IRS Form Change Affects Coops
Posted on Apr 10, 2012 in Tax | Comments Off on IRS Form Change Affects Coops
An Internal Revenue Service (IRS) change could affect the way that electric coops report capital credits on federal tax forms. The change affects Form 990, which organizations exempt from federal income taxes must file annually to provide their financial information to the government. New language in the instructions of Form 990 states that “patronage dividends paid” by tax-exempt...
Tri-State Returns $20 Million in Capital Credits
Posted on Dec 14, 2011 in Corporate Governance, Financing, Patronage Capital | Comments Off on Tri-State Returns $20 Million in Capital Credits
Tri-State Generation and Transmission Association’s board has authorized the retirement of $20 million of capital credits to the association’s member coops. This is the 23rd consecutive year Tri-State has returned capital credits to its members. For more information, click here.
Pedernales to Distribute Capital Credits
Posted on Oct 18, 2011 in Corporate Governance, Patronage Capital | Comments Off on Pedernales to Distribute Capital Credits
Pedernales Electric Cooperative will divvy out roughly $13.5 million in capital credits to current and former members. The distribution stems from Pedernales’ Capital Credits Policy implemented in April 2011 and is comparable to a quarter of Pedernales’ 2010 net margin. The Highlander has more.
Missouri Coop Experiences Large Revenues Without Much Growth
Posted on Aug 4, 2011 in Corporate Governance, Patronage Capital | Comments Off on Missouri Coop Experiences Large Revenues Without Much Growth
At its annual meeting held in late July, the Platte-Clay Electric Cooperative reported strong operating revenues and $1.64 million in capital credits paid out to members this year. The coop’s leaders credit smart fiscal management for the numbers because the coop has experienced almost non-existent growth over the last few years. Also at the meeting, members approved certain bylaw...
Carroll Electric Coop Faces Class Action
Posted on Jul 21, 2011 in Corporate Governance, Litigation | Comments Off on Carroll Electric Coop Faces Class Action
On Tuesday, members of the Carroll Electric Cooperative Corporation filed a class action complaint against the coop with the Arkansas Public Service Commission. The class seeks, among other things, increased transparency and democratic governance of Carroll Electric as well as patronage capital (the repayment of capital credits to coop members). Carroll County News has the...
Pedernales Electric Cooperative Board Changes How Unclaimed Capital Credits Are Released
Posted on Jul 1, 2011 in Corporate Governance, Financing | Comments Off on Pedernales Electric Cooperative Board Changes How Unclaimed Capital Credits Are Released
The board of Pedernales Electric Cooperative, the largest electric distribution cooperative in the United States, has voted to change how it releases unclaimed capital credits to the state of Texas. The coop will continue taking steps to return $4.2 million in unclaimed money to members by publicizing on its website a list of the names of members who have not yet collected the money...
Florida Coop Gives Millions in Student Grants
Posted on Jun 14, 2011 in Legislative & Politics | Comments Off on Florida Coop Gives Millions in Student Grants
Withlacoochee River Electric Cooperative has given out $5.3 million in scholarship money in the past 15 years. The scholarship program began in 1996, when the Florida legislature overturned a law that required unclaimed capital credits to be forfeited to the state. In 1997, the coop began using its unclaimed capital credits to fund the WREC Educational Foundation, a program that...
Update on Patronage Capital Cases, New Case Filed in North Carolina
Posted on Mar 10, 2011 in Patronage Capital | Comments Off on Update on Patronage Capital Cases, New Case Filed in North Carolina
A new patronage capital case has been filed in North Carolina – the first known patronage capital case of this kind to be filed in the state. The class (consisting of the estates of deceased members of South River Electric Membership Corp.) claims that the coop discounted accumulated capital credits of the deceased members at retirement and converted them to permanent equity by...
Arkansas Supreme Court Dismissed Capital Credit Suit for Lack of Jurisdiction
Posted on Feb 15, 2011 in Corporate Governance, Derivative Suits, Litigation | Comments Off on Arkansas Supreme Court Dismissed Capital Credit Suit for Lack of Jurisdiction
The court ruled that the Public Service Commissions has exclusive jurisdiction over coops’ capital credit practices. This ruling benefits cooperatives because it is usually harder for plaintiffs’ lawyers to recover large fees before a state’s utility commission. See Electric Co-op Today for more on this story.
Lawsuit Filed Against Coop Based On Its Treatment of Capital Credits
Posted on Feb 11, 2011 in Corporate Governance, Derivative Suits, Litigation | Comments Off on Lawsuit Filed Against Coop Based On Its Treatment of Capital Credits
According to the Fay Observer, a class action lawsuit has been filed against North Carolina’s South River Electric Membership Corporation relating to the coop’s treatment of credits owed to deceased customers. The claim involves the coop’s practice of reducing the amount of these credits based on the time value of money.
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