconnection Changes

Tue, 03 Apr 2012 15:11:35 GMT

In a filing before the Federal Energy Regulatory Commission (FERC), the National Rural Electric Cooperative Association recently identified significant reliability and safety risks that could be caused by the proposed revised procedures for interconnecting small solar generation with the grid. NRECA requested that FERC reject the Solar Energy Industries Association’s request for blanket amendments to the interconnection procedures in Order No. 2006 (FERC Docket RM12-10). Instead, NRECA suggested that these changes be applied on a case-by-case basis for qualified utilities. For more on the proposed changes to solar interconnection, click here.

Arizona Coop Seeks to Offer Prepaid Services to Members

Mon, 02 Apr 2012 16:56:50 GMT

Mohave Electric Cooperative (MEC) is seeking permission from the Arizona Corporation Commission (ACC) to offer its members prepaid electric service. If approved, the service would provide pay-as-you-go service for customers who request it. AARP Arizona has submitted comments to the ACC raising some questions about MEC’s proposal, especially with regard to how the proposed service would apply to customers with medical conditions, such as customers who have life support equipment. MEC has responded that prepaid services would not be offered to people with medical problems who need access to uninterrupted electrical service. The Mohave Daily News has more.

Florida Coop to Issue $13 Million in Equity Refunds

Mon, 02 Apr 2012 16:55:29 GMT

Fort Myers-based Lee County Electric Cooperative will give customers almost $13 million in equity refunds or credits beginning in June. The refund checks will go to more than 48,000 customers based on the amount of equity they have in the system. Another 141,100 customers will receive credits on their bills. The News-Press has more here.

EPA Regulations Could Prevent the Use of Coal at New Plants

Mon, 02 Apr 2012 16:53:32 GMT

Under a new rule proposed by the U.S. Environmental Protection Agency on March 27, carbon dioxide emissions from new fossil fuel plants would be required to be roughly equivalent to the emissions from new combined-cycle natural gas plants. Some industry members believe the rule could effectively prevent the use of coal to produce electric power at new plants. The proposed standard would mark the first-ever limits placed on greenhouse gases under the Clean Air Act. Click here to read more.

Impact of New GHG Rules on Planned Virginia Plant Uncertain

Thu, 29 Mar 2012 18:12:40 GMT

New rules proposed by the U.S. Environmental Protection Agency would limit greenhouse gas emissions for power plants that begin construction a year or more into the future. The effect of the new rules on Old Dominion Electric Cooperative’s plans for a new 1,500-MW, coal-fired power plant in Surry County, Virginia, remains uncertain. The Daily Press has the full story.

Vermont Electric Coop to Kick Off Energy and Environmental Management Project

Tue, 27 Mar 2012 14:36:37 GMT

Vermont Electric Cooperative is partnering with Kilawatt Technologies on an Energy and Environmental Management project. This project aims to reduce electric power waste in commercial buildings by tailoring supply closer to consumption. This effort will include collecting total energy consumption data across a building, determining the energy consumption patterns of that building, and developing building-specific control algorithms so only energy needed to provide a comfortable environment is delivered to the building, where needed, at the lowest possible cost. Continue reading.

Coops Honored by J.D. Power

Tue, 27 Mar 2012 14:32:44 GMT

Three of the 50 companies selected as J.D. Power 2012 Customer Service Champions are electric coops: Jackson EMC in Jefferson, Georgia; Sawnee EMC in Cumming, Georgia; and Southern Maryland Electric Cooperative in Hughesville, Maryland. The list was based on feedback from customers on what J.D. Power calls the “5 Ps” – people, presentation, price, process and product. Read more here.

Coop Offers Members Right to Opt Out of Smart Meter Program

Fri, 23 Mar 2012 13:31:41 GMT

In response to some members’ concerns over privacy and security, Kaua’i Island Utility Cooperative in Hawaii announced that it will give its members the option of whether or not to participate in the coop’s smart meter program. The coop remains committed to its smart meter program, but opponents continue to seek a preliminary injunction in federal court. See Smartmeter.com for the story, and click here for a copy of the complaint filed in federal court.

Senate Bill Aims to Increase Energy Efficiency in Rural Areas

Thu, 22 Mar 2012 14:43:31 GMT

Sponsors of the Merkley-Lugar Rural Energy Savings Program Act (RESPA) hope the proposed bill will improve energy efficiency efforts in rural America. RESPA would authorize the Rural Utilities Service (RUS) to offer loans to rural electric coops, which, in turn, would use the added RUS funding to provide low-interest loans to customers for energy efficiency investments. You can read more about RESPA by clicking here.

Study to Determine North Dakota Power Needs

Tue, 20 Mar 2012 16:33:28 GMT

The North Dakota Industrial Commission, Basin Electric Power Cooperative and Montana-Dakota Utilities Co. are among the largest contributors to a study on how to meet the electricity needs of the state’s booming oil industry. The study is expected to determine whether utilities should develop additional electric generation and will also address related issues such as transmission capabilities for future and present generation. The study should be completed by September. Read more here.

Lea County Coop Dedicates New Gas Plant

Tue, 20 Mar 2012 16:32:10 GMT

Lea County Electric Cooperative, Inc., which serves New Mexico and West Texas, recently saw its first wholly owned generation plan come online. Construction financing for the 47-MW, natural gas-fired plant was provided by the National Cooperative Services Corporation and consisted of a $55 million secured bridge line of credit and a $10.4 million secured letter of credit to support equipment purchases. Click here for more.

Iowa Coop Honored After Speedy Completion of Wind Farms

Tue, 20 Mar 2012 16:29:25 GMT

Estherville-based Iowa Lakes Electric Cooperative has been honored by the U.S. Department of Energy as the 2011 Wind Cooperative of the Year after designing and building two wind farms in just 18 months. The coop built the wind farms near existing ethanol plants, which allowed it to use existing substation infrastructure and save approximately $5 million by not having to build a transmission-level connection to the grid. On days when the wind is blowing at 22 to 25 mph the wind farms can supply all of the plant’s power needs. To read more about the financing and design of the wind farms, click here.

Revised Definition of “Bulk Electric System” May Benefit Coops

Thu, 15 Mar 2012 13:19:11 GMT

The North American Electric Reliability Corporation (NERC) submitted a revised definition of the term “Bulk Electric System” (BES) for approval by the Federal Energy Regulatory Commission. If accepted, the revised definition may benefit coops by limiting the types of facilities subject to the NERC Reliability Standards. In particular, coops owning only radial facilities would likely escape BES designation. Read the full story here.

Coop Faces Questions about Savings Potential from Renewable Energy

Mon, 12 Mar 2012 13:33:09 GMT

The Massachusetts-based Cape and Vineyard Electric Cooperative, which is a regional agency created to pursue renewable energy projects for towns in the state, is facing questions about a recent initiative to pursue solar energy. Members of municipal energy committees in some towns have expressed doubt that they are getting the best possible deal from CVEC. The Cape Cod Times has more information about the proposed renewable energy projects here.

Montana PSC’s Request to Intervene in Coop Bankruptcy Proceedings Is Denied

Fri, 09 Mar 2012 15:35:22 GMT

A U.S. Bankruptcy judge denied the Montana Public Service Commission’s (PSC) request to intervene in the bankruptcy proceedings of Southern Montana Electric Generation and Transmission Cooperative, Inc. despite the PSC’s argument that intervention would be in the public interest. Counsel for the coop argued against intervention because the PSC does not regulate coops and is not a creditor. The judge left open the possibility of intervention at a later time, and the PSC plans to track and monitor the progress of the proceedings. The Billings Gazette and Law360 (subscription required) have the full story.

Georgia Legislature Considers Two Bills Impacting Cooperatives

Fri, 09 Mar 2012 15:32:38 GMT

The Georgia Senate this week passed a bill providing that consumers may elect not to use “smart meters.” Senate Bill 459 further permits the Georgia Public Service Commission to create and regulate a surcharge for consumers who elect not to use smart meters. The bill has been sent to the House for consideration. The full text of SB 459 can be viewed here. A second bill impacting electric cooperatives, SB 401, failed to make it out of committee and to a vote by the Senate. Senate Bill 401, which was supported by the solar industry, would have amended the Georgia Cogeneration Act to, among other things, expand the definition of a customer generator to include customers who not only own and operate, but who also finance a distributed generation facility by purchase, lease, loan, or other form of financing, including a power purchase agreement. As SB 401 failed to be passed by the Senate by the March 7 “cross over” deadline, it is defunct for this legislative session, unless added as an amendment to other legislation. The full text of SB 401 can be viewed here.

Delaware Coop Makes Plans for Solar

Thu, 08 Mar 2012 12:52:59 GMT

The Delaware Electric Cooperative plans to build a 4 MW solar park capable of expanding to 8 MW of power generation. SunEdison has been tapped to develop the project, which will cost roughly $14 million with a projected completion date by early 2013. The project will help the coop satisfy Delaware’s renewable energy standards and create jobs. The Delaware Journal has the full story.

U.S. Department of Agriculture to Fund Rural Electric Infrastructure

Thu, 08 Mar 2012 12:49:49 GMT

USDA Rural Development announced that rural electric coops in eight states will receive funding for smart grid technologies and generation and transmission facility improvements. The Rural Utilities Service will be charged with managing the $201 million in loans, of which about $25 million will go towards smart grid developments. The announcement came at the 2012 National Rural Electric Cooperative Association annual meeting. Click here for more.

Old Dominion Coal-Fired Plant Obtains Initial Approval

Tue, 06 Mar 2012 15:31:53 GMT

A $5 billion, 1,500-MW Old Dominion Electric Cooperative coal-fired plant has been granted a conditional use permit by the Dendron, Virginia, Town Council. The plant still needs to obtain environmental approvals. Read more here.

Potential Power Plant Sites Assessed in Nationwide Study

Tue, 06 Mar 2012 15:29:48 GMT

Researchers at Oak Ridge National Laboratory and the Electric Power Research Institute have issued a report assessing possible sites for future power generation in the U.S.. The researchers took into account factors such as siting constraints, terrain, access to water and proximity to large population centers. This type of detailed site analysis can support long-term strategic planning and resource management of coops across the country. The 700 sites listed in this report and other information can be found in this article.

Western Farmers Electric Cooperative Contracts with Calpine for Capacity and Power

Tue, 06 Mar 2012 15:23:25 GMT

Calpine Corporation has entered into a long-term agreement to supply Western Farmers Electric Cooperative (WFEC) with electric generation capacity and power from Calpine’s Oneta Energy Center (OEC) in Oklahoma. The OEC is a natural gas, combined-cycle, 1,134-MW power plant. WFEC must still obtain certain approvals and satisfactory transmission service. Click here for more.

NSWC Indian Head Gets New Service Provider

Mon, 05 Mar 2012 16:28:29 GMT

Southern Maryland Electric Cooperative (SMECO) has become the electric service provider for the Naval Surface Warfare Center (NSWC) at Indian Head in Maryland. SMECO is taking over for Pepco who provided transmission service to NSWC for many years; NSWC was Pepco’s sole customer within the boundaries of SMECO's service area. Southern Maryland Online has the full story.

Recent Storms Impact Coop Territories in Multiple States

Mon, 05 Mar 2012 16:27:20 GMT

On March 2, multiple tornadoes and violent storms moved through communities served by electric cooperatives in several states, claiming at least 36 lives, injuring hundreds and leaving thousands more without power. The communications coordinator for Indiana-based Clark County Rural Electric Membership Corporation described some areas as being “literally wiped off the map.” Click here to read more about the areas and coops impacted by the storms.

Montana Coops Negotiating New Payment Plans with Oil Companies

Mon, 05 Mar 2012 16:25:58 GMT

Some Montana coops are changing the way they structure payment plans with oil companies that need their oil well sites to be electrified. Lower Yellowstone Rural Electric Association (LYREA) is requiring payment up front from the oil companies rather than allowing payment through the monthly electricity rate. The cost of making payments all at once can add up; costs can reach about $60,000 per mile for line. In 2011, LYREA installed between 75 to 80 miles of line. To read more about the evolving payment requirements, click here.

EPA and North Dakota Closer to Agreement on Haze Reduction Plan

Mon, 05 Mar 2012 16:24:14 GMT

Officials for the state of North Dakota announced last Friday that the U.S. Environmental Protection Agency agreed to approve the majority of the state’s regional haze air quality plan. The EPA had previously called North Dakota’s plan inadequate and had threatened to assume regulatory authority in the state, which relied heavily on coal power. The announcement comes as good news for Minnkota Power Cooperative and Basin Electric Power Cooperative. Both were targeted by the EPA but are no longer facing the possibility of new technology recommended by the agency. Midwest Energy News has more on the agreement here.

Tri-State Signs PPA for Energy from Colorado Highlands Wind Project

Fri, 02 Mar 2012 15:05:49 GMT

In a move to diversify its generation portfolio and increase the amount of energy from renewable resources, Tri-State Generation and Transmission Association, Inc., has agreed to purchase energy for the next 20 years from a 67-MW wind project to be build by Colorado Highlands Wind LLC. This agreement concludes an RFP process initiated by the coop in October 2011. Read more here.

Proposed Missouri Bill to Expand Coops’ Rights to Use Existing Utility Poles

Fri, 02 Mar 2012 15:03:38 GMT

Missouri State Senator Brad Lager recently introduced a bill (S. B. 891) that will allow rural electric coops to use existing utility poles and rights-of-way for smart grid and broadband applications. News-Press Now has the full story.

South Dakota Legislature Passes Law Changing How Coops Are Taxed

Fri, 02 Mar 2012 14:58:08 GMT

Following a 31-2 vote in the South Dakota Senate, S.B. 123 is headed to the governor’s desk for signature. If the bill is signed into law, rural electric coops will be taxed based exclusively on the total number of kilowatt-hours delivered to customers. Coops support this bill because it is designed to limit future tax increases. The Daily Republic has been following this story.

Revived Nuclear Site Bill Introduced in Missouri

Thu, 01 Mar 2012 16:42:33 GMT

A recently proposed bill in the Missouri Senate would permit Ameren-Missouri and its group of for-profit utilities and coops to charge ratepayers up to $45 million for the costs of pursuing an early nuclear site permit. Supporters of the bill hope to expedite the development of a second nuclear reactor in Callaway County by seeking an early site permit from the Nuclear Regulatory Commission. The bill includes consumer protection provisions to ensure customers get their money back in the event the plant is not built, but opponents of the bill are calling it a “bailout” for Ameren. Read more.

Kentucky Rural Investment Bill Making Progress

Thu, 01 Mar 2012 16:40:19 GMT

A proposed bill to allow the use of private investment by coops is moving through the Kentucky legislature. Similar to laws passed in Tennessee and several other states, supporters of the proposed bill say it will promote new forms of investment and invigorate the state’s growing biofuels industry. Click here for more information.

CFTC Chairman Mentions Possible Exemption of Coops from Dodd-Frank

Wed, 29 Feb 2012 14:12:04 GMT

In testimony before the U.S. House Committee on Agriculture, the Chairman of the Commodity Futures Trading Commission (the “CFTC”) briefly mentioned that the CFTC was considering exempting rural electric cooperatives from certain provisions of the Dodd-Frank regulations. The complete testimony can be found here.

Facility Owners Should Heed New Cybersecurity Legislation

Wed, 29 Feb 2012 14:06:38 GMT

The push for new legislation to combat cybersecurity threats appears to be gaining steam in Congress. While election year politics, competing legislative priorities and other roadblocks may ultimately derail these legislative efforts, owners of critical infrastructure should take heed: Facility owners would be subject to "performance requirements," certification requirements and third-party audits under new regulations required by pending legislation. Read more.

New Hampshire Coop Customers Bring Suit Over “Smart Meters”

Mon, 27 Feb 2012 15:55:06 GMT

A group of eight customers of Plymouth-based New Hampshire Electric Cooperative have brought suit in Grafton County Superior Court, arguing that they should have the option to refuse to have so-called “smart meters” installed at their homes. The plaintiffs are concerned about possible negative health consequences from exposure to electromagnetic radiation emanating from the meters. Coop officials countered that the plaintiffs have failed to claim “smart meters” violate any federal, state or local law. Read more here.

Cross-State Air Pollution Rule Lawsuit Gains Steam

Mon, 27 Feb 2012 15:53:14 GMT

The National Rural Electric Cooperative Association and several G&Ts have joined in a lawsuit challenging the U.S. Environmental Protection Agency’s Cross-State Air Pollution Rule. The new rule sets emissions caps and procedures for nitrogen oxides and sulfur dioxide that contribute to ozone formation in 27 eastern states and uses a system of tradable emissions allowances. The U.S. Court of Appeals for the District of Columbia issued a stay on the rule just days before it was scheduled to take effect at the beginning of January. To read more about the new regulations and the lawsuit challenging them, click here.

Partnership Continues to Promote Kansas Transmission Projects

Thu, 23 Feb 2012 11:26:02 GMT

ITC Great Plains, LLC, Sunflower Electric Power Corporation and Mid-Kansas Electric Company, LLC will continue their partnership efforts to build transmission projects in Kansas. The parties expanded their existing partnership agreement to give ITC Great Plains the exclusive option to build projects that Sunflower and Mid-Kansas choose not to construct. Click here for the full story.

G&T Coops Feel the Sting of Low Natural Gas Prices

Tue, 21 Feb 2012 14:30:13 GMT

Natural gas prices have hit record lows, a trend that likely will not change any time soon due to the mild winter and the glut of domestic supply. This may be good news to some. However, generation and transmission coops – which generate only 12 percent of their electricity from natural gas – are now facing the rare challenge of seeing their mainstay coal units edged out by currently less expensive natural-gas-fired units. Click here for more information about historical gas prices and the ways that coops are hedging against market volatility.

NRECA Expresses Concern Over Compliance Deadlines for Utility Mercury Air Toxics Standards

Fri, 17 Feb 2012 14:51:08 GMT

In a press release, the National Rural Electric Cooperative Association (NRECA) highlighted the problems coops face in complying with deadlines for new mercury air toxics standards for utilities. The NRECA warns of the higher costs that will result when coops have to purchase substitute generation in the wholesale markets in the event they are unable to comply with the ambitious deadlines set by the Environmental Protection Agency.

Dispute Between Native American Tribe and Coop Over Fees for Right-of-Way

Fri, 17 Feb 2012 14:48:51 GMT

The Continental Divide Electric Cooperative and the Pueblo of Acoma in New Mexico are involved in a dispute over what fees the coop must pay to enter the tribe’s land to serve its customers. A 50-year agreement giving the coop access to the land expired in 2002, but the parties have been unable to reach a new agreement. The Pueblo of Acoma recently filed claims with the tribal court and the stat’s Public Regulation Commission seeking $5.7 million the tribe claims it is owed based on the coop’s continued use of tribal lands. The Cibola Beacon is covering this story.

Board of Supervisors to Reconsider Opposition to Virginia Coal Plant

Thu, 16 Feb 2012 16:25:30 GMT

The Isle of Wight County Board of Supervisors’ may rescind a November 2011 resolution opposing a proposed $6 billion coal-fired generation plant. The Board had opposed the Old Dominion Electric Cooperative project in Surry County, Virginia, due to environmental and economic development concerns. The Board, now composed of new, will revisit its position regarding the plant this week. Read more.

Budget Reform Bill Could Impact RUS Lending

Tue, 14 Feb 2012 15:15:01 GMT

A budget reform bill passed by the U.S. House of Representatives may place unnecessary limits on Rural Utilities Service (RUS) lending to electric coops, according to the National Rural Electric Cooperative Association (NRECA). The bill, H.R. 3581, is intended to incorporate market risk into the cost of government credit programs, such as Freddie Mac and Fannie Mae, but would also sweep in lending programs like the RUS Electric Loan Program. Because coops have a track record of prompt loan repayment and because of increasing electricity costs to end users, the NRECA is urging lawmakers to revise the bill. For more details, click here.

Kansas Officials Working on Disaster Fund That Would Benefit Coops

Mon, 13 Feb 2012 16:34:54 GMT

Kansas lawmakers are working with the state’s governor to establish a fund to cover the state’s share of expenses from federally declared disasters, after millions owed to electric coops from storms in 2011 went unpaid. Kansas governor Sam Brownback wants to use $12 million from tax collections each year to establish a rainy day fund to avoid the situation the state faced in 2011 when lawmakers failed to finance $27 million in payments that Kansas owed for its share of disaster-related expenses. The Associated Press has more on the proposed fund.

Missouri Coop Becomes CFC’s Latest 100 Percent Borrower

Mon, 13 Feb 2012 16:33:02 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) has closed a $133 million transaction for Missouri-based White River Valley Electric Cooperative (WRVEC). As a result of the deal, WRVEC has become CFC’s latest 100 percent borrower. WRVEC’s board of directors reportedly backed the move because it will result in significant savings to the coop and will ensure flexible funding options in the years ahead. To read more about the deal, click here.

Deer Creek Station to be Turned Over to Coop for Commissioning

Fri, 10 Feb 2012 14:19:45 GMT

Boldt Construction is nearly complete with its construction work on Basin Electric Power Cooperative’s 300-MW natural gas combined-cycle generation facility near Elkton, South Dakota. Boldt plans to turn the facility over to Basin Electric for commissioning within the next couple of weeks, and the facility is scheduled to be online in June 2012. The Brookings Register has been following this story.

Oglethorpe Praises NRC Approval of License for New Nuclear Units

Fri, 10 Feb 2012 14:18:06 GMT

The Nuclear Regulatory Commission voted 4-1 on February 9 to approve plans for two new nuclear units at the Alvin W. Vogtle Nuclear Plant. Oglethorpe Power Corporation, a 30 percent owner of the new units, along with the other co-owners of new units are now looking forward to 2016 and 2017 when the units are scheduled to come online. Electric Co-op Today has the full story.

Alaska Coop Seeks Preliminary Permit to Study Hydroelectricity

Thu, 09 Feb 2012 16:23:29 GMT

Alaska Village Electric Cooperative filed an application with the Federal Energy Regulatory Commission (FERC) requesting a preliminary permit to study the feasibility of a hydroelectric project located near the town of Old Harbor, Kodiac Island Borough, Alaska. The preliminary permit does not authorize any land-disturbing activities, but if granted, the permit holder will have priority to file a license application. FERC’s notice of the application is available here.

Coop Agrees to Purchase Power from Lumber Mill Biomass Plant

Thu, 09 Feb 2012 16:17:01 GMT

Flathead Electric Cooperative will purchase up to 2.5 MW from a a Montana timber mill generator powered by biomass energy. The 20-year agreement will begin in 2013 and should have a minimal impact on the coop members’ rates. The project will put biomass energy to good use and help manage forest health while creating jobs. Hungry Horse News has the details.

Arkansas PSC to Review Arkansas Plant’s Environmental Controls Plan

Thu, 09 Feb 2012 16:11:30 GMT

Southwestern Electric Power Company (SWEPCO) requested the Arkansas Public Service Commission review the company’s environmental control installation plans for the Flint Creek Power Plant. SWEPCO and Arkansas Electric Cooperative Corporation each own 50 percent of the 528-MW coal-fired generation plant. The proposed controls would limit the amount of hazardous air pollutants emitted from the plant and would cost approximately $408 million to install. The plant owners aim to have the controls in operation by June 2016. Read more.

Tenth Circuit Says Customer Is "Stuck Between a Rock and a Pile of Sewage": Tying Suit Against City Moves Forward After U.S. Supreme Court Declines to Hear Appeal

Tue, 07 Feb 2012 16:06:44 GMT

Unlawful tying arrangements are a frequent point of contention between electric cooperatives and municipalities. On January 17, 2012, the U.S. Supreme Court let stand a decision that permits an unlawful tying/monopolization claim to go forward against the City of Newkirk, Oklahoma. Click here for more.

Endangered Houston Toad Impedes Bastrop Fire Clean-up

Tue, 07 Feb 2012 16:03:45 GMT

The process of collecting debris and connecting electrical service to customers in the Bastrop County burn area has slowed because the unseasonably warm weather and recent rain have increased the activity of the endangered Houston toad. Bluebonnet Electric Cooperative must seek approval from federal officials before proceeding on work at most job sites around the county so the natural activity of the Houston toad is not hampered. Read more here.

Alaskan Healy Clean Coal Project Approved

Tue, 07 Feb 2012 15:59:42 GMT

Alaska’s Department of Environmental Conservation renewed a key air quality permit to restart a mothballed 50-MW coal power plant in interior Alaska. Environmental groups that oppose restarting the plant are expected to file appeals before the permit is finalized. The plant, owned by Golden Valley Electric Association, an electric coop, may reduce rates to interior Alaska customers by 20 percent. Click here for more.

South Carolina Energy Providers Promote Economic Development

Thu, 02 Feb 2012 13:43:33 GMT

A coalition of South Carolina energy providers, including the state-owned utility Santee Cooper and 20 coops, are implementing a new rate-cutting strategy to increase job growth in the state. The plan will reduce rates during “peak” periods for new and expanding industries that create a certain number of jobs or make a comparable monetary investment. Interested industrial customers must sign an agreement with their energy providers by the end of 2014 to participate in the plan. Click here for more.

NERC Proposes Modified Definition of Bulk Electric System

Tue, 31 Jan 2012 15:42:35 GMT

The North American Electric Reliability Corporation (NERC) has proposed that all transmission facilities operated at 100 kV or higher and all real and reactive power resources connected to the grid at 100 kV or higher be subject to its Reliability Standards. In NERC's January 25, 2012 petition to the Federal Energy Regulatory Commission (FERC) to approve its revised definition of "Bulk Electric System" (BES) – the term used by NERC to identify the electric transmission, generation and related facilities subject to the Reliability Standards – NERC adopted 100 kV as a bright-line threshold for identifying BES facilities, but also included all blackstart resources regardless of size or voltage level. NERC's revised definition would exclude local distribution and radial facilities. Although the 100-kV threshold is the defining element of the revised definition, owners and operators of facilities subject to BES designation will have an opportunity to seek an exception using NERC's BES Exception Procedure proposed in connection with the revised definition of BES. Read more.

Idaho Company Seeks Landfill Gas PPA

Tue, 31 Jan 2012 15:24:21 GMT

Avista Corporation is asking the Idaho Public Utilities Commission to approve a purchase power agreement with Kootenai Electric Cooperative's 3.2-megawatt landfill gas generating facility near Bellgrove, Idaho, 15 miles south of Coeur d'Alene. Under the agreement, Avista would purchase the project's output at the lower of either 85 percent of the market rate or the avoided-cost rate for Public Utility Regulatory Policy Act projects smaller than 10 average megawatts. Click here for more.

Coops Receive USDA Rural Economic Development Grants

Tue, 31 Jan 2012 15:19:49 GMT

Lumbee River Electric Membership Corporation in North Carolina, Clarke-Washington Electric Membership Corporation in Alabama and Heartland Power Cooperative in Iowa were among the coops that received grants under the USDA's Rural Economic Development Loan and Grant program. Agriculture Secretary Tom Vilsack announced that loans and grants will be provided to applicants in 10 states to support businesses, improve the quality of medical care, and create or save hundreds of jobs. Click here for a list of the coops, the details and the amounts awarded.

Texas Power Plant Set to Reopen in 2013

Mon, 30 Jan 2012 16:47:46 GMT

Sandy Creek Power Plant, which has been shut down for the past three months, is now set to go back online in 2013. Damage to the plant’s boiler led to the shut down and officials report that materials have already been ordered to fix the problem, but the delay in reopening the facility could affect the state’s electricity supply. Click here for more.

Coops’ Input Leads to Beneficial Bills

Mon, 30 Jan 2012 16:42:35 GMT

The House Agriculture Committee has advanced three bills that address electric cooperatives’ concerns with federal regulators’ writing of financial reform regulations. The bills would allow coops to continue using financial instruments such as derivatives, which help insulate customers from price volatility without being subjected to potentially costly regulations. To read more about bills causing concern for coops, click here.

Great Lakes Energy Cooperative Adopts Resolution to be Member Regulated

Fri, 27 Jan 2012 14:49:47 GMT

Great Lakes Energy Cooperative will enter into discussions with the Michigan Public Service Commission on how to handle its transition to a member-regulated entity. The utility will beome member-regulated in March assuming Great Lakes meets the notice and hearing requirements under Michigan’s Electric Cooperative Member-Regulation Act. Great Lakes’ member-consumers support the coop’s decision to make this transition. See the Public Service Commission’s Order for more information.

Equal Employment Opportunity Commission Files Suit Alleging Religious Discrimination by Coop

Fri, 27 Jan 2012 14:47:57 GMT

According to the government’s suit, Ozarks Electric Cooperative Corporation violated Title VII of the Civil Rights Act of 1964 when it fired an employee who is a Jehovah’s Witness. The government filed its suit in the U.S. District Court for the Western District of Arkansas on January 26. For more information about the allegations, see the Equal Employment Opportunity Commission’s press release.

Oregon Coop Looks to Change State Law

Thu, 26 Jan 2012 12:32:06 GMT

Umatilla Electric Cooperative hopes to change a 2007 state law to avoid raising customer rates to meet a state-mandated renewable energy portfolio. Currently Umatilla is a “small” energy provider under the law, but an increase in large customers, particularly Internet data centers, may force the coop into the “large” category. Umatilla would face approximately $40 million in added costs under the new category. Read more.

SWEPCO Signs Up for Wind Energy

Thu, 26 Jan 2012 12:27:40 GMT

Pursuant to a court settlement over a 600-MW, coal-fired generation plant in Arkansas, Southwestern Electric Power Company (SWEPCO) has entered into a power purchase agreement for 359 MW of wind energy. The settlement required the Arkansas plant developers to add 400 MW of renewable capacity by 2015. The majority of the wind generation will come from Oklahoma. Other generation sites are located in Texas and Kansas. Read the full story (subscription required).

Vermont Coops Spurn Potential Transmission Control Shift to Green Mountain Power

Tue, 24 Jan 2012 15:28:08 GMT

In light of a possible merger of Vermont’s two largest utilities to form new entity Green Mountain Power, Vermont municipals and coops are debating who will control the state’s transmission utility, Vermont Electric Power Company (VELCO). Through petitions before the Vermont Public Service Board, both municipals and coops are urging the Board to prevent Green Mountain Power from controlling up to 80 percent of the state’s transmissions lines, a move that may oust smaller entities from representation on the VELCO board. Read more here.

NRECA Asks FERC to Reconsider Order Against Iowa Coop

Mon, 23 Jan 2012 16:28:59 GMT

The National Rural Electric Cooperative Association (NRECA) has asked the Federal Energy Regulatory Commission to reconsider a recent order, which requires Midland Power Cooperative, based in Jefferson, Iowa, to obtain FERC’s authorization before disconnecting retail service to a local couple. The coop initiated the disconnection when the couple, who operate a small wind turbine in the coop’s territory, refused to pay their bill for back-up power. The couple claim they are entitled to credits for power sold back to the coop under the Public Utility Regulatory Policies Act but they are seeking payment based on a rate far higher than the coop’s avoided cost rate. Read the full story here.

