Title
Draft Resolution - Approval of National Rural Utilities Cooperative Finance Corporation (CFC) - Cooperative System Integrity Fund - F Wolff & D Ballard
Other Info
Submitted By: Freddy Wolff
Department: Controller
Financial Impact and Cost/Benefit Considerations: No expenditure of Cooperative funds is expected; expenditures of staff time estimated in amount of 4 hours in addition to ordinary processing requirements. The Cooperative expects reimbursement of approximately $105,608 in defense costs related to regulatory litigation.
Discussion
On April 18, 2016, the Board of Directors approved submission of costs to the National Rural Utilities Cooperative Finance Corporation ("CFC") - Cooperative System Integrity Fund ("Fund") with respect to regulatory litigation arising from a service territory dispute with a neighboring municipally-owned electric utility. This regulatory litigation is finally resolved. The prior resolution requested $25,000 or amounts that may otherwise be eligible from the CFC Integrity Fund.
The Fund serves as a resource to the rural electric program to support the efforts of cooperatives to resist threats to the integrity of their service territory, to protect the right of rural electric systems to provide non-electric energy services, and to assist cooperatives that are facing regulatory, judicial and legislative challenges that threaten a cooperative's existence under the cooperative business model.
Grant assistance from the Fund is open to any rural electric system whether or not a CFC member. Eligible expenses include, among others, fees and expenses for legal and special consultants. The Cooperative is a CFC member and has contributed to the Fund.
CFC has notified the Cooperative that the Integrity Fund now supports requests up to $250,000 and may generally pay up to 50% of a cooperative's eligible expenses.
The Board may now consider submission of a request for $105,608 (50% of its total expenses of $211,217.00) ...
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