Are electric power associations overcharging their members? Tis the question asked in a war waged in court between several Mississippi electric cooperatives and their members. The members keep winning but the electric power associations keep appealing.
According to the Jackson Jambalaya, Ms. Butler alleged Coast EPA had $158,181,000 in accumulated capital. She claims this patronage capital was equivalent to 45% of assets, thus $53 million, the capital alleged to be over the 30% threshold, should be returned to Coast EPA members.
Similar lawsuits that asked for alleged excess revenue be returned to members were filed against other cooperatives in various chancery courts in Mississippi as well.* The plaintiffs asked the courts to refund $308 million to 187,250 member-owners. The estimated average return per member sought is $1,650. The plaintiff charged the EPA’s with several counts of unjust enrichment, conversion, fraudulent concealment, negligence, and breach of fiduciary duty.
Jackson Jambalaya
1/15/2018
Sarah Ulmer
