SB 256: 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 (member-owned electric cooperatives, often called EMCs) invest in and guarantee debts for related gas companies, known as EMC gas affiliates. When an EMC's investment in a gas affiliate passes 15 percent of its net utility plant (the value of its facilities used to provide service), current law requires it to disclose certain information to its members, such as what assets were acquired and how much debt is involved. This bill sharpens those disclosure rules. It changes the required description of pledged assets to a more specific identification of which assets secure a loan tied to the transaction. It adds a requirement to disclose what percentage of the EMC's net utility plant is tied up in the gas affiliate. It also creates a brand new requirement: EMCs that cross the 15 percent threshold must tell their members, once a year, the total cost of the gas they sell. The bill repeals conflicting laws and does not list a delayed effective date beyond the standard process.

• Changes the disclosure requirement from a general description to a specific identification of assets pledged to secure a loan tied to a gas affiliate transaction.
• Adds a new requirement that affected EMCs disclose the percentage of their net utility plant used for gas affiliate investments, loans, or guarantees.
• Creates a brand new annual disclosure requirement for EMCs to report the aggregate annual cost of gas they sell to members.
• Keeps the existing 15 percent net utility plant threshold that triggers these disclosure obligations under O.C.G.A. Section 46-4-164.
• Preserves the existing rule that electing distribution companies, marketers, and regulated natural gas providers cannot engage in liquefied petroleum gas production or distribution, aside from system balancing.

Electric membership corporations (member-owned electric cooperatives) that operate gas affiliates, the members of those cooperatives who receive the disclosures, and any EMC gas affiliate involved in significant investment, loan, or guarantee transactions with its parent cooperative.

Members of electric cooperatives that heavily invest in gas affiliates would get clearer, more specific information about which assets back loans and how much of their cooperative's resources go toward gas ventures. The new annual gas cost disclosure gives members an ongoing look at gas-related expenses, not just a one-time transaction report.

• Section 1 amends O.C.G.A. Section 46-4-164(c)(3), replacing a general 'description' of pledged assets with a specific 'identification' of assets forming all or part of the loan security.
• Section 1 removes the word 'and' after subsection (c)(4) and adds new subsection (c)(6), requiring disclosure of the percentage of net utility plant used for gas affiliate investments.
• Section 1 adds new subsection (d), requiring EMCs above the 15 percent threshold to disclose the aggregate annual cost of gas sold, on an annual basis.
• The prior subsection (d), covering restrictions on liquefied petroleum gas activity by electing distribution companies and marketers, is renumbered as subsection (e) without substantive change.
• Section 2 repeals any laws that conflict with the amendments.

1. 2025-07-01Effective Date
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-46)Primary sponsor
• Chuck Martin (R, HD-49)

1. PassedSenate voteMarch 6, 2025

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

   PASSAGE BY SUBSTITUTE: Senate Vote #216

2. PassedHouse voteMarch 31, 2025

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

   PASSAGE: House Vote #344

• electric cooperatives
• utility regulation
• gas affiliates
• consumer disclosure
• energy policy