Rural Utility Cooperative Law Blog

The versatile reciprocating engine is increasingly being selected to meet the challenges faced not only by commercial users but also by investor-owned utilities, municipal utilities and rural cooperatives. From one small engine to a bank of larger engines, these designs

As more and more cooperatives provide fiber internet to their members and customers, it may be helpful to review fiber-installation contracts with third-party installers.  Attorney David Cook recently published an article in Rural Telecom, the magazine of NTCA – The

In a prior Cooperative Tax Post, we discussed the Service’s trend of permitting cooperatives to satisfy notification requirements of Subchapter T by modern transmission methods.  In this recent private letter ruling, the Service permitted a cooperative to obtain patrons’ written

Dan Nemes of MN350 (an organization addressing the global climate crisis), offers this op-ed in the 6 February issue of  Rochester, Minnesota’s Post-Bulletin, opposing the Minnesota Legislature’s recently proposed legislation that he believes will negatively impact the state’s renewable energy future. Senate

This article is reprinted from CFC Solutions News Bulletin (23 January 2017). The 19 member distribution cooperatives of Kansas Electric Power Cooperative (KEPCo), a generation and transmission cooperative (G&T) based in Topeka, Kansas, will receive more green power—thanks in part

Cooperative tax professionals occasionally consider whether patronage dividends, such as QWNAs, are considered equity or debt.  The issue was central to a recent decision by the Service’s Chief Counsel Advisory.  These promulgations are important because they are issued by the

The following article is reprinted with permission from CFC Solutions Newsletter (17 January 2017, Vol.19, No.2) Capital credits retired by not-for-profit electric distribution cooperatives in 2015 topped $1 billion for the first time, according to recently published data from NRECA,

The following article is reprinted from CFC Solutions News Bulletin (17 January 2018, Volume 19, Number 2). With more electric cooperatives looking into providing broadband service to unserved and underserved rural communities, CFC Senior Vice President for Member Services Joel

The IRS is seeking comments on Form 1120-C, which is the tax return required for most Subchapter T cooperatives other than Section 521 agricultural cooperatives. To view the request for comments, click here.  All comments are due by February 27,

In 2011, Eastern Maine Electric Cooperative (EMEC) entered into a contract with First Wind Holdings, LLC and four of its former subsidiaries (Evergreen Gen Lead, LLC; Evergreen Wind Power III, LLC; Stetson Holdings, LLC; and Stetson Wind, II LLC), for

Bioenergy is energy derived from biofuels, produced directly or indirectly from organic material called biomass. It is the single largest renewable energy source today, providing 10% of the world’s primary energy supply. Traditional unprocessed biomass such as fuelwood, charcoal and

Georgia’s 42 electric membership cooperatives (EMCs) provide power to nearly half the state’s 9.4 million residents and more than 70 percent of its land area. Despite the pressures of keeping up with escalating population growth (Georgia is the fifth fastest-growing

In October 2015, a New Mexico jury found Tri-State Generation and Transmission partly responsible for the largest wildfire in the state’s history. The wholesale power supplier accepted the verdict but the coop community at large breathed a sigh of relief

Most Americans have multiple high-speed wireless choices when it comes to Internet access but many residents living in the less-populated, more rural parts still have to rely on 90s technology, i.e. dial-up, for their data needs. Now, cooperatives that have

In June 2011, a devastating wildfire swept through New Mexico’s Santa Fe National Forest, blackening over 156,000 acres, destroying 63 homes and causing an estimated $200 million worth of damage. The fire was sparked when an 80-foot-tall “visibly diseased and

To view this Cooperative Tax Brief in PDF, click here. Allocation and distribution of earnings is a fundamental tenant of cooperative operation.  It is not only important to comply with bylaws and other contractual agreements with patrons, it is also

Read this Cooperative Tax Brief in PDF format. As shown in prior posts, the most interesting rulings are those that involve the interplay of cooperative taxation (including Subchapter T) and other tax laws governing traditional corporations.  A recent ruling by

Iowa coop Raccoon Valley Electric has plans to go carbon-free, and its first step is to purchase enough Renewable Energy Credits (RECs) to fully offset its use of carbon-based fuels. Renewable Energy Credits(RECs), also known as Green tags, Renewable Energy

In a prior post, we discussed the interaction of Subchapter T (governing cooperatives) and Subchapter M (governing REITs).  As explained in the prior post, REITs are Real Estate Investment Trusts that are required to generate a sufficient amount of gross

After decades of casual conversations, two Idaho coops are now seriously discussing a merger which if successful could save members over $38m over a ten-year period. Last November, Fall River Electric and Lower Valley Energy released a 30-page document evaluating

View the PDF version of this Cooperative Tax Brief here. When it comes to financial losses, many cooperatives are uncertain how to handle them.  Because cooperatives attempt to operate at cost, the uncertainty likely arises from the rare occurrence of

What happens when a utility cooperative’s largest customer goes belly up? Industrial and commercial customers can be the largest accounts for utility cooperatives, such as electric cooperatives, telephone cooperatives, water cooperatives, etc. When these customers fail to pay their bill,

CFC Solutions Newsletter (Monday, 21 March 2016) The latest short-term outlook from the U.S. Energy Information Administration (EIA) pegs natural gas to produce 33.4 percent of the country’s electricity generation this year, compared with 32 percent for coal. “This marks

In 1988, the Tennessee Legislature changed state law to give rural electric cooperatives a temporary, four-year city and county property tax exemption on their investments in new facilities and plants. The law sat on the books, unnoticed, for almost 20 years