Utility Drivers May Use Hands-Free Devices in Company Cars

Mon, 23 Jan 2012 16:27:11 GMT

Federal regulators have clarified the equipment covered by their recent ban on the use of hand-held mobile telephones by the drivers of vehicles owned by electric cooperatives and other utilities. These drivers—in fact, all commercial motor vehicle operators—can use push-to-talk mobile phones while behind the wheel, provided they do not “reach for, dial, or hold the actual mobile telephone … while driving,” according to the Federal Motor Carrier Safety Administration (FMCSA). The driver must be able to touch the button needed to operate the push-to-talk feature from the normal seated position with his or her safety belt fastened. The FMCSA had turned down a request by the National Rural Electric Cooperative Association (NRECA) to exempt electric coops from its mobile phone rule through an emergency services exemption. Read more.

Advocacy Groups Oppose New Power Lines for We Energies Plant

Mon, 23 Jan 2012 16:24:49 GMT

As the Sutherland Coop team reported on January 12, Wolverine Power Cooperative and We Energies have raised the possibility of a joint venture, which could help to avoid shutting down the Presque Isle coal-fired power plant in 2017 due to the added costs of the Environmental Protection Agency’s new environmental rules. Two advocacy groups now are opposing the addition of power lines in northern Wisconsin and Michigan’s Upper Peninsula that would be a part of the $1 billion project. The Journal Sentinel has the full story here.

Texas Coop Employees Vote Against Unionizing

Fri, 20 Jan 2012 17:26:53 GMT

Lineman and other employees at Pedernales Electric Cooperative voted 127 to 78 against joining the International Brotherhood of Electrical Workers Local Union 66. In a statement, R.B. Sloan, the coop’s chief executive officer, personally thanked employees for their faith in management and the board of directors. Read more here.

Federal Court Denies Coop’s Request to File Separate Brief in Suit Against EPA

Fri, 20 Jan 2012 17:21:38 GMT

According to a recent order, energy industry participants have until February 9 to file their briefs in connection with their challenge of the U.S. Environmental Protection Agency’s Cross-State Air Pollution Rule. The federal court denied requests, including one request by East Kentucky Power Cooperative, to file separate briefs. Hearings are scheduled to begin in April. Click here for more.

Missouri Bill Introduced to Promote Smart Grid Technologies

Thu, 19 Jan 2012 13:25:50 GMT

A new bill introduced in the Missouri House of Representatives would make it easier to attach smart grid and broadband communication equipment to telecommunication poles and rural coop distribution system poles. The proposed bill would allow the pole owner to charge a reasonable rate based on costs incurred from the attachments and aims to spread these and other advanced technologies across the state. Read the bill.

County Grants Exception for Maryland Solar Farm

Thu, 19 Jan 2012 13:24:12 GMT

Southern Maryland Electric Cooperative’s (SMECO’s) proposed 5.5 MW solar farm located in Charles County, Maryland, will move forward thanks to an exception granted by the Charles County Board of Appeals. The planned solar farm will help SMECO meet its Renewable Portfolio Standard (RPS) requirements as imposed by the Maryland Public Service Commission. The estimated cost of the solar farm is approximately $20 million, and SMECO hopes to have the county’s first solar farm online no later than the first quarter of 2013. Click here for more.

Bastrop Wildfire Lawsuit Against Bluebonnet Electric Coop Resolved, But Others Remain

Tue, 17 Jan 2012 17:46:27 GMT

A $6 million lawsuit against Bluebonnet Electric Cooperative and McCoy Tree Surgery over a 2009 wildfire in Bastrop County was resolved last week without a jury decision. The parties have declined comment on the case, which was set for jury trial, to determine whether a falling tree knocked down sagging power lines, sparking a fire in the utility’s right of way. Eleven other lawsuits have been filed accusing Bluebonnet of negligence in connection with a 2011 fire at the Bastrop Complex, according to the district clerk’s office. Bluebonnet has denied liability and cited extreme weather conditions as the cause of the fire. Click here for the full story.

Texas Coop Employees to Vote on Unionization

Tue, 17 Jan 2012 17:44:22 GMT

Pedernales Electric Cooperative linemen and other employees will vote on Jan. 18 and 19 on whether to join the International Brotherhood of Electrical Workers Local Union 66. The National Labor Relations Board will hold the election. A majority vote would create the first union in the history of Pedernales, the nation’s largest electric cooperative. Read more here.

Civil Suit Against Texas Coop Underway

Thu, 12 Jan 2012 16:49:14 GMT

A hearing is underway in a civil suit against Bluebonnet Electric Cooperative in which homeowners allege the coop’s negligence triggered a 2009 fire that damaged homes and businesses in Central Texas. Plaintiffs claim the fire was caused by the coop’s inadequate wire connections and power lines and the location of combustible material nearby, but the coop asserts a fallen tree is to blame. Click here for more.

Coops Oppose FERC Order on Environmental Redispatch

Thu, 12 Jan 2012 16:46:38 GMT

The National Rural Electric Cooperative Association (NRECA) filed in opposition of the Federal Energy Regulatory Commission’s (FERC’s) recent order instructing the Bonneville Power Administration (BPA) to revise its environmental redispatch policy. FERC found the policy discriminated against wind generators to the benefit of hydropower production. NRECA claimed the order exceeded FERC’s jurisdictional authority. Read more.

Potential Joint Venture Could Save Michigan Plant

Thu, 12 Jan 2012 16:44:17 GMT

Wolverine Power Cooperative and We Energies are evaluating whether a joint venture may be reached to avoid shutting down the Presque Isle coal-fired power plant in 2017 due to the added costs of the Environmental Protection Agency’s new environmental rules. The joint venture would finance the environmental controls needed to keep the plant open, which are estimated to cost hundreds of millions of dollars. The Milwaukee Journal Sentinel has the full story.

BP Wind Energy and Sempra U.S. Gas & Power to Develop Two Wind Farms and Sell Power to Several Coops

Thu, 12 Jan 2012 16:38:54 GMT

BP Wind Energy and Sempra U.S. Gas & Power are jointly developing a 141 MW wind farm in Pennsylvania and a 419 MW wind farm in Kansas with a combined $1 billion investment. Old Dominion Electric Cooperative and Southern Maryland Electric Cooperative Inc. are both buying the output from the Pennsylvania wind farm under power purchase agreements. Associated Electric Cooperative Inc. and Southwestern Electric Power Co. are buying the output from the Kansas wind farm. Both wind farms are expected to achieve commercial operation by the end of 2012. Additional details can be found here.

NRECA and Coops Challenge FERC’s Self-Supply Order

Mon, 09 Jan 2012 17:57:41 GMT

The National Rural Electric Cooperative Association, along with several coops, munis, industrial customers and the American Public Power Association, has requested a rehearing of the Federal Energy Regulatory Commission’s controversial November 17th order on the issue of self-supply. The order questions whether load-serving entities such as electric coops can self-supply the power needed to meet their capacity obligations in the PJM Interconnection regional transmission organization. An earlier order required changes in the annual auction process through which coops are required to demonstrate that they will have sufficient generating capacity to meet the needs of their consumers. The NRECA is arguing that the new case-by-case approach would have a “chilling effect” on new generation investment. Click here to read more about the NRECA’s challenge.

Swap Regulations Delayed Once More

Mon, 09 Jan 2012 17:55:01 GMT

Once again, the Commodity Futures Trading Commission has delayed the effective date of regulations that will tighten controls over energy futures markets. Electric coops use derivatives as a way to provide predictability in the price of power. The swap regulations, originally slated to take effect July 16, 2011, had already been pushed back to December 31, 2011. The provisions are now scheduled to take effect July 16, 2012. Read more about the delayed regulations here.

Great River Energy Buys Large Stake in Ethanol Biorefinery

Mon, 09 Jan 2012 17:53:22 GMT

Great River Energy, a nonprofit coop that provides wholesale electric service to distribution coops in Minnesota and Wisconsin, purchased a 51 percent stake in an Underwood, North Dakota ethanol biorefinery. Prior to the $18.5 million cash deal, Great River Energy had owned a 49 percent stake in the Blue Flint Ethanol LLC biorefinery. Business Week has the full story here.

Sutherland Attorneys Outline 10 Power Grid Cyber Security Strategies

Mon, 09 Jan 2012 17:48:07 GMT

The regulatory landscape for protecting the electric power grid against cyber threats is fraught with uncertainty. But there are strategies that compliance officers and regulatory affairs personnel can implement today to combat cyber threats that may compromise physical electrical infrastructure. These strategies can help electric utilities, owners and operators of generation and transmission facilities, and industrials with on-site generation develop a Culture of Security, thereby positioning themselves for compliance with any future regulatory requirements while securing their electric infrastructure against the increasing threat of cyber attack.

In a recent article in Managing Power magazine, Sutherland attorneys Daniel E. Frank, Jennifer J. Kubicek and Mark Thibodeaux outline 10 such strategies and the importance of developing a Culture of Security. This article follows their earlier Managing Power article that outlined the nature of the current cybersecurity threat to the electric power grid, the existing regulatory framework for protecting the grid against cyber threats, and the uncertain future of additional regulatory solutions. Click here to read more about the 10 strategies.

Vermont Electric Cooperative Pursues Power Deal with Seabrook Nuclear Plant

Wed, 04 Jan 2012 15:15:54 GMT

Vermont Electric Cooperative (VEC) has expressed interest in entering a 20-year power purchase agreement with a NextEra Energy nuclear power plant in Seabrook, New Hampshire. The Vermont Public Service Board and the VEC board of directors must approve the purchase before the parties can go forward with the agreement. The contract would be for 16 to 17 percent of VEC’s annual energy needs. Click here for more.

2011 CFC-Arranged Syndications Top $3 Billion

Wed, 04 Jan 2012 15:13:47 GMT

The National Rural Utilities Cooperative Finance Corporation (CFC) arranged $3.1 billion of syndicated revolving credit facilities for members in calendar year 2011. This number increased over prior years due to an increase in liquidity and a desire for participating financial institutions to open relationships with new borrowers. CFC has arranged 57 percent of all syndicated transactions, accounting for nearly $7 billion of facility amounts and making it the most active lead or co-lead arranger and administrative agent for electric cooperatives since 2005. Read more here.

Complaint Against Coop Filed With State Regulatory Commission

Thu, 22 Dec 2011 20:04:50 GMT

Carroll Electric Cooperative Corporation continues to face backlash for its bylaws, transparency and board member balloting procedures. The latest development in a series of lawsuits against Carroll Electric involves a complaint filed with the Arkansas Public Service Commission against a recent bylaw change. The amendment would include an arbitration clause that forbids coop members from participating in a class action suit against Carroll Electric. Click here for more.

Proposed Franchise Agreement Looks Promising in Colorado

Thu, 22 Dec 2011 20:03:22 GMT

The City of Durango, Colorado, and La Plata Electric Association appear positioned to approve a new franchise agreement that would go into effect in May 2012. The proposed agreement provides less restrictive language on how to credit consumers for generating power back to the grid than previously suggested. The agreement also protects coop customers located outside of Durango from rate increases, which subsidize renewable energy projects developed within the city. The Durango Herald has the full story.

Power Companies Fight Rate Increase From Coal Premium

Thu, 22 Dec 2011 20:01:54 GMT

Arkansas Electric Cooperative Corp. is one of several power companies and related organizations contesting BNSF Railway Company’s cost allocation methodology, which increases rates of coal transporters in order to pay an investor premium. Opponents claim the $8.1 billion premium should not be included in the valuation of BNSF’s assets and, thus, should not factor into rates. Click here for more.

Wisconsin Coop Gears Up For New Mercury Rules

Thu, 22 Dec 2011 20:00:13 GMT

Dairyland Power Cooperative is working to meet new Environmental Protection Agency (EPA) regulations that would limit emissions of toxic air pollutants at power plants. The coop’s $400 million plan will install pollution controls at two coal-fired plants. In general, coops face a three-year compliance deadline, with some flexibility for states to grant an additional year. The costs associated with the EPA rules as well as other costs will be recovered from Dairyland’s member coops, who will face a five percent wholesale rate increase. Read more here.

North Dakota Scrubber Technology Prevails

Thu, 22 Dec 2011 19:58:19 GMT

North Dakota’s preferred emission reduction technology, which is used to scrub power plant boilers, withstood an Environmental Protection Agency (EPA) challenge that a technology that can be adopted across the country should be used. The U.S. District Court found that North Dakota’s choice in selective noncatalytic reduction technology, as opposed to the EPA’s preferred selective catalytic reduction (SCR) technology, was reasonable and in accordance with due diligence principles, given the physical and chemical characteristics of the boilers involved. The full story is available here.

Tennessee Coop to Connect New Solar Facility

Tue, 20 Dec 2011 14:15:40 GMT

Chickasaw Electric Cooperative, a Tennessee-based coop, is set to connect the new West Tennessee Solar Farm to the Tennessee Valley Authority with its distribution lines. The coop has upgraded seven miles of its distribution lines and added two additional miles to connect the 4.5-megawatt solar facility to the regional power grid. The project is estimated to have cost the coop $31 million, and the interconnection was completed 11 weeks ahead of schedule. Click here for more details.

Georgia Transmission Corporation Obtains $275 Million Refinancing Deal

Mon, 19 Dec 2011 18:45:00 GMT

Georgia Transmission Corporation, which serves 39 electric membership corporations in Georgia, and owns more than 600 substations, recently closed a large refinancing deal on a facility that GTC will use for general corporate purposes. The National Rural Utilities Cooperative Finance Corporation arranged a $275 million, five-year unsecured revolving credit facility for GTC, which is based in Tucker, GA. The deal refinanced an existing $180 million facility that CFC had arranged in 2007. To read more details about the deal, click here.

Tri-State Returns $20 Million in Capital Credits

Wed, 14 Dec 2011 17:13:41 GMT

Tri-State Generation and Transmission Association’s board has authorized the retirement of $20 million of capital credits to the association’s member coops. This is the 23rd consecutive year Tri-State has returned capital credits to its members. For more information, click here.

Proposed Bills Seek to Minimize Dodd-Frank Impact on Energy Markets

Wed, 14 Dec 2011 17:12:19 GMT

Two recently proposed House bills, H.R. 3527 and H.R. 2682, attempt to clarify definitions and exemptions in the Dodd-Frank Wall Street Reform and Consumer Protection Act in favor of electric coops that participate in derivatives trading. Under Dodd-Frank, coops and other end-users that use swaps for hedging purposes fear they could be miscast as swap dealers or larger traders seeking to profit from speculation on derivatives and would be subject to substantial burdens and costs. The first proposed bill seeks to exclude coops from the definition of a swap dealer. The second bill would clarify exemptions for companies that use derivatives solely to manage risk. A more detailed description of the bills and their potential impact on coops can be found here.

EPA Regulations Threaten Coops

Wed, 14 Dec 2011 17:09:45 GMT

Emissions controls for coal-based generating units under current Environmental Protection Agency (EPA) rulemakings may cause significant financial and reliability challenges for electric coops, according to the National Rural Electric Cooperative Association (NRECA). Because of their small size, coops may not be considered priority customers by emissions control companies that supply and install the needed equipment. This may interrupt operations after the 2015 deadline for compliance. You can read more about the NRECA comments on the EPA rules here.

Pacific Northwest Coops Ordered to Rebalance Use of Hydropower and Wind Energy

Mon, 12 Dec 2011 15:08:05 GMT

The Federal Energy Regulatory Commission ruled that the Bonneville Power Administration discriminated against wind interests by cutting back on wind production at times of high hydroelectric generation. FERC gave the BPA 90 days to come up with a new program. BPA announced an “environmental redispatch” policy last May in an effort to balance supply and demand and comply with salmon recovery goals in the region. After high river flows last spring, which were potentially harmful to salmon, BPA curtailed some wind generation in favor of hydropower. The wind generators sued, claiming the shutdowns cost them more than $2 million in tax and renewable energy credits. Click here to read more.

Maryland Coop Acquiring Distribution Networks to Increase Load

Fri, 09 Dec 2011 16:59:55 GMT

Southern Maryland Electric Cooperative has been pursing the acquisition of distribution networks as a way to add commercial and industrial load to its service territory. The coop was recently granted the right by state officials to acquire the electric system of St. Mary’s College of Maryland. Read more here.

Coop Advocates Reliability-Based Exemption From EPA Regulations

Fri, 09 Dec 2011 16:58:20 GMT

At a recent FERC technical conference, Eric Baker, the president and CEO of Wolverine Power Supply Cooperative, talked of the need for a "safety-valve" approach to new EPA regulations that would balance environmental issues and reliability concerns. Mr. Baker, the NRECA and others are advocating various approaches that would provide extensions or exemptions for at least some coal-fired facilities in order to ensure system reliability. Electric Co-op Today has been covering this story.

Washington State Coop Changes Capital Credit Policy

Thu, 08 Dec 2011 15:37:02 GMT

The Okanogan County Electric Cooperative board of directors opted to modify the coop’s capital credit distribution policy to better align with other coops in the area. Okanogan reduced the amount of distribution from 5 percent to 2 percent of the coop’s margin and narrowed the pool of members identified for distribution to only those belonging to the coop in 1992. Click here for more information.

Colorado Coop’s Proposed Rate Structure Meets Protest

Thu, 08 Dec 2011 15:35:26 GMT

A new rate structure proposed by Delta-Montrose Electric Association (DMEA) will increase costs to its residential customers. The plan would raise monthly base charges by 60 percent in order to pay higher rates imposed by DMEA’s wholesale power supplier. Critics of the proposed rate structure say it will negate investments made in energy use efficiency and unfairly allocate costs to DMEA’s residential customers. The DMEA board is scheduled to set 2012 electric rates by December 13. Read more.

Upper-Midwest Coops Critical of EPA Haze Plan

Thu, 08 Dec 2011 15:33:11 GMT

Minnkota Power Coop and North Star Electric Coop are among those opposed to proposed new Environmental Protection Agency (EPA) haze pollution standards because any benefits would be far outweighed by the cost to consumers in the form of a rate increase. Proponents of the EPA standards claim they will improve public health, preserve national parks and create thousands of new jobs. International Falls Journal has the full story.

Tri-State Subsidiary Buys Colorado Coal Mine

Tue, 06 Dec 2011 16:11:09 GMT

Tri-State Generation and Transmission Association, the largest electric coop in Colorado, has placed its bets on coal as its primary generation source for years to come. The coop’s subsidiary Western Fuels-Colorado LLC, a fuel supplier that delivers coal under contract to Tri-State’s plants, has purchased the Colowyo coal mine from Rio Tinto. Tri-State cites the lower cost of coal as the primary reason behind the move. Click here for the full story.

SWEPCO Turk Plant Permit Stay Lifted

Tue, 06 Dec 2011 16:07:43 GMT

AEP/Southwestern Electric Power Co. (SWEPCO), the majority owner of the John W. Turk, Jr., Power Plant under construction near Fulton, Arkansas, won a legal victory that will allow it to complete the $2 billion project. Environmental challenges to the coal-fired electrical generation plant resulted in a stay placed on the plant’s wastewater discharge permit. The Arkansas Pollution Control and Ecology Commission voted on Friday to lift that stay. Click here for the full story.

Landowners File Class Action Complaint Against Coop

Mon, 05 Dec 2011 16:18:35 GMT

Several Missouri landowners have filed a class action complaint against Sho-Me Power Electric Cooperative, Sho-Me Technologies, Kamo Electric Cooperative and K-PowerNet.. The plaintiffs claim that the coops and other defendants installed or used more than 2,000 miles of fiber-optic cable throughout the state on plaintiffs’ land that is subject to a limited electric-utility easement. Click here to see the complaint (CORRECTED LINK).

Two Coops Agree to Develop Solar Project

Mon, 05 Dec 2011 16:01:00 GMT

New Mexico-based PPC Solar annouced that Kit Carson Electric Cooperative has conditionally approved an agreement under which PPC Solar will construct a 1.5-MW solar array in Taos County, New Mexico. The project would be the largest solar installation in the county and reportedly would generate an estimated 2,985,859 kWh of solar power in the first year of operation. The Solar Industry Magazine has more here.

Countersuit Against New Mexico Coop Moves Forward

Mon, 05 Dec 2011 15:59:45 GMT

A scheduling plan for a countersuit against Socorro Electric Cooperative has been drafted, and District Court Judge Albert J. Mitchell Jr. has granted a 30-day stay on the coop’s motion to delay paying attorneys’ fees. Judge Mitchell said he wanted to speed up the countersuit, which has been pending since the judge ruled against Socorro Electric in the original case in May. The parties said they were willing to mediate, but neither side has expressed optimism that their issues could be resolved. The El Defensor Chieftain has more.

Coop Employers Must Keep Drivers’ Hands Off Cell Phones

Mon, 05 Dec 2011 15:58:14 GMT

Under a new federal rule, the drivers of vehicles owned by electric cooperatives and other utilities may not use hand held cell phones while they drive. The Federal Motor Carrier Safety Administration turned down a request by the National Rural Electric Cooperative Association to exempt electric coops from its mobile phone rule by classifying them and other utilities as “emergency services.” Click here to learn more about the new rule.

Coop Members Demand More Information About Geothermal Program

Mon, 05 Dec 2011 15:55:20 GMT

Alaska-based Naknek Electric Association filed for Chapter 11 protection from creditors in September 2010. The coop’s financial woes were due, in large part, to complications with a geothermal energy program. Shortly after Naknek Electric filed a disclosure statement and reorganization plan with the bankruptcy court, a committee representing the interests of Naknek Electric members filed a six-page objection to the coop’s disclosure statement. The committee raised concerns about the possibility of the coop continuing with its geothermal drilling project and requested more information about how the coop used its existing loans. Click here to read more.

Carroll Electric Cooperative Amends Bylaws to Prohibit Class Action Suits by Members

Mon, 28 Nov 2011 10:03:45 GMT

Carroll Electric Cooperative Corporation (CECC) recently amended its bylaws to prohibit class action litigation against it by its members; the amended bylaws require members to bring disputes to arbitration. CECC’s board approved these amendments while the merits of a complaint initiated by Gordon Watkins and Dane Schumacher on behalf of coop members is being considered by the Arkansas Public Service Commission. It is unclear whether the bylaws as amended would apply to the foregoing litigation since the class for such litigation has not yet been certified. Carroll County News has additional details.

Southern Montana Electric to Continue Receiving Power During Restructuring

Wed, 23 Nov 2011 11:17:18 GMT

Southern Montana Electric Generation & Transmission Cooperative, which filed for bankruptcy protection in October, will continue receiving power from its suppliers. U.S. Bankruptcy Judge Ralph Kirscher approved agreements that will keep power flowing to the Billings-based coop. NorthWestern Energy, PPL EnergyPlus, and the Western Area Power Administration have all reached agreements with SME allowing the coop to acquire power for another month. Click here to read more details about the agreements.

Coops Can Use GPS Technology to Fight Copper Theft

Wed, 23 Nov 2011 11:15:27 GMT

Withlacoochee River Electric Cooperative recently used a global positioning device to fight copper theft. Deputies in Pasco County, Florida used a global positioning device to find a roll of copper that was stolen from the coop’s substation. Deputies tracked the culprits to a nearby home using a $420 GPS unit that was hidden in the $320 copper roll. The St. Petersburg Times has more.

Georgia Coop Moves Forward with New Plant

Wed, 23 Nov 2011 11:13:43 GMT

The Georgia Environmental Protection Division has re-issued a final air permit to Power4Georgians, an Electric coop consortium, for the coop’s 850-megawatt, supercritical coal-fired Plant. The planned $2.1 billion coal-fired power station is expected to take approximately four years to complete and will be built near Sandersville, Georgia. PennEnergy.com has the full story.

Coop to Receive $63 Million in Reparations from Railway

Wed, 23 Nov 2011 11:11:32 GMT

Arizona Electric Power Cooperative won an estimated $63 million in rate reductions and reparations Tuesday after the US Surface Transportation Board found that BNSF Railway and Union Pacific overcharged the coop for coal shipments. The ruling by the STB, which is the regulatory agency charged with resolving freight railroad disputes, is a rare victory for coops who have watched coal transportation rates nearly double since 2006. To read more about the decision, click here.

Sierra Club and Wisconsin Coop in Settlement Talks

Mon, 21 Nov 2011 14:53:24 GMT

The Sierra Club announced that it is in the process of negotiating a settlement with Dairyland Power Cooperative. The environmental group sued the coop last year, alleging that the coop failed to install the required pollution controls on its two coal-fired plants in Alma when it made upgrades to the plants from 1993-2009. To read more about the lawsuit and potential settlement agreement, click here.

North Dakota Coal Regulation Controversy Continues

Mon, 21 Nov 2011 14:51:23 GMT

Two North Dakota coops and environmental groups have presented widely divergent estimates of the cost to retrofit two coal-powered plants under new proposed federal pollution rules. According to the analysis commissioned by the Sierra Club and the National Parks Conservation Association, Minnkota Power Cooperative consumers would face a 10.3 percent rate increase, and Basin Electric Power Cooperative consumers would face a 0.7 percent rate increase. The coops assert that adopting the proposed regulations could drive up rates by 20 to 30 percent. Businessweek has the full story.

Coops Must Obtain Additional Permits to Spray Pesticides and Herbicides Under New EPA Regulations

Fri, 18 Nov 2011 18:05:37 GMT

With legislative efforts to reevaluate the regulations making little progress in Congress, the new EPA regulations went into effect on November 1. These regulations require permits in addition to those already required under the Federal Insecticide, Fungicide, and Rodenticide Act. According to an NRECA spokesperson, coops will continue to seek a legislative solution. Electric Co-op Today is covering this story.

Legal Challenge of Clean Water Act Permit for Arkansas Coal Plant Moves Forward

Fri, 18 Nov 2011 18:02:31 GMT

On November 16, a federal judge ruled that several environmental organizations had standing to challenge the issuance of a Clean Water Act permit to the John W. Turk Power Plant under construction in southwestern Arkansas. The judge also ruled that even though construction of the coal plant is nearly complete, the environmentalist’s challenge is not moot. This is the most recent decision relating to the various legal challenges facing the John W. Turk Power Plant, which is co-owned by Southwest Electric Power Co. and Arkansas Electric Cooperative Corporation. Law360 has the full story (subscription required).

Delaware Electric Cooperative Bid Declined for Electric Distribution System

Thu, 17 Nov 2011 14:42:34 GMT

Delaware-based Lewes Board of Public Works has rejected a $16 million bid by Delaware Electric Cooperative to purchase the board’s electric distribution system. In rejecting the offer, the Lewes board said it wished to retain the ability to exercise control over rates and to make decisions related to the reliability of its electric service. The Lewes board is still considering an offer to become a full-requirement member of Delaware Municipal Electric Corp. Continue reading this story here.

Demand for the CapX2020 Transmission Project Questioned in Wisconsin

Thu, 17 Nov 2011 14:40:51 GMT

Proponents of the CapX2020 transmission line have stated that the project is necessary because demand in the La Crosse/Winona, Wisconsin, area will soon exceed the capabilities of the existing transmission capabilities. The Wisconsin Public Service Commission disagrees, citing concerns that area’s population would not increase fast enough to justify the project’s $450 million cost. CapX2020 is a consortium of Xcel Energy, Dairyland Power Cooperative and nine other utilities in Minnesota, the Dakotas, Iowa and Wisconsin. Click here for the full story.

Montana Coop to Explore Geothermal Power Production

Tue, 15 Nov 2011 16:35:21 GMT

On December 12, Flathead Electric Cooperative is scheduled to begin geothermal exploration efforts near Hot Springs, Montana. The venture is the latest renewable energy project pursued by Flathead in an effort to find cost-effective alternatives to Bonneville Power Administration’s anticipated cap on low-price wholesale power sales. Flathead is already working on projects to develop hydroelectric, biomass and landfill gas to methane generation. The Flathead Beacon has the full story.

More Wind Expected in Alaska

Tue, 15 Nov 2011 16:33:30 GMT

Alaskan electric coop Kodiak Electric Association is accepting contractor bids to double the size of its current 4.5-MW wind farm. The expansion, when coupled with a nearby hydropower plant, will help Kodiak attain its renewable energy goal of 95 percent renewables by 2020. A battery energy system is also planned to help integrate the output from the wind farm. Read more.

Delaware Coop Makes Bid for City Electric System

Mon, 14 Nov 2011 16:17:16 GMT

Delaware Electric Cooperative has tendered a $16 million offer to purchase Lewes Board of Public Works electric distribution system. The Board is considering an offer from the Delaware Electric Municipal Electric Corporation to become a full member of the DEMEC. Delaware Electric Coop’s CEO and President said that the Board’s consideration of the DEMEC offer prompted the coop to make its own multi-million dollar offer. The Cape Gazette has more.

Coop to Build 190-Mile Transmission Line to Serve North Dakota Oil Boom

Fri, 11 Nov 2011 11:32:39 GMT

Basin Electric Power Cooperative is moving forward with its plans to build a transmission line that will serve growing load in the oil regions of North Dakota. Basin is applying for RUS financing, which will require an environmental review of the project. Basin must also coordinate with North Dakota’s Public Service Commission on the siting process. Construction could begin as early as 2014. The Bismarck Tribune is covering this story.

Coops Avoid Public Protest by Picking Hard-Wired Smart Grid Technology

Tue, 08 Nov 2011 16:27:49 GMT

Public protest over the health effects of wireless smart grid technology have largely left two electric coops in Vermont unscathed. Those coops have elected to use hard-wired smart grid technology instead of the wireless systems because the hard-wired systems are less expensive and better suited to their rural territories. Click here for the full story.

Ninth Circuit Decision Sides with FERC on Market-Based Rates

Tue, 08 Nov 2011 16:25:48 GMT

The petitions of the National Rural Electric Cooperative Association (NRECA) and others were rejected by the U.S. Court of Appeals for the Ninth Circuit, which found that Federal Energy Regulatory Commission’s (FERC) market-based rates policy for wholesale power markets is in keeping under the agency’s governing statutes. The policy of screening for market power before authorizing market-based rates, and continually monitoring sellers for market power, set out in FERC’s Order No. 697, does not exceed the agency’s authority under the Federal Power Act according to the Ninth Circuit. To learn more, including about the NRECA's participation, read the full article.

Kentucky Coop’s Financial Improvements Reflected in Credit Ratings

Mon, 07 Nov 2011 14:56:35 GMT

East Kentucky Power Cooperative announced that it has established credit ratings with Standard & Poor’s and Fitch. The new ratings reflect substantial financial improvements at the coop, which lost money in 2004 and 2005. After establishing a profit in 2006, the coop applied for and received approval for multiple rate increases. The coop’s chief financial officer says that the new ratings will give the coop better access to financing in the private market. The Lexington Herald-Leader has more.

