The United States House of Representatives on Tuesday passed the RURAL Act, protecting more than 900 electric cooperatives throughout the nation from the risk of losing their tax-exempt status when they accept government grants for disaster relief, broadband service and other programs that benefit co-op members.

The Senate is poised to pass the bill later this week, and President Trump is expected to sign it into law.

Kentucky Electric Cooperatives has been advocating for the RURAL Act with Kentucky’s Congressional delegation, with four co-sponsors from Kentucky,  Rep. Andy Barr, Rep. James Comer,  Rep. Brett Guthrie, and Rep. Hal Rogers. Kentucky Rep. John Yarmuth also voted in favor of the bill.

In addition, Kentucky’s co-ops have been encouraged by the support of Senate Majority Leader Mitch McConnell of Kentucky on the issue. McConnell listened to the concerns of co-op leaders at the Kentucky Electric Cooperatives Annual Meeting in November.

“We appreciate the members of Kentucky’s congressional delegation who listened to our concerns and are standing up for the local consumer-members of Kentucky co-ops,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives.  The statewide association represents 26 co-ops in Kentucky.

“The overwhelming support of the RURAL Act, despite what congressional observers considered its unlikely passage, also speaks to the strength of the electric cooperative program when local consumer-members speak with one voice,” Perry continued. “The passage of this legislation is an affirmation of cooperative principles. We are all in this together.”

The RURAL Act is the National Rural Electric Cooperative Association’s top legislative priority for the year because of the profound threat to the business model of not-for-profit co-ops. Tens of thousands of co-op leaders, employees and members across the country rallied to advocate passage of the bill.

“This package preserves the fundamental nature of the electric cooperative business model and will save electric co-ops tens of millions of dollars each year,” said NRECA CEO Jim Matheson. “Moreover, it protects co-op members from unfair increases in their electric rates and provides certainty to co-ops that leverage federal and state grants for economic development, storm recovery and rural broadband deployment.”

Lawmakers passed the popular bipartisan legislation in the final hours of the 2019 session as part of a larger tax and spending bill that funds the government through September 2020.

The bill’s passage fixes a problem created in 2017 when Congress passed the Tax Cuts and Jobs Act, which redefined government grants to co-ops as income rather than capital. That change made it difficult for many co-ops to abide by the 15% limit on non-member income to keep their tax-exempt status. The RURAL Act once again exempts grants from being counted as income and is retroactive to the 2018 tax year.

Without the fix, some co-ops would have had to start paying taxes this spring after receiving grants in 2018 or 2019 to repair storm damage, bring high-speed internet to rural communities or invest in renewable energy and energy-efficiency programs. Many co-op leaders feared they would have to raise rates for members to pay the new taxes.

The legislation attracted more than 300 co-sponsors in the 435-member House and more than half of the senators. The effort was led in the House by Reps. Terri Sewell, D-Ala., and Adrian Smith, R-Neb., and in the Senate by Rob Portman, R-Ohio, and Tina Smith, D-Minn.

NRECA lobbyist Paul Gutierrez credited the victory to a collaborative campaign strategy that included co-ops’ grassroots efforts to alert their senators and representatives to the issue.

“This was an amazing NRECA team and membership effort, including co-op members at the end of the line,” he said. “We had great legislative champions in the House and Senate, and they worked tirelessly to get this included in the final tax package.”

Highest honor awarded by Kentucky Electric Cooperatives

LOUISVILLE, Ky. (November 18, 2019) – U.S. Senate Majority Leader Mitch McConnell (R-KY) was honored on Monday, November 18 as the “2019 Distinguished Rural Kentuckian” at the 73rd Annual Meeting of Kentucky Electric Cooperatives. The award is the highest honor given by the statewide association of Kentucky’s electric cooperatives which serve nearly 1.5 million Kentuckians in 117 of 120 Kentucky counties.

“Senator McConnell is a champion for rural Kentucky,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “Time and time again, he has been there for co-ops when it matters most. And, what’s striking is how responsive he is to the issues of rural Kentucky and America.”

