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Texas Utilities Code - Section 161.059. Nonprofit Operation

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§ 161.059. NONPROFIT OPERATION.  (a) An electric 
cooperative shall operate without profit to its members.
	(b)  The rates, fees, rents, and other charges for electric 
energy and other facilities, supplies, equipment, or services 
furnished by the cooperative must be sufficient at all times to:
		(1)  pay all operating and maintenance expenses 
necessary or desirable for the prudent conduct of its business;
		(2)  pay the principal of and interest on the 
obligations issued or assumed by the cooperative in performing the 
purpose for which the cooperative was organized;  and
		(3)  create reserves.                                                         
	(c)  The cooperative shall devote its revenues:                                
		(1)  first to the payment of operating and maintenance 
expenses and the principal and interest on outstanding obligations;  
and
		(2)  then to the reserves prescribed by the board for 
improvement, new construction, depreciation, and contingencies.
	(d)  The cooperative shall periodically return revenues not 
required for the purposes prescribed by Subsection (c) to the 
members in proportion to the amount of business done with each 
member during the applicable period.  The cooperative may return 
revenues:
		(1)  in cash, by abatement of current charges for 
electric energy, or in another manner determined by the board;  or
		(2)  through a general rate reduction to members.                             

Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.                    

Last modified: August 10, 2007