Development of Tennessee Solar Farm Delayed

Mon, 07 Nov 2011 14:54:12 GMT

The West Tennessee Megasite Solar Farm, originally expected to open this month, is now expected to go online early next year. Roughly nine miles of electrical lines must be upgraded before the project is complete. These lines run from the solar farm to the Chickasaw Electric Cooperative substation, where the power will hook into the grid. Click here to read more about the farm and its expected economic impact on the region.

Two Illinois Coops Announce Merger

Fri, 04 Nov 2011 13:58:05 GMT

Farmers Mutual Electric Company and Jo-Carroll Energy, Inc. plan to merge into a single cooperative that will serve around 28,000 members. The proposed merger has been approved by the boards of each coop but remains subject to member approval. The resulting coop will serve both electric and natural gas customers. For more details on this proposed merger, see the Galena Gazette.

Researchers to Demonstrate Algae-Based CO2 Capture Technology on Coop Facility

Fri, 04 Nov 2011 13:56:10 GMT

University of Kentucky researchers have been working on a technology whereby algae is used to capture carbon dioxide from coal-fired facilities and then converted into useable biomass. The Kentucky Energy and Environment Cabinet has earmarked $1.3 million for a demonstration of the technology at a East Kentucky Power Cooperative facility. See the University of Kentucky press release for the complete story.

Coops Join North Dakota in Coal Suit

Thu, 03 Nov 2011 11:14:33 GMT

The state of North Dakota and certain power industry participants, including Basin Electric Power Cooperative and Minnkota Power Cooperative, Inc., filed suit against the state of Minnesota. The plaintiffs contend that a Minnesota law restricting the importation of coal-generated power violates the U.S. Constitution and will result in higher electricity prices for Minnesota consumers. The Dickinson Press has the full story.

New Mexico Coop Teams up for Space Travel

Thu, 03 Nov 2011 11:12:16 GMT

Sierra Electric Cooperative will serve Spaceport America, a $209 million economic development project that will allow tourists to take suborbital excursions into space. Sierra Electric energized a dedicated line to the commercial space port and anticipates additional infrastructure investment as area development continues. Supporters of the project hope the influx of space tourists will boost business and create jobs. Read more.

Lane Electric Coop Introduces One-Month Rate Cut for Customers

Tue, 01 Nov 2011 15:25:02 GMT

The board of Oregon-based Lane Electric Cooperative instituted a 21 percent rate reduction for one month only. The rate reduction, which was caused by higher than expected profit margins of Lane Electric, will be reflected on the December bills of its customers. For details, click here.

Two Iowa Coops Plan to Merge

Mon, 31 Oct 2011 13:04:57 GMT

Humboldt County Rural Electric Cooperative and Midland Power Cooperative are moving forward with a plan to merge. The boards of both coops have endorsed the proposed merger and a vote by the members likely will take place in March 2012. The Fort Dodge Messenger has more about the planned merger.

Vermont Coops Become Customers of State’s Largest Wind Farm

Mon, 31 Oct 2011 13:02:37 GMT

The largest wind farm in Vermont officially opened on October 26, and two of the state’s coops plan to be big customers of the facility. Washington Electric Cooperative and Vermont Electric Cooperative will buy a combined 60 percent of the output from the farm. The new $90 million, 40-megawatt, 16-turbine wind farm is the result of an eight-year planning and building process. To read more about the wind farm and Washington Electric coop’s part in its development, click here.

Montana Senator Proposes Bill to Encourage Local Generation

Thu, 27 Oct 2011 13:41:24 GMT

In an effort to increase local energy production, U.S. Sen. Jon Tester introduced the Clean Transmission for Rural Communities Act, which broadens the electric power technologies eligible for municipal or cooperative bond financing. Renewable energy development, rural economic growth and new jobs are among the purported benefits of the bill. Read more here.

Environmental Groups File Petition against John W. Turk, Jr. Plant

Wed, 26 Oct 2011 16:59:55 GMT

The Sierra Club, National Audubon Society and Audubon Arkansas filed a petition on October 25 with the Arkansas Public Service Commission (Arkansas PSC) attempting to halt work on the John W. Turk, Jr. coal plant being constructed by the Southwestern Electric Power Co. (SWEPCO). The petition alleges that by filing for a Certificate of Environmental Compatibility and Public Need (CECPN), SWEPCO waived its right to proceed without a CECPN, and thus SWEPCO is not lawfully entitled to proceed with construction pursuant to the exemption from the CECPN requirement that SWEPCO elected after the Arkansas Supreme Court reversed and nullified the CECPN issued by the Arkansas PSC. The petition also alleges that Arkansas Electric Cooperative Corporation, as a joint owner of the plant, should be required to obtain a CECPN, and that an Environmental Impact Statement relating to the construction of a natural gas transmission line for the plant must be prepared. A copy of the petition is available here on the Arkansas PSC's website.

Trade Groups Oppose Pole Regulation Effort

Wed, 26 Oct 2011 16:56:38 GMT

The National Rural Electric Cooperative Association and other trade groups have made a filing with the 9th U.S. Circuit Court of Appeals in support of a U.S. District Court’s holding that utility poles are not a “point source” under the Clean Water Act and, therefore, do not fall under its permitting requirements. For more details click here.

Coop Participates in Planning for Expected Increase in Central Oregon's Power Needs

Tue, 25 Oct 2011 11:39:21 GMT

The supply of reliable power to growing industrial load was the topic of a recent meeting in Central Oregon among Bonneville Power Administration, Pacific Power and the Central Electric Coop. The Facebook data center that opened earlier this year in Prineville is one example of a facility that requires a reliable source of power, and Central Electric Coop is in talks with at least three other companies that are considering building similar facilities in the state. More information, including why Oregon is viewed as an attractive location for data centers, can be found here.

Montana Coop Files for Bankruptcy Protection

Mon, 24 Oct 2011 18:57:41 GMT

Southern Montana Electric Generation & Transmission Cooperative filed for Chapter 11 bankruptcy protection on October 21. Major creditors include the National Rural Utilities Cooperative Finance Corporation and PPL EnergyPlus. The Great Falls Tribune is covering this story.

North Dakota Coops To Receive Flood Recovery Grants

Thu, 20 Oct 2011 14:45:28 GMT

Two North Dakota electric cooperatives, Verendrye Electric Cooperative and Capital Electric Cooperative, will receive a total of $3.4 million in federal grants to help with flood recovery.
The Federal Emergency Management Agency funds will be used to repair infrastructure. For more information, click here.

Coops Ranked by Revenue-Earnings by NCB

Thu, 20 Oct 2011 14:43:13 GMT

NCB, a federally- charted savings bank, released its annual NCB Coop 100, listing the nation’s top 100 revenue-earning cooperative businesses, including electric cooperatives. In 2010, the cooperatives on the list posted revenues totaling approximately $193.8 billion. This year, Basin Electric Power Cooperative was 29th on the list, with a reported $1.5 billion in revenue in 2010. Click here for more information and a link to the entire list.

Hawaii Coop Looks to Reallocate RUS Loan to Solar Project

Tue, 18 Oct 2011 16:23:45 GMT

Kauai Island Utility Cooperative wants to use a Rural Utilities Service (RUS) loan previously planned for a 10-MW renewable biodiesel plant to develop a 10 MW solar project. If approved by the U.S. Department of Agriculture, the shift in financing will allow Kauai Island to double its solar generation capacity and take advantage of certain state and federal tax incentives. Read more.

Pedernales to Distribute Capital Credits

Tue, 18 Oct 2011 16:22:29 GMT

Pedernales Electric Cooperative will divvy out roughly $13.5 million in capital credits to current and former members. The distribution stems from Pedernales’ Capital Credits Policy implemented in April 2011 and is comparable to a quarter of Pedernales’ 2010 net margin. The Highlander has more.

Argan Awarded Texas Biomass Plant

Tue, 18 Oct 2011 16:20:43 GMT

Gemma Power Systems, a subsidiary of Argan Inc. has been appointed to build a $165 million biomass plant near Woodville, Texas. East Texas Electric Cooperative awarded the contract, which still requires certain regulatory approvals. The parties anticipate a project completion date in December 2014. The Washington Business Journal has the full story.

New York Legislation Opens New Service Areas to Coops

Fri, 14 Oct 2011 18:06:44 GMT

Under the new law, the definition of “rural” has been changed to cover towns with up to 20,000 residents. Prior to this change, the limit in New York was 1,000 residents. Electric Co-op Today has the full story.

USDA Announces Plan to Fund Improvements to Distribution and Smart Grid Technologies

Fri, 14 Oct 2011 18:05:02 GMT

Tom Vilsack, the Secretary of Agriculture, announced plans to fund projects across 27 states. Coops on track to receive funding for their projects include Tri-State Generation and Transmission Association, Inc., Northern Virginia Electric Cooperative, Amicalola Electric Membership Corporation and Gunnison County Electric Association. For more on this story, see the USDA’s news release.

Proposed Legislation Would Exempt Coops from EPA Rules Applicable to Stationary Engines

Fri, 14 Oct 2011 18:01:53 GMT

U.S. Rep. Bob Latta recently introduced H.R. 3185 to provide exemptions for coops and municipal utilities from two rules referred to as the National Emissions Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines. Without congressional action, the rules will require additional emission control technologies starting in 2013. See Rep. Latta’s press release.

NRECA Fights New EPA Air Rule

Thu, 13 Oct 2011 16:07:18 GMT

The National Rural Electric Cooperative Association (NRECA) has filed petitions in the U.S. Circuit Court of Appeals for the District of Columbia and with the Environmental Protection Agency (EPA) directly seeking review of the EPA’s Cross-State Air Pollution Rule (CSAPR) scheduled to go into effect January 1, 2012. NRECA raised concerns that the new rule would increase electricity costs and have an adverse effect on grid reliability. Click here for more.

Oregon Coop and Winery To Promote Solar Development

Thu, 13 Oct 2011 16:05:34 GMT

A new solar farm located at the King Estate winery outside of Eugene, Oregon should be online in the next few months. The project will generate almost 1 MW of electricity that will be sold to Lane Electric Coop and will promote sustainable development for the organic vineyard while helping Lane Electric comply with state Renewable Portfolio Standard requirements. Read the full story here.

Oklahoma Wind Farm Begins Construction

Thu, 13 Oct 2011 16:00:39 GMT

Enel Green Power North America Inc. and TradeWind Energy have begun construction on a 150 MW wind farm in Oklahoma in Kiowa and Washita counties. Western Farmers Electric Cooperative will purchase the power generated by the wind farm. Please visit The Oklahoman for more details.

Attorneys Plan to Sue Coop Over Las Conchas Fire Damage

Mon, 10 Oct 2011 15:48:31 GMT

Two attorneys are joining together to file a lawsuit against Jemez Mountains Electric Cooperative, whose power lines sparked a fire after a tree fell on them. The Las Conchas fire was the largest fire in New Mexico’s history, charring more than 156,000 acres of land and damaging dozens of homes. The fire started when high winds caused a tree, which was located on private property outside of the coop’s easement, to fall across one of the coop’s power lines. To read more about the lawsuit and the potential plaintiffs, click here.

Russian Gas Producer Making Gains in U.S. Coop Market

Mon, 10 Oct 2011 15:42:01 GMT

Gazprom, a Russian gas producer, and Associated Electric Cooperative have entered into a long-term contract, which provides that Gazprom will supply natural gas to Associated Electric Cooperative’s St. Francis power plant in Missouri. The plant consumes as much as 86 million cubic feet of natural gas per day, and the contract will run through August 2034. The Russian company is rapidly expanding and plans to gain a 10 percent share of the U.S. natural gas market by 2020. Reuters has more details on the deal.

Hoosier Closes $240 Million Private Placement

Fri, 07 Oct 2011 10:53:01 GMT

On September 30, 2011, Hoosier Energy Rural Electric Cooperative, Inc., closed a $240 million private placement transaction on which Goldman Sachs served as sole placement agent. The transaction included two tranches of notes: the $190 million Series A Notes with a weighted average life of 25.8 years and a coupon of 4.86%, and the $50 million Series B Notes with a weighted average life of 18 years and a coupon of 4.07%. The Series A Notes achieved the lowest coupon for any electric cooperative private placement that was priced off of the 30 year U.S. Treasury rate in the last three years. The Series B Notes are New Clean Renewable Energy Bonds (CREBs), and after the Federal interest subsidy applicable to CREBs is taken into account, the net coupon on the Series B Notes is 0.89%. Sutherland Asbill and Brennan LLP (finance counsel) and Huber, Goffinet & Hagedorn (general counsel) represented Hoosier on this transaction. Click here for more information on the financing.

Obama Administration Announces Plan to Fast Track the CapX2020 Transmission Project

Fri, 07 Oct 2011 10:50:42 GMT

The CapX2020 Project is one of the projects previously identified by the White House as essential to the modernization of the electric grid and the creation of jobs, and on Wednesday, October 6, the Administration announced plans to speed up the federal approval and permitting process. A spokesman for the CapX2020 Project sponsors, including Dairyland Power Cooperative, expressed his hope that the federal process can be completed by mid 2012. The Lacrosse Tribune is covering this story.

Tri-State Agrees to Purchase Combined Cycle Facility

Fri, 07 Oct 2011 10:48:25 GMT

Tri-State Generation and Transmission Association has agreed to a deal whereby Tri-State will purchase a 272 MW natural gas-fired combined cycle facility located in Colorado from Starwood Energy Group. The specific terms of the deal have not been made public, and closing remains subject to regulatory approvals. Powering the West has the full story.

Georgia Nuclear Facility Moves Forward

Wed, 05 Oct 2011 16:23:10 GMT

During recent hearings, the Nuclear Regulatory Commission said Southern Co. and its partners had provided appropriate information for a final decision on the construction of two nuclear units (each with a capacity of about 1,100 megawatts) in east Georgia. Oglethorpe Power Corporation, a Georgia cooperative, will have a 30 percent ownership stake in the facility, and Southern Company will have an approximately 46 percent ownership stake. For more details, click here.

Basin Electric Cooperative Launches Private Placement

Wed, 05 Oct 2011 16:18:38 GMT

Basin Electric Power Cooperative launched a $300 million private placement market this week. To read more about the private placement, click here. (subscription required)

Hoover Dam Power Allocations Extended

Tue, 04 Oct 2011 16:00:18 GMT

On Monday, the U.S. House of Representatives reauthorized the distribution of electricity from Hoover Dam for an additional 50 years. The bill put in place an agreement negotiated by Nevada and large power contract holders in Arizona and California. Under this agreement, large regional users will contribute 5 percent of their allocations to form a 100-megawatt pool of electricity that would be offered to electric coops, Native American tribes, and other new customers, fell short of some parties’ expectations. The Grand Canyon State Electric Cooperative Association, representing 10 coops, said that the bill provides no assurances that coops will be able to acquire these allocations. Lawmakers acknowledged the opposition from the coops, but Rep. Paul Gosar (R-Ariz.) said this issue would be better addressed at the state level. You can read the full article here.

Texas Coops Facing Steep Fire-Related Repair Costs

Tue, 04 Oct 2011 15:59:16 GMT

Texas-based Bluebonnet Electric Cooperative estimates the infrastructure repairs stemming from the wildfires in Bastrop County amount to $17.5 million. Some of those funds may be reimbursed by a public assistance grant from the Federal Emergency Management Agency. Pedernales Electric Cooperative, which serves a neighboring area in Texas, reported that it has already spent $416,000 on fire-related repairs. You can find more details here.

Coop Researching Peak-Time Power Consumption Reduction

Mon, 03 Oct 2011 16:10:24 GMT

General Electric (GE) Appliances & Lighting and Montana-based Flathead Electric Cooperative (FEC) are partnering up to uncover cost-effective methods of reducing peak-time power consumption. The FEC Peak Time pilot will study power supply costs associated with peak-time demand, which is usually from 5:00 to 7:00 p.m. Participants in the pilot program will each receive a GE Nucleus energy manager and several other energy-saving appliances. To read more about the pilot program, click here.

Solar Energy Gets a Boost in Alabama

Mon, 03 Oct 2011 16:08:07 GMT

Alabama-based Arab Electric Cooperative (AEC) is making it a little easier for its members to be green. AEC voted unanimously this week to join the Tennessee Valley Authority’s (TVA) Generation Partners incentive program. Under the program, the TVA gives homeowners and businesses a $1,000 incentive to help offset equipment costs, plus a 30 percent federal tax break through 2016. The Arab Tribune has the full story. You can get more information about the TVA's Generation Partners incentive program here.

Lewes Resolution Says No to Coop

Thu, 29 Sep 2011 14:58:04 GMT

The Lewes Board of Public Works determined it is not in the public’s interest to sell the city’s electric utility to Delaware Electric Cooperative. Local control, reliable service and good rate treatment already provided by the city’s utility were among the reasons residents supported the Board’s resolution. Click here for more.

New York Law Makes Room for Rural Electric Cooperatives

Thu, 29 Sep 2011 14:56:39 GMT

New York Governor Andrew Cuomo recently signed legislation that modifies the definition of “rural” and expands the geographic areas that may be served by rural electric cooperatives. The new definition conforms to the meaning adopted by the United States Department of Agriculture and lifts a restriction on rural coops to serve only customers within a city or village having a population of more than 1,000 inhabitants. Read the legislation here.

Solar Project Moves Forward in Maryland

Tue, 27 Sep 2011 13:39:09 GMT

Southern Maryland Electric Cooperative (SMECO) is joining forces with SunEdison to develop a solar facility in Hughesville, Maryland. The National Renewables Cooperative Organization has been assisting SMECO in developing the project. The 5.5-MW AC solar farm is currently pending approval from the state’s Public Service Commission. Click here to read the full story.

Bluebonnet Electric Cooperative Sued by Texas Fire Victims

Tue, 27 Sep 2011 13:36:39 GMT

Three victims of the Bastrop wildfire have filed a lawsuit against Bluebonnet Electric Cooperative for gross negligence that the plaintiffs allege led to one of Texas’ largest fires. The plaintiffs are seeking compensation including personal injury and property damage, mental anguish, and past and future medical expenses. A Texas Forest Service investigation report has concluded that wind gusts on September 4 knocked down trees that fell onto electrical lines at two locations, causing sparks that fell into the dry grass and tree litter below. The plaintiffs claim the coop did not remove dead trees near those utility lines. This article has more details about the lawsuit.

Wisconsin Coop to Purchase From Seventh Methane Digester

Thu, 22 Sep 2011 12:02:42 GMT

Beginning early next year, Dairyland Power Cooperative will purchase power from a new 635-kW biogas digester facility located in Augusta, Wisconsin. Eau Claire Energy Cooperative, a Dairyland member, will service the facility owned by Bush Brothers & Co. Dairyland already purchases power generated by six other digester facilities that utilize methane gas extracted from cow manure. Click here for more details.

Pedernales Electric Cooperative Revises its Creditworthiness Policy

Tue, 20 Sep 2011 14:14:05 GMT

The Pedernales Electric Cooperative (PEC) Board of Directors has approved changes to the coop's creditworthiness policy. The new rules relax creditworthiness for new and existing members, including a new guarantee letter process whereby a member or applicant can be guaranteed by an existing member. You can find more details about PEC’s new planhere.

Rolling Hills Considering Merger Opportunity

Mon, 19 Sep 2011 18:49:58 GMT

In preliminary talks, the trustees of Rolling Hills Electric Cooperative, Inc., a Kansas coop, are considering a merger with DS&O Electric Cooperative. Inc. In a letter to its members, Rolling Hills described the talks as “preliminary” and “non-binding.” This story was reported by the Dierking Communications News Center.

Yellowstone Valley Electric Lawsuit Moving Forward

Fri, 16 Sep 2011 15:08:46 GMT

A District Court Judge in Montana has cleared the way for Yellowstone Valley Electric Cooperative’s (YVEC) lawsuit against Southern Montana Electric Generation and Transmission Cooperative to proceed by turning down requests for a temporary restraining order and preliminary injunction. YVEC, along with four other coops and the city of Great Falls, formed Southern in 2004 with the goal of owning a coal plant, but YVEC ultimately sued Southern in 2008 in an attempt to leave the cooperative. To read more about the case and the impending trial, set for November 9th, click here.

Coops Get Government Boost For New Projects

Fri, 16 Sep 2011 15:06:43 GMT

U.S. Agriculture Secretary Tom Vilsack announced on Friday that twenty-seven rural electric cooperative utilities will receive government funding for generation and transmission projects, distribution facilities and smart grid technologies. The United State Department of Agriculture reports that these loans are expected to finance rural electric utility improvements benefiting nearly 30,000 rural customers in 18 different states. For more on the story, and a list of coops receiving loans, click here.

Wind Project Put on Hold in Massachusetts

Fri, 09 Sep 2011 16:58:32 GMT

With Cape and Vineyard Electric Cooperative focusing more and more of its efforts on solar projects, the town of Brewster has backed off its plan to build a wind facility with funds from the coop. The coop views solar as an increasingly competitive technology and as a solution to much of the resistance it has encountered in trying to get wind facilities built in Massachusetts. The Cape Cod Times has been following this story.

Coop Reaches Deal to Buy 104 MWs of Power from the Shooting Star Wind Project

Fri, 09 Sep 2011 16:57:20 GMT

Sunflower Electric Power Corp., a Kansas cooperative, will be able to satisfy up to 29 percent of its peak retail demand once the Shooting Star Wind Project comes on line in late 2012. The project will also provide revenue to landowners who are leasing their land to the project and approximately 250,000 hours of work for construction contractors. The Wichita Eagle has the full story.

Digger Derrick Settlement Reached

Thu, 08 Sep 2011 15:30:09 GMT

Last month, the Occupational Safety and Health Administration (OSHA) and certain electric utilities, including coops, reached a settlement agreement on new OSHA rules for digger derricks used in electric construction. Many of the OSHA rules will still apply to electric utilities. The effective date for compliance is scheduled for November 2014. Click here for the full story.

Plans for North Dakota High-Voltage Line Move Forward

Thu, 08 Sep 2011 15:28:21 GMT

Minnkota Power Cooperative recently obtained approval from the Sheridan County Zoning Board for a planned 345-kV transmission line that will carry power over much of North Dakota. Zoning approval is still required from three other counties and one township. The North Dakota Public Service Commission also approved a certificate of corridor compatibility for the line, which is expected to be completed sometime in 2013. The Bismarck Tribune has more.

North Dakota Service Territory Divided

Thu, 08 Sep 2011 15:26:29 GMT

The North Dakota Public Service Commission has approved an agreement between Montana-Dakota Utilities and Mountrail-Williams Electric Cooperative to divvy up the Williston customer service area. An influx of new customers, due to the region’s oil boom, prompted the division. Read more.

North Dakota Officials at Loggerheads with EPA over Air Pollution Rules

Wed, 07 Sep 2011 16:40:35 GMT

North Dakota health officials are at an impasse with the Environmental Protection Agency (EPA) on the best technology to reduce the air pollution of two coal-burning power plants in the Theodore Roosevelt National Park, one of which is operated by Minnkota Power Cooperative Inc. State regulators contend that the EPA’s preferred technology may not be effective and will be much costlier than the state’s preferred method. You can find additional details here.

Green Mountain Power Starts Construction of Wind Project in Vermont

Wed, 07 Sep 2011 16:37:30 GMT

Green Mountain Power has commenced construction of a 63MW wind facility that will provide power to the members of the Vermont Electric Cooperative. The Energy Business Review has more on the wind farm.

Delaware Utility May be Purchased by Local Coop

Tue, 06 Sep 2011 11:36:58 GMT

The city of Dover, Delaware’s Utility Committee has hired a consultant study the feasibility of selling the city's electric utility to Delaware Electric Cooperative. The coop reports that it could be willing to pay around $100 million for Dover's electric utility, and that its customers would save an average of 25 percent on their electric bills because of the coop's lower rates. If the sale occurs, the coop would gain 23,000 additional customers, including industrial and commercial users. More details of this potential deal can be found here.

Coop Offers Members Shade Trees and CFLs to Save Energy

Fri, 02 Sep 2011 15:18:37 GMT

Mohave Electric Cooperative and Bullhead City, Arizona, are teaming up to sponsor Operation Cool Shade. For a discounted price, this program offers coop members shade trees that can withstand desert conditions, and each tree also comes with a complimentary CFL. Operation Cool Shade is in its sixth year, and it is estimated that the program saves approximately 1.4 million kilowatt-hours of energy each year. See the Mohave Daily News for more.

U.S. Forest Service and Coop Argue Over Responsibility for the Las Conchas Fire

Fri, 02 Sep 2011 15:16:43 GMT

After determining that the Las Conchas fire in New Mexico was caused by a rotten tree falling onto power lines owned by Jemez Mountains Electric Cooperative, controversy has arisen over who should be held responsible. The coop has been maintaining its 20-foot easement along the path of the power line, but the tree in question fell from private property. The coop argues that it is the U.S. Forest Service’s job to address trees on private property that pose a threat to infrastructure like power lines. The Rio Grande Sun has more on this story.

Dairy Farms May Provide Cheaper Fuel Source

Thu, 01 Sep 2011 16:09:08 GMT

Cooperatives may have an opportunity to obtain cheaper fuel through the use of anaerobic digesters on dairy farms. The digesters capture methane gas from cow manure, which can be used to generate power. Proponents of the manure-to-methane process spoke at the Touchstone Energy Cooperatives’ 2011 Emerging Technology Conference. The Oklahoman has the full story.

Arizona Coop’s Irrigation Efficiency Study Ramping Up

Thu, 01 Sep 2011 16:06:58 GMT

Sulphur Springs Valley Electric Cooperative (SSVEC) plans to send out a Request for Proposal (RFP) for a study aimed at improving the efficiency of the local irrigator industry. SSVEC will apply data collected to improve the distribution utility business and wants irrigators to give their input throughout the study process. Read more.

Vermont Smart Meters Help Weather Irene

Thu, 01 Sep 2011 16:04:06 GMT

Like many cooperatives along the eastern seaboard, the Vermont Electric Cooperative (VEC) dealt with major power outages in the wake of Hurricane Irene. Approximately 10,000 VEC members lost power. VEC’s smart meters played a pivotal role in the restoration efforts and allowed the VEC control center to communicate in real-time with members and support staff. Click here for the full story.

Petition to Stay Coal Dust Tariff Denied

Thu, 01 Sep 2011 16:02:13 GMT

On Wednesday, the Surface Transportation Board denied a Western Coal Traffic League (WCTL) petition requesting the Board to stay the effective date of a BNSF Railway Company tariff. Arkansas Electric Cooperative Corporation was among those filing statements in support of the WCTL petition. The coal dust tariff will limit the amount of coal dust flying from trains leaving mines in Wyoming. The Board’s full decision is available here.

Coops in 14 States Receive USDA Loans

Tue, 30 Aug 2011 15:24:09 GMT

U.S. Department of Agriculture Secretary Tom Vilsack has indicated that coops will receive funding for smart grid technologies and improvements to generation and transmission facilities. This funding, in the form of loans, will total approximately $900 million. The loans are provided by the Rural Utilities Service to help electric utilities upgrade, expand, maintain and replace rural electric infrastructure. For more information, including a list of coops that were selected to receive this funding, click here.

Pedernales Coop Commemorates Lyndon B. Johnson

Tue, 30 Aug 2011 15:22:55 GMT

On the day that would have been the former president’s 103rd birthday, the Pedernales Electric Coop unveiled an official Texas Historical Marker honoring Lyndon B. Johnson for bringing electricity to the Texas Hill Country. Johnson, who grew up in Johnson City Texas, contributed to the development of the first electric lines constructed in this area of Texas. The article can be found here.

Tri-State Updates Its 20 Year Resource Plan

Tue, 30 Aug 2011 15:21:12 GMT

Tri-State Generation and Transmission Association Inc., a Colorado coop, may have to develop less renewable energy than originally expected thanks to the projects that its members are developing individually. These projects include wind, solar, small hydro and waste recovery projects and one project to recover methane from landfills. Given these projected new resources, Tri-State plans to update the 20-year plan for Colorado regulators. For example, Tri-State originally projected it would need the equivalent of about 150 megawatts of extra wind generation in 2015 beyond what it has now to meet Colorado and New Mexico renewable energy standards, but it now forecasts that will be closer to 50 megawatts. Click here for the full story.

Nevada Coop May Join California Power Grid

Mon, 29 Aug 2011 16:09:23 GMT

Nevada-based Valley Electric Association has received approval to join the California Independent System Operator Corporation, a nonprofit power-management corporation. Valley Electric has 23,000 members along the Nevada-California state line, and coop officials say linking Valley Electric’s 360 miles of existing transmission lines to California’s grid would let it ship renewable energy there. California law calls for the state to get a third of its power from renewable energy by 2020. The Federal Energy Regulatory Commission still must approve the deal, which the coop expects to be effective by January 2013. The Las Vegas Review Journal has the full story here.

Coops Battle the Effect of Hurricane Irene

Mon, 29 Aug 2011 16:07:16 GMT

Electric cooperatives across the Northeast are dealing with the power disruptions caused by Hurricane Irene’s destruction. According to Touchstone Energy Group, North Carolina-based coops have restored power to nearly 90,000 households, reducing the 152,000 outages reported on Saturday. In Vermont, utility workers continued working Monday morning to restore electricity to the 4,400 members of the Vermont Electric Cooperative still without power. See more on the damage caused by Hurricane Irene here.

Construction Commences on Colorado Hydro Project

Thu, 25 Aug 2011 13:22:19 GMT

The Northern Colorado Water Conservancy District recently began construction on the 2.6-MW Carter Lake Hydroelectric Project near Loveland, Colorado. Poudre Valley Rural Electric Association will buy the plant’s output under a power purchase agreement with the District. The project’s total costs are estimated at $6.2 million, and the facility should be in commercial operation next year. Read more.

North Dakota Coop Forced to Replace Turbine Blade

Tue, 23 Aug 2011 18:47:19 GMT

Basin Electric Coop recently replaced a blade on one of its wind turbines in Bismarck after it became damaged last spring. The coop originally planned to replace the blade in June, but the wet weather hindered the ability of heavy machinery to set the seven-ton blade into place. The failure of the blade is currently unknown, but the coop hopes to analyze the cause more closely now that the turbine is on the ground. Click here for more details.

Montana Coop’s Highwood Station Comes On-Line

Tue, 23 Aug 2011 18:45:04 GMT

The Southern Montana Electric Generation & Transmission Coop’s Highwood Station came on-line last Saturday for the first time. Highwood Station is a natural gas-fired power plant east of Great Falls, Montana. The plant has not yet begun operating, although a ribbon-cutting ceremony at the site is currently scheduled for mid-September. The Great Falls Tribune has more about this plant and the coop.

Ravalli Electric Coop Opts for Fuses to Lower Fire Risk

Mon, 22 Aug 2011 15:40:43 GMT

Montana-based Ravalli Electric Cooperative has announced that it will temporarily switch from breakers to fuses on its electrical system in fire-prone areas until later this fall when the high-risk part of the fire season has passed. The fuses eliminate the operation of re-energizing power lines, which can send a new surge of power through power lines near dry tree limbs and other highly flammable material up to three times, to minimize the risk of starting a fire. The Ravalli Republic has the full story.