Perry said McConnell’s leadership securing access to sensible financing and USDA funding has helped Kentucky co-ops deliver safe, reliable and affordable electricity, and McConnell’s advocacy for sensible environmental regulations has protected the consumer-members of Kentucky co-ops.

“We know that Leader McConnell’s clout means good things for Kentucky and we appreciate his hard work and dedication to fight for rural priorities,” Perry continued. “As Majority Leader, he gets to set the agenda and because of that, rural Kentuckians have a lot to be grateful for. Our agenda is his agenda.”

“As a predominantly rural state, we’re made stronger by our heritage,” said U.S. Senate Majority Leader McConnell. “From the Big Rivers to East Kentucky Power, your 26 statewide electrical cooperatives are making a real difference in the lives of families and communities. You’re helping power Kentucky’s future, support good jobs, and drive our economic prosperity. I’m grateful for your advocacy and keeping me up to date on your priorities, and I’m honored to receive this award.”

First elected to the U.S. Senate in 1984, Senator McConnell is Kentucky’s longest serving senator and the longest serving Republican Senate Leader in U.S. history. In addition to serving on the Senate Agriculture Committee, Senate Rules and Administration, he also serves on the Senate Appropriations Committee – the committee which holds jurisdiction over discretionary spending.

Through the years, Senator McConnell has fought for many priorities important to rural Kentucky, including major tax reform, regulatory relief, infrastructure, rural broadband development and healthcare. Senator McConnell is well-known as a champion for rural Kentuckians – their jobs, families and futures. He has secured vital funding for our communities and been the voice for all Kentuckians in Washington.

On November 5, Kentucky voters will elect the commonwealth’s constitutional officers for the next four-year term.

Topping the ballot are the candidates for governor. Incumbent Republican Matt Bevin and his running mate state Sen. Ralph Alvarado face Democrat Attorney General Andy Beshear and his running mate Jacqueline Coleman.

We are grateful to both candidates for replying to our questions about key issues facing rural Kentucky, in particular the commonwealth’s energy future, economic development and workforce development.

In addition to advocating for issues that affect the ability of Kentucky’s electric cooperatives to deliver safe, reliable and affordable electricity, co-ops are also leading the drive for more voter participation in the rural areas they serve.

Kentucky’s off-year elections typically draw poor voter turnout, especially compared with presidential election years. Four years ago, Kentucky’s statewide voter turnout was only 30.6%, and the counties with the lowest turnout were in rural areas.

The nonpartisan Co-ops Vote campaign aims to both improve rural voting and make sure that rural voters are aware of important issues. Since the launch of Co-ops Vote in 2016, Kentucky Electric Cooperatives has championed the cause, encouraging consumer-members attending local co-op annual meetings to make sure their voices are heard at the ballot box.

“If rural Kentuckians want elected leaders to pay attention to their concerns, voting is the most effective method,” says Chris Perry, president of Kentucky Electric Cooperatives. “I encourage all Kentuckians to join me in making the commitment to vote.”

Eligible voters, no matter where they live or whether they are co-op members, can participate in Co-ops Vote and take advantage of its voter resources. Just visit www.vote.coop and take the pledge to vote in this year’s elections. Once you’ve registered, you’ll have access to information on registering to vote, where to vote and background on all the candidates.

“The communities and rural areas served by co-ops are facing challenges that require attention and respect,” Perry says. “It’s easy to attack rural electric cooperatives. We are paying attention to see who gives co-ops and their members a fair shake in Frankfort.”

As the flagship publication of Kentucky’s electric cooperatives, Kentucky Living posed the same four questions to both Bevin and Beshear, allowing each a total of 400 combined words to answer all questions.

Co-op Candidate Q & A

What is your vision for the energy future of Kentucky?

