Legal Alert: Patronage Capital Update
Posted on Oct 18, 2018 in Litigation, Patronage Capital | Comments Off on Legal Alert: Patronage Capital Update
Retirement of patronage capital remains a heavily litigated topic. While federal court cases generally have ruled in favor of electric cooperatives, state court cases are somewhat divided. This update reports on a federal court of appeals decision and two recent state court opinions reaching different conclusions about a board’s authority and obligations with respect to patronage...
Eleventh Circuit Rules Co-op Members Are Not Entitled to Immediate Cash for Profits
Posted on Jan 13, 2017 in Litigation, Patronage Capital | Comments Off on Eleventh Circuit Rules Co-op Members Are Not Entitled to Immediate Cash for Profits
The U.S. Court of Appeals for the Eleventh Circuit dismissed (subscription required) a case brought by members of the Central Alabama Electric Cooperative (CAEC) against the central Alabama utility for distributing excess revenue by crediting the members’ capital accounts rather than making cash payments. The court found that Alabama law 37-6-20 does not require CAEC to distribute such...
D.C. Circuit Hears Challenge to Clean Power Plan
Posted on Sep 28, 2016 in Climate Change, Corporate Governance, Derivative Suits, Economic Downturn, Energy Savings Programs, Environmental, Financing, Grid & Infrastructure, Innovation/Efficiency, Land Use, Legislative & Politics, Litigation, Mergers/Acquisitions, Patronage Capital, Permitting, Project Development, Rates, Regulation & Policy, Reliability, Renewable Energy, Tax, Technology | Comments Off on D.C. Circuit Hears Challenge to Clean Power Plan
Ten D.C. Circuit judges heard argument regarding the EPA’s authority to enact the Clean Power Plan and the rule’s constitutionality. All active judges on the D.C. Circuit, with the exception of Merrick Garland, heard arguments from state government, power industry groups, the federal government and environmental groups.
Mississippi Regulator Imposes New Annual Filing Requirement
Posted on Dec 18, 2014 in Corporate Governance, Patronage Capital, Regulation & Policy | Comments Off on Mississippi Regulator Imposes New Annual Filing Requirement
The Mississippi Public Service Commission directed electric coops to make an annual filing to provide information on open meetings, board member elections, coop fund management and other matters to keep customers apprised of their respective ownership shares and worth. The filing is due May 1 of each year beginning in 2015. Click here to read more.
Texas Coop to Retire $4 Million in Capital Credits
Posted on Jul 24, 2014 in Patronage Capital | Comments Off on Texas Coop to Retire $4 Million in Capital Credits
South Plains Electric Cooperative (SPEC) announced that it has approved a capital credits refund of $4 million to its members. To date SPEC has returned more than $28 million to its customer-members. To read more, please click here.
Texas Coop to Refund Capital Credits
Posted on Jul 8, 2014 in Corporate Governance, Patronage Capital | Comments Off on Texas Coop to Refund Capital Credits
The Guadalupe Valley Electric Cooperative, which serves members in 13 Texas counties east of San Antonio and south of Austin, will return $3 million in capital credits to its members this month. Click here for more.
Customers of Florida Coop to Get Millions
Posted on Jun 17, 2014 in Patronage Capital | Comments Off on Customers of Florida Coop to Get Millions
Florida-based Lee County Electric Cooperative has approved an equity distribution of $6.1 million to current and inactive customers and an additional distribution of $6.1 million to memberships that have been closed since 2006. Customers receiving a distribution of less than $250 will receive a credit on their bills. Click here for more information.
Senate Agriculture Committee Raises Concerns about Proposed RUS Environmental Regulation
Posted on May 28, 2014 in Environmental, Financing, Legislative & Politics, Patronage Capital, Regulation & Policy, Renewable Energy | Comments Off on Senate Agriculture Committee Raises Concerns about Proposed RUS Environmental Regulation
In its report accompanying spending legislation for fiscal year 2015, the Senate Agriculture Committee has directed the U.S. Department of Agriculture’s (USDA) Rural Development office to provide a report on the impact of a controversial regulation proposed by the USDA. The regulation at issue would reclassify all loan transactions for Rural Utilities Service (RUS) borrowers as “major...
Bluebonnet Members to Receive Capital Credits
Posted on May 1, 2014 in Corporate Governance, Patronage Capital | Comments Off on Bluebonnet Members to Receive Capital Credits
Bluebonnet Electric Cooperative in Texas will return $3 million in patronage capital to its members using a member’s past electricity usage and length of membership to determine the amount returned in the form of capital credits. The San Marcos Daily Record has the full story.
Arizona Coop Forgoes 100% Equity Financing, Becomes CFC Borrower
Posted on Feb 11, 2014 in Financing, Patronage Capital | Comments Off on 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...
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