Sutherland Coop Law Blog
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FCC to Allow Auction Entry for Coops

The Federal Communication Commission (FCC) has ruled that coops can have access to Connect American Funds (CAF), which are meant to promote broadband in rural areas.  The FCC agreed, at the NRECA’s suggestion, that coops may satisfy the auction program’s technical qualifications by providing evidence of their capabilities to operate transmission or distribution systems.  The...

Cooperative Finance Corp. Fights for Authorization to Issue Letters of Credit

The National Rural Utilities Cooperative Finance Corp. (CFC) continues to seek an exemption under the Federal Communications Commission’s Rural Broadband Experiment allowing it to issue letters of credit to its own members and those of an affiliate, Rural Telephone Finance Cooperative.  However, because CFC is not a depository institution, it cannot receive the required FDIC...

CFC and NRCO Secure $100 Million to Support Solar Projects for Cooperatives

The National Rural Utilities Cooperative Finance Corporation (CFC) and National Renewables Cooperative Organization (NRCO) recently secured $100 million that will go to support solar projects for electric cooperatives.  The funds will be used to make solar energy more economically feasible for electric cooperatives by supporting utility-scale cooperative projects ranging in size from 1...

New Geothermal Plant on Horizon for California Coop

Surprise Valley Electrification Corp. is nearing completion of a 3-MW geothermal power plant project that began in 2009.  With financing from the National Rural Utilities Cooperative Finance Corporation, federal grants and state tax credits, the new facility will provide power, cooled water and heat to local consumers.  Read more...

New Mexico Coop Seeks Funding to Prevent Takeover, Will Pay Out Capital Credits

Socorro Electric Cooperative (Socorro Electric) is looking for approximately $250,000 from the National Rural Utilities Cooperative Finance Corporation’s Cooperative System Integrity Fund (Fund) to help the coop ward off a takeover by the city of Socorro, New Mexico.  The Fund is intended to help rural coops whose service territories may be threatened.  Additionally, Socorro...

Arizona Coop Forgoes 100% Equity Financing, Becomes CFC Borrower

Duncan Valley Electric Cooperative (DVEC), based in Duncan, Arizona, recently borrowed from the National Rural Utilities Cooperative Finance Corporation (CFC) to prepay future National Rural Electric Cooperative Association Retirement Security Plan contributions.  The move makes DVEC a 100% CFC borrower and marks a departure from its existing financing strategy.  DVEC, which last...

Texas Coop Amends and Extends CFC Facility

South Texas Electric Cooperative (STEC), a generation and transmission cooperative based in Nursery, Texas, recently amended and extended its $350 million revolving syndicated credit facility, for which the National Rural Utilities Cooperative Finance Corporation (CFC) serves as administrative agent and lead arranger.  The transaction allowed CFC to extend the maturity date by...

Alaska Coop Purchases Clean Coal Plant

Golden Valley Electric Association (GVEA), based in Fairbanks, Alaska, recently purchased a 50-MW clean coal project from the Alaska Industrial Development and Export Authority, with the help of a $45 million, 30-year loan from the National Rural Utilities Cooperative Finance Corporation.  The project, the Healy Unit 2 power plant, will be shored up with an additional $37 million in...

Texas Coop Refinances with CFC

Swisher Electric Cooperative, based in Tulia, Texas, recently reached out to the National Rural Utilities Cooperative Finance Corporation (CFC) to refinance $10 million in outstanding debt from other lenders.  This move, combined with a long-standing relationship with CFC, makes Swisher officially a 100-percent CFC borrower.  Read more...

New York Coop Refinances with CFC, Changes Patronage Capital Distribution Policy

Otsego Electric Cooperative (OEC), based in Hartwick, New York, recently refinanced its outstanding debt owed to other lenders with the National Rural Utilities Cooperative Finance Corporation (CFC), becoming the first 100% CFC borrower in the state.  OEC, which serves about 4,500 members in the area between the Catskill and Adirondack mountain ranges, also worked with CFC to develop a...

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