Eversheds Sutherland Coop Law Blog
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Shippers Push Against Increased Coal Dust Costs

The National Rural Electric Cooperative Association (NRECA) was among the filers opposing a BNSF Railway tariff that would cost shippers $50 to $150 million annually to control coal dust from rail cars.  In the filings, submitted to the Surface Transportation Board, opponents argued that these costs are unreasonable and result in double-payment obligations for shippers.  Read more here.
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NRECA Supports Delay of Dodd-Frank Rulemakings

The National Rural Electric Cooperative Association (NRECA) filed comments requesting that the Commodity Futures Trading Commission delay the effective dates of its rulemakings implementing new financial reform under the Dodd-Frank Act.  The NRECA noted that no-action relief is necessary while uncertainty surrounding the rules and regulations persist.  Without such relief, market liquidity may suffer and result in higher energy prices.  Read the full story here.
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Nonpublic Electric Utilities Subject to FERC Quarterly Reports

The Federal Energy Regulatory Commission (FERC) will begin requiring certain nonpublic electric utilities to submit Electric Quarterly Reports (EQRs) providing details on their energy and capacity transactions.  Sales by electric coops to their members are excluded from the reporting requirement, which should be in effect by the third quarter of 2013.  Click here for more (subscription required).
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Sutherland Coop Webinar Series – Webinar III: Natural Gas Transactions

With natural gas prices at historic lows and unconventional domestic supplies on the rise, natural gas usage is increasing for power generation.  In Sutherland’s Electric Cooperative Webinar Series, “Natural Gas Transactions,” on October 9, 2012, David Wochner highlighted optimal transportation and storage arrangements available for natural gas and related regulatory and compliance issues.  Click here to access a copy of the event recording or a PDF copy of the presentation.
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NHEC Says Smart Meters Do Not Infringe on Privacy

Residents in Bristol, New Hampshire, have spoken out regarding their opposition to the installation of smart meters in their homes, claiming that such meters are an invasion of privacy.  The residents, groups such as the New Hampshire Coalition Against Smart Meters, and even state representatives claim that information about individual device use may be obtained with these smart meters.  The New Hampshire Electric Cooperative (NHEC) has refuted these claims, stating that these smart meters cannot record anything other than the amount of electricity being used by an entire household.  NHEC...
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NRECA Recommends Amendments to the USDA Efficiency Plan

The National Rural Electric Cooperative Association (NRECA) has announced its support for the proposed Energy Efficiency and Conservation Loan Program, an Agriculture Department initiative that would fund electric coops to help rural residents with the upfront cost of energy-efficiency upgrades.  However, the NRECA caveated this support with a recommendation that the program provide enhanced flexibility and discretion.  The program will initially make $250 million available to coops, which would then make microloans to members for efficiency improvements.  For more information on the program...
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New Hampshire Coop Avoids Employee Strike

New Hampshire Electric Cooperative and its unionized employees ratified a new contract last Friday, which allowed the coop to avoid a looming strike at the utility that serves some 83,000 homes and businesses in all parts of the state.  The vote to ratify the agreement came after months of negotiations between the utility and the International Brotherhood of Electrical Workers (IBEW) Local 1837 over wages and pensions.  IBEW Assistant Business Manager Tom Ryan said the new agreement provides wage increases and preserves a defined benefit pension plan for new and existing employees.  Click...
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Oklahoma Coop Becomes Latest 100-Percent CFC Borrower

Cimarron Electric Cooperative (Cimarron Electric), based in Kingfisher, Oklahoma, has closed on long-term financing from the National Rural Utilities Cooperative Finance Corporation (CFC), becoming the CFC’s latest 100-percent borrower.  Cimarron Electric has enjoyed continued growth in the past few years due to renewed oil and gas production and saw CFC as a useful partner in helping it meet increasing demand from members.  The coop’s annual growth has equaled 18 percent in the past two years, greatly outpacing its typical annual growth, which averages 2.5 percent.  Click here to read more...
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Alaskan Coop to Restart Coal Facility

After reaching an agreement with federal regulators over an air permit, Golden Valley Electric Association plans to restart the 50-MW Healy Clean Coal Plant.  While restarting the plant will require additional pollution controls and other work, the coop plans to have the plant online within 18 to 24 months.  Restarting the plant is part of the coop’s long-term plan to move away from the use of oil-fired generation.  Read more here.
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USDA Announces Continued Funding and Support for Rural Electric Systems

In a speech before the National Rural Electric Cooperative Association, Under Secretary for Rural Development Dallas Tonsager announced that the U.S. Department of Agriculture (USDA) will continue to make funding available for modernization and efficiency improvements, including smart grid technologies.  This announcement follows USDA’s success in meeting its goal to finance $250 million in smart grid technologies in fiscal year 2012.   For a list of projects beings supported by the USDA, see the full press release.
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Wisconsin Coop Receives Huge Federal Loan Guarantee for Renewable Power

Dairyland Power Cooperative (Dairyland) was awarded a $261.9 million loan guarantee from the federal government to reduce environmental impacts, update technology and improve distribution in a swath of the rural Midwest.  Renewable energy sources make up about 12 percent of Dairyland’s electricity sales, which exceeds the state’s 2015 requirement that all Wisconsin utilities have at least 10 percent renewable generation.  The loan guarantee will allow the La Crosse-based coop to add 81 miles of transmission line, increase efficiency and cut coal emissions.  The guarantee also allows for $3.5...
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Mohave Electric Cooperative Explains Necessary Rate Increase

Mohave Electric Cooperative (MEC) has explained its recent rate increase, stating that it was necessary in order to accommodate increased operating expenses.  MEC’s new system has a tiered rate structure, which will yield a higher rate when more power is used, a practice commonly used by power companies.  Read more here.
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North Dakota’s Electricity Case against Minnesota Survives First Legal Challenge

A federal judge has ruled that the state of North Dakota’s case against Minnesota can move forward, as North Dakota has a “plausible” claim that a 2007 Minnesota energy law is invalid due to preemption by federal law.  Minnesota’s Next Generation Energy Act bars new coal-fired power plants in Minnesota and restricts out-of-state imports of new coal-based power generation unless the carbon dioxide is offset with reductions elsewhere.  North Dakota filed suit because the law hinders its ability to utilize its deposits of lignite coal to generating electricity in new power plants and sell such...
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Kentucky PSC Accepts Settlement in Big Rivers Environmental Case

The Kentucky Public Service Commission (Kentucky PSC) has accepted a regarding a proposed environmental compliance plan and environmental surcharge request submitted by Big Rivers Electric Corporation (Big Rivers).  Under the proposed plan, Big Rivers will not be required to construct the most costly emission control projects from its original plan, reducing the total cost from $283.5 million to $58.5 million.  This decrease will greatly lessen the associated rate increases.  Most of the changes in the plan occurred due to a federal court decision overruling certain U.S. Environmental...
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