Litigation Update on 14 Patronage Capital Cases in Eight States
Posted on Aug 28, 2013
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), and others have been resolved in the cooperative’s favor. Read the full Sutherland Legal Alert.
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Virginia State Corporation Commission Approves Prepaid Electric Service Program
Posted on Aug 28, 2013
The Virginia State Corporation Commission has approved a program that will allow Rappahannock Electric Cooperative (REC) customers to enroll in a voluntary prepaid electric service program. This program, the first of its kind in Virginia, would let customers pay upfront fees for electricity and allow REC to suspend service when insufficient funds remain in a customer’s account. To read more about this story, click here.
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Kentucky Coops Gear Up for Cybersecurity Review
Posted on Aug 22, 2013
The Kentucky Public Service Commission received a grant from the National Association of Regulatory Utility Commissioners to conduct a cybersecurity study of several electric distribution coops. The effort will result in a report that identifies cybersecurity risks, best practices and recommended next steps to protect infrastructure at a reasonable cost to ratepayers. Click here for more information.
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Delaware Solar Farm Facility Up and Running
Posted on Aug 22, 2013
Delaware Electric Cooperative (DEC) recently commenced operations at its 4-MW solar facility located near Georgetown, Delaware. The $14 million project will help DEC meet the state’s Renewable Portfolio Standards (RPS) set at 25 percent by 2025. The solar farm was built using no state subsidies and without raising customer rates. Click here for the full story.
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CFTC Approves Clearing Exemption for Certain Coops
Posted on Aug 22, 2013
The Commodity Futures Trading Commission (CFTC) issued a final rule to exempt swaps entered into by certain coops from the clearing requirement. The exemption is subject to several conditions, including that it applies only to swaps entered into (i) in connection with origination loans to coop members, or (ii) to hedge commercial risk related to these loans or swaps with members. The final rule was recently published in the Federal Register and is effective September 23, 2013.
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Statewide Cooperative Associations Discuss Mutual Aid Plans
Posted on Aug 21, 2013
As the Atlantic hurricane season hits its peak, more than a dozen electric cooperative statewide associations met in early August in Biloxi, Mississippi, to discuss the importance of mutual aid and the need to develop plans before disasters strike. Officials discussed a range of topics from reimbursement and recordkeeping procedures to security. To read more about this story, click here.
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Missouri City Approves Coop’s Power Plant Purchase Option
Posted on Aug 21, 2013
The City of New Madrid, Missouri, approved Associated Electric Cooperative Inc.’s (AECI) option to purchase a power plant prior to the expiration of an existing agreement between AECI and the city. AECI will pay a total of $100 million over the term of the option agreement in order to acquire the city’s interest in the plant, with the first payment of $25 million due September 1 of this year. To read more about the option agreement, click here.
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Coop Expresses Transmission Concerns with Wind Proposal
Posted on Aug 20, 2013
BNE Energy, a Connecticut company, is seeking to develop a new six-turbine, 18-MW wind project adjacent to Green Mountain Power’s existing 21-turbine Kingdom Community wind project. Some are saying there is not enough available transmission for both. Vermont Electric Cooperative has weighed in on the subject, expressing concern that the new turbines would exacerbate the already-constrained transmission system in the area and would require expensive upgrades. For more information about the concerns for this proposed project, click here.
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Coop Industry Groups Seek Notice to Protect Critical Communication Systems
Posted on Aug 20, 2013
The National Rural Electric Cooperative Association, the Utilities Telecom Council, the American Public Power Association and the Edison Electric Institute have asked the Federal Communications Commission to require a 30-day advance notice period when a high-tech company deploys products or services that could disrupt a utility’s critical communication systems. Progeny, a high-tech firm, plans to commercially deploy systems that the coop groups claim can interfere with Supervisory Control and Data Acquisition systems. According to the coop industry groups, the systems operated by Progeny...
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Transmission Line Raises Cost Allocation Issues
Posted on Aug 16, 2013
The city planning commission in Wasilla, Alaska, is requiring Matanuska Electric Association to build new power lines underground to preserve scenic views along the Parks Highway near Wasilla. The $40 million project is approximately four times the cost of standard above-ground transmission poles. The coop recently announced its plan to file a tariff case allocating costs to residents of Wasilla. More details on this decision can be found here.
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Iowa Coops Agree to Joint Management
Posted on Aug 16, 2013
Grundy County Rural Electric Cooperative and Franklin Rural Electric Cooperative recently agreed that Francis Buckel will now serve as general manager of both cooperatives. See the Waterloo Cedar Falls Courier for more.
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Kentucky Coops Strike Deal to Keep Smelter in Western Kentucky
Posted on Aug 16, 2013
The Kentucky Public Service Commission (PSC) recently approved a power supply arrangement between Big Rivers Electric Corporation (Big Rivers), Kenergy Corp. (Kenergy) and Century Aluminum Company that allows the aluminum smelter to purchase power on the wholesale market through Big Rivers and Kenergy while reimbursing the coops for certain costs arising from the arrangement. For more on this power purchase arrangement and the Kentucky PSC’s deliberations, see the Owensboro Messenger-Inquirer (subscription required).
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RUS to Conduct New Report on Transmission Project
Posted on Aug 15, 2013
The Rural Utilities Service (RUS) has announced that it will conduct a supplemental environmental impact report for Basin Electric Power Cooperative’s proposed North Dakota transmission line. This decision came from a need to consider new aspects of the plan. Read more here.
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Vermont Coop Limits Future Solar Installations
Posted on Aug 15, 2013
Washington Electric Co-op (WEC) has announced that, as of October, it will limit the use of net metering for future solar installations on its system to the size of 5 kilowatts. In Vermont, the practice of net metering allows a utility’s members to make solar installations on a utility’s system and sell such power to the utility. WEC’s decision to limit the size of future installations was motivated by the need to cover operating expenses and fixed costs. Times Argus and the Rutland Herald have more on this story. See the Sutherland Coop Team’s July 25, 2013, post for information on the...
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