Rural Utility Cooperative Posts

Substantial Changes To Required Credit Notices to Consumers

by Roland F. Hall
November 11, 2011February 15, 2022

Some electric cooperatives consider consumers’ credit scores in reviewing their applications for electric service. Cooperatives that sponsor financing programs for their members may review members’ credit scores as well. The Federal Trade Commission and Federal Reserve Board recently made changes to the Risk-Based Pricing Rule (the “Rule”) that will now require cooperatives to disclose credit score information to consumers and members in certain situations.Read More »Substantial Changes To Required Credit Notices to Consumers

Electric and Telecom Cooperative Mergers

by Roland F. Hall
September 26, 2011March 12, 2023

Mergers of electric cooperatives are nothing new. Over the years, several mergers have occurred, mostly for the purpose of consolidating business functions and generating savings for members. For example, currently DS&O Electric Cooperative and Rolling Hills Electric Cooperative, both located in Kansas, are considering a merger. Such mergers often do not result in decreases in electric rates, because cooperatives typically already have long-term arrangements in place with their G&T or with third-party suppliers. Savings are most often achieved in the areas of human resources, IT, insurance, accounting, and legal fees. On the basis of such savings, as demonstrated by extensive studies and a 10-year financial forecast, two cooperatives in Texas – Humboldt County REC and Midland Power Cooperative – recently decided to seek approval of merger from their members. Of course any proposed merger must take into account complex issues such as tax considerations, regulatory issues, member relations, the effect on employees, management and the Boards of Directors, and financing and credit.Read More »Electric and Telecom Cooperative Mergers

USDA Provides $900 Million in Funding to Electric Cooperatives for Generation and Transmission Facilities and Smart Grid Improvements

by Roland F. Hall
September 12, 2011

The USDA announced on August 29, 2011, that sixteen electric cooperatives throughout the United States would receive a total of $900 million in loans for smart grid projects and improvements to generation and transmission facilities. The loans are being provided through the USDA Rural Utilities Service, and loan proceeds will help build approximately 1,500 miles of new distribution lines. Among the loan recipients are Ocmulgee Electric Membership Corporation in Georgia, Rolling Hills Electric Cooperative in Kansas, and Western Farmers Electric Cooperative. The largest loan, in the amount of $462 million, goes to Hoosier Energy Rural Electric Cooperative for additions and upgrades to generation and transmission facilities. Smart grid technologies received a total of $19 million.Read More »USDA Provides $900 Million in Funding to Electric Cooperatives for Generation and Transmission Facilities and Smart Grid Improvements

“Smart Grid” Lessons from Around the World

by Roland F. Hall
June 24, 2011

“Smart grid” initiatives can take many forms, from improving existing generation, transmission and distribution systems with new technology and software to rolling out smart meters and consumer devices. Although the media often focuses its attention on smart meters and appliances, many electric cooperatives and other utilities have been working for years to improve the communications backbone of their systems and provide greater integration of system components. Such improvements are necessary to set the stage for introducing smart grid technology that directly affects consumers, such as smart meters.

Many utilities in the United States are now introducing smart meters and related technology, but what impact will this actually have on consumers and their relationship with their utility? The degree of impact depends in part on the “smart meter” functions that the utility actually turns on. Some functions improve the distribution system without directly impacting consumer behavior, such as improvements in outage detection and data reliability. However, if the utility intends (or is required by regulators) to use smart meters to move to different consumer pricing structures, the result could be a dramatic change in how consumers perceive their utility and use electricity. Success will require more than simply installing new equipment; it calls for careful planning and systematic consumer education programs.

National Rural Telecommunications Cooperative Will Offer Smart Meter Solutions To Its Members

by Roland F. Hall
April 14, 2011February 15, 2022

On March 7, 2011, the NRTC announced that it would offer a wireless AMI (advanced metering infrastructure) system to its members from Sensus.

RUS Accepting Applications for Broadband Loans

by Roland F. Hall
March 22, 2011February 15, 2022

he USDA announced on March 10, 2011, that the Rural Utilities Service (RUS) is now accepting applications for broadband loans under the Broadband Loan Program. Although a final appropriations act has not yet been passed, RUS issued the notice now to give applicants time to submit proposals and allow RUS time to process applications within the current fiscal year.

Cooperatives Consider Calls for Transparency

by Roland F. Hall
March 16, 2011February 15, 2022

The article discusses current cooperative practices, examines the state open access and open records law applicable to public entities, and, for those cooperatives interested in developing open access policies, provides guidance on drafting such policies.