Patronage Capital Returned for First Time
Posted on Sep 19, 2013 in Financing, Patronage Capital | Comments Off on Patronage Capital Returned for First Time
For the first time in its 75-year history, Vermont Electric Cooperative will return $850,000 to members who were with the coop during 1997 and 2012. Previously the coop would reinvest patronage capital in system upgrades or to fill capital requirements for power agreements. Click here for more information.
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...
Illinois G&T Coop Receives Long-Term Rating of A- for Senior Secured Bonds
Posted on Jan 15, 2013 in Patronage Capital, Rates | Comments Off on Illinois G&T Coop Receives Long-Term Rating of A- for Senior Secured Bonds
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...
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.
APSC Dismisses Class Action Complaint against Carroll Electric
Posted on Sep 25, 2012 in Corporate Governance, Derivative Suits, Litigation, Patronage Capital | Comments Off on APSC Dismisses Class Action Complaint against Carroll Electric
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...
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.
Two New Patronage Capital Cases Hit Alabama Coops
Posted on Aug 14, 2012 in Litigation, Patronage Capital | Comments Off on Two New Patronage Capital Cases Hit Alabama Coops
Click here to read a Sutherland Legal Alert about two class action patronage capital cases that were recently filed in Alabama courts.
Patronage Capital Remains Sticking Point for New Mexico Coop
Posted on Aug 9, 2012 in Corporate Governance, Litigation, Patronage Capital | Comments Off on Patronage Capital Remains Sticking Point for New Mexico Coop
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.
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