Texas Utilities Code - Section 161.059. Nonprofit Operation
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Texas Laws > Utilities Code > Texas Utilities Code - Section 161.059. Nonprofit Operation
Section: 161.052 161.053 161.054 161.055 161.056 161.057 161.058 161.059 161.060 161.061 161.062 161.063 161.064 161.065 161.066
§ 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;
(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
(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 11, 2007