Report Finds More Planning Needed to Deal with Weather-Related Outages

Mon, 22 Aug 2011 15:37:54 GMT

In a report released on August 16, 2011, staff members from the Federal Energy Regulatory Commission and North American Electric Reliability Corporation concluded that last February’s power outages in the Southwest may be related to a lack of preparation for bad weather. The power disruptions that occurred last February affected 4.4 million electricity consumers and 50,000 natural gas customers in Texas, New Mexico, and Arizona. The report found that two-thirds of the Southwest’s outages, as measured by megawatt-hours, were weather-related, stemming from such causes as frozen sensing lines, water lines and valves, blade icing, and low temperature cutoff limits. Electric Coop Today has the full story and you can read the report here.

Virginia Coop Applies for Approval of Prepaid Electric Service Program

Fri, 19 Aug 2011 15:57:33 GMT

Rappahannock Electric Cooperative has developed a prepaid service program, and the coop is in the process of obtaining approval from the Virginia State Corporation Commission. If the coop’s program is approved, it would be the first coop to offer such a program in Virginia. Fredericksburg.com has more.

Nevada Coop Considers Plans to Export Green Power to California

Fri, 19 Aug 2011 15:56:15 GMT

Valley Electric Association, a coop based in Pahrump, Nevada, is developing plans to expand its transmission system to interconnect with the California Independent System Operator and to export renewable energy to California. The coop faces competition from Solar Express Transmission, and it is carefully considering the best way to move forward. The Las Vegas Review-Journal is covering this story.

White House Rural Economic Forum Draws Electric Coop Participants

Thu, 18 Aug 2011 12:56:06 GMT

Several coop representatives and CEO of the National Rural Electric Cooperative Association (NRECA) Glenn English participated in the White House Rural Economic Forum held in Peosta, Iowa. The forum included President Obama, members of his cabinet, and a group of small business owners, farmers, rural organizations, all of whom discussed the twin goals of economic development and job creation in rural America. Participation of coop representatives created an opportunity to showcase the hard work of coops to foster both of these goals. The NRECA press release has more information.

Coop’s Investment Will Rehabilitate a Montana Hydroelectric Plant

Tue, 16 Aug 2011 13:25:22 GMT

The Flathead Electric Cooperative has agreed to pre-purchase $400,000 worth of electricity generated by a 250-kW hydroelectric generator. The coop’s investment will cover roughly two-thirds of the cost to rehabilitate the plant, and a block grant will cover the rest. After the coop recovers its investment, the city of Whitefish will be able to use power produced from the plant to operate city facilities. Click here for more.

Oklahoma Governor Seeks to Replenish Emergency Fund – Pay Back Coops

Tue, 16 Aug 2011 13:21:44 GMT

After responding to various extreme weather events, cities, towns, and counties as well as certain electric coops are due reimbursement from the Oklahoma Emergency Fund. However, a lack of funding has left reimbursements unpaid since January 1, 2007. Electric coops are due approximately $20 million, and Governor Mary Fallin said she hopes state lawmakers will start replenishing the emergency fund next year. The Daily Oklahoman has the full story.

Tennessee Valley Authority Reports Losses for 2011 Third Quarter

Mon, 15 Aug 2011 16:15:16 GMT

In a filing with the Securities and Exchange Commission, the Tennessee Valley Authority (TVA), which provides power to 155 coops and municipal systems in the Southeast, recently reported that it lost $240 million on $2.7 billion in revenues for the quarter ending June 30. The TVA cited several reasons for the downturn, including adverse weather, refueling outages at its nuclear plants and lower demand. During the same quarter last year, the TVA had a net income of $199 million on $2.6 billion in revenues. Click here to read the full story.

Cost of Socorro Electric’s Lawsuit Unclear

Mon, 15 Aug 2011 16:13:17 GMT

The cost of a lawsuit filed in New Mexico last year by Socorro Electric Cooperative against all of its approximately 10,000 member-owners is still unclear. Judge Albert J. Mitchell Jr., who was appointed to the case by the New Mexico Supreme Court, has yet to decide whether to award attorneys’ fees and expenses to the lawyers who defended the case. Judge Mitchell is also considering a countersuit, which could extend the life of the case. Despite the uncertainty about the cost of the suit, and whether or not the coop’s insurance will cover any of that cost, the information the coop turned over in response to an Inspection of Public Records Request revealed that attorneys’ fees doubled during the year the coop filed the suit. The coop General Manager Joseph Herrera said in an interview last month that the primary reason for a proposed $177,711 budget increase was anticipated legal fees. The El Defensor Chieftain has more on the potential costs here.

Consolidation of Two Indiana Coops on the Horizon

Thu, 11 Aug 2011 12:09:56 GMT

The Carroll County Rural Electric Membership Corporation (REMC) and the White County REMC are positioned to merge into a single electric coop by the end of 2011. The creation of Carroll White REMC would cut costs and save members at least $5.2 million over the first nine years, according to an outside accounting firm. White County members have already voted in support of the consolidation, and Carroll County members were scheduled to vote on August 11. Read more.

Florida Public Service Commission Rules against Choctawhatchee Electric Cooperative in Service Dispute

Wed, 10 Aug 2011 15:10:11 GMT

The Florida Public Service Commission voted unanimously against awarding the right to serve a new mixed-use development in the Florida panhandle to Choctawhatchee Electric Cooperative. Instead, the Commission awarded the right to serve the development to Gulf Power Company, part of Southern Company. The Northwest Florida Daily News has the rest of the story.

East Kentucky Power Cooperative Finalizes New Credit Facility

Wed, 10 Aug 2011 15:02:29 GMT

East Kentucky Power Cooperative (EKPC) has finalized a new five-year $450 million credit facility to replace an existing three-year credit facility in the same amount. EKPC expects to save more than $5 million annually under the new credit facility, due to lower interest costs improved operating performance. Read more about the new credit facility here.

Mohave Electric Cooperative Proposing Rate Increase for the First Time in 20 Years

Wed, 10 Aug 2011 15:00:47 GMT

For the first time since 1991, Mohave Electric Cooperative (MEC) is attempting to increase its rates to offset the increasing costs of wholesale energy. The rate increase is expected to bring in nearly $3 million in new revenues for MEC, but the typical MEC customer’s bill should only go up by about $8 a year. The Mohave Daily News has additional details.

Maryland PSC Investigates Power Cuts During Recent Heat Wave

Tue, 09 Aug 2011 12:55:00 GMT

High demand triggered by a record heat wave last month has resulted in a Maryland Public Service Commission (PSC) investigation of four public utilities. The PSC has issued an order to Pepco, Delmarva Power, Baltimore Gas and Electric and Southern Maryland Electric Cooperative Inc. regarding their performance on July 22, 2011. Specifically, the PSC order requires the utilities to explain the circumstances under which they cut customers’ electricity and how the radio signal that communicates with the thermostats and switches got jammed. Click here for more information.

New Mexico Coop Seeks Tenants for Command Center to Defray Costs

Tue, 09 Aug 2011 12:53:04 GMT

The Kit Carson Electric Cooperative in New Mexico is opening a new regional command center amid concerns about its costs. The center was supposed to be paid for by the coop, municipal agencies and rental tenants. However, the mayor of Taos claims that the city council has never seen a firm proposal from Kit Carson, and at this time the coop is the only tenant in the building. If the coop remains the sole tenant, it may be left with a 40-year obligation to pay the $10,000 monthly loan payment. The command center was designed to enhance operational efficiencies, response times, communication, and safety. This local article has the story.

Montana Coop Refuses to Pay Umbrella Organization’s Rate Hikes

Mon, 08 Aug 2011 14:11:36 GMT

Yellowstone Valley Electric Cooperative (YVEC), which is Southern Montana Electric Transmission and Generation Cooperative’s largest member, is refusing to pay for recent rate increases and fees imposed by Southern. YVEC, a Huntley-based cooperative, is one of five rural cooperatives, along with the city of Great Falls, that are members of Billings-based Southern. YVEC represents 32 percent of Southern’s revenue base, and the coop sued Southern in 2008 to end its contract and to leave the umbrella organization. The case is set for trial in November. Southern is now seeking a temporary restraining order and preliminary injunction in front of the same judge hearing the contract case. The Billings Gazette has the full story.

Electric Coops Gaining Ground in Canada

Mon, 08 Aug 2011 14:08:47 GMT

The province of Alberta’s first member-owned retail power coop has signed up 140 customers in its first month. The coop hopes to offer lower energy costs because of low administrative overhead and a voice in promoting more green energy projects in the province. The coop’s success marks a contrast to past startups, which faired poorly. The dominant electric provider is Epcor Utilities, which many consumers rely on to deliver power under the fluctuating regulated rate regime. Click here to see the Edmonton Journal’s full story.

Coop Brings High-Speed Internet to Rural Minnesota

Mon, 08 Aug 2011 14:04:33 GMT

Backed by the support of Minnesota Senator Amy Klobuchar, Arrowhead Electric Cooperative is working on a large-scale project to help Cook County get connected. The project will provide nearly 5,200 households with much needed high-speed internet access. Most Cook County residents currently use dial-up, satellite, or DSL internet connections, all of which can be unreliable. Senator Klobuchar hopes the project will help grow jobs and provide a new learning tool for schools in the county. Read more here.

Fairbanks Coop Working Towards Natural Gas Liquefaction Facility

Sat, 06 Aug 2011 14:18:51 GMT

Golden Valley Electric Association, an Alaskan electric coop, recently decided to move forward with its partnership with Flint Hills Resources, a Koch Industries subsidiary, to build a natural gas liquefaction facility at Prudhoe Bay. With engineering and design work underway, the project is expected to be online in 2014. See Platts for more on this story.

Coop Helps With Marketing of Paulding Northwest Atlanta Airport and Nearby Industrial Park

Sat, 06 Aug 2011 14:16:23 GMT

Greystone Power Corp., a Georgia electric membership cooperative, is working with county officials to promote the growth of aviation-related business at the airport and the adjacent 10,000-acre industrial park. The coop is highlighting its history of reliable electric service and its connections to state and local business leaders as a way to draw attention to the business development efforts. Electric Co-op Today has the full story.

Transmission and Distribution Grids Struggle to Beat the Heat

Thu, 04 Aug 2011 14:59:47 GMT

A high-voltage breaker exploded recently at Lake Region Electric Cooperative’s Tahlequah substation in Oklahoma. Approximately 1,600 coop members lost power with most back online within two hours of the incident. Consistently high temperatures were to blame for the explosion. Due to this year's intense summer heat, transmission and distribution systems have lacked cool-off periods needed to help keep equipment from overheating. The Tahlequah Daily Press has the full story.

Missouri Coop Experiences Large Revenues Without Much Growth

Thu, 04 Aug 2011 14:56:26 GMT

At its annual meeting held in late July, the Platte-Clay Electric Cooperative reported strong operating revenues and $1.64 million in capital credits paid out to members this year. The coop’s leaders credit smart fiscal management for the numbers because the coop has experienced almost non-existent growth over the last few years. Also at the meeting, members approved certain bylaw changes and elected directors to the board. Read more.

Oklahoma Cooperative Chooses Not to Suspend Service for Nonpayment

Wed, 03 Aug 2011 15:51:28 GMT

In light of high temperatures into the foreseeable future, Oklahoma Electric Cooperative, which has 10,000 customers in Norman, Oklahoma, has decided that it will not suspend service to customers due to nonpayment. The Norman Transcript has additional details.

Vermont Electric Coop Wins POWER Magazine Smart Grid Award

Tue, 02 Aug 2011 17:10:14 GMT

Vermont Electric Cooperative (VEC) was recognized as the winner of the inaugural POWER Smart Grid Award. Among other smart grid technologies, VEC has implemented bidirectional meters, a new GPS-enabled outage management system, substation upgrades, and online access to electricity usage information. These efforts have cut outages in the VEC territory in half. They have also reduced outage time and improved customers' understanding of their monthly bills. This article describes VEC's efforts in more detail.

Tenth Circuit Reinstates Coop Lawsuit Against Municipality

Tue, 02 Aug 2011 17:04:50 GMT

An appeals court decision handed down last Friday could have important implications in the competition between municipal utilities and rural electric cooperatives. The 10th U.S. Circuit Court of Appeals ruled that Kay Electric Cooperative can sue the City of Newkirk, Oklahoma, for allegedly violating the federal antitrust law in a fight over which electrical utility can serve the new Kay County jail. The decision reinstates a lawsuit dismissed by U.S. District Judge Robin Cauthron in Oklahoma City last August. The city annexed the jail site and would not provide sewage service unless the jail also bought its electricity from the city-owned utility. The coop sued the city, accusing it of attempted monopolization of electric services. To read more about the decision, click here.

Barnstable County Seeks Information from Cape and Vineyard Electric Cooperative

Mon, 01 Aug 2011 15:55:07 GMT

The Barnstable County Assembly of Delegates, the county’s legislative branch, will have to retake a vote to look into the Cape and Vineyard Electric Cooperative (CVEC) after the county’s legal counsel explained that the earlier vote was not binding because it was not a true majority vote. The assembly wants to form a special panel to specifically investigate CVEC’s administrative structure and funding sources. The county’s legal counsel has also asserted that neither the assembly nor the county commissioners have any direct authority over CVEC, based in Massachusetts, or its parent organization, the Cape Light Compact. Cape News has the full story on the conflict here.

Egyptian Electric Cooperative Association Members Warned of Rate Hike

Mon, 01 Aug 2011 15:53:37 GMT

At the annual meeting last Thursday, Illinois-based Egyptian Electric Cooperative Association Board President Paul Pyatt and Executive Vice President/General Manager Jim Riddle explained that a rate increase likely would occur when Prairie State Energy Campus comes online. The new energy campus will help provide energy for a load that Pyatt and Riddle say has almost doubled in the last 25 years. Although the exact amount of the rate increase is not clear, Riddle told members that current projections show an increase of about 15-17 percent in 2012 over 2011 rates and then back down to about 12-14 percent in 2013 over 2011 rates. The coop has not increased rates since 2008. See the full article here.

New Mexico Electric Cooperative Strives to Comply with Sunshine Laws

Mon, 01 Aug 2011 15:52:02 GMT

For the second time this month, Socorro Electric Cooperative’s board of trustees held a meeting in an effort to comply with a revised set of bylaws that require the coop to follow sunshine laws. The board is having difficulty giving final approval on changes to their policies affected by the bylaw changes due to the lack of recording the outcome of votes during past meetings. To read more about the coop’s efforts at reform, click here.

Vermont Public Service Board Considers Privacy Implications of Smart Grid Technology

Fri, 29 Jul 2011 14:51:16 GMT

As utilities in Vermont continue to implement various smart grid programs, the Vermont Public Service Board is evaluating the potential for both use and misuse of customer data. The CEO of the Vermont Electric Cooperative, David Hallquist, is focusing on cybersecurity, in particular, as the coop grows its smart grid program. Vermont Public Radio has been covering this story.

Nueces Electric Cooperative Prepares for Tropical Storm Don

Fri, 29 Jul 2011 14:49:34 GMT

As the storm approaches south Texas, Nueces Electric Cooperative is implementing its Emergency Response Plan. The coop’s plan includes organizing the resources that may be necessary for repairs and prioritizing which transmission lines and substations should be serviced first. TEC Crisis Communications has more on this story.

Homer Electric Association Positioned to Buy Power Plant

Thu, 28 Jul 2011 16:56:59 GMT

Through its subsidiary Alaska Electric and Energy Cooperative, the Homer Electric Association (HEA) plans to purchase the Bernice Lake Power Plant with a generation capacity of roughly 69.9 MW for $11.8 million. The deal is conditioned on obtaining Regulatory Commission of Alaska approval to amortize the purchase price over several years. The plant is currently owned by the Chugach Electric Association and, if purchased, would provide peaking and reserve power to the HEA system. Read more.

Carroll Electric Responds to Members’ Complaint

Thu, 28 Jul 2011 16:46:47 GMT

Carroll Electric Cooperative Corporation issued a statement Tuesday in response to a July 19 complaint filed with the Arkansas Public Service Commission by cooperative members. Among other matters addressed in the complaint, members requested increased transparency and democratic governance of the coop. In its statement, Carroll Electric pointed to a May survey as evidence of member satisfaction with the coop’s current business practices. The statement also addressed patronage capital and board member elections and compensation. Carroll County News has the full story.

Brewster Wind Turbine Power Purchase Approved

Wed, 27 Jul 2011 12:34:40 GMT

The City of Brewster’s purchase of power from Cape and Vineyard Electric Cooperative has been approved. Brewster will purchase power from two CVEC 1.8MW municipal wind turbines. This approval was required for CVEC to seek an exemption from the Massachusetts Department of Public Utilities from town zoning laws. The Cape Cod Times has more on this story here. Also, background on the permitting can be found here.

Vermont Electric Cooperative Approves Line Upgrade Also Necessary for Lowell Wind Project

Wed, 27 Jul 2011 12:31:29 GMT

In an effort to save money for a $12 million upgrade to a 16.9-mile transmission line, members of Vermont Electric Cooperative Inc. approved sharing a transmission line with a wind energy project being developed by Green Mountain Power Corp. in Lowell, Massachusetts. Green Mountain Power agreed to pay $7 million of the upgrade costs (leaving VEC with $5 million of the upgrade costs). The Burlington Free Press has the full story.

SWEPCO Settles With Arkansas Landowners in Coal Plant Suit

Tue, 26 Jul 2011 15:44:14 GMT

Louisiana-based Southwestern Electric Power Co. (SWEPCO) has reached a settlement with landowners opposing the construction of its $2 billion, 600-megawatt, coal-fired plant in Arkansas. The confidential settlement means that legal challenges by area landowners to the plant’s air and U.S. Army Corps of Engineers permits have been dropped. This is only part of the battle for SWEPCO, however, as the Sierra Club and Audubon Arkansas continue to challenge the project in federal court. For more details on this settlement and the status of the construction, click here.

Copper Thefts on the Rise, New Laws May Result in New Hampshire

Mon, 25 Jul 2011 15:25:35 GMT

New Hampshire may adopt a new law that would require salvage businesses, such as scrap metal companies, to obtain driver’s license information from anyone attempting to sell copper. Copper thefts are on the rise in New Hampshire, and three separate incidents occurred in the last five weeks. State-level oversight would promote uniformity because current local ordinances (if any) vary on the subject. Click here for details.

North Dakota May See Federal Takeover of Regional Haze Rules

Mon, 25 Jul 2011 15:23:04 GMT

The Environmental Protection Agency (EPA) plans to file a notice on August 18 to take over the state’s authority to manage federal regional haze rules. Federal and state regulators disagree on which technology Minnkota Power Cooperative and Basin Electric Power Cooperative must install to reduce certain power plant emissions. The Bismarck Tribune has the full story.

Deadline for PSC Approval of CapX2020 Transmission Line Extended

Fri, 22 Jul 2011 12:46:40 GMT

Although the Wisconsin Public Service Commission typically has 180 days to consider applications for major projects, a judge recently approved a six-month extension for the application filed by Dairyland Power Cooperative, Xcel Energy and Wisconsin Public Power Inc. for the CapX2020 transmission line. The proposed transmission line would connect Minnesota with La Crosse, Wisconsin. The Lacrosse Tribune has been following this story.

Proposed Derivatives Rules Designed for Wall Street May Apply to Coops

Fri, 22 Jul 2011 12:15:48 GMT

In a hearing before the House Committee on Agriculture, a number of Representatives questioned the chairman of the Commodity Futures Trading Commission about the scope of proposed derivatives rules under Dodd-Frank. Despite the chairman’s assurances, many fear that coops and utilities will be regulated as swap dealers under the proposed rules. Law 360 has the full story (subscription required).

Carroll Electric Coop Faces Class Action

Thu, 21 Jul 2011 17:10:17 GMT

On Tuesday, members of the Carroll Electric Cooperative Corporation filed a class action complaint against the coop with the Arkansas Public Service Commission. The class seeks, among other things, increased transparency and democratic governance of Carroll Electric as well as patronage capital (the repayment of capital credits to coop members). Carroll County News has the story.

NRCO Helps Mid-Atlantic Coops Enter Wind Purchase Agreements

Thu, 21 Jul 2011 17:08:11 GMT

The National Renewables Cooperative Organization (NRCO) facilitated negotiations for two Mid-Atlantic coops to enter separate power purchase agreements with BP Wind Energy. Southern Maryland Electric Cooperative Inc. and Old Dominion Electric Cooperative recently agreed to purchase 30 MW and 75 MW respectively from the Mehoopany Wind Farm currently under development in Pennsylvania. The NRCO acts as a clearinghouse and brings cooperatives together to enable access to large-scale renewable projects. Click here for details.

Solar Plant Talks Begin in Southern Maryland

Thu, 21 Jul 2011 17:06:15 GMT

Huntington, Maryland may be the home of a new two-acre solar energy plant. A meeting to discuss preliminary aspects of the proposed project will be held this Saturday with Calvert County residents invited to attend. The project’s voltage amount is not yet known, but if built, will connect into the Southern Maryland Electric Cooperative Inc. grid system. Read more.

Missouri Coop Agrees to Purchase 150 MW From Wind Capital

Thu, 21 Jul 2011 17:03:58 GMT

Associated Electric Cooperative, Inc. will purchase 150 MW of power from a Wind Capital Group wind farm currently under development in Oklahoma. The wind farm has a construction completion date of June 2012. Read the full story here.

Beartooth Electric Cooperative Members Seek to Replace Trustees

Wed, 20 Jul 2011 15:50:23 GMT

A group of members of the Beartooth Electric Cooperative in Montana has commenced efforts to replace the five trustees who voted to support increasing the debt limit for the construction of the Highwood Generating Station near Great Falls to $300 million. Additional details can be found here.

Coop Offers Early Retirement Packages to Cut Costs

Tue, 19 Jul 2011 12:53:19 GMT

The Craig-Botetourt Electric Cooperative has offered early retirement to more than one-third of its employees as a cost cutting measure intended to keep rates lower. Full-time employees 54 or older were offered “voluntary special early retirement,” which includes insurance coverage through April 30, 2012, and a retraining program for anyone who wants to re-enter the workforce. The Virginia-area coop estimates that if all 10 employees take the early retirement, it would save the electric cooperative $500,000 a year. The coop cites rising costs, attributed to Environmental Protection Agency regulations on Appalachian Power and other power companies that supply electric power to electric coops, as the reason for the decision. A description of the measure can be found here.

Arizona Corporate Commission Approves New Waste-to-Energy Plant

Mon, 18 Jul 2011 14:51:56 GMT

Last week, the Arizona Corporate Commission approved an application filed in November 2010 by Mohave Electric Cooperative for a waste-to-energy plant as a pilot program. MEC, which distributes electricity to nearly 40,000 customers, plans to build the plant in the Phoenix area. The plant could generate about 11 megawatts of electricity, supplying roughly 2,700 homes with electricity. The ACC requires utility companies to supply 15 percent of their energy from renewable resources by 2025, and the new plant could help MEC receive renewable credits. The Mohave Daily News has more.

House Committee Blocks EPA Regulations

Mon, 18 Jul 2011 14:50:12 GMT

The House Energy and Commerce Committee voted on July 13 to advance legislation to block the Environmental Protection Agency from regulating coal ash as a hazardous waste. The same committee voted just days earlier to delay implementation of two major EPA rules. The first rule would require utilities to use maximum achievable control technology on their units to reduce emissions of mercury, chromium, and nickel. Another rule targeted by the committee dealt with airborne emissions that cross state lines in the eastern part of the country. ECT.coop has the full story here.

Coop Offers Reward for Information on Copper Theft

Fri, 15 Jul 2011 16:17:52 GMT

In response to two break-ins this summer, New Hampshire Electric Cooperative is offering a cash reward to anyone with information that leads to the arrest and conviction of the responsible person or persons. The coop has also increased security in an effort to combat this ongoing problem. The Union Leader has the full story.

Coop Members Save Money with Smart Grid Pilot Program

Fri, 15 Jul 2011 16:16:28 GMT

Participating members at Pedernales Electric Cooperative and Bluebonnet Electric Cooperative have saved as much as nineteen percent on their electric bills as part of the coops’ smart grid pilot programs. Through a combination of technologies, members are better able to control the amount of energy they use and when they use it. Electric Co-op Today has more.

Cooperatives Highly Rated for Customer Satisfaction in New Study

Wed, 13 Jul 2011 19:16:53 GMT

Several cooperatives received high marks in J.D. Power and Associates 2011 Electric Utility Residential Customer Satisfaction Study(SM). The study measures customer satisfaction with electric utility companies by examining six key factors: power quality and reliability; price; billing and payment; corporate citizenship; communications; and customer service. In the midsize utility segment, Southern Maryland Electric Cooperative and Jackson EMC ranked highest in the East and South regions, respectively. More information and the full study are here.

New Hampshire Electric Cooperative Steps up Security to Prevent Copper Wire Theft

Wed, 13 Jul 2011 19:14:50 GMT

After the second theft of copper cable in two weeks, New Hampshire Electric Cooperative will begin 24-hour security at its substations across New Hampshire. As was the case in the previous incident, the theft destroyed a 7,200 volt regulator at the Corliss Hill substation. Additional details on the thefts and security measures can be found here.

Court of Appeals Panel Dismisses Challenge to Nuclear Plant License

Wed, 13 Jul 2011 16:37:39 GMT

A three-judge panel for the U.S. Court of Appeals Eighth Circuit dismissed a challenge to the U.S. Nuclear Regulatory Commission's renewal of a license for a nuclear plant to be located at the Duane Arnold Energy Center in Palo, Iowa. The petitioners’ challenge was based on the environmental impact of the plant’s continued operation. The panel ruled that the 60-day window for a petition commences on the date that the renewal is sent to the license holder and not the day the decision appears in the federal register, in this case two weeks later than when the renewal was sent to the holder. Additional information is available here. (subscription required)

New Mexico Appellate Court Reduces Damages Award Levied Against Torrance County Electrical Coop

Tue, 12 Jul 2011 13:40:59 GMT

A New Mexico State Appeals Court has slashed a multimillion-dollar judgment against a Torrance County electric cooperative, reducing the award from $21 million to $4.2 million, after determining the lower court misapplied the concept of consequential damages. The original award stemmed from a lower court’s determination that the coop, Central New Mexico Cooperative, was partially responsible for a fire that destroyed an Estancia tomato-growing business. The Albuquerque Journal has more on the court’s decision here.

Cobb EMC Names New President and CEO

Tue, 12 Jul 2011 13:34:21 GMT

The Cobb EMC board of directors named W.T. "Chip" Nelson as its new president and CEO on Monday. Nelson served as the interim chief executive of Cobb EMC before this decision was made. A resident of northeast Cobb County, Nelson previously served for seven years as the coop’s chief operations officer. The Marietta Daily Journal has the story.

Hawaii Coop to Discuss Hydropower Development

Tue, 12 Jul 2011 13:33:26 GMT

The Kauai Island Utility Cooperative is exploring the development of new hydropower projects on Kauai. The coop board has hired a consultant to aid in this decision, given the environmental concerns. The coop is currently working with outside counsel to review the petition to have a meeting on the matter.

Coops Affected by Dodd-Frank Federal Risk-Based Pricing Rule

Tue, 12 Jul 2011 13:30:02 GMT

As of July 21, a provision in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act adds new disclosures to the federal risk-based pricing rule notices that creditors must provide. Coops will be subject to this rule if they use a consumer credit report — either a numeric score or a rating partially based on a score — in connection with an application for electric service or a coop-sponsored financing program. For more information about the disclosure requirements and upcoming deadlines, see this article on the ECT website.

New Mexico Appellate Court Reduces Damages Award Levied Against Torrance County Electrical Coop

Mon, 11 Jul 2011 13:40:59 GMT

Newly Finalized EPA Rule May Affect Coops’ Pollution Control Procedures

Mon, 11 Jul 2011 13:38:25 GMT

The U.S. Environmental Protection Agency finalized a rule this week intended to stop pollutants in one state from lowering air quality in neighboring states. Although the rule is newly finalized, it has been under consideration for several years so many power plants affected by the new regulations already have taken steps to come into compliance with the regulations. One example of this early preparation is South Carolina-based SCE&G and Palmetto Electric Cooperative, which power much of the Lowcountry. According to a spokeswoman for state-owned Santee Cooper, a recent rate increase already reflected the higher costs of installing pollution control equipment at the company’s largest power plants. Click here for more details on the new regulations.

Coop Selects Roberts and Schaefer as EPC Contractor for the First U.S. Installation of a Dry Bottom Ash System

Fri, 08 Jul 2011 16:34:56 GMT

Seminole Electric Cooperative, Inc. has chosen Roberts and Schaefer, a subsidiary of KBR, to furnish engineering, construction and procurement services in connection with its installation of a new dry bottom ash system at its Palatka, Florida coal-fired generating facilities. According to a KBR press release, the new system is expected to make the facilities more efficient and reduce operation and maintenance expenses.

Tennessee Includes Utility Vehicles in its Move Over Law

Tue, 05 Jul 2011 19:13:46 GMT

Tennessee's extended Move Over law became effective July 1, 2011. This law now includes electric and other utility vehicles in the already existing protections for police, fire and highway construction vehicles. This means that, effective July 1, motorists approaching a utility vehicle with flashing lights are required to move over to the extent it is safe to do so, creating an empty lane buffer. When changing lanes is not possible, motorists must reduce speed. This expansion was advocated by the Tennessee Electric Cooperative Association, according to this press release.

Jackson Energy Coop Participates in Technology to Convert Natural Gas to Electricity from Stranded Wells

Tue, 05 Jul 2011 19:12:03 GMT

Kentucky-based Wellhead Energy Systems has developed a way to convert natural gas to electricity at the well and feed it into the power grid. Wellhead installed the first station in Jackson County because the coop Jackson Energy has worked closely with the company. This strategy would involve tapping so-called "stranded" gas wells to generate electricity. Stranded wells are wells that have been drilled but are not producing. The developer of this technology says the idea would create income from a gas well that's not producing any cash now and provide electricity at competitive prices from a source that burns more cleanly than coal, which currently provides over 90 percent of Kentucky's electricity. Because the Jackson County station is connected to a gas pipeline, not a stranded well, Wellhead has decided to use the pipeline supply in order to fulfill a responsibility to Jackson Energy and get a station to demonstrate the technology. More information on this technology can be found in this article.

