Eversheds Sutherland Coop Law Blog
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Texas Coop to Own and Operate Experimental Wind Energy Storage System

South Plains Electric Cooperative will own and operate an experimental battery energy storage system at the Reese Technology Center in Lubbock, Texas.  The storage system will focus on combining utility scale energy storage with wind generation and will be installed by Samsung SDI and Xtreme Power as part of a $27 million smart grid demonstration project.  To read more about the project, click here.
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New Mexico Electric Rates Still in Limbo

Kit Carson Electric Cooperative and its power supplier, Tri-State Generation and Transmission Association, Inc. (Tri-State), continue their battle over electric rates before the New Mexico Public Regulation Commission (PRC).  The PRC has responded to Tri-State’s arguments that this issue is beyond state regulator jurisdiction by claiming that Tri-State is trying to circumvent the law.  See the Sutherland Coop team’s December 26, 2012, post for more background on this controversy.  Click here for more information on this rate case.
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Alaska Bill Could Allow Coop Activity in Protected Area

A bill moving through Alaska’s legislature would eliminate wilderness restrictions in a portion of a Bristol Bay region state park to allow a utility to study a hydroelectric project on a lake where development now is banned.  So far, in observance of a 10-year-old management plan approved by local residents, state park officials have refused to allow Nuvista Light & Electric Cooperative to fly helicopters into the area and conduct drilling and seismic work under a $10 million legislative grant approved in 2011.  Senate Bill 32, sponsored by Republican Sen. Lesil McGuire, would reverse...
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Government Announces New Funding for Rural Coops

In a recent announcement, John Padalino, USDA Rural Utilities Acting Administrator, stated that rural electric cooperatives and utilities in 12 states will receive loan guarantees to improve generation and transmission facilities and implement smart grid technologies.  The statement was made during the annual meeting of the National Rural Electric Cooperative Association on behalf of Agriculture Secretary Tom Vilsack and includes support for more than $8 million in smart grid technologies.  For more on this story and, click here.
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New Regulation Under Cybersecurity Executive Order

President Obama has issued an Executive Order to address the growing cyber threat to the Nation’s “critical infrastructure.”  The energy industry should pay attention, both for regulatory compliance purposes and also as a matter of sound business practice, in the face of the increasing security threat posed by cyber attacks.  Read the full Sutherland Legal Alert.
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Proposed Texas Bill Would Give Customers Grounds to Sue

In addition to creating a cause of action against utilities for theft and improper use of data, a proposed Texas bill, H.B. 1171, also provides customers with the right to opt out of smart meter programs and the right to have previously installed meters removed.  This bill differs from a prior Senate bill in that H.B. 1171 provides customers with this cause of action but does not provide utilities with the right to charge removal fees and monitoring fees for customers that continue to use traditional metering.  Law360 has the full story (subscription required).
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Departing Pedernales CEO Offers Explanation for Resignation

Although the Pedernales Electric Cooperative board voted to table a consumer choice resolution pending further research and analysis, the coop’s CEO, R.B. Sloan cited the proposal as one reason for his resignation.  In announcing his resignation to the board, Sloan reiterated that adopting consumer choice would be a damaging move for the coop.  The Austin American-Statesman has the full story.
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NRECA Asks FERC to Clarify Revised Bulk Electric System Rule

The National Rural Electric Cooperative Association (NRECA) has asked the Federal Energy Regulatory Commission (FERC) for a clarification of its final rule on a revised definition of Bulk Electric System.  Issued in late December 2012, the final rule approved most elements of the revised definition by the North American Electric Reliability Corporation, but FERC also ordered some additional modifications and interpretations.  The NRECA also filed a rehearing request related to a final rule that requires regular reporting of complete electronic tagging.  To read more, click here.
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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 complete interview, click here.
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South Carolina Town Receives Land Donation

The town of Bluffton, South Carolina, is offering seven acres of land in its May River Technology Park to attract more private businesses.  However, Bluffton did not have to tap into tax revenues to buy this land.  It was donated by Palmetto Electric Cooperative and Hargray Communications.  In return, these entities will be allowed to forgo state license fees.  Bluffton also is expected to receive another $80,000 from other coops.  Since 1996, state law has allowed utility companies and electric cooperatives to redirect funds, used for state fees, to local infrastructure projects for...
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Arizona Appealing EPA Decision Requiring Upgrades to Coal Plants

The Arizona Attorney General is seeking an appellate court review of an  Environmental Protection Agency (EPA) decision requiring pollution control upgrades at three coal plants.  One of the coal plants in question, the Apache Power Plant, is owned by the Arizona Electric Power Cooperative.  The Arizona Daily Star is following this story.
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Coop Considers Closing Coal Plant Citing Regulations and Other Costs

Central Electric Power Cooperative of Jefferson City, Missouri, is considering closing its Chamois power plant because of regulations and other costs.  The coop held a meeting on Thursday to discuss whether it should make $17 million in improvements to comply with Environmental Protection Agency regulations for air quality and to build a new railroad siding to bring coal to the plant.  Given these costs and the current member base, closure is one option being seriously considered.  Connect MidMissouri is covering this story.
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Members and Other Customers Intervene in Big Rivers’ Request for a Rate Increase

To make up for the loss of its biggest customer, Century Aluminum in Hawesville, Kentucky, Big Rivers Electric Corporation has requested a rate increase in a filing with the Kentucky Public Service Commission.  Some of the coop’s distribution members and industrial customers have filed as interveners seeking to have more input into the process.  The Owensboro Messenger-Inquirer has the full story.
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Coop and IOU Strike Deal to End Territorial Dispute

The city council of Cheyenne, Wyoming, has approved a franchise agreement between High West Energy, Inc. (High West) and Cheyenne Light, Fuel and Power Company that ends a 35-year territorial dispute between the coop and the investor-owned utility.  Over the years, the coop has lost service territory and customers as the city expanded into unincorporated territory serviced by High West.  The franchise agreement allows High West to continue serving certain commercial and industrial accounts currently in an unincorporated area of Cheyenne, even if city officials decide to further expand the...
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