SB256: SB256 Electric Membership Corporation; disclose certain acquisitions and other information to its members within a certain time frame; require

Georgia law already lets electric membership corporations (EMCs), the member-owned electric cooperatives found across much of the state, invest in and financially support related gas businesses called EMC gas affiliates, as long as that investment stays under certain limits tied to the EMC's net utility plant (its physical infrastructure value). Current law also requires EMCs to disclose certain information to their members once their investment in a gas affiliate passes 15 percent of net utility plant. This bill rewrites O.C.G.A. § 46-4-164 to expand and clarify what must be disclosed. It requires disclosure within six months of any transaction that pushes an EMC's gas affiliate investment above 15 percent of net utility plant, and it adds new required items, including a description of pledged assets securing related loans, the EMC's total assets, debts, and obligations, its electric generation and transmission assets, and the percentage of net utility plant tied up in the gas affiliate. It also keeps the existing requirement for annual disclosure of aggregate gas costs. The bill repeals conflicting laws and, having already passed, takes effect through the normal legislative process.

• Sets a firm six-month deadline for an EMC to disclose information to its members after a transaction pushes its gas affiliate investment above 15 percent of net utility plant.
• Adds new required disclosure items, including a description of assets pledged to secure loans connected to the transaction (Section 1, subsection (c)(3)).
• Requires disclosure of the EMC's total assets, debts, and obligations, and those of its EMC gas affiliate (subsection (c)(4)).
• Requires disclosure of the EMC's electric generation and transmission assets as defined by federal accounting rules (subsection (c)(5)).
• Requires disclosure of the percentage of the EMC's net utility plant used for gas affiliate investments, loans, or guarantees (subsection (c)(6)).
• Keeps the existing rule that EMCs above the 15 percent threshold must disclose their annual aggregate cost of gas sold, on a yearly basis (subsection (d)).

Georgia's electric membership corporations, the member-owned electric cooperatives serving many rural and suburban areas, and their affiliated gas businesses (EMC gas affiliates). It also affects the members of those cooperatives, who would receive more detailed financial disclosures, and indirectly the Georgia Public Service Commission's oversight of gas activities.

Members of electric cooperatives that invest heavily in gas affiliates would get clearer, more specific financial information, including details on pledged collateral and the scale of debts and assets involved, making it easier for them to see how much of their cooperative's resources are tied up in gas-related ventures.

• Section 1 revises O.C.G.A. § 46-4-164(c) to require disclosure within six months of a transaction pushing gas affiliate investment above 15 percent of net utility plant.
• New subsection (c)(3) requires a description of any assets pledged by the EMC to secure a loan or funding connected to the transaction.
• New subsection (c)(4) requires disclosure of the total assets, debts, and obligations of both the EMC and its gas affiliate.
• New subsection (c)(5) requires disclosure of the EMC's electric generation and transmission assets under federal accounting definitions.
• New subsection (c)(6) requires disclosure of what percentage of the EMC's net utility plant is used for gas affiliate investments, loans, or guarantees.
• Subsection (d) retains the annual disclosure requirement for aggregate gas costs once the 15 percent threshold is exceeded.
• Section 2 repeals any conflicting laws.

1. 2025-05-14Effective Date 2025-07-01
2. 2025-05-14Act 296
3. 2025-05-14Senate Date Signed by Governor (Senate)
4. 2025-04-07Senate Sent to Governor (Senate)
5. 2025-03-31House Passed/Adopted (House)
6. 2025-03-31House Third Readers (House)
7. 2025-03-25House Committee Favorably Reported (House)
8. 2025-03-11House Second Readers (House)

• Bill Cowsert (R, SD-046)Primary sponsor
• Charles Martin (R, HD-049)

1. PassedSenate voteMarch 6, 2025

   51 yea, 2 nay (3 not voting, 0 absent)

   Passage By Substitute: Senate Vote #216

2. PassedHouse voteMarch 31, 2025

   163 yea, 1 nay (10 not voting, 6 absent)

   Passage: House Vote #344

• electric membership corporations
• utility regulation
• gas affiliates
• consumer disclosure
• Georgia Public Service Commission