--- title: SB 256. Electric Membership Corporation; disclose certain acquisitions and other information to its members within a certain time frame; require collection: bills id: 2025-2026/sb256 cite_as: SB 256, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb256 md_url: https://georgiacommons.org/bills/2025-2026/sb256.md text_url: https://georgiacommons.org/bills/2025-2026/sb256/text source_url: https://www.legis.ga.gov/legislation/70789 date: 2025-05-14 status: passed corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/sb255.md next: https://georgiacommons.org/bills/2025-2026/sb257.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1078 omitted_url: https://georgiacommons.org/bills/2025-2026/sb256.md?full=1 bill_number: SB 256 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2025-05-14 last_action: Effective Date 2025-07-01 sponsors: - Bill Cowsert - Charles Martin text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/SB256/2025 upstream_id: 1983845 summaries_model: claude-sonnet-5 topic_tags: - electric membership corporations - utility regulation - gas affiliates - consumer disclosure - Georgia Public Service Commission --- # SB 256. Electric Membership Corporation; disclose certain acquisitions and other information to its members within a certain time frame; require ## Text 25 SB 256/AP Senate Bill 256 By: Senator Cowsert of the 46th AS PASSED A BILL TO BE ENTITLED AN ACT To amend Chapter 4 of Title 46 of the Official Code of Georgia Annotated, relating to1 distribution, storage, and sale of gas, so as to revise provisi ons concerning required2 disclosures of electric membership corporations; to provide for related matters; to repeal3 conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Chapter 4 of Title 46 of the Official Code of Georgia Annotated , relating to distribution,7 storage, and the sale of gas, is amended by revising Code Secti on 46-4-164, relating to8 construction of article, electric membership corporations and EMC gas affiliates, disclosure9 requirements, and liquefied petroleum gas, as follows:10 "46-4-164.11 (a) Nothing in this article shall be deemed to apply or impose requirements not otherwise12 existing on gas distribution companies owned by any county, municipality, other political13 subdivision, or governmental authority of this state; nor are t he provisions of this article14 intended to increase or decrease the authority and jurisdiction of the commission with15 respect to the distribution, sale, or transportation of gas by any county, municipality, other16 S. B. 256 - 1 - 25 SB 256/AP political subdivision, or governmental authority of this state. Nothing in this article shall17 be construed to limit or otherwise affect the existing powers of municipal corporations or18 other political subdivisions of this state relating to the granting of franchises or the levying19 or imposition of taxes, fees, or charges.20 (b) Notwithstanding any provision of law to the contrary, incl uding, without limitation,21 Article 4 of Chapter 3 of this title, an electric membership co rporation may make and22 maintain investments in, lend funds to, and guarantee the debts and obligations of an EMC23 gas affiliate in total not to exceed 25 percent of such electric membership corporation's net24 utility plant, excluding electric generation and transmission assets as defined by the Federal25 Energy Regulatory Commission Uniform System of Accounts in effect at the time of such26 investment, loan, or guarantee, provided that any such investments or loans shall not reflect27 rates which are generally available through the use of any tax exempt financing and may28 not be tied to any loans from or guaranteed by the federal or state government; and an EMC29 gas affiliate of an electric membership corporation organized a nd operating pursuant to30 Article 4 of Chapter 3 of this title may apply for and be granted a certificate of authority31 to provide any service as authorized under this article. The c reation, capitalization, or32 provision of management for:33 (1) An EMC gas affiliate engaged in activities subject to the provisions of this article and34 the rules and regulations established by the commission; or35 (2) Other persons providing customer services36 shall be deemed to be among the purposes of an electric members hip corporation as37 specified in paragraphs (2) and (3) of Code Section 46-3-200. Nothing in this article shall38 be deemed to increase or decrease the authority and jurisdictio n of the commission with39 respect to such electric membership corporation except as to gas activities undertaken by40 the electric membership corporation or its EMC gas affiliate as authorized under this41 chapter.42 S. B. 256 - 2 - 25 SB 256/AP (c) Within six months following any transaction that causes an electric membership43 corporation to have more than 15 percent of its net utility pla nt invested in, lent to, or44 secured for the benefit of its EMC gas affiliate, excluding ele ctric generation and45 transmission assets as defined by the Federal Energy Regulatory Commission Uniform46 System of Accounts, such electric membership corporation shall disclose to its members:47 (1) A description of the assets or interests acquired in the transaction;48 (2) The date of such transaction;49 (3) The identification A description of any assets pledged by the electric membership50 corporation to secure a loan or other funding in connection wit h such transaction that51 forms all or a portion of the assets pledged to secure such loan or other funding;52 (4) The total amount of the electric membership corporation's assets, debts, and53 obligations, and those of the EMC gas affiliate; and54 (5) The total amount of the electric membership corporation's electric generation and55 transmission assets as defined by the Federal Energy Regulatory Commission Uniform56 System of Accounts; and57 (6) The percentage of the electric membership corporation's net utility plant used for the58 purposes described in subsection (b) of this Code section.59 (d) An electric membership corporation that has more than 15 p ercent net utility plant60 invested in, lent to, or secured for the benefit of its EMC gas affiliate, excluding electric61 generation and transmission assets as defined by the Federal En ergy Regulatory62 Commission Uniform System of Accounts, shall disclose to its members the annual cost63 of gas in aggregate that it sells. Such disclosure shall be made on an annual basis.64 (e) Nothing in this article shall be construed to allow or authorize an electing distribution65 company, a certificated marketer, or a regulated provider of na tural gas to engage in the66 production, transportation, marketing, or distribution of liquefied petroleum gas; provided,67 however, that nothing in this article shall be construed to prohibit an electing distribution68 S. B. 256 - 3 - 25 SB 256/AP company from using liquefied petroleum gas to provide for system balancing and peaking69 services for its distribution system."70 SECTION 2.71 All laws and parts of laws in conflict with this Act are repealed.72 S. B. 256 - 4 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. A Georgia Senate bill would require electric membership corporations (EMCs) to give members more detailed disclosures within six months after making large investments in their gas affiliates. ### Plain-language summary 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. ### What it does - 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)). ### Who it affects 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. ### Why it matters 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. ### Key provisions - 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. ## Status - Status: Passed (2025-05-14) - Last action: Effective Date 2025-07-01 (2025-05-14) - Sponsors: Bill Cowsert, Charles Martin - Official page: https://www.legis.ga.gov/legislation/70789 > The history, votes, and amendments (1,078 characters) are at https://georgiacommons.org/bills/2025-2026/sb256.md?full=1