Bevin: Our energy future must be intertwined with my vision that Kentucky will become the engineering and manufacturing hub of excellence in the United States. We are in the process of fulfilling that vision precisely because of Kentucky’s low energy prices. Kentucky is second in the entire nation in aerospace exports. Automotive and pharmaceuticals are also major export categories for our commonwealth. In fact, we broke our all-time record as a state with $31.76 billion in international exports in 2018. Maintaining this growth is dependent on affordable, safe, reliable and environmentally responsible energy production.

Beshear: Kentucky needs an all-of-the-above approach to energy. One of the biggest challenges working families face, especially in eastern Kentucky, is that their energy bills go up year after year, while good jobs are hard to find and wages remain flat. Kentucky families shouldn’t have to choose between putting food on the table and keeping the lights on. As attorney general, my office has opposed dozens of utility bill hikes and helped save Kentucky families nearly $1.6 billion. I will continue to advocate for consumers, affordable utility costs and smart energy policy as governor.

No Kentuckian currently pays sales tax on their residential electric use. Can Kentucky’s electric cooperatives count on your support to help them serve struggling families and keep residential electric sales exempt from a sales tax?

Beshear: Tax reform in Kentucky shouldn’t burden working families who are already struggling just to get by. My focus will be on closing sales tax loopholes for purchases of things like private jets and luxury yachts. Additionally, we have to stand up for consumers and hold utility companies accountable. Monthly energy bills should be reasonable and affordable, not the skyrocketing rates we have seen in many parts of Kentucky.

Bevin: I do not support taxing utilities that people need.

What is your plan to help rural Kentucky retain, grow and recruit business to bring people back to rural Kentucky?

Bevin: I would refer you to my record thus far. No governor in America has outhustled me since I took office. Since the beginning of our administration, we have announced 1,160 new projects. We just broke the $20 billion mark in investments and are now over 52,000 new jobs. Perhaps most importantly, we have more people working in Kentucky than ever before. Many of these are in rural communities in Kentucky. Stay tuned, we are just getting warmed up.

Beshear: We must create family-supporting jobs and support small businesses in every part of Kentucky, including rural areas. My plan to create good-paying jobs focuses on growing economic sectors that Kentucky is positioned to lead in, like agritech and advanced manufacturing. These jobs of the future will draw on our state’s agricultural and industrial strengths as well as new technological innovations. We also have to rethink how we use tax incentives for job creation. My administration will move away from giving handouts to out-of-state CEOs and bring more jobs that pay a living wage to our rural communities. We also need to protect two of the main pillars of rural economies: health care and public education. While Matt Bevin attacks our schools and rural hospitals, they will be a priority in a Beshear/Coleman administration.

Electric cooperatives employ more than 3,000 people across the Commonwealth. What is your plan to ensure that Kentucky has an educated and prepared workforce for the future?

Beshear: Kentucky has the talent and the people, but Governor Bevin has failed to give our workforce the tools they need to compete in a global economy. Instead of cutting community colleges, I will expand job training programs in partnership with organized labor and strengthen career readiness in schools. We should also be fully funding public education, including community colleges and technical schools. Businesses will follow the workers, and I’ll always prioritize making sure Kentuckians have the skills they need to earn a good living for their families.

Bevin: Again, I have to refer you to my record. Our per pupil education expenditures were the highest in Kentucky history in our most recent budget. Meanwhile, programs like our Work Ready Skills Initiative, our Registered Apprentice Program, our Work Ready Scholarship and our Work Matters Task Report (which was recognized by the U.S. Department of Labor) represent a multimillion-dollar investment in Kentucky’s workers. These programs, along with public/private partnerships that are training world-class graduates in advanced manufacturing, are in place to ensure that Kentuckians have the skills demanded by job creators for 2019 and well into the future.

Bevin and Beshear weigh in on controversial sales tax proposal

(October 1, 2019) – Kentucky Electric Cooperatives is speaking out against any potential sales tax on Kentuckians’ power bills. The October issue of Kentucky Living magazine reveals both a new grassroots website against such a tax and an exclusive Q&A with Governor Matt Bevin and his Democratic challenger Andy Beshear, which includes their respective positions on the sales tax issue.