The D.C. Circuit Rejects Sierra Club’s Citizen Suit

Tue, 05 Jul 2011 19:11:11 GMT

In a decision issued Friday, the D.C. Circuit rejected the Sierra Club’s appeal of the dismissal of its suit seeking to compel the Environmental Protection Agency (EPA) to stop the construction of two power plants in Kentucky. The Sierra Club brought this suit under the citizen suit provision of the Clean Air Act to challenge the EPA’s failure to take action to prevent the construction of three proposed pollution-emitting facilities in Kentucky. The court below held that there was no mandatory duty to act, and granted the EPA’s motion to dismiss for lack of subject matter jurisdiction, which the environmental group appealed. In Friday’s decision, the court agreed with the EPA administrator that she had sufficient discretion to render her decision not to act against the plants. According to the panel, if the administrator is satisfied that the permit issued under the noncompliant SIP is sufficient, then she has made the decision that no action is necessary, in which case there are no legal standards for judicial review. The decision can be read here.

Tri-State Generation and Transmission Senate Testimony on Proposed EPA Regulations

Tue, 05 Jul 2011 18:59:23 GMT

An executive of Tri-State Generation and Transmission Association, Inc., a coop based in Westminster, Colorado, testified on June 30, 2011, to a U.S. Senate subcommittee about how proposed pollution regulations – namely the Clean Air Interstate Rule and the Clean Air Mercury Rule – would affect the coop. The testimony can be found here.

Coop Vice President Testifies on Impact of Proposed EPA Regulations

Fri, 01 Jul 2011 13:21:56 GMT

Ms. Barbara Walz, the senior vice president for policy and environmental issues at Tri-State Generation and Transmission Association, Inc., testified to the U.S. Senate Environment and Public Works Committee on Thursday about the impact of proposed EPA pollution regulations on her organization. Tri-State, based in Colorado, is a member-owned electric coop. Ms. Walz argued that the EPA failed to consider the benefit of certain emissions reductions. Click here to see Ms. Walz’s testimony.

Pedernales Electric Cooperative Board Changes How Unclaimed Capital Credits Are Released

Fri, 01 Jul 2011 13:19:44 GMT

The board of Pedernales Electric Cooperative, the largest electric distribution cooperative in the United States, has voted to change how it releases unclaimed capital credits to the state of Texas. The coop will continue taking steps to return $4.2 million in unclaimed money to members by publicizing on its website a list of the names of members who have not yet collected the money they are due, most of which comes from uncashed capital credit checks. The coop says its new rule will help former member-owners get access to the funds without having to deal with state paperwork. To read more about the board’s initiatives, click here.

Wind Farm to Sell Portion of Energy to Coop Consortium

Wed, 29 Jun 2011 17:39:14 GMT

E.On Climate & Renewables, the developer of the Pioneer Trail Wind Farm near Paxton, Illinois, has agreed to sell up to 40 megawatts of energy produced by the wind farm to a consortium of 21 electric-distribution cooperatives in Illinois. The News-Gazette has more details.

Coop’s Possible Electric Service Purchase May Reduce Rates

Tue, 28 Jun 2011 12:22:41 GMT

The City of Dover is considering selling its electric service to the Delaware Electric Cooperative. The sale may reduce electric bills in Dover by 25 percent due to the Coop’s rate structure and help boost economic growth in the surrounding county. Click here for details.

Mother Nature Takes a Heavy Toll on Heartland Coops

Fri, 24 Jun 2011 13:55:08 GMT

Coop staffers in parts of the Southwest are hoping for rain as they brace for the effects of several huge wildfires. Coops in the Midwest are also facing challenges in face of potential prolonged flooding and heavy rains. Coop officials across the heartland have been de-energizing lines and removing meters and other equipment to protect coop assets as they prepare for service disruptions. As of June 21, fire crews were managing fifteen major fires nationwide. To read more about the recent effect of extreme weather on coops, click here.

Coop Spokesman Critical of Georgia Watch Report on Cost of Coal-Fired Plant

Fri, 24 Jun 2011 13:53:19 GMT

A coop spokesman questioned the findings of a recent report, released by Georgia Watch, a consumer advocacy organization, which concludes that the proposed, coal-fired Plant Washington could cause rates to increase if the plant is built. The report’s conclusions are based in part on projections of rising construction costs and new regulations on coal plants. The plan to build the plant is backed by Power4Georgians, which is a consortium of five EMCs. Cobb EMC is the largest cooperative in Power4Georgians. The other EMCs are Upson, Central Georgia, Washington and Snapping Shoals. The Marietta Daily Journal has more on the report and criticisms of its conclusions here.

New Wind Farm Dedicated in South Dakota

Thu, 23 Jun 2011 14:35:56 GMT

A dedication ceremony was held today for the Crow Lake Wind Project, built and owned by PrairieWinds, which is a subsidiary of North Dakota-based Basin Electric Power Cooperative. The wind farm has been operational since last February and nearly all of the 108 wind turbines are owned and operated by PrairieWinds. The Republic has the full story.

Commodity Futures Trading Commission Delays Energy Swap Rules

Wed, 22 Jun 2011 15:52:50 GMT

The Commodity Futures Trading Commission voted to delay the effectiveness of "self-executing" provisions under the Dodd-Frank Act until as late as December 31 or until the agency has finalized corresponding rules. Electric Co-op Today has more on this story.

Cooperatives Attempt to Obtain Hoover Dam Electricity

Wed, 22 Jun 2011 15:50:39 GMT

Mohave Electric Cooperative and several other electric cooperatives in Arizona are trying to change a federal law to permit them to obtain Hoover Dam electricity; they have been denied access to Hoover Dam electricity for more than 70 years. The U.S. House of Representatives has refused to amend current legislation to allow the cooperatives request. Tri-state Online has more.

New Mexico Coop Completes PPA for 1.5 MW Solar Plant

Tue, 21 Jun 2011 17:54:29 GMT

Taos, New Mexico coop Kit Carson Rural Electric Cooperative recently signed a power purchase agreement with Standard Solar Inc. for a 1.5-megawatt utility-scale photovoltaic generating facility. The project will include 5,280 solar PV panels and will offset approximately 1,500 tons of greenhouse gases per year. Kit Carson has agreed to purchase electricity from the facility for 25 years. This article has the story.

Beartooth Electric Coop Faces Pressure in Building Plans

Tue, 21 Jun 2011 17:51:01 GMT

Seventy members of Montana-based Beartooth Electric Cooperative signed a letter calling for the board of directors to complete an independent analysis of whether the coop should continue building the Highwood Generating Station. Highwood is a 120-megawatt gas-fired plant being built by the Billings-based Southern Montana Electric Generation and Transmission, which also provides wholesale power purchased primarily from PPL to its members. This effort comes in the wake of a series of rate increases and plans for a gas-fired power plant near Great Falls. The continuation of building the project would require the coop to commit a potential $300 million, long-term financial obligation. More information on this effort here.

Supreme Court Rules That Federal Nuisance Claims Cannot be Based on Greenhouse Gas Emissions

Mon, 20 Jun 2011 17:15:44 GMT

In an unanimous decision, the Supreme Court ruled that because greenhouse gas emissions are covered by the Clean Air Act there is no federal common law right to bring a nuisance claim with respect to such emissions.

City of Victoria Renews Tax Abatement Program Citing Coop as Example of the Program’s Success

Mon, 20 Jun 2011 17:14:11 GMT

When Victoria first adopted its tax abatement program in 2001, it was one of the reasons that South Texas Electric Cooperative decided to keep its plant in Victoria. Proponents of the tax abatement program point to the coop’s $126-million investment as evidence that offering property tax breaks through the program stimulates the local economy. The Victoria Advocate has the full story.

Discovery Begins with Class Action Status Still to be Considered in New Mexico Coop Litigation

Mon, 20 Jun 2011 17:13:11 GMT

After last week’s hearing, the litigation between Socorro Electric Cooperative and its members is progressing to the discovery stage of litigation. The initial focus of discovery will be on issues relating to the members’ class action status. The court has yet to address the members’ allegations that, among other things, the coop has wrongfully retained patronage capital owed to members. See the El Defensor Chieftain for more.

Landowners Comment on Minnkota Power Cooperative’s Proposed High-Voltage Transmission Line

Fri, 17 Jun 2011 12:22:37 GMT

Landowners commented on Minnkota’s plan for a 250-mile high-voltage transmission line during Minnkota’s presentation before the North Dakota Public Service Commission. Minnkota is in the in the process of obtaining easement options, and in order to address landowners’ concerns, it is pricing the easement options on a county by county basis. The Grand Forks Herald is covering this story.

North Dakota Senator Introduces Energy Plan that Contains Incentives for Coops that Use Clean Energy

Fri, 17 Jun 2011 12:19:43 GMT

Senator Kent Conrad recently introduced the “Fueling U.S. Energy Leadership Act” or FUEL Act as a broad plan to address energy independence and to provide a means to improve the economy. Among other things, the Fuel Act contains incentives for rural electric coops that make use of various clean energy technologies. See Senator Conrad's press release for more.

Price Gouging Allegations Brought Against Railroads

Thu, 16 Jun 2011 15:12:12 GMT

A coal mining company has sued two railroad companies alleging anticompetitive practices that result in unjustifiably high shipping costs for coal. Coops have made similar charges in the past and the National Rural Electric Cooperative Association supports proposed legislation that seeks to end the railroads’ safe harbor from traditional court challenges. Read more.

Wildlife and Health Concerns Continue for Vermont Wind Project

Thu, 16 Jun 2011 15:09:53 GMT

Co-developers of the Lowell Mountain wind-power project, Green Mountain Power Corp. and Vermont Electric Cooperative, face a continued backlash regarding the project’s possible impact on wildlife habitat and human health. The developers want to create new wildlife habitats before the project begins operations, but opponents say such habitats must be in place before the start of construction. Neighboring towns argue that heightened noise levels associated with the project pose a public health concern. The Burlington Free Press has the story.

Renewable Energy Rebates Lowered in Arizona

Thu, 16 Jun 2011 15:08:02 GMT

In May, the Arizona Corporation Commission approved Sulphur Springs Valley Electric Cooperative’s (SSVEC) 2011 renewable energy program. The plan will lower rebates available for residential renewable energy installations due to lower costs associated with the units and their installation. SSVEC hopes the reduced incentives will provide SSVEC staff time to catch up on a backlog of rebate requests. Click here for details.

Report Shows Significant Coop Investment in Solar Power

Wed, 15 Jun 2011 14:06:31 GMT

A new report by the Solar Electric Power Association shows that coops are making impressive investments in solar energy in the United States. In the aggregate, coops increased their solar capacities by almost 690% in 2010. Electric Co-op Today has more details, and a link to the full report is here.

Partial Win For Oglethorpe Power in Georgia Nuisance Case

Tue, 14 Jun 2011 12:54:49 GMT

The Georgia Supreme Court has partially ruled in favor of both parties in a nuisance case in which local residents sued Oglethorpe Power Corporation over noise from the Polk County Sewell Creek Energy Facility. The Georgia Supreme Court held that the "continuing nuisance" began in 2004, which allows the Polk County residents within the statute of limitation to sue the power company. The court also ruled that, if the noise from the peaking plant is a nuisance at all, it would be considered a "continuing nuisance," meaning that the residents are limited to one lawsuit for the recovery of past and future damages, even if the noise increases after that lawsuit. If the court were to have held otherwise, each operation of a generating plant would create a new claim with its own four-year limitation period. The case now will eventually go back to the trial court for resolution. More details are available in this article.

Florida Coop Gives Millions in Student Grants

Tue, 14 Jun 2011 12:53:21 GMT

Withlacoochee River Electric Cooperative has given out $5.3 million in scholarship money in the past 15 years. The scholarship program began in 1996, when the Florida legislature overturned a law that required unclaimed capital credits to be forfeited to the state. In 1997, the coop began using its unclaimed capital credits to fund the WREC Educational Foundation, a program that it hopes will catch on with other coops. Click here for the story.

New Hampshire Senator Seeks to Use Coop’s Efficiency Model Nationwide

Mon, 13 Jun 2011 15:45:35 GMT

During a recent discussion regarding her new energy efficiency bill, U.S. Senator Jeanne Shaheen (D-NH) highlighted the innovative cost-saving efficiency program used by the New Hampshire Electric Co-Op. Through the coop’s SmartSTART program, customers can pay for their energy efficiency improvements through their utility bills. The coop has found that program participants have cut their electricity bills by about one-third on average. Click here for more.

Alaska Coop Makes Progress On Tapping Alternative Power Source

Mon, 13 Jun 2011 15:44:06 GMT

Naknek Electric Association, which serves the Bristol Bay area in Southwest Alaska, has received some positive news about its geothermic drilling project. GeothermEx has assessed the coop’s first well and concluded the utility is on its way toward a geothermal project that could prove to be economically sensible. The well can produce geothermal fluid at a temperature of 190 degrees, and possibly as high as 235 degrees. At the lower temperature, the well could potentially provide a net generation of roughly 325 kilowatts from each 1,000 gallons per minute of fluid produced. Petroleum News has the full story on the project here.

Dairyland Power To Remove Nuclear Waste To Dry Casks

Mon, 13 Jun 2011 15:42:35 GMT

Dairyland Power Cooperative, an electric provider based in Wisconsin, will begin removing spent fuel from its Genoa nuclear plant later this spring. Dairyland plans to encase the waste in steel and concrete casks. Although it appears that the federal government has no immediate plans to take possession of the nuclear waste, the move to store it on site should cut by two thirds the coop’s cost to staff the plant and speed up the decommissioning process, which is expected to take another seven years and bring decommissioning costs to an estimated $79 million. The Vernon County Broadcaster has the full story.

Electric Coops Leading the Way in Modernization of the Nation’s Electric Grid

Mon, 13 Jun 2011 15:41:12 GMT

Agriculture Secretary Tom Vilsack joined Administration officials on Monday to announce several initiatives aimed at modernizing the nation’s electric grid. The USDA Rural Development’s Rural Utilities Service (RUS) is providing funding for several projects, and rural electric cooperatives are heavily involved in smart grid deployments. Last year, RUS approved $7.1 billion in loans for a wide range of rural electric grid modernization, including $152 million in loans for smart meters. A full list of rural utilities that were selected to receive USDA funding is included in the USDA’s press release.

Georgia Supreme Court Rules on Amendments to Cobb EMC’s Bylaws

Mon, 13 Jun 2011 15:38:36 GMT

On Monday, the Georgia Supreme Court ruled that the president and directors of the Cobb Electric Membership Corporation violated a settlement agreement with coop members by amending its bylaws to allow voting by proxy in 2008. The Court concluded that the challenged bylaw amendment allowed the board to unilaterally change the method of voting on the issue of the method of selecting directors, which was a core issue addressed by the settlement agreement. The Atlanta Journal Constitution has the full story and the full opinion of the Court can be found here.

Northern Virginia Electric Cooperative Hires New Data Management Company

Fri, 10 Jun 2011 15:31:13 GMT

The coop announced that it has chosen DataFlux to set up a coop-wide data management initiative. The goal of the initiative is to organize data in a way that improves the accuracy of the coop’s forecasting models. See BusinessWire for more.

City of Great Falls Wins Round One in Litigation with Coop

Fri, 10 Jun 2011 15:28:37 GMT

In March of this year, the City of Great Falls brought suit against Southern Montana Electric Generation and Transmission Cooperative seeking to invalidate its wholesale power contract with the coop. On June 8, a judge decided not to stop Great Falls from reducing the number of its customers and denied the coop’s request for new, court-appointed leadership of Great Falls’ electric company. The Billings Gazette is covering this story.

Members of a Texas Cooperative May See 2012 Rate Increase

Thu, 09 Jun 2011 15:20:36 GMT

At its annual meeting, Farmers Electric Cooperative (FEC) announced a probable rate increase in 2012 due to a new natural gas plant and heightened delivery costs associated with a new rail contract for coal. Three directors were also re-elected at the annual meeting, and nuclear power was named FEC’s likely generation resource for the future to serve increasing member demand. The Chillicothe Constitution-Tribune has the story.

Flood Damage to Vermont Coop’s Offices Should Not Raise Rates

Thu, 09 Jun 2011 15:17:36 GMT

Customers of Washington Electric Cooperative (WEC) will not face extra charges to pay for recent flood damage to a WEC office building. WEC representatives stated that damage caused by the May 26 flood waters will primarily be covered by insurance, and customers need not worry about disconnection due to delayed payments or rate increases. The coop is working to mitigate the customer service and related issues caused by the loss. Click here for details.

Lower Colorado River Authority General Manager Resigns

Wed, 08 Jun 2011 20:54:09 GMT

The general manager of the Lower Colorado River Authority, which has a number of electric cooperatives as customers, has announced his resignation effective July 1. This vacancy may lead to further changes in operations at the LCRA. The Texas Tribune has more details.

Kentucky Coop Seeks Rate Hike

Wed, 08 Jun 2011 20:46:48 GMT

The Commonwealth Journal has a detailed story on a recent request for a rate hike by a Kentucky coop, which cites a period of low growth and pressures from new environmental regulatory requirements on coal generation plants.

Load Growth and Rising Commodity Prices May Lead a North Dakota Coop to Increase Rates

Fri, 03 Jun 2011 15:54:51 GMT

Roughrider Electric Cooperative Inc. projects that demand will grow by 10 percent per year for the next five years. Based on this projection, the coop is investing in additional generation and transmission facilities to meet its members’ future needs. According to the executive team, higher commodity prices will significantly increase the construction costs of the new facilities and rate increases may be needed to cover the coop’s costs. The Dickinson Press has more.

Legislative Reform Introduced to Change Attorney’s Fees Reimbursement Program

Thu, 02 Jun 2011 15:16:48 GMT

The National Rural Electric Cooperative Association is among the supporters of a bill recently introduced in the U.S. House of Representatives that would reform the process of reimbursing certain attorney’s fees incurred while suing the federal government. The Equal Access to Justice Act (EAJA) allows such repayment in certain situations when plaintiffs who sue the federal government “prevail” in the case. Legislators who support the reform contend that large environmental groups are taking advantage of the EAJA funds at the expense of the intended beneficiaries – individuals, small businesses and non-profit organizations – all on the taxpayers’ dime. Read more.

NRECA Requests Extension of EPA Mercury-Rule Public Comment Period

Wed, 01 Jun 2011 15:04:39 GMT

NRECA and the American Public Power Association have requested that the public comment period for a new Environmental Protection Agency rule related to mercury and other hazardous air pollutants, such as nickel and cadmium, be extended from July 5 to September 5. More details can be found here.

Regulators Approve Green Mountain Power’s Vermont Wind Project

Wed, 01 Jun 2011 15:03:09 GMT

The Vermont Public Service Board approved Green Mountain Power’s proposed 63-megawatt wind facility in Lowell, Vermont. The project, which will be comprised of 21 turbines, is a joint project between Green Mountain Power and Vermont Electric Cooperative. Read more about the project here.

Storms Hit Close to Home for Vermont Coop

Tue, 31 May 2011 17:49:56 GMT

Washington Electric Cooperative in Vermont has experience with restoring the power of customers affected by storms, floods, and other inclement weather. However, last week, the entire ground floor of the coop’s headquarters in East Montpelier was flooded during the heavy rains that hit the area. The coop is asking customers to limit calls to very important matters as it restores its own storm damage. The Associated Press has the story.

Arizona Coop Litigates for Funds Allegedly Misappropriated

Tue, 31 May 2011 17:47:14 GMT

Mohave Electric Cooperative is in the midst of discovery in a now-year-and-a-half struggle with its former CEO, Robert Broz. The coop alleges that Broz abused his authority as the board president of two spinoff companies for his personal financial gain, potentially in the ballpark of $4 million and $22 million. The coop seeks to recoup this money, which would go back to its members. The Mohave Daily News has more details on this litigation.

Coop Plans for Growth Related to Shale Drilling Operations

Fri, 27 May 2011 11:30:59 GMT

In its annual meeting, South Texas Electric Cooperative discussed and laid out plans to deal with its expected growth over the coming years. One of the primary drivers of the coop’s growth is the development of the Eagle Ford Shale drilling operations. See the Victoria Advocate for more.

State of Kansas Delays Disaster Relief Payments to Coops

Fri, 27 May 2011 11:26:45 GMT

After lengthy budget negotiations, Kansas legislators returned home without providing funding to pay for work that coops have already completed. The $2.3 million in delayed payments are a part of Kansas’ match of federal disaster relief funding. Without these funds, coops are turning to other sources of financing. The Kansas City Star has the full story.

Idaho Public Utilities Commission to Consider Wind Power Dispute

Thu, 26 May 2011 15:19:17 GMT

The Idaho Public Utilities Commission announced it will hear oral arguments between Boise-based Exergy Development Group, the developer of four proposed Cassia County wind projects, and Rocky Mountain Power on June 9. Exergy filed a complaint against Rocky Mountain, arguing that its planned wind projects near Malta should receive a higher rate from Rocky Mountain. Rocky Mountain filed a motion to have the complaint dismissed, alleging Exergy does not have the necessary interconnection and wheeling agreements with Raft River Electric Cooperative and the Bonneville Power Administration needed to deliver the wind projects’ output to the Rocky Mountain territory. Read more details on the dispute here.

U.S. Supreme Court Affirms $345 Million Payment to Coops

Thu, 26 May 2011 15:17:52 GMT

On May 16, the U.S. Supreme Court declined to hear BNSF Railway Company’s appeal of a 2009 Surface Transportation Board decision, which required BNSF to pay $345 million to Basin Electric Power Cooperative, based in Bismarck, North Dakota; other participants in the Missouri Basin Power Project; and a fuel supply cooperative. A federal appeals court previously affirmed the board’s ruling, which found that the carrier overcharged its customers for freight service. Electric Coop Today has the full story.

Missouri Tornadoes Impact Coop Power Distribution

Thu, 26 May 2011 15:15:12 GMT

The disastrous weather system that spawned severe storms and deadly tornadoes and spread destruction across portions of Missouri and six other states between May 21 and 23 has also affected area coops’ ability to distribute power. New-Mac Electric Cooperative, a Neosho, Missouri-based coop, reported more than 4,000 of its nearly 17,000 meters out of service. Many of the outages were the result of damage to transmission towers linking the coop’s distribution system to KAMO Electric Cooperative. KAMO, a Vinita, Oklahoma-based coop, lost seven large transmission structures in the path of the Joplin, Missouri, tornado. Crews are working to rebuild the affected structures. See the full story here.

Old Dominion Models Show No Significant Impact on Human Health and Environment at Hampton Roads Coal-Fired Plant

Wed, 25 May 2011 15:34:41 GMT

In response to the Chesapeake Bay Foundation’s recent report projecting an annual increase in healthcare costs of more than $200 million related to Old Dominion Electric Cooperative’s planned coal-fired generation plant near Newport News, Virginia, Old Dominion reports that computer models meeting state and federal standards determined that the plant “will demonstrate no significant impacts” on “human health and the environment.” The Daily Press has more on the story here and here.

South Carolina House of Representatives Considering Passage of Patronage Capital Legislation

Wed, 25 May 2011 15:33:21 GMT

The South Carolina House of Representatives is currently considering legislation that would significantly revise cooperatives’ use and distribution of patronage capital. The bill would, among other things, clarify the requirement that patronage capital be refunded to its members pro rata in accordance with the patronage of the respective members. It would also allow cooperatives the flexibility of allocating patronage capital in proportion to the revenue from members or the contribution of members to the cooperative’s patronage capital (or a combination of such bases). A full text of the proposed bill can be found here.

Cyber Thieves Target Cooperatives

Wed, 25 May 2011 15:28:05 GMT

An investigation indicates that cyber criminals have targeted cooperatives along with other non-profit organizations for financial theft. Two reported thefts involved fraudulent automated clearinghouse transfers. Typically, the fraudulent transfers are so small that they go unnoticed, but the losses can quickly mount up. Electric Coop Today has more on the story and tips on how to protect your organization.

Review of Transmission Incentive Policies May Prompt Narrower Scope and Fewer Benefits

Tue, 24 May 2011 16:54:18 GMT

As explained by Sutherland attorneys in this legal alert, FERC has issued a Notice of Inquiry that asked for industry input on transmission investment pricing policies. The Notice of Inquiry asks whether the rate incentives provided under FERC's transmission investment pricing policies effectively encourage the development of transmission infrastructure. Comments will be due 60 days after publication in the Federal Register.

Vermont Electric Cooperative to Vote on Kingdom Community Transmission Upgrade

Tue, 24 May 2011 16:53:10 GMT

The Vermont Electric Cooperative has announced that it plans to hold a vote in July on a transmission line upgrade required for the Kingdom Community Wind project in Lowell, Vermont. The vote will only occur if the Public Service Board has issued a certificate of public good for the $150 million project by that time. The transmission line upgrades will cost an estimated $10.8 million. Click here for more information.

Coop Audit Uncovers Challenges in Accounting Practices

Tue, 24 May 2011 16:51:02 GMT

A 2010 financial audit performed on Jemez Mountains Electric Cooperative has uncovered several red-flagged accounting practices. Noting that protocol concerns such as these are challenges not unique to their coop, leadership from Jemez Mountains Electric Cooperative has taken steps to strengthen its accounting department to address these issues. The Rio Grande Sun has the full story.

Member-Approved Bylaws Pass Judicial Scrutiny

Mon, 23 May 2011 15:47:41 GMT

A New Mexico Supreme Court-appointed judge has upheld three member-approved bylaws aimed at increasing transparency at the Socorro Electric Cooperative. Under the new bylaws, which the judge found properly and legally enacted, the coop is subject to open meeting laws. Socorro Electric’s arguments against the bylaws focused on the significant burden they would place on the coop and its resources. Read more.

Arizona Disputes the Role of Trash as a Renewable Energy Source

Mon, 23 May 2011 15:45:34 GMT

Mohave Electric Cooperative recently requested that state utility regulators treat solid waste as a renewable energy source to allow the coop to count a planned waste-to-energy facility as part of the coop’s renewable source portfolio. Environmentalists oppose the proposed renewable treatment for trash in favor of cleaner fuel sources like wind and solar. Arizona is one of several states grappling with this issue The Arizona Republic reports.

Resistance Continues Over Planned Hampton Roads Coal-Fired Plant

Mon, 23 May 2011 15:42:21 GMT

As part of an ongoing dispute with Old Dominion Electric Cooperative, the Chesapeake Bay Foundation issued a report projecting an annual increase in health care costs of more than $200 million if Old Dominion moves forward with a planned coal-fired generation plant near Newport News, Virginia. Old Dominion argues that the 1,500 MW plant would help meet increasing power demands in the area and create hundreds of permanent jobs. The Daily Press has the full story.

Oklahoma Coop Introducing Time-of-Use Rates

Fri, 20 May 2011 17:07:06 GMT

This June, Oklahoma Electric Cooperative will begin phasing in time-of-use rates for residential and small commercial customers. In an effort to manage long-term costs, Oklahoma Electric will introduce peak and off-peak rates over the next five years to allow customers to adjust their usage to the new pricing scheme. Read more.

Coop Cybersecurity Guidelines Released by NRECA

Fri, 20 May 2011 17:01:07 GMT

The National Rural Electric Cooperative Association (NRECA) has released a cybersecurity guide for utilities and others to use to protect power grid infrastructure from cyber attacks. The guide was developed with the help of the Department of Energy and the National Institute of Standards and Technology and contains tools such as self-assessments and checklists that intend to create a culture of vigilance against cybersecurity threats. The guidelines are available for free from NRECA.

Missouri Coop Launches Broadband Internet Initiative

Fri, 20 May 2011 15:17:54 GMT

Missouri Governor Jay Nixon and RUS Administrator Jonathan Adelstein celebrated Ralls County Electric Cooperative’s completion of the first portion of its broadband initiative. The coop’s ultimate goal is to make broadband available to 4,500 customers, including schools and healthcare providers. The Quincy Herald-Whig has the full story.

Roundtable Discussion Addresses Coops’ Uncertainty

Fri, 20 May 2011 13:41:07 GMT

Executives from five coops participated in an EnergyBiz Leadership Roundtable to discuss the challenges they face in providing reliable and affordable power to customers in an era of increasing regulation. Representatives from distribution, generation and transmission coops located throughout the country were in attendance. Participants cited uncertainty as a major concern for the future. Efficiency efforts, generation costs and heightened regulation were among the challenges discussed. Energybiz has the full story.

Energy Firms Concerned About the Impact of Dodd-Frank

Fri, 20 May 2011 13:00:00 GMT

Many members of the energy industry have voiced concern about proposed financial reform rules, but the U.S. Commodity Futures Trading Commission has not shown much willingness to keep the rules from affecting the industry, according to energy executives. Specifically, many energy firms want the CFTC to narrow its proposed definition of “swap dealers,” which energy representatives say could subject energy firms to new mandatory clearing and margin requirements in the over-the-counter derivatives market. According one industry representative, the new rules, if passed as approved, would force power, gas and oil firms to put aside billions of dollars to meet new margin rules, abandoning new investments, and could force them to increase their company’s debt level, which could hurt their credit ratings. To read more about the potential impact of the CFTC’s proposed rules, click here.

Tempers Flare Over Rate Increase

Thu, 19 May 2011 14:01:58 GMT

Last month, Southern Montana Electric Transmission and Generation Cooperative approved a 4.5% wholesale rate increase for its members. One member, Yellowstone Valley Electric Cooperative, has voiced objections. The Billings Gazette reports.

Alaska Coop Plans New Wind Farm

Tue, 17 May 2011 16:59:39 GMT

Golden Valley Electric Association in Fairbanks, Alaska, will make a final decision this Spring on whether to move forward and construct a $90 million 25-27 MW Eva Creek wind power project to be located south of Fairbanks. Wind power from Eva Creek would allow Golden Valley Electric Association to reduce its current dependence on high-cost oil-fired power and would provide a greener alternative to the its coal-fired plant resources. The utility plans to maximize its use of wind from Eva Creek during the winter, when electricity demand is high and its reliance on oil-fired power is also high. Full story here.

Iberdrola Renewables Extends Agreement With Texas Coop

Mon, 16 May 2011 17:51:02 GMT

Iberdrola Renewables is extending an ongoing power purchase agreement with South Texas Electric Cooperative, which is the wholesale power provider to eight Texas electric cooperatives. South Texas will expand its existing 50 MW power purchase agreement with Iberdrola to 100.8 MW and extend it to May 31, 2026. Wind Power Intelligence has the full story.

Socorro Electric Coop Settles Two Lawsuits

Mon, 16 May 2011 17:33:16 GMT

Socorro Electric Cooperative settled two wage and hours claims with former managers last month, paying out $30,000 in compensation for failing to settle within the time frame established by state law after the two employees were fired last August. Polo Pineda Jr., who served as the coop’s general manager, and Kathy Torres, an accounting manager with the company for 22 years, were fired last year after an investigation into financial irregularities. An audit revealed that the managers had taken out loans through the coop and failed to pay them back in a timely manner. The managers were fired on Aug. 25, 2010. New Mexico state law requires that all unpaid wages and compensation be paid within five days of termination, and the managers alleged they didn’t receive their payments on time. Read more about the terms of the settlement agreements here.

