Pedernales to Distribute Nearly $13 Million in Capital Credits
Posted on Nov 4, 2013 in Corporate Governance, Patronage Capital | Comments Off on Pedernales to Distribute Nearly $13 Million in Capital Credits
The Pedernales Electric Cooperative (PEC) Board of Directors recently approved a capital credits distribution of more than $12.7 million to current and former PEC members after the Board reviewed the coop’s fiscal health and determined the distribution would not have any adverse impact on PEC. The distribution of capital credits, which reflect member ownership in PEC, will vary from...
Webinar: Patronage Capital Litigation
Posted on Oct 29, 2013 in Corporate Governance, Derivative Suits, Financing, Litigation, Patronage Capital, Regulation & Policy, Tax, Webinar | Comments Off on Webinar: Patronage Capital Litigation
Since 2009, at least 14 cases have been filed against electric cooperatives over patronage capital (or capital credits) in eight states: Alabama, Arkansas, Georgia, Missouri, New Mexico, North Carolina, South Carolina, and Texas. To help coops understand the surge in this type of litigation, Sutherland will present a live Webinar, “Patronage Capital Litigation,” for...
Georgia Coop Settles Class Action Over Patronage Capital for $98 Million
Posted on Oct 11, 2013 in Corporate Governance, Derivative Suits, Litigation, Mergers/Acquisitions, Patronage Capital, Regulation & Policy | Comments Off on Georgia Coop Settles Class Action Over Patronage Capital for $98 Million
After nearly four years of litigating a class action over patronage capital, Cobb EMC has agreed to pay a $98 million settlement to nearly one million of its current and former members. The plaintiffs are to receive their portion of patronage capital (or “capital credits”) they were allegedly owed but never paid. The Marietta Daily Journal has more.
Litigation Update on 14 Patronage Capital Cases in Eight States
Posted on Aug 28, 2013 in Corporate Governance, Derivative Suits, Litigation, Patronage Capital | Comments Off on Litigation Update on 14 Patronage Capital Cases in Eight States
Since 2009, at least 14 cases have been filed against electric cooperatives over patronage capital (or capital credits) in eight states: Alabama, Arkansas, Georgia, Missouri, New Mexico, North Carolina, South Carolina, and Texas. Sutherland has previously issued Legal Alerts regarding these cases—most are in active litigation, some have apparently settled (or are close to settling),...
Coop CFO Provides Insight on Capital Credits Strategy
Posted on Feb 11, 2013 in Corporate Governance, Financing, Patronage Capital | Comments Off on Coop CFO Provides Insight on Capital Credits Strategy
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...
Louisiana Utility Honors Patronage Capital Credits
Posted on Jan 7, 2013 in Corporate Governance, Mergers/Acquisitions, Patronage Capital | Comments Off on Louisiana Utility Honors Patronage Capital Credits
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...
Tri-State Authorizes Capital Credits
Posted on Dec 13, 2012 in Corporate Governance, Patronage Capital | Comments Off on Tri-State Authorizes Capital Credits
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.
Two Illinois Coops Plan to Merge
Posted on Nov 19, 2012 in Corporate Governance, Mergers/Acquisitions | Comments Off on Two Illinois Coops Plan to Merge
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...
Coop to Fund Energy Optimization Plan Through Retirement of Capital Credits
Posted on Aug 31, 2012 in Energy Savings Programs | Comments Off on Coop to Fund Energy Optimization Plan Through Retirement of Capital Credits
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...
Discounting of Capital Credits of Deceased Members Upheld in North Carolina
Posted on Aug 16, 2012 in Corporate Governance, Litigation, Patronage Capital | Comments Off on Discounting of Capital Credits of Deceased Members Upheld in North Carolina
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.
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