RuralPowerKY.com will serve as an educational landing place for local, state, and federal issues that could affect the more than 1.5 million co-op members across the Commonwealth. The platform also allows Kentuckians to communicate directly with legislators.

Under current law, residential electric bills are exempt from the state’s 6% sales tax. However, as the General Assembly continues to consider new sources of state revenue, potentially removing some exemptions from the sales tax, co-ops are cautioning legislators to protect the exemption on residential electric bills. Kentucky Electric Cooperatives is opposed to adding any sales tax to power bills and is using RuralPowerKY.com to encourage lawmakers to leave that exemption alone.

“Adding additional taxes to electric bills would have a devastating impact on rural Kentuckians as a sales tax could cost some consumer members hundreds of dollars per year,” stated Chris Perry, CEO and President of Kentucky Electric Cooperatives. “Not only would a tax impact household budgets, it would also stymie economic development in those areas.”

When recently asked by Kentucky Living if electric cooperatives could count on their support to keep residential electric sales exempt from a sales tax, both candidates for governor provided replies.

Governor Matt Bevin: “I do not support taxing utilities that people need.”

Attorney General Andy Beshear: “Tax reform in Kentucky shouldn’t burden working families who are already struggling just to get by. My focus will be on closing sales tax loopholes for purchases of things like private jets and luxury yachts. Additionally, we have to stand up for consumers and hold utility companies accountable. Monthly energy bills should be reasonable and affordable, not the skyrocketing rates we have seen in many parts of Kentucky.”

(September 5) – More than 100 Kentucky electric cooperative lineworkers are now in South Carolina and North Carolina to help restore power after Hurricane Dorian. Originally assigned to sister co-ops in Georgia, the crews adjusted their deployment with the storm’s trajectory.

Though downgraded to a Category 2 hurricane, Dorian is still packing a powerful punch for the Carolinas with flooding from both the storm surge and heavy rain, high winds and tornadoes. On Thursday night, hurricane-force winds were reported in South Carolina with some damage more than 50 miles inland.

Late Thursday night, an estimated 240,000 homes in South Carolina and 46,000 homes in North Carolina were without power, according to public outage maps.

Crews from seven Kentucky cooperatives are assigned to Four County EMC, an electric cooperative in Burgaw, North Carolina.

Meanwhile, crews from five other Kentucky co-ops are assigned to sister co-ops in South Carolina: Black River EC in Sumter and Coastal EC in Waterboro.

The mutual aid response is coordinated by Kentucky Electric Cooperatives. The statewide association of Kentucky’s 26 electric co-ops participates in daily conference calls with similar co-op organizations in southeastern states to assess potential needs and pair recipient co-ops with available crews and equipment from Kentucky. In addition, Kentucky co-ops have also released dozens of construction and right-of-way contract crews to respond to Hurricane Dorian.

The top priority of each local Kentucky co-op is service to its own consumer-members. Before committing resources to mutual aid requests, each co-op ensures it has ample crews available for all local needs, including routine maintenance and emergencies.

“The Kentucky co-op crews who are on the ground in the Carolinas are making Kentucky proud,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “One of our cooperative principles is ‘Cooperation among Cooperatives,’ and this mutual aid effort takes that cooperation to a whole other level. These men face very challenging conditions. We are praying for their safety and the well-being of everyone in Dorian’s path.”

“Linemen are wired to help people,” said Clarence Greene, Safety and Loss Prevention Director at Kentucky Electric Cooperatives. “Mutual aid deployments also provide invaluable training opportunities so these crews will be better prepared to respond to storm damage when it happens here at home.”

Louisville-based United Utility Supply Cooperative is responding to Dorian by implementing its storm emergency plan and providing round-the-clock support to meet the material needs of affected co-ops.

Because the national network of transmission and distribution infrastructure owned by electric cooperatives has been built to federal standards, line crews from any co-op in America can arrive on the scene ready to provide emergency support, secure in their knowledge of the system’s engineering.