Alaska Coop Considering $90 Million Wind Power Project

Mon, 16 May 2011 17:27:44 GMT

Golden Valley Electric Association, located in Fairbanks, Alaska, is close to a final decision on its planned $90 million Eva Creek wind power project. The project would be located at Healy, south of Fairbanks. With a capacity of 25 megawatts to 27 megawatts, the project is expected to generate power for just under 9 cents per kilowatt hour, according to Gene Therriault, the coop’s vice president for natural resources. If the project gets final approval, construction will begin this summer on necessary infrastructure, such as improvements on an access road to the site. See the full story here.

Southern Montana’s Request for Restraining Order Against Member Rejected

Fri, 13 May 2011 09:14:34 GMT

Southern Montana Electric Generation & Transmission Cooperative, Inc. sought an injunction against Electric City Power, the municipal utility for the City of Great Falls, to stop it from terminating contracts with customers or delaying payment to Southern Montana. The court denied the request because it found that Electric City Power continues to pay Southern Montana and the contracts in question are due to expire in late June. The Great Falls Tribune has the full story.

CFC Study Shows Coops’ Key Financial Ratios Improving in 2010

Fri, 13 May 2011 09:12:07 GMT

In its annual study, the National Rural Utilities Cooperative Finance Corporation (CFC) found that electricity sales increased, consumers continued to reliably pay their bills, and coops’ average times interest earned ratio increased from 2.27 to 2.42. See the CFC press release for more on how these factors strengthened coops’ finances.

Fortistar Begins Construction on LFG Facility

Wed, 11 May 2011 16:25:17 GMT

Fortistar LLC has commenced construction on a 6.4MW landfill gas (LFG) power plant in eastern Henrico County, Virginia. Fortistar will sell the electricity it generates to Old Dominion Electric Cooperative. Additional details about the facility are here.

TVA Forces Shutdown for Arab Electric Cooperative Customers

Wed, 11 May 2011 16:23:54 GMT

Due to instability in the power grid, TVA forced Arab Electric Cooperative in Alabama to not provide power to non-essential small business and industries. This action stopped power to almost one million customers. The Arab Tribune has more on the story.

Sierra Club Litigation Stayed for Settlement Discussions

Wed, 11 May 2011 15:48:06 GMT

A federal judge has stayed discovery in the Sierra Club’s litigation against Dairyland Power Co-operative to allow for settlement discussions between the parties. The Sierra Club alleges that Dairyland violated the Clean Air Act and Wisconsin's state implementation plan at two coal-fired power plants. See Law360 for additional details (subscription required).

South Carolina Cooperative Enters Smart Grid Market

Tue, 10 May 2011 13:00:53 GMT

South Carolina’s Central Electric Power Cooperative recently approved the first paid WattBoss pilot program, which is set for deployment this year. The WattBoss technology, being introduced this year by Electranetics Inc., will share information with utilities and the constomer, and will provide the customer with greater control of its consumption, thereby decreasing energy costs. Orders to supply this program in the coop are expected to exceed $230 million. More on the WattBoss program here.

Missouri Cooperative Implements Innovative Funding Plan for Broadband Network

Tue, 10 May 2011 13:00:02 GMT

Co-Mo Electric Cooperative, an electric cooperative in Missouri, has implemented a novel way to raise community support for two pilot fiber-to-the-home (FTTH) networks. The coop plans to begin construction if it gets 35 percent of customers in its service area to pay a $100 deposit and commit to take one year of broadband service. The coop has also garnered the support of two local banks, which have agreed to pay the $100 deposit for their first customers to sign up. The target date to meet the 35 percent goal is May 16, 2011. If the target is not met by that date, the pilot networks will not be built and all deposits will be refunded. The coop has currently reached 71 percent of its goal as of today’s date.

DOE Recognizes Farmers Electric Cooperative as a Green Power Leader

Tue, 10 May 2011 12:58:37 GMT

The U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) recognized Farmers Electric Cooperative of Kalona, Iowa, in its annual assessment of leading utility green power programs. Using information provided by utilities, NREL has developed "Top 10" rankings of utility green power programs for 2010 in the following categories: total sales of renewable energy to program participants, total number of customer participants, the percentage of customer participation, green power sales as a percentage of total utility retail electricity sales, and the lowest price premium charged for a green power program using new renewable resources. Farmers Electric Cooperative was one of NREL’s Top 10 based on percentage of customer participation. For the entire list of those recognized, click through to the article.

Nevada Coop Approves Award of Patronage Capital

Tue, 10 May 2011 12:56:08 GMT

Valley Electric Association (VEA) members voted on Saturday in favor of a bylaw change that will allow half of the coop’s patronage capital to be paid out to current members. VEA’s current bylaw policy disburses patronage capital on a first-in, first-out payment system. Last year, the VEA board approved the payment of $2.14 million in patronage capital to previous members – all those who were members in 1990 and 21 percent of those who were members in 1991. That was after VEA realized a net margin of $2.7 million in 2010, which it considered a profit. The patronage capital is based on kilowatt hour usage. More here.

Proposed Net Metering Amendment Controversial in Minnesota

Mon, 09 May 2011 17:34:35 GMT

A proposed amendment to Minnesota’s net metering law would allow utilities to pay wholesale, rather than retail, rates to small power generators producing less than 40 kilowatts. Many rural coops argue that the state’s current law forces other customers to subsidize the coops’ small generator customers and with significant rate implications. Opponents to the proposed amendment are concerned that a change to wholesale rates would stall or even deter customers from participating in renewable energy projects. Click here for more.

Changes on the Horizon for the Nation’s Largest Coop

Mon, 09 May 2011 17:33:18 GMT

Two seats are up for grabs on the Pedernales Electric Cooperative Board of Directors, and six candidates are vying for the board positions. Over the next few weeks, coop members will review annual board election procedures in addition to voting for candidates. Also on the ballot is a referendum to determine whether an at-large electoral system should continue or a district-based process should be adopted. The Austin American-Statesman has the full story.

New Mexico Coop Board Seeks Dismissal of Recall Petition

Mon, 09 May 2011 17:30:35 GMT

An April 29 petition calling for the replacement of all but two members of the Kit Carson Electric Cooperative Board of Trustees faces dismissal after the Board filed a formal motion requesting a judge throw out the recall effort. The Board alleges the petition was signed under false pretenses by many of the signatories who believed it was a petition to prevent rate increases. Read the full story.

Alabama Coop Makes Progress Restoring Power to Customers

Fri, 06 May 2011 16:25:26 GMT

According to The Daily Sentinel, Sand Mountain Electric Cooperative has been able to restore power to around 5,000 of its customers. The coop continues to work with crews from around southeast to restore power for 2,300 more customers, but efforts may take up to five days.

Cooperative Among Participants at Congressional Hearing on the Future of Hydropower Generation

Thu, 05 May 2011 16:56:49 GMT

The House Natural Resources Subcommittee on Water and Power held a hearing Wednesday to discuss the legal and regulatory barriers to increased hydropower generation. Consumers Power, Inc., an Oregon cooperative, was among the participants and noted concerns about overgeneration related to the rapid increase of wind being generated in the region. For CPI’s complete testimony, click here. The hearing’s press release provides additional information regarding the event.

Old Dominion Introduces AC Cycling Program

Thu, 05 May 2011 16:54:40 GMT

Beginning in 2012, Old Dominion Electric Cooperative (Old Dominion) will offer an air-conditioner cycling pilot program to its 11 members in an effort to promote and manage demand-response activities. The project will run through May 2015 and provide incentive payments to participants during times of peak demand, at which time Old Dominion will cycle the customers’ air-conditioners. Read more.

Petition to Recall a New Mexico Coop’s Board Members Filed

Thu, 05 May 2011 16:51:50 GMT

On April 29, members of the Kit Carson Electric Cooperative filed a petition to replace 9 of the 11 trustees sitting on the coop’s board, charging, among other things, "breach of fiduciary duty." Opponents to the petition argue that some signatories were unaware of what they were endorsing. The Taos News has the full story.

North Dakota, Montana Join Much of the Country in Struggle With Weather-Related Power Outages

Tue, 03 May 2011 17:56:39 GMT

Rural towns in Montana and North Dakota are expected to be left in the dark for weeks after an outage that started around midnight on Friday, according to Montana-Dakota Utilities. Utilities in the area, including several coops such as Mountrail-Williams Electric, have been working at a furious pace to keep up with the downed transmission lines caused by storms. More on the costs and efforts associated with these outages here.

Local Commission Clarifies Coop Confidentiality Rules

Tue, 03 May 2011 17:55:45 GMT

According to an order issued by the New Mexico Public Regulation Commission, New Mexico’s Kit Carson Electric Cooperative can seek the protection of a confidentiality agreement with any entity seeking to review its records during the coop’s ongoing rate case. In the order issued last week, the Public Records Commission agreed that these records may contain commercially sensitive information and that even the coop’s members must sign confidentiality agreements. The Commission found that even in light of a New Mexico Supreme Court decision that coop members are entitled to review coop records if they have a "proper purpose," whether there is a proper purpose here is not clear enough in light of the commercial sensitivities. More details here.

Summary Judgment Rejected in Coop Meeting Access Lawsuit

Tue, 03 May 2011 17:40:47 GMT

A judge rejected motions for summary judgment filed by both sides in a pending lawsuit filed by the Billings Gazette to make the meetings of Southern Montana Electric Cooperative open to the public and media. The judge found that there were outstanding issues of material fact, so summary judgment would be improper. The coop has allowed one reporter from the Billings Gazette to attend its meetings during the pendency of the suit. The Billings Gazette carries this story.

New Campaign Finance Law Could Affect Georgia Coops

Tue, 03 May 2011 16:11:57 GMT

The Georgia Legislature has sent Senate Bill 160 to the state's governor for consideration. The bill changes the state's campagin finance laws by allowing public utility corporations to make contributions to political campaigns. Electric membership corporations, however, are still prohibited from making any contributions to political campaigns. Despite this restriction, the bill makes it clear that electric membership corporations may establish political action committees for the purpose of engaging in state political campaigns. See the full text of the proposed legislation here.

Coop Teams Up With Refuge to Supply Solar Power

Mon, 02 May 2011 14:14:43 GMT

Dairyland Power Cooperative and one of its 25 member cooperatives, Oakdale Electric Cooperative, are collaborating with the Necedah National Wildlife Refuge to bring renewable energy to local homes and businesses via a solar project on the refuge’s Visitor Center, which was funded through the American Recovery and Reinvestment Act. Dairyland has a power purchase agreement with the Necedah Refuge to buy all the renewable energy produced through the solar installation for distribution to coop members through Dairyland's Evergreen program. Read more about the program here.

Several Utilities Suing Tribal Group Over Power Line Access

Mon, 02 May 2011 14:07:36 GMT

Five utilities, including Minnkota Power Cooperative of Grand Forks, North Dakota, have filed a lawsuit in federal court arguing that the Leech Lake Band of Ojibwe has no authority to stand in the way of a high-voltage power line that would cross the band's Minnesota reservation. The five coops are part of a joint initiative of 11 utilities called CapX 2020 that are supporting five high-voltage transmission projects throughout the state worth a total of $1.7 billion. The Leech Lake Band, which is appealing state approval of the 70-mile power line, maintains it retains inherent rights through its treaties to prevent the project development. See the full story here.

Missouri Coop Celebrates New $3 Million Home

Mon, 02 May 2011 13:51:25 GMT

Tri-County Electric Cooperative, Inc. recently moved into a new home. The coop chose to invest in the new building to replace its four former buildings, many of which had fallen into disrepair due to age. The board pursued repairing the older buildings, which ranged in age from 23-93 years, but it found a minimum cost of over $1 million. The board was able to secure interest rates below 4.5 percent on its new facility, and the 30-year note will be paid back by members at a charge of $2.70 per meter each month. The Kirksville Daily Express has the full story.

Credit Quality of Coops Remains Strong

Fri, 29 Apr 2011 16:40:00 GMT

According to Standard & Poor’s Ratings Services, coops are emerging from the recession in sound financial condition. There are, however, some long-term uncertainties relating to the regulation of emissions that could adversely affect coops. See TD Waterhouse for more.

Oregon Coop Unlikely to Be Exempted From Renewable Portfolio Standard

Fri, 29 Apr 2011 16:37:26 GMT

Umatilla Electric Cooperative has been seeking an exemption from the Oregon legislature, and the recent defeat of SB 955 raises doubts as to whether the coop will obtain an exemption from the standard for large utilities, which requires that 25 percent of the coop’s energy come from renewables by 2025. The East Oregonian has the full story.

Coops Working Hard to Restore Power After Alabama Storms

Fri, 29 Apr 2011 16:28:57 GMT

The Montgomery Advertiser reported that coop repair crews are traveling from other states to assist with the restoration efforts in Alabama. As many as 230,000 customers from thirteen different coops are without power across the state.

Transmission Line Proposed to Serve New Pipeline

Thu, 28 Apr 2011 12:47:07 GMT

Basin Electric Power Cooperative proposes to build and oversee a 70-mile transmission line in South Dakota. The line would improve reliability and supply additional power needed to operate a Keystone XL oil pipeline proposed in the same area. While Basin Electric has yet to submit the project to the South Dakota Public Utilities Commission for approval, the coop plans to begin construction of the line in 2013 at a projected cost of $43 million. The Daily Republic has the full story.

Vermont Coop Rejects Nuclear Power Deal

Thu, 28 Apr 2011 12:33:21 GMT

The board of directors of the Vermont Electric Cooperative rejected a deal on Tuesday to purchase power from Entergy Corp's Vermont Yankee nuclear power plant citing sufficient supplies to service customers for the near-term. The power plant faces a March 2012 shutdown date unless the state legislature renews the plant's operating license or Entergy can win a legal battle to prevent the shutdown. Read more.

Proposed Coal Dust Tariff May Receive Coop Opposition

Thu, 28 Apr 2011 12:23:31 GMT

BNSF Railway's recently proposed coal dust tariff will limit the amount of coal dust flying from trains leaving mines in Wyoming. Coop coal buyers, including Arkansas Electric Cooperative, are among those who have opposed previous attempts to restrict the release of coal dust. The new rules should be issued in the next few weeks and coop customers will need to decide whether to continue this dispute that began back in 2005. Click here for more information.

Cobb Members Request FERC Investigation

Wed, 27 Apr 2011 17:09:29 GMT

Two Cobb EMC members have asked the Federal Energy Regulatory Commission to investigate the Marietta, Georgia-based electric coop claiming that the coop failed to disclose material information. The Atlanta Journal-Constitution has additional details.

Legislation Regulating Pedernales Advances Out of Committee

Wed, 27 Apr 2011 17:08:09 GMT

Senate Bill 1743, which advanced out of the Texas Senate Committee on Business and Commerce on Tuesday, would mandate elections via single-member districts and require the Public Utilities Commission to approve all purchases of electric power generation equipment by Pedernales. See The Austin American-Statesman for the rest of the story.

Legislation Laying Foundation for Iowa Nuclear Plant Approved

Wed, 27 Apr 2011 17:06:46 GMT

The Iowa House of Representatives approved legislation that would establish the financial parameters for MidAmerican Energy’s construction of a nuclear plant at an undisclosed location in Iowa. Additional details can be found at The Des Moines Register.

James River Experiments Related to Coal Plant Approved

Wed, 27 Apr 2011 17:04:12 GMT

The Virginia Marine Resources Commission approved experiments in the James River in connection with a proposed $6 billion coal-fired power plant in Surry County according to the Virginian-Pilot.

Western Farmers Fiduciary Suit Denied in Federal Court

Tue, 26 Apr 2011 15:14:41 GMT

On Friday, a federal court refused to certify a question to Oklahoma's high court about the fiduciary relationship between Western Farmers Electric Cooperative (WEC) and its members. This case was prompted by member People's Electric Cooperative's (PEC) suit accusing WFEC of trying to monopolize the state energy market. Courts below had twice dismissed PEC’s claims of breach of fiduciary duty against WFEC, which PEC claims charged different prices to different member coops in violation of a supply agreement. The federal judge wrote that the issue in question was not case dispositive and addressed only one of PEC’s claims in the suit. EnergyLaw 360 has the full story. (subscription required)

North Dakota to Challenge EPA Takeover

Tue, 26 Apr 2011 15:13:00 GMT

North Dakota has declared its intent to challenge the EPA’s takeover of an air quality control program at two coal-fired power plants in the state once the EPA issues its final plan by May 13 of this year. The EPA seeks to control the coal plants’ operations for compliance with the federal Regional Haze program, according to the Bismarck Tribune.

Cobb EMC Credits Customers

Tue, 26 Apr 2011 14:58:42 GMT

Cobb EMC will grant credits to its customers beginning in May because wholesale power costs have been less than anticipated by Cobb EMC’s latest wholesale power adjustment decrease. The May credits are the first part of a $14.5 million rebate to the Cobb EMC membership. About $4.5 million more in credits will be dispersed for the same reason later in the summer. Details on the credit plans can be found here.

North Carolina Mayor Organizing Opposition to ElectriCities’ Rate Hike

Mon, 25 Apr 2011 13:20:50 GMT

Cities in North Carolina are trying to organize opposition against ElectriCities’ rate increase by creating their own coop. New Bern, North Carolina, mayor Lee Bettis met with county officials and residents to explain how the city was trying to take advantage of the planned merger of Progress Energy and Duke Power. Bettis has been working since last January to organize fellow mayors whose towns are members of the ElectriCities electric utility cooperative. In 2009, electric rates rose 18 percent in New Bern, according to Bettis. The Sun Journal has the full story.

Surface Transportation Board Dismisses Part of Complaint Against Union Pacific

Mon, 25 Apr 2011 13:09:38 GMT

The Surface Transportation Board has agreed to dismiss part of Arizona Electric Power Cooperative, Inc.'s (AEPCO) coal rate complaint against Union Pacific Railroad (UP). On March 24, AEPCO notified the board that it had settled a lawsuit with UP and asked the board to dismiss the sub-docket portion of the rate case. The sub-docket concerned a dispute between AEPCO and UP over whether the parties entered into a valid contract for UP to transport Colorado and Powder River Basin coal. UP sent AEPCO a proposal and AEPCO agreed to it, but its agreement came after the stated deadline. UP claimed the agreement constituted a contract, but Arizona argued the acceptance occurred after the proposal was no longer valid. UP filed suit in Arizona federal court. Despite the partial dismissal, AEPCO’s complaint against UP and BNSF Railway Co. over the two-line tariff rates for moving coal from New Mexico to the Apache station is still pending. The utility has asked the board to prescribe a reasonable rate for transporting the coal. See the full text of the partial dismissal here.

Florida Public Service Commission to Consider Territorial Dispute Between Coop and Gulf Power

Mon, 25 Apr 2011 12:53:44 GMT

Gulf Power Company, part of Atlanta, Georgia's, Southern Company, is in dispute with Choctawhatchee Electric Cooperative (CEC) over which utility will provide electric service to a new mixed-use development in the Florida panhandle. The development, Freedom Parkway, located in Crestview, Florida, consists of roughly 171 acres and will serve both residential and commercial customers. Although Gulf Power provides electricity to the east of the project, CEC argues that it has more of a historical presence in the area. Follow the link to get access to the full docket.

Decision Under New Alabama Ethics Act Allows Coops To Mingle With Legislators

Fri, 22 Apr 2011 14:53:53 GMT

The Alabama Ethics Commission issued several advisory opinions this month, including one involving a Baldwin County power cooperative. The opinions were the first big test for last minute changes made to the Alabama Ethics Act, which were rushed through during a special session last year. The commission found that a coop could invite legislators to Chamber of Commerce functions. Read more about the commission’s decision here.

Cape Solar Project Sets Bright Example

Fri, 22 Apr 2011 14:43:58 GMT

At a press conference on April 21, Cape & Vineyard Electric Cooperative President Charles McLaughlin announced CVEC had awarded an 18.3-megawatt project to American Capital Energy of North Chelmsford, to be installed on capped landfills in Barnstable, Brewster, Chatham, Eastham, and Harwich as well as in two Vineyard towns for a total of 10 sites. The CVEC project’s role in reducing carbon dioxide emissions would be the equivalent of taking 3,056 cars off the road annually. And there’s a special plus involved. The Barnstable Patriot has the full story.

New Bill Could Affect the Way Texas Coops Buy Power

Thu, 21 Apr 2011 17:38:14 GMT

Yesterday, the Texas Senate sent a bill to the House that could affect the state’s coops. The bill establishes a Texas Energy Policy Council to develop a statewide strategic energy policy that balances public health and environmental matters with the issues of costs and energy reliability. The bill would set up a framework for coops and other utilities to buy power from natural gas generation facilities. See the full text of the proposed legislation here.

Brewster's Bid to Join Carroll Electric Board Fails

Thu, 21 Apr 2011 17:32:46 GMT

Carroll Electric announced Thursday that it had disqualified Marcie Brewster as a board candidate in the upcoming election next month. Brewster’s efforts to meet with cooperative officials Friday were unsuccessful. A petition drive supporting Brewster’s efforts failed by eight votes in Brewster’s district, according to Carroll Electric, and 224 of the 1,300 signatures collected were disqualified. The petition team is considering asking for a recount, with at least one of its members present. The Lonely County Citizen has the full story.

Study Documents Challenge to Utilizing Renewable Energy Potential

Thu, 21 Apr 2011 17:20:57 GMT

Rural areas have abundant opportunities for wind power and other renewable energy production. Electric coops, however, may not be able provide enough transmission lines to carry power from new renewable production facilities to many U.S. farms. Few rural coops are using renewable resources for energy, either because of technology costs, disadvantageous tax issues or problems with geography. A USDA report on the issue spotlights the Rural Electric Convenience Cooperative in Auburn, Illinois, which used a combination of state and federal grants to build a wind turbine that now provides renewable energy for coop members. Read more about the study’s findings here.

Chevron Begins Operations of New Solar Field

Wed, 20 Apr 2011 17:55:24 GMT

Chevron Mining has begun the operations of a solar field located in New Mexico. The company installed concentrating photovoltaic technology, which uses lenses to collect and focus direct sunlight onto layers of high efficiency cells on the site of Chevron’s molybdenum mine in Questa, New Mexico. Read more about the solar field’s technology, including 173 solar trackers, here.

Coops in North Carolina and Virginia Plan Sharp Rate Hikes

Wed, 20 Apr 2011 17:50:07 GMT

North Carolina-based ElectriCities Inc. and Virginia-based Rappahannock Electric Cooperative are both planning rate increases of as much as 30 percent. According to ElectriCities, rates for the 19 cities that buy power from it would increase a cumulative total of 29.2 percent over the next five years if the coop does not restructure its debt. A full debt restructuring would limit rate increases to a total of 10.9 percent over the same period but would carry certain risks. Rappahannock, on the other hand, is reportedly pointing to extreme weather conditions as a cause of its need to increase rates. Follow the links to read more about ElectriCities’s rate hike and Rappahannock’s rate hike.

Customer Satisfaction With Energy Utilities Hits Decade High

Wed, 20 Apr 2011 17:31:35 GMT

According to the American Customer Satisfaction Index (ACSI), customer satisfaction with energy utilities has risen by 0.8 percent to 74.7 on the ACSI’s 0-100 index scale. This year, the ACSI expanded its coverage of energy utilities to include the three major categories of investor-owned, municipal and consumer-owned coops. Coops have much higher scores than investor-owed utilities, and Touchstone Energy Cooperatives, an alliance of more than 700 local electric coops across the country, had the best score of any energy utility, regardless of category. To get the full numerical breakdown, read the press release from ACSI here.

Coop Manager Sees Pay-As-You-Go Power On The Horizon

Tue, 19 Apr 2011 16:50:49 GMT

According to Covington Electric Cooperative (CEC) general manager Ed Short, pay-as-you-go energy consumption may be coming to consumers in the foreseeable future. In his speech to CEC members at their annual meeting last Thursday, Short said a new meter-reading system is currently being installed to save operating costs and provide members with information they’ll need to manage energy costs in the future. This new system could allow members to pre-pay for a selected amount of kWh, preventing the need for credit checks and deposits. Read more details on this emerging technology at the Andalusia Star News.

Pedernales Coop Board Expresses Cautious Support For Regulation Bill

Tue, 19 Apr 2011 16:43:23 GMT

Members of the Texas-based Pedernales Electric Cooperative board of directors said Monday that they will support Senator Troy Fraser’s latest attempt to impose state regulation on the coop if he addresses some concerns about the bill first. Pedernales continues to recover from a scandal that exposed closed-door practices, excessive spending and criminal activity. As some members noted at Monday’s meeting, however, Pedernales is not the same cooperative it once was. The Statesman has the breakdown on the change in the position taken by the once-embattled cooperative.

Minnesota Coop Benefits From Roll Back of Coal Restrictions

Tue, 19 Apr 2011 16:39:52 GMT

Minnesota senators voted last Thursday to lift restrictions on carbon dioxide emissions from coal production. Supporters said the restrictions have amounted to a moratorium on both new coal plants in the state and the purchase of energy produced by new coal plants in neighboring states. Several Democrats joined the chamber’s Republicans in their unanimous support of rolling back the restrictions. The Fergus Falls Journal has the full story.

North Carolina Coops Make Progress Restoring Energy After Massive Storms

Tue, 19 Apr 2011 16:32:26 GMT

Following severe storms in North Carolina last weekend, coop crews in the area have worked diligently to restore power to customers. As of Sunday, approximately 32,000 outages remained across the cooperatives’ service areas, down from a peak of nearly 100,000 as the storms moved through the state. The storms, which moved through North Carolina last Saturday, made national news headlines. Read the full story on the recovery here.

Proposed Plant Would Convert Methane to Electricity

Tue, 19 Apr 2011 16:27:00 GMT

Hoosier Energy, a coop in Indiana, plans to build a plant in the western region of the state that would turn methane extracted from the region’s coal bed into electricity. The project would generate 13 MW of power - enough to power roughly 7,000 homes. Hoosier spokesman Rick More said the plant’s cost is still being calculated. The plant is expected to go online in July 2012 and employ more than 100 workers. See the full story here.

New Mexico Coop Clashes With Critics Over Records Requests

Tue, 19 Apr 2011 16:13:06 GMT

Coop members who have requested records from New Mexico-based Kit Carson Electric Cooperative in preparation for an upcoming rate case say the coop is unfairly refusing to release the requested records. After hundreds of Kit Carson members protested a proposed rate hike, the New Mexico Public Regulation Commission, in January, ordered an investigation into the rate increase. Many of the records purportedly requested relate to the coop’s propane and Internet businesses, as well as a multi-million dollar regional command center, which have all been derided by coop critics for losing money and allegedly prompting the need for the current rate increase. The Taos News has the full breakdown of the dispute.

Power Supply Cost Recovery Factor Approved for Cloverland Electric Cooperative

Wed, 13 Apr 2011 15:03:30 GMT

The Michigan Public Service Commission recently approved a settlement agreement authorizing Cloverland Electric Cooperative to implement a power supply cost recovery factor of up to 2.16 mills per kilowatt-hour in its monthly bills to its retail electric customers. See the Michigan Department of Energy, Labor, Economic Growth for additional details.

Vermont Bill May Make “Net-Metering” More Attractive

Wed, 13 Apr 2011 15:01:01 GMT

A bill has just passed the Vermont House that would provide greater financial incentives for net-metering. Vermont’s net-metering program lets residents and businesses generate their own power using grid-connected systems and, when necessary, tap into electricity from the local utility, Vermont Electric Cooperative. When excess power is produced, residents can send it back into the regional power grid and obtain a credit on future electric bills. Seven Days has the story.

Power Cooperative Named Wind Cooperative of the Year

Wed, 13 Apr 2011 14:52:27 GMT

The U.S. Department of Energy has announced that Minnkota Power Cooperative has received the 2010 Wind Cooperative of the Year Award. See the DOE press release for more on the award.

Bonneville Power Administration Rules May Adversely Affect Wind Generators

Tue, 12 Apr 2011 12:05:02 GMT

Bonneville Power Administration has proposed rules that will essentially allow it to shut out wind generators in the event that federal dams are at maximum generation and the transmission grid can export no more power. The Spokesman Review has the rest of the story.

South River Electric Membership Cooperative Customers Challenge Board of Directors’ Seats

Tue, 12 Apr 2011 12:02:21 GMT

Customers of South River Electric Membership Cooperative are challenging three seats on the board of directors, contending among other things that the coop's chief executive is overpaid. See the Fayette Observer for more.

Old Dominion Issues First Mortgage Bonds

Tue, 12 Apr 2011 12:00:36 GMT

Old Dominion Electric Cooperative issued $350 million of first mortgage bonds in a private placement, the proceeds of which will be will be used to repay $215 million First Mortgage Bonds, 2001 Series A due June 1, 2011, and for general corporate purposes. See Old Dominion’s Form 8-K for additional details.

Cobb EMC Incurs Tens of Millions in Legal Fees

Fri, 08 Apr 2011 11:01:28 GMT

As reported by the Atlanta Journal Constitution, the embattled Georgia coop reported that it spent more than $10 million in legal fees for a period that covers just part of the coop’s recent legal troubles. The coop’s public relations firm declined to comment on Cobb EMC’s legal bills.

Executive of Kentucky Coop Warns of the Impacts that Proposed EPA Rules Will Have on Industrial Customers

Fri, 08 Apr 2011 10:58:45 GMT

Mark Bailey, CEO of Big Rivers Electric Corporation, spoke before a U.S. House subcommittee regarding the costs of the proposed regulations that the coop would be forced to pass along to its industrial base. A significant portion of the coop’s total power is used by energy intensive aluminum smelters that may be forced to relocate abroad in order to avoid higher electric rates. Roll Call, the Capitol Hill news source, has the full transcript.

Missouri Senate Committee Approves Nuclear Site Permitting Bill

Wed, 06 Apr 2011 14:22:37 GMT

After being approved by the Missouri Senate Commerce Committee in a 7-2 vote, the bill now moves to the full Missouri Senate. A group of electric utilities, including electric cooperatives, has been advocating for the bill’s passage in order to keep nuclear as an option for baseload power. Co-Mo Electric Cooperative has the full story.

Ten Electric Cooperatives Awarded Funding for Transmission, Distribution and Smart Grid Improvements

Wed, 06 Apr 2011 14:18:50 GMT

According to a USDA news release, the $376 million awarded as loans to coops will promote efficiency and improve reliability for more than 20,000 coop customers. The loans include almost $14 million for smart grid technologies.

Yellowstone Valley Electric Cooperative’s Annual Meeting Highlights Growth and Cost Issues

Wed, 06 Apr 2011 14:16:12 GMT

The Montana cooperative resumed growth in 2010, and the rates paid by its members were increased in January 2011 and may be increased again this year. Future rates are largely dependent upon the outcome of Yellowstone Valley’s litigation regarding its membership in Southern Montana Electric Cooperative. For more on this story, see the Big Sky Business Journal.

