Eversheds Sutherland Coop Law Blog
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New Hampshire Electric Coop Lineworkers Threaten Strike

The union representing New Hampshire Electric Cooperative lineworkers says it is considering a strike after 117 bargaining sessions have failed to result in an agreement in the renegotiation of the lineworkers’ contract.  The dispute involves wage and pension issues, and negotiators are scheduled to meet again Thursday.  Read more here.
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PSC Examines Smart Grid and Smart Meter Opportunities

The Kentucky Public Service Commission (PSC) is examining Smart Grid technologies, to include smart meters and electric prices that are tied to the time of usage, through an administrative proceeding.  All electric utilities in Kentucky have been named as parties to the proceeding. For more on this story, including the complete list of utilities, click here.
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California ISO Approves Participation by Nevada Coop

The California Independent System Operator (California ISO) recently approved Nevada-based Valley Electric Association, Inc.’s (VEA) participation agreement to join the California ISO in January 2013.  VEA is the first utility outside of California to join the regional market.  The coop’s renewable generation portfolio will be used to satisfy California’s aggressive renewable energy standards, which requires California utilities obtain 33% of their power from renewable sources by 2020.  Click here for the full story.
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NRECA Supports Expansion of the “Small Business” Definition

The National Rural Electric Cooperative Association (NRECA) commented on the Small Business Administration’s proposed update to the definition of a “small business,” expressing the need for a size standard based on the number of employees and specific sector of the energy industry.  Coops currently classified as small businesses will not be affected by any new standard, but additional coops that do not currently qualify may fall within the four corners of the definition, which is critical to how coops are viewed by other federal regulatory agencies.  Read more here.
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Patent Litigation Defense Center for Innovatio Claims

We are pleased to announce the launch of the Patent Litigation Defense Center for Innovatio Claims. Sutherland Asbill & Brennan LLP defends clients against claims brought by the entity Innovatio IP Ventures, LLC, a non-practicing entity that contends it controls the patents on some of the most common means of wireless data transmission in commercial use today, including wireless internet “hot spots,” WLAN networks and mesh technology. To learn more please click here.
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FERC Receives Mixed Responses Over Proposed Change in Merchant Transmission Policy

The Federal Energy Regulatory Commission (FERC) has received mixed responses over its proposed change in policy regarding merchant transmission project capacity allocation.  The proposed policy would allow merchant transmission project developers to bilaterally negotiate market-based, rather than cost-based, rates for up to 100 percent of their projects’ capacity.  If implemented, this proposal would eliminate the open season process, which requires the merchant project owners to offer project capacity at the same price to every customer.  While several power companies were supportive of the...
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Electricity Groups Claim New CFTC Reporting Rules Too Confusing

The National Rural Electric Cooperative Association (NRECA) and two other electricity trade groups sent a letter to the US Commodity Futures Trading Commission (CFTC) earlier this week complaining about new reporting rules for traders of physical commodities and commodity derivatives.  The groups claim that the new rules, particularly the new form that traders will be required to file with the CFTC, contain confusing language and complex regulatory terms and concepts.  The groups are seeking to persuade the CFTC to ease the regulatory burdens created by the new rules for certain groups. ...
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Missouri Coop Sued for Breach of Contract

Atlantic Engineering Group, Inc. (AEG) filed a complaint this week in a Missouri district court against Ralls County Electric Cooperative (RCEC) for breach of a construction agreement related to the Ralls County Electric Fiber-to-the-Home Project.  AEG is suing for the unpaid balance plus interest under the contract.  Read the complaint here.
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Oklahoma Coops Race to Accommodate Increased Load Due to Oil and Gas Boom

Oklahoma coops are seeing their loads double, and triple in some cases, due to the growing oil and gas industries.  Kay Electric Cooperative, for example, currently serves 80 megawatts, which is about double the size of its load two years ago, and projects its possible growth to 400 megawatts over the next two years.  Coops are also under pressure to add new infrastructure-like substations and transmission to meet the booming demand.  Read more here.
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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 alleged violations included concealment and withholding of patronage capital, unjust enrichment of board members, “incompatible” accounting practices, withholding of access to books, records, meeting...
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CFC Report Provides National Overview of Renewable Energy Projects

The National Rural Utilities Cooperative Finance Corporation (CFC) provided a report on the progress of various renewable energy projects at the National Renewables Cooperative Organization’s (NRCO) September meeting.  John List, the CFC senior vice president of Member Services, discussed the funding behind current and future renewable energy projects.  Mr. List reported that since 2008, CFC has provided funding for more than 60 electric cooperative renewable projects in 22 states.  The majority of CFC-funded projects are biomass projects at 41 percent, followed by solar projects at 25...
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FERC Launches New Cybersecurity Office

The Federal Energy Regulatory Commission (FERC) is creating a new office to address cyber and physical security risks to FERC-jurisdictional facilities, such as electric generation and transmission facilities, oil and gas pipelines, and LNG terminals. The new Office of Energy Infrastructure Security (OEIS) will rely on FERC’s existing statutory authority in providing “leadership, expertise and assistance” to identify and mitigate such risks. While electric utilities will be familiar with FERC’s efforts to address cybersecurity risks, such oversight will be new to companies in the oil and gas...
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Plan to Bury Transmission Lines Met With Opposition from Mid-Atlantic Coops

Old Dominion Electric Cooperative and North Carolina Electric Membership Corporation are among the wholesalers disputing whether they must help pay to bury three Virginia transmission lines as currently proposed by the Virginia Electric and Power Co. in transmission rate agreements with the wholesalers.  The wholesalers argue that burying the lines is a purely local retail decision that provides no benefits to the wholesales.  Read more here (subscription required).
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Utility Coop Reaches Critical Supply Agreement

Golden Valley Electric Association (GVEA) and BP Exploration have reached a natural gas supply contract, which will allow GVEA to purchase up to 23 billion cubic feet (bcf) of natural gas per year.  Since GVEA will likely not use more than 3.5 bcf of natural gas for local generation, the remaining gas will be available for other distribution purposes.  The agreement represents an important step toward implementing GVEA’s plan to truck natural gas to the Fairbanks area and provide additional gas to the Interior.  Read more here.
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