(September 2, 2019) – As Georgia evacuates six coastal counties ahead of Hurricane Dorian, Kentucky co-op crews are heading that way.

More than 100 lineworkers from at least 13 electric cooperatives in Kentucky are preparing to assist sister co-ops restore power after the hurricane passes. Strong winds, heavy rain and flooding are expected in coastal Georgia where Governor Brian Kemp has declared a state of emergency for 12 southeast Georgia counties.

Citing the magnitude of Dorian as an “historic” storm, Kemp warns of downed trees, power lines, debris and flooding. Storm surge is a major threat to the Georgia coastline as Dorian moves north. The National Hurricane Center predicts it could reach 4 to 7 feet by Tuesday night into Wednesday morning.

The first Kentucky crews to deploy are South Kentucky RECC and Nolin RECC. Both co-ops will help restore power at Satilla REMC in Georgia. Fourteen lineworkers from South Kentucky RECC began their drive on Sunday, while 10 men left Nolin RECC on Monday morning.

The mutual aid response is coordinated by Kentucky Electric Cooperatives. The statewide association of Kentucky’s 26 electric co-ops participates in daily conference calls with similar co-op organizations in southeastern states to assess potential needs and pair recipient co-ops with available crews and equipment from Kentucky. In addition, Kentucky co-ops have also released dozens of construction and right-of-way contract crews to respond to Hurricane Dorian.

On Tuesday morning, about 25 Kentucky co-op lineworkers will deploy to Excelsior EMC in Georgia. Another 50 Kentucky co-op lineworkers will also deploy on Tuesday morning to Okefenoke REMC, where an additional 8 Kentucky linemen are set to join them on Wednesday.

The Kentucky electric cooperatives with crews assigned to Dorian recovery are Clark Energy, Cumberland Valley, Farmers RECC, Fleming Mason Energy, Jackson Energy, Kenergy, Meade County RECC, Nolin RECC, Owen Electric, Salt River Electric, Shelby Energy, South Kentucky RECC and Warren RECC. Other co-ops may also send crews, yet any other assignments are pending specific requests from affected co-ops.

Recent mutual aid deployments by Kentucky’s electric cooperatives include:

October 2018 – More than 100 Kentucky lineworkers help Hurricane Michael recovery efforts in Georgia and Virginia.

March 2018 – 81 Kentucky lineworkers helped restore power in Virginia after Winter Storm Riley.

September 2017 – 131 Kentucky co-op workers helped restore power in Georgia after Hurricane Irma.

October 2016 – The largest mutual aid deployment in Kentucky co-op history came in 2016 when 143 lineworkers responded to Hurricane Matthew.

The top priority of each local Kentucky co-op is service to its own consumer-members. Before committing resources to mutual aid requests, each co-op ensures it has ample crews available for all local needs, including routine maintenance and emergencies.

“We are so proud of these co-op crews,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “These linemen have stepped up to help without even knowing exactly where they will end up. But for as unpredictable as Hurricane Dorian’s path has been, our safety team will be deliberate and careful as these crews are deployed.”

“Cooperation among cooperatives is one of our guiding principles,” said Clarence Greene, Safety and Loss Prevention Director at Kentucky Electric Cooperatives. “It’s long hours in challenging conditions, but lineworkers are wired to help people, and mutual aid deployments also provide invaluable training opportunities so these crews will be better prepared to respond to storm damage when it happens here at home.”

In addition, Louisville-based United Utility Supply Cooperative is responding to Dorian by implementing its storm emergency plan and providing round-the-clock support to meet the material needs of affected co-ops. UUS has continued to make pre-storm deliveries to cooperatives in the region and is prepared to meet their needs once storm assessments are complete. UUS has also reached out to other cooperatively owned material suppliers with assurance it stands ready to assist, if needed.

Because the national network of transmission and distribution infrastructure owned by electric cooperatives has been built to federal standards, line crews from any co-op in America can arrive on the scene ready to provide emergency support, secure in their knowledge of the system’s engineering.

