Federal Courts Uphold Wholesale Power Contract Terms to Prevent Early Termination

Federal courts in South Carolina and South Dakota have upheld the terms of wholesale power contracts (WPCs) between East River Electric Power Cooperative, Inc. (East River) and Central Electric Power Cooperative, Inc. (Central Electric) and their members. The separate cases involved distribution cooperative members of East River and Central Electric who sought to terminate and buy out of their WPCs prior to the end of their respective contract terms. Both courts found that the terms of the agreements, as well as East River’s and Central Electric’s bylaws, were unambiguous and did not permit early termination.

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