Eversheds Sutherland Coop Law Blog
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LCRA Withdraws Request for Temporary Injunction

The Lower Colorado River Authority (LCRA) has withdrawn its request for a temporary injunction that would have prevented Central Texas Electric Cooperative (CTEC) from terminating an exclusive power agreement precluding CTEC’s purchase of power in the open market.  CTEC plans to purchase less expensive power beginning September 13.  The full story can be found here.
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Prairie State Customers Paying More than Planned

Customers receiving energy from the Prairie State Energy Campus in Washington County, Illinois, are being charged 40 to 100 percent more for energy than originally planned.  Approximately 95 percent of the 1,600-MW coal-fired plant is owned by 217 municipalities and 17 electric membership cooperatives in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, Virginia and West Virginia.  Click here for additional details.
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Proposed CFTC Order to Exempt Coops from Regulations

The Commodity Futures Trading Commission (CFTC) has proposed an order that would exempt certain electricity transactions involving electric cooperatives from most Commodity Exchange Act regulations.  The order would exempt transactions between and among coops and government-owned electric utilities, including state and municipal utilities and the federal power marketing administrations.  Additional information regarding the proposed order can be found here.
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Michigan Coop to be Member-Regulated

The Michigan Public Service Commission has approved the transition of Presque Isle Electric & Gas Co-op (Presque Isle) to member-regulation in accordance with a resolution adopted by Presque Isle’s board.  This transition was approved once Presque Isle met all prerequisites required for exercising authority over its rates, charges, accounting standards, billing practices, and terms and conditions of service.  Member-regulation will begin on Sept. 23.  Click here for more information.
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Georgia Coops to Help Restore Power after Hurricane

Georgia coops are swooping in to assist the Gulf Coast’s power restoration efforts in the aftermath of Hurricane Isaac.  Experienced power crews from eight electric coops are being sent to parts of Mississippi and possibly Louisiana to help restore power in the areas hardest hit.  Read more here.
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NERC Audit Draws Concern

The Federal Energy Regulatory Commission (FERC) has approved a staff audit of the expenses of its certified electric reliability organization, the North American Electric Reliability Corporation (NERC).  The coop community has expressed concerns that this oversight by FERC will hamper NERC’s  ability to do its job.  Click here for more.
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Coop Group Announces Construction of Gas-Fired Plant

The Mid-Kansas Electric Company (Mid-Kansas), an entity comprised of five coops and one subsidiary, plans to construct a new 110-MW, gas-fired generating facility near Ulysses, Kansas.  The plant will cost approximately $130 million and is estimated to be in commercial operation by April 2014.  Mid-Kansas will use the facility to benefit from the future Southwest Power Pool Day 2 market as well as to address variable loads due to increased wind generation in the region.  The Hutchinson News has more.
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Coops among Recipients of Rural Economic Development Grants and Loans

The United States Department of Agriculture recently announced the list of recipients of grants and zero-interest loans issued through the Rural Economic Development Loan and Grant program (REDLG), and several electric coops were among the recipients.  The REDLG program aims to promote economic development in rural areas.  Click here for more.
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NRECA Lobbies to Avoid Fee on Smart Meters

In early August 2012, the National Rural Electric Cooperative Association (NRECA) argued before the Federal Communications Commission that electric cooperatives should not be required to pay a federal fee on smart meters and smart grid technologies.  The fee would go to the Universal Service Fund, which was established to provide universal telecommunications service.  Click here for more information.
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Federal Court Invalidates EPA Clean Air Act Rule

In a 2-to-1 ruling, the U.S. Court of Appeals for the District of Columbia Circuit struck down an EPA air quality rule related to emissions crossing state lines.  The Court held that the EPA had impermissibly exceeded its authority under the rule by requiring upwind states to bear more than their share of reductions and failing to give states the opportunity handle emissions reductions through a state implementation plan, effectively dictating to the states how to achieve the emissions reductions.  Click here for additional details.
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Vermont Utility Merger May Lead to Higher Rates for Coop

A merger between Central Vermont Public Service Corporation and Canadian-owned Green Mountain Power , Vermont’s two largest power companies, may cause retail rates to rise at one of Vermont’s smallest utilities, Washington Electric Cooperative (Washington Electric).  The merger will produce a new, higher transmission charge, which Washington Electric estimates will be about 1.25 percent.  Read more here.
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Kentucky Aluminum Plant Notifies Big Rivers of Contract Termination

Century Aluminum Company (Century) has decided to terminate its power contract with Big Rivers Electric Corporation (Big Rivers) for Century’s 480-MW aluminum smelter in Hawesville, Kentucky.  Closure of the smelter, which is one of the possible outcomes of ending the power contract, has great implications for all in the area.  Not only would it affect the 700 employees of the plant, but also the remaining customers of Big Rivers would have to help shoulder the millions of dollars of fixed costs associated with the contract.  The coop estimates that this would require a 20 percent increase...
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Tennessee Coop Opens New Solar Farm

Duck River Electric Membership Cooperative (DREMC), based in Shelbyville, Tennessee, is now the first electric coop in the seven state TVA service territory to offer members access to green power through a newly constructed solar farm.  The DREMC Solar Farm, located in Shelbyville, allows its members to invest in solar energy without the cost of installing or maintaining their own system.  Members can invest in one unit of interest for as little as $600.  Click here for the full story.
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NRECA Asks EPA to Tweak Standards for Small Emergency Generators

The National Rural Electric Cooperative Association (NRECA) and a number of coops argued to the Environmental Protection Agency (EPA) that fine-tuning the standards for small emergency generators could help coops ensure that the flow of electricity to rural America remains steady and reliable.  The August 9 comments will likely be the final opportunity in writing to influence EPA’s rule governing emissions and use of the devices, known as reciprocating internal combustion engines.  Click here for more.
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