48:24-16 Operating expenses; revenues.

299 words·~1 min read·/nj/title-48/chapter-24/48-24-16

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

16. a. A rural electric cooperative shall be operated without profit to its members, but the rates, fees, rents, or other charges for electric energy, and any other facilities, supplies, equipment, or services furnished by the cooperative shall be sufficient at all times:

(1)to pay all operating and maintenance expenses necessary or desirable for the prudent conduct of its business and the principal of and interest on the obligations issued or assumed by the cooperative in the performance of the purpose for which it was organized; and

(2)for the creation of reserves.

b. The revenues of the cooperative shall be devoted, first, to the payment of operating and maintenance expenses and the principal and interest on outstanding obligations and, thereafter, to the reserves for improvement, new construction, depreciation, and contingencies as the board may, from time to time, prescribe.

(1)Revenues not required for the purposes set forth in sub-section b. of this section shall be returned, from time to time, to the members on a pro rata basis, according to the amount of business done with each member during the period, either in cash, in abatement of current charges for electric energy, or otherwise, as the board determines, but the return may be made by way of general rate reduction to members if the board so elects. The allocation and retirement of any capital credits shall be made by the directors in accordance with the bylaws of the cooperative.

(2)Any capital credits that remain unclaimed at the expiration of a period of three years from the date of member notification by the cooperative to the member at the member's last known address, as shown on the records of the cooperative, shall be retained by the cooperative for its general corporate purposes.

L.2017, c.297, s.16.