Co-ops identify available crews as statewide association coordinates response

LOUISVILLE, Ky. (August 30, 2019) – As forecasters predict that Hurricane Dorian will strengthen to a major hurricane as it approaches the east coast of Florida and southern Georgia, Kentucky’s electric cooperatives are preparing to assist in recovery efforts if called upon by sister co-ops in the path of the hurricane.

The mutual aid response is coordinated by Kentucky Electric Cooperatives. The statewide association of Kentucky’s 26 electric co-ops participates in daily conference calls with similar co-op organizations in southeastern states to assess potential needs and pair recipient co-ops with available crews and equipment from Kentucky.

In addition, Kentucky co-ops have also released dozens of construction and right-of-way contract crews to respond to Hurricane Dorian.

Recent mutual aid deployments by Kentucky’s electric cooperatives include:

October 2018 – More than 100 Kentucky lineworkers help Hurricane Michael recovery efforts in Georgia and Virginia.

March 2018 – 81 Kentucky lineworkers helped restore power in Virginia after Winter Storm Riley.

September 2017 – 131 Kentucky co-op workers helped restore power in Georgia after Hurricane Irma.

October 2016 – The largest mutual aid deployment in Kentucky co-op history came in 2016 when 143 lineworkers responded to Hurricane Matthew.

The top priority of each local Kentucky co-op is service to its own consumer-members.  Before committing resources to mutual aid requests, each co-op ensures it has ample crews available for all local needs, including routine maintenance and emergencies.

“Cooperation among cooperatives is one of our guiding principles,” said Clarence Greene, Safety and Loss Prevention Director at Kentucky Electric Cooperatives. “It’s long hours in challenging conditions, but lineworkers are wired to help people, and mutual aid deployments also provide invaluable training opportunities so these crews will be better prepared to respond to storm damage when it happens here at home.”

In addition, Louisville-based United Utility Supply Cooperative is readying supplies and has implemented its storm emergency plan, providing round-the-clock support to meet the material needs of co-ops affected by Hurricane Dorian. Today, UUS continues to make pre-storm deliveries to cooperatives in the region and is prepared to meet their needs once storm assessments are complete. UUS has also reached out to other cooperatively owned material suppliers with assurance it stands ready to assist, if needed.

Because the national network of transmission and distribution infrastructure owned by electric cooperatives has been built to federal standards, line crews from any co-op in America can arrive on the scene ready to provide emergency support, secure in their knowledge of the system’s engineering.

Co-ops thank legislators advocating for Kentucky’s rural communities

Louisville, Ky. (December 20, 2018) – Kentucky’s electric cooperatives applaud today’s signing of the 2018 Farm Bill by President Donald Trump which will advance the interests of rural America. Kentucky’s 26 electric cooperatives serve 1.5 million Kentuckians in 117 counties and are committed to improving the quality of life for their consumer-members, most of which live in rural portions of the state.

Kentucky Electric Cooperatives President and CEO Chris Perry expressed gratitude to the Members of Congress who advocated for Kentuckians in the Farm Bill, in particular Senate Majority Leader Mitch McConnell and Congressman James Comer who both served on the Farm Bill Conference Committee.

“We appreciate Leader McConnell and Congressman Comer tirelessly advocating for rural Kentuckians in the compromise Farm Bill,” Perry said. “The legislation signed by President Trump today includes strong rural development provisions that will allow co-ops to continue our mission, to keep rates affordable and operate as engines of economic development in rural areas that need it the most.”

The Farm Bill includes funding and loans for rural economic development, rural broadband deployment, renewable energy initiatives and home energy retrofits.

The bill also modifies guidelines of the escrow accounts co-ops maintain with the USDA’s Rural Utilities Service. Perry credited advocacy by McConnell and Comer for compromise language that creates a manageable transition to a different structure for this important program.

“Thanks to Leader McConnell and Congressman Comer, the Farm Bill includes compromise language to protect how co-ops interact with the Rural Utilities Service. This will help Kentucky co-ops keep rates affordable while continuing to invest in modernizing the electric grid,” Perry said.