Eversheds Sutherland Coop Law Blog
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North Carolina Mayor Organizing Opposition to ElectriCities’ Rate Hike

Cities in North Carolina are trying to organize opposition against ElectriCities’ rate increase by creating their own coop. New Bern, North Carolina, mayor Lee Bettis met with county officials and residents to explain how the city was trying to take advantage of the planned merger of Progress Energy and Duke Power. Bettis has been working since last January to organize fellow mayors whose towns are members of the ElectriCities electric utility cooperative. In 2009, electric rates rose 18 percent in New Bern, according to Bettis. The Sun Journal has the full story.
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Surface Transportation Board Dismisses Part of Complaint Against Union Pacific

The Surface Transportation Board has agreed to dismiss part of Arizona Electric Power Cooperative, Inc.’s (AEPCO) coal rate complaint against Union Pacific Railroad (UP). On March 24, AEPCO notified the board that it had settled a lawsuit with UP and asked the board to dismiss the sub-docket portion of the rate case. The sub-docket concerned a dispute between AEPCO and UP over whether the parties entered into a valid contract for UP to transport Colorado and Powder River Basin coal. UP sent AEPCO a proposal and AEPCO agreed to it, but its agreement came after the stated deadline. UP...
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Florida Public Service Commission to Consider Territorial Dispute Between Coop and Gulf Power

Gulf Power Company, part of Atlanta, Georgia’s, Southern Company, is in dispute with Choctawhatchee Electric Cooperative (CEC) over which utility will provide electric service to a new mixed-use development in the Florida panhandle. The development, Freedom Parkway, located in Crestview, Florida, consists of roughly 171 acres and will serve both residential and commercial customers. Although Gulf Power provides electricity to the east of the project, CEC argues that it has more of a historical presence in the area. Follow the link to get access to the full docket.
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Decision Under New Alabama Ethics Act Allows Coops To Mingle With Legislators

The Alabama Ethics Commission issued several advisory opinions this month, including one involving a Baldwin County power cooperative. The opinions were the first big test for last minute changes made to the Alabama Ethics Act, which were rushed through during a special session last year. The commission found that a coop could invite legislators to Chamber of Commerce functions. Read more about the commission’s decision here.
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Cape Solar Project Sets Bright Example

At a press conference on April 21, Cape & Vineyard Electric Cooperative President Charles McLaughlin announced CVEC had awarded an 18.3-megawatt project to American Capital Energy of North Chelmsford, to be installed on capped landfills in Barnstable, Brewster, Chatham, Eastham, and Harwich as well as in two Vineyard towns for a total of 10 sites. The CVEC project’s role in reducing carbon dioxide emissions would be the equivalent of taking 3,056 cars off the road annually. And there’s a special plus involved. The Barnstable Patriot has the full story.
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New Bill Could Affect the Way Texas Coops Buy Power

Yesterday, the Texas Senate sent a bill to the House that could affect the state’s coops. The bill establishes a Texas Energy Policy Council to develop a statewide strategic energy policy that balances public health and environmental matters with the issues of costs and energy reliability. The bill would set up a framework for coops and other utilities to buy power from natural gas generation facilities. See the full text of the proposed legislation here.
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Brewster’s Bid to Join Carroll Electric Board Fails

Carroll Electric announced Thursday that it had disqualified Marcie Brewster as a board candidate in the upcoming election next month. Brewster’s efforts to meet with cooperative officials Friday were unsuccessful. A petition drive supporting Brewster’s efforts failed by eight votes in Brewster’s district, according to Carroll Electric, and 224 of the 1,300 signatures collected were disqualified. The petition team is considering asking for a recount, with at least one of its members present. The Lonely County Citizen has the full story.
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Study Documents Challenge to Utilizing Renewable Energy Potential

Rural areas have abundant opportunities for wind power and other renewable energy production. Electric coops, however, may not be able provide enough transmission lines to carry power from new renewable production facilities to many U.S. farms. Few rural coops are using renewable resources for energy, either because of technology costs, disadvantageous tax issues or problems with geography. A USDA report on the issue spotlights the Rural Electric Convenience Cooperative in Auburn, Illinois, which used a combination of state and federal grants to build a wind turbine that now provides...
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Chevron Begins Operations of New Solar Field

Chevron Mining has begun the operations of a solar field located in New Mexico. The company installed concentrating photovoltaic technology, which uses lenses to collect and focus direct sunlight onto layers of high efficiency cells on the site of Chevron’s molybdenum mine in Questa, New Mexico. Read more about the solar field’s technology, including 173 solar trackers, here.
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Coops in North Carolina and Virginia Plan Sharp Rate Hikes

North Carolina-based ElectriCities Inc. and Virginia-based Rappahannock Electric Cooperative are both planning rate increases of as much as 30 percent. According to ElectriCities, rates for the 19 cities that buy power from it would increase a cumulative total of 29.2 percent over the next five years if the coop does not restructure its debt. A full debt restructuring would limit rate increases to a total of 10.9 percent over the same period but would carry certain risks. Rappahannock, on the other hand, is reportedly pointing to extreme weather conditions as a cause of its need to increase...
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Customer Satisfaction With Energy Utilities Hits Decade High

According to the American Customer Satisfaction Index (ACSI), customer satisfaction with energy utilities has risen by 0.8 percent to 74.7 on the ACSI’s 0-100 index scale. This year, the ACSI expanded its coverage of energy utilities to include the three major categories of investor-owned, municipal and consumer-owned coops. Coops have much higher scores than investor-owed utilities, and Touchstone Energy Cooperatives, an alliance of more than 700 local electric coops across the country, had the best score of any energy utility, regardless of category. To get the full numerical breakdown,...
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Coop Manager Sees Pay-As-You-Go Power On The Horizon

According to Covington Electric Cooperative (CEC) general manager Ed Short, pay-as-you-go energy consumption may be coming to consumers in the foreseeable future. In his speech to CEC members at their annual meeting last Thursday, Short said a new meter-reading system is currently being installed to save operating costs and provide members with information they’ll need to manage energy costs in the future. This new system could allow members to pre-pay for a selected amount of kWh, preventing the need for credit checks and deposits. Read more details on this emerging technology at the...
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Pedernales Coop Board Expresses Cautious Support For Regulation Bill

Members of the Texas-based Pedernales Electric Cooperative board of directors said Monday that they will support Senator Troy Fraser’s latest attempt to impose state regulation on the coop if he addresses some concerns about the bill first. Pedernales continues to recover from a scandal that exposed closed-door practices, excessive spending and criminal activity. As some members noted at Monday’s meeting, however, Pedernales is not the same cooperative it once was. The Statesman has the breakdown on the change in the position taken by the once-embattled cooperative.
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Minnesota Coop Benefits From Roll Back of Coal Restrictions

Minnesota senators voted last Thursday to lift restrictions on carbon dioxide emissions from coal production. Supporters said the restrictions have amounted to a moratorium on both new coal plants in the state and the purchase of energy produced by new coal plants in neighboring states. Several Democrats joined the chamber’s Republicans in their unanimous support of rolling back the restrictions. The Fergus Falls Journal has the full story.
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