Alabama Administrative Code › Title 355 - STATE OF ALABAMA DEPARTMENT OF FINANCE › Chapter 355-2-1 - CONSENT FOR SALE OR ISSUANCE OF CERTAIN AUTHORITIES BY ELECTRIC MEMBERSHIP COOPERATIVES › Appendix A

Current through Register Vol. 42, No. 9, June 28, 2024
SUGGESTIONS FOR PREPARING PETITIONS TO THE DEPARTMENT OF
				FINANCE FOR APPROVAL OF LOANS TO ELECTRIC MEMBERSHIP CORPORATIONS AND ELECTRIC
				COOPERATIVES
1. The petition
			 should be directed to the Department of Finance of the State of Alabama. A
			 suggested heading is as follows: Petition of ______ Electric Cooperative to the
			 Department of Finance of the State of Alabama for consent to issue and Deliver
			 its Note in the amount of $_____to the United States of America.
Then specifically direct the petition to_____, Director of
				Finance of the State of Alabama.
2. The petition should show the type of
			 corporation filing the petition and refer to the law authorizing the project.
			 In the case of electric membership corporations, it is Title 37, Chapter 7,
Code of Ala. 1975
. In the case of electric
			 cooperatives it is Title 37, Chapter 7,
Code of Ala.
			 1975
.
3. The petition
			 should specify the plan or program of the cooperative seeking the loan, i.e.,
			 "to furnish electric energy to 500 consumers in the counties
			 of____________________and ___________________not now receiving central station
			 electric service."
4. It should
			 also specify the uses to which the proceeds of the loan are to be put, such as,
			 "the construction of 65 miles of electrical distribution lines and adequate
			 transformers etc., to furnish electric service to consumers." This varies as to
			 whether the loan proceeds are to be used for rehabilitation of existing lines,
			 new lines, structures or equipment.
5. A certified copy of the charter provisions
			 of the cooperative authorizing the project and the issuance of a note is
			 required to be attached to the petition as an exhibit. The charter of each
			 cooperative contains general provisions which authorize the borrowing of money
			 and the construction of electric lines. These articles should be copied and
			 certified as correct by the secretary of the cooperative.
6. The regulations require a copy of the
			 resolution of the Board of Trustees authorizing the particular project and the
			 borrowing of the money therefor. The attorney for the cooperative should add to
			 this resolution a further resolution authorizing him or his law firm to file
			 the petition with the Department of Finance of the State of Alabama. Attached
			 to the resolution should be a certificate of the secretary certifying that the
			 resolution is a true and correct copy of one passed at the particular meeting
			 at which a quorum was present and voted, and that the resolution has not been
			 altered, rescinded or modified.
7.
			 The regulations require that a map or description of the project and the
			 location thereof be attached to the petition. A small scale map showing the
			 location of new lines or the location of the rehabilitation of old ones should
			 be attached to the petition and when the maps are large, the Department of
			 Finance will allow the filing of these maps separately.
8. A detailed estimate of the costs of the
			 project should be included in the petition. This information is secured from
			 the budget furnished by REA which itemizes the costs of lines, transformers,
			 switches, etc.
9. The regulations
			 also require that the petition contain a detailed estimate of annual revenue,
			 expenses and debt service arising out of the proposed project. This information
			 is secured from the project engineer and shows the annual estimated revenue,
			 expenses and annual interest to be paid on the loan.
10. To comply with the requirement that the
			 source of power must be indicated, the petition should contain a statement that
			 the power is to be secured from Alabama Power Company, Alabama Electric
			 Cooperative, Inc., or TVA, whichever is applicable.
11. A statement regarding the engineering
			 feasibility of the project is complied with by attaching to the petition a
			 statement signed by the project engineer, to which is attached his seal and
			 registration number. He should be an electrical engineer registered in Alabama.
			 These statements are usually concise and designate that the engineer has made a
			 study of the system and in his opinion the additions are needed and that the
			 project is feasible.
12. The
			 Petitioner should furnish for inclusion in the petition, or as an exhibit
			 thereto, a detailed income and expense statement of the cooperative for the
			 past two years which shows the total revenue, operating expenses, depreciation,
			 taxes andinterest for that time.
13. The regulations require that a statement
			 be madeconcerning the tax liability of the cooperative in connection with the
			 proposed project, which is complied with by stating thetaxes which will be
			 assessed against the additional project willbe assessed at the same rate as
			 assessments are now made againstthe cooperative's other properties in the
			 respective counties.
14. A
			 photostatic copy of the rate schedules should be attached to the petition to
			 comply with the requirement that the rates to be put in effect be
			 shown.
15. The petition should
			 contain a request that the Department of Finance order a public hearing,
			 prescribe such notice as it may find to be necessary and upon said hearing find
			 that the issuance of the note serves a public need and is in the public
			 interest, and consent to the issuance thereof.
16. The rules and regulations require that
			 one copy of the petition be filed at least two weeks prior to the date of the
			 public hearing. When the petition is filed, the Department of Finance will
			 furnish to the Petitioner sufficient notices to be published in the newspapers
			 published in the counties which the Petitioner serves. The newspapers should be
			 requested to furnish immediately upon publication of the notice proof of
			 publication, which is a sworn statement setting out the notice and stating that
			 it was published one time prior to the date of the hearing. These proofs of
			 publication are required to be delivered to the Department of Finance on the
			 date of the hearing.