Coop Membership is Expanding Faster Than Overall Population Growth

Tue, 05 Apr 2011 14:14:16 GMT

With most of the nation’s population growth occurring in the western and southern states, coops that serve suburban and other neighboring areas have seen significant increases in the number of customers in their service areas. This rate of growth is expected to continue so long as population centers in the south and west continue to grow at rates in excess of the national population growth rate. Electric Co-op Today is following this story.

Rule Requiring Installation of Pollution Controls on Back-up Generators Would Cost Iowa Cooperatives Big Money

Mon, 04 Apr 2011 14:13:10 GMT

The CEO of North Iowa Municipal Electric Cooperative objected to the rule because coop’s members would have to pay more than $5 million to install catalyst technology on back-up units that run for a yearly average of 11 hours each. Based on cost-benefit concerns like these, Governor Branstad vetoed the state rule. Radio Iowa has the full story.

Members of Carroll Electric Cooperative Petition to Have Challenger Elected to the Board

Mon, 04 Apr 2011 14:11:51 GMT

In order for challenger Marcie Brewster to be added to the ballot for the 2011 board election, members of the Arkansas cooperative must obtain the signatures of one percent of Carroll Electric’s members. The members seeking Brewster’s nomination are dissatisfied with the fact that Carroll Electric holds its board meetings in private and will not make its board minutes publicly available. See Carroll County News for more.

Vermont Coop-Nuclear Deal Not a Guarantee

Fri, 01 Apr 2011 16:20:07 GMT

The proposed power purchase agreement between Entergy Corp. and Vermont Electric Cooperative Inc. as posted Thursday on the Coop Law Blog is not a done deal. The cooperative's board must first approve the 20-year contract, which provides an initial rate of 4.9 cents per kilowatt-hour and board members are worried about the reliability of the Vernon nuclear power plant. The board will mull the proposed agreement over until their April 26 meeting when members plan to make their decision reports the Burlington Free Press.

Three Nuclear Plants Are Safe But Receive Additional NRC Oversight

Fri, 01 Apr 2011 16:10:25 GMT

Nuclear power plants in Kansas, Nebraska and South Carolina will see more of the Nuclear Regulatory Commission (NRC) after a safety review revealed that while operating safely, the plants require additional oversight. The NRC may determine additional oversight is needed where previously identified safety issues have not been timely addressed or where issues of higher significance may be at play. Bloomberg News has the full story.

Coop-Nuclear Deal May Not Save Vermont Plant

Thu, 31 Mar 2011 14:31:27 GMT

Entergy Corp. has reached a potential deal with Vermont Electric Cooperative Inc., Vermont's third-largest electric company, to purchase power from the Vermont Yankee nuclear plant under a 20-year contract. The move came after Entergy was unable to sell the plant or reach similar purchase agreements with the state's largest utilities. The terms of the Vermont Electric deal require the plant maintain operations beyond its license expiration date in March 2012, no small feat given a state legislature poised to deny renewal based on safety concerns reports the Burlington Free Press.

Upsurge in North Dakota Demand Sees Additional Investment

Thu, 31 Mar 2011 14:19:49 GMT

Central Power Electric Cooperative plans to invest $10 million in additional infrastructure to meet growing demand for power in the Minot, North Dakota, area. Significant oil field development prompted the need for additional power, both to supply the oil wells and to provide electricity to a growing workforce. Central Power aims to build enough capacity to sustain the area's needs for the next 30 to 40 years. A local news station has details.

Solar Energy Projects Wanted in Maryland

Thu, 31 Mar 2011 14:11:50 GMT

Southern Maryland Electric Cooperative, Inc. (SMECO) issued a Request for Proposals (RFP) for solar energy projects that satisfy the Maryland renewable portfolio standard requirements and that will be available within the next two years. SMECO hopes the RFP will promote renewable energy development in its service area while minimizing additional costs to customers. Read more.

Minnkota's Narrow Corridor Request Meets Opposition

Thu, 31 Mar 2011 14:00:30 GMT

In an opinion piece published today in The Bismarck Tribune, one former North Dakota Public Service Commission member urges traditional transmission siting procedures be adopted in the wake of Minnkota Power Cooperative's unusual siting request posted on the Coop Law Blog March 28. Minnkota requested a 1,000-foot-wide corridor on which to site a 260-mile-long transmission line, a move that saves money but reduces siting flexibility provided by the one- to six-mile-wide corridors usually granted by the PSC. Click here for the full story.

Coop and Broadband Team Up in New Mexico

Wed, 30 Mar 2011 13:17:36 GMT

As part of a growing business trend around the country that has rural electric cooperatives teaming up with telecommunication companies, Socorro Electric Cooperative agreed to lease property and negotiate for the lease of FCC channel frequencies to Trans World Network (TWN), a move that will expand reliable telecommunication service to Socorro's customers as well as improve its bottom line. Socorro will market TWN's services to its customers through various advertising methods and, in addition to lease payments, the cooperative will earn monthly commission on each TWN account opened in the coop's service area. Click here for futher details.

Undersea Transmission Line Incentives Draw Opposition

Wed, 30 Mar 2011 13:03:08 GMT

The National Rural Electric Cooperative Association and several state public utility commissions are among those challenging Atlantic Wind Connection's request to the Federal Energy Regulatory Commission to grant specific incentives for a 300-mile undersea transmission line development project that will link power produced by wind turbines off the East Coast to the mainland. The incentives include a guaranteed 13.58% return on equity and recovery of costs in the event the project falls through for reasons beyond the developers' control. Investors like Google, Inc. are positioned to benefit from the incentives, while critics worry the incentives are too generous and will peg costs on consumers without verification that the added transmission is necessary. Read more here.

Coop Responds in Montana Contract Dispute Case

Wed, 30 Mar 2011 12:50:32 GMT

Southern Montana Electric Generation & Transmission Cooperative and its development arm, SME Electric filed a motion to dismiss in a lawsuit brought against them by the city of Great Falls and its electric utility arm, Electric City Power (ECP) seeking a security deposit return and judicial determination that the city's contracts with Southern Montana are void. Southern Montana argues its wholesale power supply contract with the city and ECP is valid and enforceable the Great Falls Tribune reports.

Massachusetts Wind Developer Seeks Exemption From Municipal Permit Requirement

Tue, 29 Mar 2011 13:39:54 GMT

Cape Vineyard Electric Cooperative hopes to bypass a special permit required by the town of Brewster, Massachusetts, for the construction of two municipal wind turbines based on the location of the turbines on municipal property and in an industrial zoning area. In early March, the Brewster planning board failed to grant or deny the permit request, a hung jury resulted and effectively functioned as a denial of the permit request. Cape Vineyard opted to take its request to the state Department of Public Utilties rather than appeal the board's denial through the traditional appellate process as reported by the Cape Cod Times.

NRECA MultiSpeak Initiative Gains Another Vendor

Tue, 29 Mar 2011 13:26:03 GMT

In a press release today, Utility, Inc. announced it has become a vendor member of the National Rural Electric Cooperative Association's (NRECA) MultiSpeak Initiative, a collaborative effort to expand a software standard in interoperability mechanisms as adopted by electric utilities. Rural electric coops nationwide already use Utility, Inc.'s products, which allow industry participants to incorporate new technology safely and efficiently into their day-to-day operations. Read more here.

Cooperatives Consider Investment In Planned MidAmerican Nuclear Facility

Tue, 29 Mar 2011 13:13:08 GMT

Municipal utilities and electric cooperatives in Iowa are showing support for the passage of a state legislative bill that would help finance nuclear development. MidAmerican, one of the largest privately-owned utilities in the state, plans to build a new nuclear facility in the wake of increased federal oversight and resulting costs associated with coal-fired plants. Several cooperatives and related industry groups have shown interest in investing in the nuclear initiative while critics point to higher electric rates for MidAmerican customers if the plans move forward. Radio Iowa has the full story.

Power Plant Bill Passes Arkansas Legislature, On to Governor

Tue, 29 Mar 2011 12:39:54 GMT

As reported in the Arkansas News, House Bill 1895 passed in the Arkansas Senate Monday on a 26-7 vote after passing in the House last week with a definitive 91-0 vote. The bill now goes to the governor and if approved will allow the state Public Service Commission to review in separate proceedings a public utility's request for additional energy supply and proposal for a new power plant. The bill developed out of ongoing litigation over the construction of a new power plant in Hempstead County. Opponents argue it will reduce the public notice period and opportunity to protest new plant construction projects while proponents point to the employment and tax benefits associated with the Hempstead County plant and similar projects aided by the proposed legislation. Click here for details.

Unusual Corridor of Land Request in North Dakota

Mon, 28 Mar 2011 17:44:38 GMT

Minnkota Power Cooperative has requested an unusually narrow corridor of land on which to build a new 260-mile power line from west-central North Dakota to Grand Forks. While corridor requests may be up to six miles wide, Minnkota's recent application was for 1,000 feet, a unique move that may reduce the cooperative's siting expenses the AP reports.

NRECA Among Several Cooperative Entities to Participate In House Briefing

Mon, 28 Mar 2011 17:33:04 GMT

The National Rural Electric Cooperative Association (NRECA), National Cooperative Business Association and other cooperative bodies will participate in a House briefing on "The Role of Cooperatives in Rural and Urban Communities" on March 29, 2011. The Washington, D.C., event provides a forum for participants to raise and discuss the unique challenges facing cooperatives today and the role federal policy may play in helping cooperatives succeed in the future. Read more here.

Surge in Demand Thanks to Oil Field Development

Mon, 28 Mar 2011 17:15:03 GMT

Rural electric cooperatives in North Dakota face increased demand for power and transmission lines due to the rapid development of oil fields and a corresponding workforce in the western area of the state. Cooperatives are projected to invest heavily over the next three years in an effort to serve the rising presence of oil reports The Bismarck Tribune.

HB 1895 Clears Senate Insurance and Commerce Committee

Fri, 25 Mar 2011 15:39:14 GMT

House Bill 1895 cleared the Arkansas Senate Insurance and Commerce Committee today. The bill, which had passed the House on March 11, 2011, would change existing utility law and affect issues currently under litigation. The Sierra Club has issued a press release in opposition of the bill, which it argues infringes on the rights of landowners to fully participate in having a say on whether coal plants will be built in their own neighborhoods. Arkansas Times Blog has the story.

FEMA Grants Funds to Coops to Protect Against Future Transmission Outages

Fri, 25 Mar 2011 15:37:21 GMT

The Federal Emergency Management Agency has awarded Iowa more than $23.6 million to help two rural electric cooperatives upgrade transmission lines to lessen damage from future disasters. Northwest Iowa Power Cooperative, which serves customers throughout western Iowa, will be awarded $20.7 million to retrofit 151 miles of distribution lines, and Southwest Iowa Rural Electric Cooperative, which has customers in Adams, Montgomery and Ringgold counties, will receive nearly $2.9 million to retrofit 41 miles of electrical distribution lines. Click through for details.

Trico Develops Sun Farm Program

Thu, 24 Mar 2011 16:05:45 GMT

Trico Electric Cooperative in Arizona has created a “sun farm” program for people who want solar electricity but do not want solar panels on their roofs. Run largely like a farm share, Arizona residents will be able to purchase output from a quarter, half or full solar panel. The project is being funded by a 21st Century Energy Grant of nearly $1 million from the Arizona Department of Commerce, meaning no funding is coming from the renewable energy standard tariff that is charged on electric bills. Tucson Electric Power Company established a similar program last year. Check out the Arizona Daily Star for more details.

YVEC in Litigation Over Exit from Southern Montana Electric Generation and Transmission Cooperative

Thu, 24 Mar 2011 16:04:20 GMT

Yellowstone Valley Electric Cooperative (YVEC) is headed to trial in November in effort to leave Southern Montana Electric Generation and Transmission Cooperative (Southern). YVEC, four other coops and the city of Great Falls, Montana, formed Southern in 2004 for the purpose of developing and owning a coal-fired power plant near Great Falls. However, with time, the cost of the plant more than doubled and the project encountered regulatory and environmental issues. The plant then became natural gas-fired , which is currently under construction. YVEC is suing to leave Southern due to the unexpected increase in costs. Read the story for more on this litigation.

Idaho Renewable Rate Debates

Thu, 24 Mar 2011 16:02:01 GMT

Idaho developers and utilities are at odds over the application of the Public Utility Regulatory Policy Act (PURPA) to mandate renewable energy rates. Kootenai Electric Cooperative, a small cooperative in Hayden, Idaho, is developing a landfill gas project with Kootenai County. However, Avista Corp., the Spokane, Washington-based utility, has rejected the price Kootenai Electric can demand under PURPA. Avista inserted a provision into the agreement struck late Tuesday, which may thwart Kootenai Electric's plans. As a concession to Idaho Power, which opposed extending the tax break on grounds intermittent wind power drives up their customers' rates, there would be new size limits on future wind projects that could take advantage of PURPA. Forbes has the story.

Southern Nuclear Projects Largely Unaffected By the Japan Nuclear Crisis

Wed, 23 Mar 2011 13:32:02 GMT

Santee Cooper and Oglethorpe Power Corporation are among the coops to move forward with plans for nuclear facilities despite the Japanese nuclear crisis. Santee Cooper currently holds a 33.3 percent ownership interest in the existing 900-MW nuclear unit at Summer, as well as a 45 percent stake in the planned two-unit expansion of the facility. As reported by the Coop Law Blog yesterday, Santee Cooper has recently entered into a letter of intent with the Orlando Utilities Commission for the sale of 50 MW to 100 MW of its output from these facilities. Similarly, Oglethorpe reports seeing no immediate affect to its planned two-unit, 2,234-MW expansion of the Vogtle nuclear station in which Oglethorpe is a 30percent equity participant. Get more details at Electric Power Daily.

Cobb EMC Case Thrown Out on a Legal Technicality

Wed, 23 Mar 2011 13:30:54 GMT

The January indictment of former Cobb County EMC Chief Dwight Brown for stealing money from the coop and conspiring to conceal his actions from EMC members has been thrown out by Cobb County Superior Court Judge Robert Flournoy. Judge Flournoy found on Tuesday that the indictment was not “open to the public” because Brown’s counsel was effectively excluded from the courtroom when the grand jury returned the indictment when he showed up late. The Atlanta Journal Constitution covered this story and EMC’s reaction to the judge’s ruling.

Bill Proposed for a More Transparent Coop

Wed, 23 Mar 2011 13:28:17 GMT

Texas state Senator Troy Fraser filed legislation in the 82nd Legislature on Friday that would require more openness from electric cooperatives. This move, believed to be aimed at Pedernales Electric Cooperative, would require more transparency for coops in the form of more open meetings, open records and open elections. The bill, as written, would only affect coops with more than 170,000 members. Click here for the full story.

Thirteen Coops Rewarded IRS CREBs

Tue, 22 Mar 2011 19:31:20 GMT

The Internal Revenue Service has announced the allocation of $190,795,445 in bonding authority for 13 electric cooperative projects under the New Clean Renewable Energy Bonds (CREB) program. The CREB program, which was created by the Energy Policy Act of 2005, was implemented to allow coops to better integrate renewable energy by addressing their inability, as not-for-profit entities, to take advantage of the production tax credits available to for-profit firms. The NRECA describes this grant in a press release.

Pedernales Running Out of Legal Options for Fuelberg Restitution

Tue, 22 Mar 2011 19:29:52 GMT

Federal law and a settlement agreement will likely prevent the Pedernales Electric Cooperative board of directors from being able to withhold pension benefits from its former general manager, Bennie Fuelberg, or pursue a lawsuit against him for that money. Fuelberg was the head of Pedernales, the nation's largest member-owned electric utility, for more than 30 years before he was found guilty of felony theft, money laundering and misapplication of fiduciary property. Pedernales is working to exhaust all of its options to seek restitution, but so far has run into the legal barriers described in this article.

Santee Cooper Seeks Sale of Nuclear Capacity

Tue, 22 Mar 2011 19:27:32 GMT

Faced with the need to reevaluate its future electricity needs after Central Electric Power Cooperative said that it will reduce its power purchases by 1,000 megawatts beginning in 2013, Santee Cooper, South Carolina's state-owned utility, is negotiating the sale of 5 to 10 percent of its portion of capacity from its new nuclear facilities near Jenkinsville to a utility out of state. Bloomberg Businessweek has more.

Great Falls Lawsuit Develops

Mon, 21 Mar 2011 13:41:36 GMT

In a suit filed Wednesday in state District Court in Great Falls, Montana, the city of Great Falls is seeking the return of a $792,411 security deposit from Southern Montana Electric Generation & Transmission Cooperative, as well as a decision on whether various contracts and obligations between the city and Southern Montana Electric should be voided. The city, which is in the midst of terminating its membership in the coop, cited the inability to reconcile the dispute amicably as the reason to ensue litigation. The Great Falls Tribune has more on the recent developments on this story.

Take Back Cobb EMC Seeks Signatures to Oust Incumbents and Elect New Directors

Mon, 21 Mar 2011 13:39:53 GMT

A group of Cobb EMC members called Take Back Cobb EMC seek to conduct a special meeting and board election in response to the present board's decision to re-hire former CEO Dwight Brown as an independent consultant to Cobb EMC. Brown was recently indicted on multiple counts of theft and racketeering. Members kicked-off a petition drive over the weekend to collect signatures from fellow members to conduct a special meeting and board election on May 21, 2011. If the petition garners signatures from 10 percent of the 193,000 EMC members, or roughly 20,000 signatures, then members can vote at a special meeting to oust incumbents and elect new directors. Click here for the full story.

Minnkota Wins the 2010 Wind Cooperative of the Year Award

Mon, 21 Mar 2011 13:34:40 GMT

Minnkota Power Cooperative has received the tenth annual 2010 Wind Cooperative of the Year Award at the NRECA TechAdvantage Conference in Orlando, Florida. The award is sponsored by the Department of Energy's Wind Powering America initiative. Minnkota was chosen because it has executed wind energy power purchase agreements that guarantee that energy from wind projects will be purchased and used. These wind projects are expected to contribute an average of nearly 1,300 gigawatt-hours per year to the grid, altogether representing more than 30 percent of Minnkota's total member energy requirements. More on the award here.

CEO of Basin Announces Retirement

Mon, 21 Mar 2011 13:29:58 GMT

Ron Harper, the head of Basin Electric Power Cooperative, announced to his staff this week that he will retire at the end of this year. Harper has been Basin's chief executive officer and general manager since 2000. He shares his thoughts on the decision, as well as the growth and progress made by Basin in an article by the Bismarck Tribune.

Maryland Governor’s Proposal to Subsidize Development of Wind Farms Hampered by Costs

Fri, 18 Mar 2011 17:43:41 GMT

The Maryland Public Service Commission told the Senate Finance Committee on Tuesday that subsidizing a 500-watt wind farm would add between 92 cents to $3 per month to residential electric bills. The commission’s latest cost prediction was far lower than earlier this month, when the prediction was that household electric bills could increase as much as $8.70 per month. Members of both parties are worried that the governor’s proposal does not protect poor people and struggling small businesses from taking a financial hit. The Gazette has the rest of the story.

Arkansas Bill Utility Bills Passes Through House

Fri, 18 Mar 2011 17:37:54 GMT

House Bill 1895 won passage in the Arkansas House of Representatives on Friday in a near unanimous vote. The bill allows the public service commission to hear key aspects of electrical utility projects in separate dockets before the Commission and changes the law on the ability of utilities to declare a particular project exempt from certain regulatory hearing proceedings if the utility does not intend to recover construction or operations costs for the project from its ratepayers. To read more about the bill which rewrites how utilities do business before the Arkansas PSC click here.

Members of Cobb EMC Move to Unseat Board

Fri, 18 Mar 2011 17:26:35 GMT

Members of Cobb EMC are planning to kick off a petition drive Saturday intended to oust the coop’s board. A group called Take Back Cobb EMC said the board’s decision to re-hire Dwight Brown, the coop’s indicted ex-CEO, is the reason. The group needs to submit signatures from 10 percent of the coop's 190,000 customers to request the removal of a board member. The Atlanta Journal-Constitution has more details on the plan to oust the board.

City of Great Falls Files Suit Against Southern Montana Electric

Thu, 17 Mar 2011 18:32:15 GMT

Following a meeting on Tuesday between Great Falls, Montana, city commissioners and Southern Montana board members to discuss the city's desire to terminate its membership in the coop, the city has filed a lawsuit against Southern Montana. The city's electric utility arm is running a more than $4 million defecit, and the lawsuit is the latest development in the ongoing tensions between Great Falls and Southern Montana. The Great Falls Tribune has more details.

Black Hills Energy Proposes New $100 Million Gas-Fired Unit

Thu, 17 Mar 2011 18:24:23 GMT

Black Hills Engergy has asked Colorado regulators for permission to build an 88 MW natural gas-fired unit to replace the power from a coal plant the company plans to retire. The new unit would reportedly cost over $100 million. Click here to read an explanation of all the implications of the proposed gas-fired unit.

Ohio County Will Pay Coop to String Fiber-Optic Cable

Mon, 14 Mar 2011 11:42:07 GMT

Delaware County, Ohio, is making a $655,000 investment in fiber-optic cable. The county has engaged Consolidated Electric Cooperative to string 288 strands of fiber-optic cable along Route 23. Half will be used by the county and the other half will be operated by the cooperative. The choice to invest in fiber-optics came after county officials were unprepared when asked about their fiber-optic resources by a business considering relocating to the county. The Columbus Dispatch has the full breakdown on the county's fiber-optic future.

City of Great Falls Looks to Withdraw From Southern Montana Coop

Mon, 14 Mar 2011 11:23:12 GMT

Tensions have been rising between the city of Great Falls, Montana, and Billings-based Southern Montana Electric Generation and Transmission Cooperative as the city looks for ways to exit from Southern Montana. A special meeting has been set for Tuesday, March 15, between city officials and representatives of Southern Montana to discuss possible exit plans. Southern Montana is concerned about the financial impact of losing the city as a customer, with the general manager of Southern Montana estimating that the loss to the company could be as high as $80 million. The Great Falls Tribune has the full story here.

Arkansas Bill Regarding Turk Plant Moving Forward

Fri, 11 Mar 2011 09:00:00 GMT

Arkansas House Bill 1895 (related to the John W. Turk Jr. Plant being constructed by Southwestern Electric Power Co. and Arkansas Electric Cooperatives Corp.) has been approved by a House committee. The Arkansas Public Service Commission approved construction of the plant in 2007. However, the Arkansas Supreme Court overturned the commission's approval, holding that such approval must be completed in one hearing (not two as was the case for the Turk plant). The bill would permit the commission’s use of two hearings for the approval of construction of a power plant. Arkansas Times has a write-up, and ArkansasOnline has additional details (but requires a subscription to view the full story).

New Bern Officials Lobby in Washington

Thu, 10 Mar 2011 10:27:18 GMT

New Bern, North Carolina, city officials recently lobbied the Federal Energy Regulatory Commission and the U.S. Department of Justice against potentially higher power rates that may result from a merger of Progress Energy and Duke Power. There has also been a closer examination of the fees that New Bern collects from its power customers. See the Sun Journal for more on the story.

East Kentucky Power Cooperative Searches for New Landfill

Thu, 10 Mar 2011 10:25:17 GMT

East Kentucky Power Cooperative is searching for a permanent landfill for the disposal of the ash generated from four coal-fired generators, which can produce anywhere from 40,000 to 60,000 cubic yards of coal ash per year. The Winchester Sun has the rest of the story.

Bluebonnet Inks Power Purchase Deal with CPS Energy

Thu, 10 Mar 2011 10:22:07 GMT

Bluebonnet Electric Cooperative entered into a five-year contract to purchase 10 percent of its electricity from CPS Energy, saving an estimated $2.6 million per year. Brenham Banner Press has additional details.

Update on Patronage Capital Cases, New Case Filed in North Carolina

Thu, 10 Mar 2011 09:14:42 GMT

A new patronage capital case has been filed in North Carolina - the first known patronage capital case of this kind to be filed in the state. The class (consisting of the estates of deceased members of South River Electric Membership Corp.) claims that the coop discounted accumulated capital credits of the deceased members at retirement and converted them to permanent equity by the coop. At issue is more than $1.5 million of the deceased class members’ alleged property. See Sutherland's Legal Alert, which has a summary of this case as well as other pending patronage capital cases.

Texas Biomass Power Plant Given Approval

Wed, 09 Mar 2011 08:42:39 GMT

East Texas Electric Cooperative has approved the development of a proposed 50 MW biomass power plant for approximately $190 million, which will use wood chips as fuel and be completed in 2014. Biomass Magazine has the story.

Judge Allows Old Dominion Lawsuit to Proceed

Wed, 09 Mar 2011 08:38:08 GMT

A judge has ruled that litigation by residents challenging Old Dominion Electric Cooperative's proposed 1,500 MW coal plant in Dendron, Virginia, may proceed to trial. The Daily Press has more.

Editorialist Questions Current Renewable Policies

Wed, 09 Mar 2011 08:35:49 GMT

An editorialist in the Raleigh News and Observer recently penned an article using the writer’s personal cooperative’s purchase of solar energy, which he noted was among the most expensive forms of power, to question the efficiency and efficacy of North Carolina’s renewable energy policies. Head over to the News and Observer for more.

Basin Completes Construction of Wind Farm

Wed, 09 Mar 2011 08:00:00 GMT

Basin Electric Power Cooperative has completed construction of its 108-turbine wind farm in South Dakota. The wind farm cost approximately $363 million and has a capacity of 162 megawatts. See The Dickinson Press for more on this story.

USDA Awards Funding Through RUS

Tue, 08 Mar 2011 13:11:34 GMT

The United States Department of Agriculture (USDA) has announced that it will provide $442 million in funding through its Rural Development’s Rural Utilities Service (RUS). This will result in rural electric cooperatives in eight states upgrading services to over 24,000 rural consumers with loan guarantees provided by USDA. The Gov Monitor has additional details as well as a state by state breakdown of the funds awarded.

Potential Litigation Regarding Massachusetts Wind Turbines

Tue, 08 Mar 2011 08:32:16 GMT

Litigation regarding a Brewster, Massachusetts, planning board’s failure to move forward with the installation of two wind turbines (proposed by the Cape and Vineyard Electric Cooperative) on town-owned land may go to either state Land Court or Barnstable Superior Court. The Cape Cod Times has the rest of the story.

Former Director Of Georgia Coop Now Serving in State General Assembly

Fri, 04 Mar 2011 10:29:26 GMT

Robert Dickey III, a former director of Flint Energies, was sworn in today after winning a special election. With his background in the coop industry, he will be a valuable addition to the energy and telecommunications committee. Electric Co-op Today has the full story.

Cobb EMC Board Drops Suit Against Members

Thu, 03 Mar 2011 10:33:18 GMT

Cobb EMC announced that it would drop its February 2011 lawsuit where its board of directors filed suit in a Georgia court alleging that its members breached a previously reached settlement agreement. The board’s claim was that the members breached the agreement by seeking criminal prosecution of Dwight Brown, Cobb EMC’s embattled CEO. The Marietta Daily Journal has more.

City of Great Falls Seeks Withdrawal from Co-op

Wed, 02 Mar 2011 13:35:07 GMT

According to the Great Falls Tribune, the City of Great Falls, Montana, has formally requested to be relieved of all of its obligations as a member of Southern Montana Electric Generation and Transmission Cooperative. Although another member of Southern Montana is currently involved in litigation over a similar withdrawal request, the city hopes to resolve its request without going to court.

East Kentucky’s Cancellation of Coal-Fired Plant Approved by PSC

Tue, 01 Mar 2011 13:36:51 GMT

Facing heavy opposition from environmental groups, East Kentucky announced its plan to abandon its efforts to build a coal-fired plant last November. Today, the Kentucky Public Service Commission approved the co-op's plan to recover part of the $157 million in stranded costs through rate increases. The Lexington Herald-Leader has the story.

Montana County Sues Over Fire Allegedly Caused by Coop

Mon, 28 Feb 2011 13:38:09 GMT

Seeking to recover over $600,000, Stillwater County, Montana, has brought suit against Beartooth Electric Cooperative for recovery of the county’s fire related costs. The negligence claim is based on the coop's alleged failure to properly maintain its transmission lines. The Billings Gazette has more.

No Climate Change Tax Break for South Dakota Coops

Sat, 26 Feb 2011 08:51:46 GMT

Due to the structure of South Dakota’s tax system, coops are concerned that they will be taxed on the costs of the upgrades that may be required by climate change laws. South Dakota legislators voted against a measure that would have provided for an exemption for such upgrades. Aberdeen News has the full story.

Governor’s Support of Vermont Electric Cooperative’s Wind Project Leads to Protests

Fri, 25 Feb 2011 08:48:52 GMT

Peter Shumlin, Vermont’s new governor, announced his support for the $150 million wind project several weeks ago, but opponents continue to argue that the project’s benefits do not outweigh its environmental costs. On the other hand, supporters argue that the project will provide tax relief and clean power for 20,000 homes. See Bloomberg for more on this story.

New Hampshire Electric Cooperative Chooses Smart Meter Provider

Thu, 24 Feb 2011 08:45:58 GMT

New Hampshire Electric Cooperative, the largest public cooperative utility in New England, has chosen Elster EnergyAxis® Smart Grid technology for its upcoming smart grid project. It plans to install more than 84,000 smart meters through the end of 2012. PR Newswire has the full story.

Georgia Legislature Proposes Law That Would Require Open Board Meetings

Wed, 23 Feb 2011 08:53:05 GMT

According to the Atlanta Journal-Constitution, a bill was introduced to the Georgia House of Representatives that would require cooperatives to open their board meetings to the public. Two of the bill’s sponsors represent counties served by Cobb EMC, the coop whose CEO was recently indicted on racketeering and theft charges.

Basin Electric Power Cooperative Rating Downgraded by Fitch

Tue, 22 Feb 2011 07:23:34 GMT

Fitch Ratings downgraded Basin Electric Power Cooperative to 'A+/F1'; Outlook Stable based in part on declining profits from its subsidiary, Dakota Gasification Company. Although Basin continues to show strength in many areas, Fitch expects that Basin’s board will vote to increase rates to stabilize its financial condition. See Business Wire for more.

Montana Senate Votes to Block City From Converting Its Utility to a Cooperative

Tue, 22 Feb 2011 07:22:00 GMT

Electric City Power, the electric utility serving the City of Great Falls, Montana, has been operating at a loss, and the city is looking for a way to get out of the electricity business. The city is considering a solution that involves converting Electric City Power to a cooperative, but if the bill passed by the Montana Senate becomes law, the city will have to consider other options. The Great Falls Tribune has the full story.

New CEO Named at Pedernales Electric Cooperative

Mon, 21 Feb 2011 16:39:20 GMT

The Austin Business Journal reported today that R.B. Sloan Jr. was named as the new CEO of Pedernales Electric Cooperative. Sloan hails from Virginia where he served as a utilities director for the City of Danville. Sloan is the fourth person to serve as CEO of the troubled coop since 2008 when General Manager Bennie Fuelberg resigned.

