---
title: O.C.G.A. § 46-3-340. Nonprofit operation of electric membership corporations required; financing of operations; bylaw provisions concerning revenues, assets, and member classification.
collection: code
id: 46-3-340
cite_as: O.C.G.A. § 46-3-340 (2025)
canonical_url: https://georgiacommons.org/code/46-3-340
md_url: https://georgiacommons.org/code/46-3-340.md
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source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t46-(v34)-2025-pdf.pdf?sfvrsn=48adb3c4_0#page=312
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
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publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Session of the General Assembly of Georgia
heading_path: PUBLIC UTILITIES AND PUBLIC TRANSPORTATION / ELECTRICAL SERVICE / ELECTRIC MEMBERSHIP CORPORATIONS AND FOREIGN ELECTRIC COOPERATIVES / OPERATION OF ELECTRIC MEMBERSHIP CORPORATIONS GENERALLY
---

# O.C.G.A. § 46-3-340. Nonprofit operation of electric membership corporations required; financing of operations; bylaw provisions concerning revenues, assets, and member classification.

(a) Each electric membership corporation 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 electric membership corporation shall be sufficient at all times:

(1) To cover all administrative and operating expenses and the costs of purchased capacity and energy as necessary or desirable for the prudent conduct of its business, and to cover the payments of the principal of and interest on the obligations issued or assumed by the electric membership corporation in the performance of the purposes for which it was organized; and

(2) To establish and maintain reasonable reserves.

(b) An electric membership corporation may also accumulate funds for future capital needs and for the purpose of establishing and maintaining a reasonable capital structure.

(c) The bylaws of an electric membership corporation shall contain provisions, consistent with subsection (a) of this Code section, for accounting for, allocating, assigning and disposing of its revenues and assets and may establish classes of members for such purposes.

## History

Ga. L. 1937, p. 644, §§ 12, 14; Ga. L. 1953, Nov.-Dec. Sess., p. 359, § 1; Code 1933, § 34C-801, enacted by Ga. L. 1981, p. 1587, § 1.

## Editor's Notes

Georgia Laws 1937, p. 644, contained two provisions which were designated as “Section 14,” one such provision appearing on page 653 and the other appearing on page 654. The provision appearing on page 653 is codified at this Code section and the provision appearing on page 654 is codified at §§ 46-3-360, 46-3-361.