Coop’s Fuel & Compliance Manager Speaks to House Subcommittee on Coal Combustion Residue Regulation

Fri, 18 Feb 2011 07:20:16 GMT

Leonard Hopkins of Southern Illinois Power Cooperative spoke to a House subcommittee regarding the beneficial uses that the coop has found for its coal combustion byproducts. Mr. Hopkins is concerned that labeling coal combustion residue as hazardous will undermine the coop’s practice of recycling the residue for use in products like cement and fertilizer blends. The NRECA has a copy of Mr. Hopkins testimony.

Conflict at Jemez Mountains Electric Cooperative Over Bill at Hooters Restaurant

Thu, 17 Feb 2011 16:41:34 GMT

In the past, the Jemez Mountains Board of Trustees has criticized General Manager Wayne Sowell’s handling of internal audits and the decision to use outside legal contractors. The Board of Trustee’s most recent complaint relates to a bill from a business dinner at a Hooters restaurant. Some board members view the expense as an imprudent use of the coop’s funds. The Rio Grande Sun has the full story.

USDA Announces $204 Million Loan Guarantee for PrairieWinds SD 1 Project

Wed, 16 Feb 2011 16:37:43 GMT

Basin Electric Power Cooperative is to receive a guarantee of 60% of its $340 million dollar PrairieWinds SD 1 project from the USDA’s Rural Utilities Service. For details see the US Department of Energy’s EERE News.

Arkansas Supreme Court Dismissed Capital Credit Suit for Lack of Jurisdiction

Tue, 15 Feb 2011 08:50:13 GMT

The court ruled that the Public Service Commissions has exclusive jurisdiction over coops’ capital credit practices. This ruling benefits cooperatives because it is usually harder for plaintiffs' lawyers to recover large fees before a state’s utility commission. See Electric Co-op Today for more on this story.

Documentary to Investigate Carroll Electric Cooperative Corporation’s Use of Herbicides Near Transmission Lines

Tue, 15 Feb 2011 07:18:33 GMT

According to the Arkansas Times, local filmmakers are taking aim at Carroll Electric’s use of herbicides, which critics claim poses a threat to local crops and water supplies. The film also highlights the corporate governance issues involved in how the coop makes decisions about its herbicide use.

National Action Plan Coalition Case Study Showcases the PowerCentsDC Smart Grid Program

Mon, 14 Feb 2011 07:16:48 GMT

The National Action Plan Coalition was formed to implement DOE and FERC’s National Action Plan on Demand Response and Smart Grid. PRNewswire has the story on how this broad-based coalition of stakeholders worked together to successfully implement a smart grid program in the District of Columbia.

Lawsuit Filed Against Coop Based On Its Treatment of Capital Credits

Fri, 11 Feb 2011 08:55:27 GMT

According to the Fay Observer, a class action lawsuit has been filed against North Carolina’s South River Electric Membership Corporation relating to the coop’s treatment of credits owed to deceased customers. The claim involves the coop’s practice of reducing the amount of these credits based on the time value of money.

Controversy Over Plans to Build Wind Turbines in Massachusetts

Thu, 10 Feb 2011 16:36:21 GMT

The Cape and Vineyard Electric Cooperative plans to install two turbines in Brewster, but many residents object based on their concerns related to noise and property values. According to coop sources, only one person lives within 1,800 feet of the project site. For more on this story, see the Cape Cod Times article.

Coos-Curry Electric Cooperative Completes Transmission Project 20 Years in the Making

Tue, 08 Feb 2011 11:16:26 GMT

The Oregon cooperative completed its three-phase, 52-mile project, and it expects that the project will greatly improve the reliability of its system. The project was completed for $8 million, which is $4 million below budget. Electric Co-op Today has the full story.

General Manager of Pedernales Electric Cooperative Sentenced to 300 Days in Jail, Probation, Community Service, and Restitution

Mon, 07 Feb 2011 11:18:57 GMT

The Statesman reports that Bennie Fuelberg’s sentence includes, among other things, restitution payments of $126,000. This amount is far less than the $8.8 million that Pedernales sought to recover. The court ordered that the money is to be paid to Pedernales’s insurance company and former law firm rather than to the cooperative itself.

Iowa Nuclear Plant That Provides Power for Cooperatives Has License Extended for 20 More Years

Fri, 04 Feb 2011 10:00:00 GMT

The nuclear plant provided 34 percent of Central Iowa Electric Cooperative’s baseload power in 2009, and now it can continue to do so through 2034. The application for the extension was over 2000 pages and contained information on the inspections, testing, and retrofitting that will become necessary as the plant ages. Full story reported by Electric Co-op Today.

Basin Electric Power Cooperative’s 162 MW Wind Farm is the Largest in South Dakota

Wed, 02 Feb 2011 10:00:00 GMT

The Daily Republic reports that once all 100 turbines are operational, Basin Electric will exceed its goal of generating at least 10 percent of its power from renewable sources. Construction of the $363 million dollar PraireWinds SD 1 project began last year and all turbines should be online by the middle of February.

Community Voices Support Northern Virginia Electric Cooperative’s Plan to Build a 50 MW Biomass Facility

Tue, 01 Feb 2011 10:00:00 GMT

Officials and residents of South Boston, Virginia, see the proposed biomass facility as a natural fit given the plentiful supply of wood waste in the area and as a source of local jobs. See the Richmond Times-Dispatch for more.

E2America Unveils its Smart Grid System Designed Specifically for Cooperatives and Their Commercial Customers

Mon, 31 Jan 2011 10:00:00 GMT

E2America is presenting its patented smart grid technology system at the Touchstone Energy Cooperatives’ New and Emerging Technologies Conference this week in New Orleans. The customizable systems are designed to reduce peak demand by managing commercial customers’ HVAC equipment. A number of North Carolina cooperatives have plans to install the systems to meet their energy efficiency targets. See the story in Business Wire for details.

Socorro Electric Cooperative in Technical Default on RUS Loans

Sat, 29 Jan 2011 07:35:00 GMT

Socorro Electric Cooperative failed to meet its profit levels for the second year in a row. To avoid default on its $52 million in federal loans, the New Mexico cooperative plans to raise rates and implement other cost-saving measures. Socorro Electric is seeking an average rate increase of 6.95 percent. The El Defensor Chieftain is following this story.

Georgia Supreme Court to Hear Cobb EMC Appeal

Wed, 26 Jan 2011 09:08:19 GMT

The Marietta Daily Journal has an article on Cobb EMC's appeal to the Georgia Supreme Court regarding Cobb EMC's proxy-voting amendment to its bylaws, and whether that amendment violated the December 2008 settlement agreement. The Georgia Court of Appeals had ruled that the amendment violated Cobb EMC's settlement with disgruntled coop members.

Southern Company and Ted Turner Team Up to Provide Solar Energy to Electric Cooperatives

Tue, 25 Jan 2011 13:39:53 GMT

EnergyCentral has a report on the 30-MW Cimarron Solar Facility, the product of a partnership between Southern Company and Ted Turner, which is located in New Mexico. The facility will supply power to the Tri-State Generation and Transmission Association's member cooperatives.

Callaway Electric Cooperative Passes Resolution in Support of Second Nuclear Reactor

Tue, 25 Jan 2011 13:31:00 GMT

Callaway's resolution is in support of a state bill for a second nuclear reactor at the Callaway nuclear plant. The Fulton Sun (Missouri) has the details.

Susquehanna Nuclear Plant Shuts Down Unit 1

Tue, 25 Jan 2011 13:12:09 GMT

In a press release, PPL Corporation reports that its Susquehanna nuclear plant in Pennsylvania, which is partly owned by the Allegheny Electric Cooperative, safely shut down Unit 1 this past Tuesday.

Pedernales Bylaw Change Threatens to Disqualify Board Member From Serving

Mon, 24 Jan 2011 13:21:40 GMT

The Statesman reports on the fall-out from a recent bylaw change by Pedernales Electric Cooperative. The new bylaw prevents directors from serving on the board if they have worked for a wholesale power company within the past three years.

Atlanta Business Chronicle Reports on Cobb EMC Case and Opposition to Proposed Coal Plant in Sandersville, Georgia

Fri, 21 Jan 2011 13:45:37 GMT

The Atlanta Business Chronicle has an article on how critics are using Cobb EMC's recent legal issues to raise questions about Plant Washington – a proposed 850-MW coal plant near Sandersville, Georgia.

Seminole Electric Cooperative Awards $35 Million Contract to Emcor to Maintain Generating Station

Thu, 20 Jan 2011 15:23:47 GMT

Under a $35 million contract awarded by Seminole Electric Cooperative, Emcor will provide year-round maintenance and other services at the generating facility near Palatka, Florida. The facility runs two 650-MW coal-fired boilers. Bloomberg has the details.

East Kentucky Power Cooperative Gets $43 Million Rate Increase

Wed, 19 Jan 2011 16:18:08 GMT

Kentucky's Public Service Commission has agreed to a $43 million rate increase for East Kentucky Power Cooperative. CNHI News Service notes that East Kentucky recently settled a lawsuit with environmental groups, in which it agreed to drop plans for a new coal-fired plant at its Winchester facilities.

Iowa Coop to Receive Nearly $5 Million From FEMA to Retrofit Lines

Wed, 19 Jan 2011 14:01:32 GMT

The Waverly Democrat reports that Butler County Rural Electric Cooperative will receive nearly $5 million from FEMA to retrofit distribution lines to mitigate damage from hard weather.

Montana G&T Coop Battles NorthWestern Energy Over Electric Meters

Tue, 18 Jan 2011 16:06:28 GMT

The Great Falls Tribune reports on a bitter controversy between Southern Montana Electric Generation and Transmission Cooperative, Inc. and NorthWestern Energy, Montana's dominant electric utility. The dispute is over the provision of new meters to commercial energy customers.

Pedernales to Seek $8.8 Million in Restitution from Bennie Fuelberg

Tue, 18 Jan 2011 15:30:03 GMT

The Statesman reports that Pedernales Electric Cooperative will seek to recover $8.8 million from Bennie Fuelberg, its former general manager who was recently convicted of felony theft and money laundering.

Pedernales "Divided" on Going Green

Tue, 18 Jan 2011 13:56:25 GMT

The Statesman reports on a conflict among members of Pedernales Electric Cooperative over efforts to make the cooperative more environmentally friendly.

Another Virginia Legislator Introduces Bill on Pole Attachments

Tue, 18 Jan 2011 13:02:03 GMT

Full text of the bill is available here. Among other provisions, the bill provides that unauthorized attachments to utility poles owned by electric cooperatives are a Class 1 misdemeanor and requires that cable television systems adhere to certain conditions and standards.

Bank of America Merrill Lynch Shopping Mortgage Bond Deal for Old Dominion Electric Cooperative

Mon, 17 Jan 2011 13:10:53 GMT

Private Placement Letter has the details on the transaction. (subscription required)

Atlanta Journal-Constitution Reports on Challenges to Georgia Coops

Sun, 16 Jan 2011 13:19:09 GMT

The Atlanta Journal-Constitution reports on the fall-out from the indictment of Cobb EMC head Dwight Brown, and efforts by advocacy groups to clarify access to Georgia cooperatives' records and member lists during elections, among other proposals.

Kansas Coop Considers Office Closings in Bid to Save $1 Million Annually

Thu, 13 Jan 2011 14:13:59 GMT

Rolling Hills Electric Cooperative (Kansas) has proposed closing offices in three towns, and building a central office in another town, in order to save $1 million annually. The Salina Journal has the details.

Virginia Legislator: Let Telecoms and Cable Companies Petition Commission to Establish Contract Terms with Coops in Absence of Agreement Over Poles

Thu, 13 Jan 2011 13:55:32 GMT

A Virginia legislator has introduced a bill that would permit telecoms and cable companies to petition a state commission to establish contract terms if they are unable to arrive at a mututally agreeable contract with electric cooperatives for pole attachments. Full text of the bill is here.

GAO Issues Report on Electricity Grid Modernization

Thu, 13 Jan 2011 13:45:45 GMT

The Government Accountability Office (GAO) report's full title is "Electricity Grid Modernization: Progress Being Made on Cybersecurity Guidelines, But Key Challenges Remain to Be Addressed." Full text of the report is available here.

Hawaii Coop Buys 1.5-MW Battery Storage System

Thu, 13 Jan 2011 13:36:03 GMT

Business Wire has details on a contract between Kaua'i Island Utility Cooperative and Xtreme Power Inc. to purchase a 1.5-MW utility-scale battery storage system. The system will support a 3-MW solar project.

Texas Cooperative Involved in 1.67-MW Wind Turbine Project

Wed, 12 Jan 2011 15:46:37 GMT

South Plains Electric Cooperative will receive new energy from a 1.67-MW turbine project in Texas. The turbine was recently completed by Spain's Alstom Power. Additional details are here.

NRECA Asks Obama Administration for More Clean Renewable Energy Bonds

Wed, 12 Jan 2011 14:20:48 GMT

Bond Buyer reports that NRECA, along with two other industry groups, is pushing the Obama administration for more clean renewable energy bonds (CREB) (subscription required). The current CREB program is out of funding.

South Carolina Legislator Introduces Bill to Require "Special Needs Account Customer" Form

Tue, 11 Jan 2011 14:46:00 GMT

A South Carolina legislator has introduced a bill to further protect special needs account customers. The bill requires that coops and other utilities include a form in their customers' bills (at least once a year) that would notify the utilities of their customers' special needs status. Full text of the bill is here.

Coop Customers in the Mid-Atlantic Get Energy-Saving Website

Tue, 11 Jan 2011 14:33:04 GMT

Twelve electric coops in Delaware, Maryland, and Virginia (including G&T Old Dominion) have launched a new website to help their customers save energy. The website, which provides energy saving tips and daily use calculations, is located at http://www.energizeefficiently.coop/ . More details here.

Atlanta Journal-Constitution: Cobb EMC CEO Dwight Brown Indicted on 31 Counts of Racketeering and Theft

Fri, 07 Jan 2011 15:07:41 GMT

Dwight Brown's attorney, Craig Gillen, states that he is innocent of all charges. The article is here.

Proposal to Convert Montana Utility Into a Cooperative

Tue, 04 Jan 2011 14:59:28 GMT

The Great Falls Tribune reports on the proposal by Southern Montana Electric G&T to convert Electric City Power, Great Fall's money-losing utility, into a customer-owned cooperative.

The Weekly Observer Has Details on Santee Electric Lawsuit

Mon, 03 Jan 2011 15:36:29 GMT

The Weekly Observer (South Carolina) has a report on the origins of the lawsuit against Santee Electric Cooperative, including the role of an IRS form made available on the internet. The lawsuit against Santee by its members involves allegations of corporate mismanagement and a failure to return capital credits.

New Electric Coop Forming in Alaska

Mon, 03 Jan 2011 15:17:10 GMT

The new electric coop will be called the Alaska Railbelt Cooperative Transmission and Energy Company. It is a combination of five utilities: Chugach, Matanuska, Homer, Seward, and Golden Valley electric associations. Additional details are here.

Kit Carson Electric Cooperative Seeks to Invalidate Most Rate Protests

Wed, 29 Dec 2010 11:44:33 GMT

The Taos News reports on efforts by Kit Carson Electric Cooperative to invalidate all but 12 protests against a proposed $4.3 million rate hike. A formal review of the rate increase by the New Mexico commission requires at least 25 valid protests.

Washington State's 2020 Mandate for Alternative Energy in Question

Tue, 28 Dec 2010 11:55:29 GMT

Crosscut (Seattle) reports on the difficulties in meeting Washington State's mandate that 15 percent of its electricity come from alternative sources by 2020. Among other industry groups, Washingon Rural Electric Cooperative Association had originally opposed the mandate.

Pedernales Board Adopts Policy to Distribute Capital Credits; Members React

Tue, 28 Dec 2010 11:50:03 GMT

Highland Lakes Newspaper has a short article on member reaction to Pedernales' recent decision to distribute capital credits.

East Kentucky Power Cooperative Involved in Switchgrass Project

Mon, 27 Dec 2010 12:21:23 GMT

The AP reports on a biofuel program involving switchgrass, a native Kentucky grass, and the participation of East Kentucky Power Cooperative.

$76 Million Wind Project Moving Forward in Vermont; Coops to Buy Electricity

Mon, 27 Dec 2010 12:08:18 GMT

The largest wind project in Vermont has received $76 million in financing. When complete, the 40 megawatt project will supply power to Vermont Electric Cooperative and the Washington Electric Cooperative, as well as the Burlington Electric Department.

Wind Turbines, Electric Cooperatives, and the South Dakota Prairie

Sat, 25 Dec 2010 12:38:48 GMT

Workers are getting closer to completing a 108-turbine wind farm just southwest of Wessington Springs, South Dakota. Rapid City Journal has the details of how these turbines are becoming part of the landscape.

Berkshire Wind Power Cooperative Issues $65 Million in Bonds

Thu, 23 Dec 2010 10:27:50 GMT

The Boston Globe has the latest details on the financing of the 10-turbine wind project in the Berkshires.

Maryland Commission OKs Rate Hike for Southern Maryland Electric Cooperative

Wed, 22 Dec 2010 10:50:12 GMT

Southern Maryland Newspapers has details on a $19.4 million rate hike by Southern Maryland Electric Cooperative.

Socorro Coop Uses New Technology to Thwart Copper Thieves

Tue, 21 Dec 2010 10:36:01 GMT

Life is getting more difficult for copper thieves. The El Defensor Chieftain reports on a new copper-clad steel product that Socorro Electric Cooperative is using at a new $6 million substation. The product, used in place of copper wire, has similar performance but much less salvage value.

Forty-One-MW Wind Farm to Supply Central Iowa Coop

Tue, 21 Dec 2010 10:06:05 GMT

Progress is being made on a 41-MW wind farm in Iowa. The farm will supply power to Central Iowa Power Cooperative, which has a 20-year purchase agreement with the developer. The Des Moines Register has the details.

Pedernales Board and Members React to Fuelberg's Conviction

Tue, 21 Dec 2010 09:57:46 GMT

The Statesman and San Antonio Express-News have separate reports on the reactions to the recent conviction of Pedernales' former General Manager Bennie Fuelberg.

Connecticut Municipal Cooperative to Buy $42.3 Million in High Voltage Transmission Lines

Mon, 20 Dec 2010 09:22:24 GMT

Connecticut Municipal Electric Energy Cooperative is slated to buy a 10-mile portion of Connecticut Light & Power Co.'s high-voltage transmission lines. The New Haven Register has the details.

Central Electric Power Cooperative's Shift to Duke Energy Makes Santee Cooper Rethink Stake in Nuclear Reactors

Mon, 20 Dec 2010 09:16:08 GMT

In 2009, Santee Cooper's biggest customer, Central Electric Power Cooperative, announced plans to shift 1,000 MW of its load to Duke Energy beginning in 2013. The Post & Courier reports that Santee Cooper is now seeking to cut the utility's interest in two new nuclear reactors.

Cape & Vineyard Electric Cooperative Seeks to End Regional Commission Oversight Over Wind Turbines

Mon, 20 Dec 2010 08:58:53 GMT

The Cape Cod Times reports that the Cape & Vineyard Electric Cooperative (formed in 2007) is seeking to end a regional commmision's jurisdiction over wind turbines. The coop has yet build a single turbine amid concerns over the region's historic character.

Iowa Nuclear Power Plant Gets 20 More Years

Fri, 17 Dec 2010 16:55:16 GMT

The Des Moines Register reports that Iowa's only nuclear power plant received a 20-year extension in its operating license. Two Iowa cooperatives, Central Iowa Power Cooperative and Corn Belt Power Cooperative, have ownership interests in the plant. The majority owner is NextEra Energy Resources.

Basin Electric Power Cooperative to Delay Carbon Capture Project

Fri, 17 Dec 2010 16:50:51 GMT

Citing economic concerns, Basin Electric Power Cooperative, a North Dakota G&T, has announced it will hold off on a carbon capture project at a coal-fired plant in central North Dakota.

Cooperatives to Push for Clean Renewable Energy Bonds Program

Fri, 17 Dec 2010 09:43:48 GMT

Platts reports that municipal and cooperative utility associations (including the NRECA) will lobby next year for the Clean Renewable Energy Bonds program, which provides tax credit bonds for low-carbon renewable energy projects. The program was not extended in the recent tax legislation that Congress passed last Thursday.

Former Louisiana Coop Members to Receive Capital Credit Checks

Thu, 16 Dec 2010 08:48:53 GMT

Following the merger between Southwestern Electric Power Company and Valley Electric Membership Coop (VEMCO), nearly 5,000 former VEMCO members will receive capital credit checks, ranging from hundreds to thousands of dollars. The Shreveport Times has the details.

Kansas G&T Gets Approval for 895-MW Coal-Fired Power Plant

Thu, 16 Dec 2010 08:36:42 GMT

The Kansas City Star reports that, after a four-year effort, Sunflower Electric Power Corporation has received state permission to build an 895-MW, coal-fired power plant (link currently unavailable). The plant's cost is estimated at $2.2 billion to nearly $3 billion.

Old Dominion Electric Cooperative to Buy Credits From Landfill Plant

Thu, 16 Dec 2010 08:22:02 GMT

The Virginia cooperative has announced plans to purchase all the credits to power and energy from a landfill gas-to-energy generation plant (6.4 MW) in Richmond.

Former Pedernales General Manager Sentenced to Probation

Mon, 13 Dec 2010 16:44:48 GMT

A jury has sentenced Bennie Fuelberg, former general manager of Pedernales Electric Cooperative, to probation and a $30,000 fine.

Socorro Electric Cooperative Members Attempt to Recall Board

Mon, 13 Dec 2010 16:36:13 GMT

A New Mexico newspaper has a report on efforts by Socorro Electric Cooperative's members to recall the board of trustees. Socorro is currently in litigation over its corporate transparency and treatment of patronage capital.

Spotlight on Novi Energy LLC

Sun, 12 Dec 2010 12:47:31 GMT

Crain's Detroit Business has an article on Novi Energy LLC, an energy consulting and alternative-energy facility development company. Among other projects, Novi is working with Northern Virginia Electric Cooperative on a 49.95-MW biomass plant, which runs on "slash" (i.e., discarded and burned tree parts).

Williamsburg Lawmakers to Monitor Coop's Coal Plant

Fri, 10 Dec 2010 16:26:49 GMT

Lawmakers in Williamsburg, Virginia, have informed the U.S. Army Corps of Engineers that they will monitor a proposed coal-fired plant that is being developed by Old Dominion Electric Cooperative. The lawmakers cite potential impacts on pollution and tourism. Old Dominion had previously announced an 18-24 month delay on the $6 billion project.

Former Pedernales General Manager Convicted

Fri, 10 Dec 2010 16:14:48 GMT

The Statesman reports that Bennie Fuelberg, former general manager of Pedernales Electric Cooperative, has been convicted on all counts of theft, money laundering, and fiduciary misapplication of property. Fuelberg had been with the coop for 30 years, before stepping down in 2008.

Calpine Sells 25 Percent Interest in Gas Plant to Rayburn Country Electric Cooperative

Thu, 09 Dec 2010 15:51:52 GMT

Rayburn Country Electric Cooperative has purchased a 25 percent stake in the 1,038-MW Freestone Energy Center near Fairfield, Texas. The price is $215 million. Calpine will remain majority owner of the combined-cycle, natural gas-fired plant.

Pennsylvania Coop To Provide Holiday Rate Reduction

Thu, 09 Dec 2010 15:41:26 GMT

'Tis the season for giving, and a Pennsylvania electric cooperative, Tri-County Rural Electric, is giving a $15 reduction on all members' bills.

Update on Coop Members' Lawsuit Against Santee Electric Cooperative

Wed, 08 Dec 2010 15:19:24 GMT

The Weekly Observer (South Carolina) provides an update on the lawsuit brought by coop members against Santee Electric Cooperative. The article looks at coop members' reaction to Santee's recent audit report, which includes recommendations on board election bylaws and procedures. The lawsuit against Santee involves allegations of corporate mismanagement, as well as a failure to return capital credits.

North Dakota G&T Coop to Receive Over $500 Million in RUS Loan Guarantees; Georgia's Oglethorpe to Receive $373 Million

Wed, 08 Dec 2010 14:57:56 GMT

Basin Electric Power Cooperative, a G&T based in North Dakota, will receive more than $500 million of the $2.9 billion in federal loan guarantees from Rural Utililties Service(RUS) (subscription required). Nearly $405 million is slotted for a 300-MW natural gas-fired power plant. The rest is slotted for two wind projects that will generate 120 MW.

Oglethorpe Power Corporation, based in Georgia, was approved for roughly $373 million to pay for two gas-fired generation plants. Mississippi Electric Power Assocation was approved for $267 million for combustion turbines and new heat recovery steam generators for existing units.

Berkshire Wind Project Nearing Completion

Mon, 06 Dec 2010 13:06:17 GMT

The Republican reports that the Berkshire wind project is nearing completion. The project has ten turbines, each 1.5 MW. The Berkshire Wind Power Cooperative Corporation is made up of Massachusetts municipal utilities and the Massachusetts Municipal Wholesale Electric Company.

Michigan City Prevails in Dispute With Coop Over System Upgrade

Sat, 04 Dec 2010 10:34:21 GMT

Midwest Independent System Operator, a nonprofit corporation that manages power transmission across several Midwestern states, has approved the plans of Traverse City, Michigan, to build a $9 million substation and transmission facility. The plan was opposed by Wolverine Power Corporation, who favored a much less expensive transmission line near its own facilities. The Record Eagle provides additional details.

Protests Against Kit Carson Electric Cooperative's Rate Hike

Thu, 02 Dec 2010 11:40:24 GMT

Roughly 170 protests were filed with a New Mexico commission over proposed rate hikes by Kit Carson Electric Cooperative. The Taos News reports that the protests are not limited to the rate hike and include concerns over corporate mismanagement. It is expected that the commission will hold hearings on the proposed rate hike.

Board Official Testifies in Case Against Former General Manager of Pedernales Electric Cooperative

Thu, 02 Dec 2010 11:24:34 GMT

The Statesmen has a report on the testimony of former Pedernales Electric Cooperative Board President R.B. Felps during the theft and money laundering trial of Pedernales' former general manager, Bennie Fuelberg. Felps denied knowledge of any secret coop payments to Fuelberg's brother and the son of another former director.

Big Rivers Electric Coop Joins Midwest ISO

Wed, 01 Dec 2010 12:22:13 GMT

Midwest ISO has announced a successful integration with Big Rivers Electric Cooperative, a Kentucky-based G&T. According to the press release, Big Rivers brings a 1,262-mile transmission system and 1,756 MW of generating capacity to the Midwest markets. Midwest ISO's total market generation is now 145,000 MW, with a 57,453-mile transmission system.

South Dakota Electric Cooperatives Receive Millions from FEMA for Underground Power Lines

Tue, 30 Nov 2010 16:18:07 GMT

Last year, severe winter storms left thousands of South Dakotans without electricity. American News now reports that South Dakota cooperatives will receive more than $27.5 million from FEMA to install underground lines. These lines will replace overhead lines that were particularly vulnerable to winter storms.

Pedernales Former General Manager Set for Trial on Felony Theft and Money Laundering

Mon, 29 Nov 2010 12:08:16 GMT

The felony theft and money laundering trial of Bennie Fuelberg, former Pedernales Electric Cooperative General Manager, is underway. The Statesmen reports that Fuelberg faces up to 99 years in prison on the first-degree felony charges. Fuelberg has pleaded not guilty.

FERC: Montana Coop Does Not Have to Pay Transmission Charges from NorthWestern Corporation

Wed, 24 Nov 2010 11:53:00 GMT

FERC has sided with Southern Montana Electric Generation & Transmission Cooperative in a dispute with NorthWestern Corp. The cooperative had complained that NorthWestern was improperly billing it for "long-term, firm point-to-point transmission service" in the absence of a valid service agreement.

East Texas Coop Applies for RUS Loan for Biomass Plant

Wed, 24 Nov 2010 11:14:23 GMT

East Texas Electric Cooperative, a group of ten East Texas cooperatives, has applied to the RUS for a $145 million loan to build a biomass plant in Woodville, Texas. The plant is scheduled to operate in late 2013 / early 2014 and will produce roughly 50 MW of power.

Kentucky Utilities Sue Thermostat Manufacturer

Tue, 23 Nov 2010 13:19:27 GMT

Two Kentucky utilities have sued Comverge Inc. in federal court over energy-saving thermostats that allegedly pose a fire hazard. According to the complaints, similar thermostats were recalled in Texas, but the utilities were not notified promptly. The thermostats are designed to control energy loads by shutting down air conditioning during peak energy demand times. In a related federal case, East Kentucky Power Cooperative has also sued Comverge Inc. over its thermostats and replacement costs.

Northern Virginia Electric Cooperative Moving Forward on Green Power Plant

Mon, 22 Nov 2010 14:16:32 GMT

A Virginia state commission has given the go-ahead to preliminary construction of a green power plant at a former Georgia-Pacific facility in Halifax County. The plant will convert wood waste product into energy. Northern Virginia Electric Cooperative is partnering with NOVI Energy on the project.

Pedernales Revises Bylaws to Limit Terms of Directors

Mon, 22 Nov 2010 13:42:32 GMT

The Pedernales Electric Cooperative Board of Directors has passed new bylaws that limit terms for directors to a maximum of four three-year terms. The bylaws previously had no limits on terms. The Board also ended the "revolving door" practice, which allowed board members to become Pedernales employees or contractors after their terms ended.

The Statesman provides additional details.

East Kentucky Power Cooperative Drops Plans for Coal-Fired Plant

Mon, 22 Nov 2010 12:53:08 GMT

In a settlement with opponents, East Kentucky Power Cooperative has dropped plans to build a coal-fired power plant in Clark County, Kentucky. East Kentucky cited decreased demand for electricity caused by the economic downturn.

Georgia EMCs Agree to Purchase Power from Biomass Plant

Mon, 22 Nov 2010 10:06:04 GMT

A group of seven Georgia EMCs have recently agreed to a 10-year power purchase agreement from a biomass power plant in Thomaston, Georgia. The plant, a wood-fueled generation facility, will begin operations in early 2012 and power nearly 10,000 homes.

RUS to Provide $2.9 billion of Guaranteed Loans to Rural Coops and Utilities

Mon, 22 Nov 2010 10:00:50 GMT

Platts reports that the Department of Agriculture's Rural Utilities Service will provide $2.93 billion to 50 electric cooperatives. These guaranteed loans are for generation (new and upgraded), transmission, and distribution.

Coops and Others Reach Agreement to Build Missouri's Second Nuclear Power Plant

Sun, 21 Nov 2010 14:25:32 GMT

The governor of Missouri has announced an agreement with key energy companies, including Missouri electric cooperatives, to begin the process of constructing another nuclear power plant in the state. At present, Missouri has one nuclear power plant, which has been in operation since 1984.