{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-231.16.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-231.16.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-231.16.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-231.16.html"}],"law_id":69452,"edition_id":1,"section_id":69452,"structure_id":13548,"section_number":"56-231.16","catch_line":"Organization; purpose","history":"1999, c. 874; 2000, cc. 964, 989; 2025, cc. 499, 598.","full_text":"A\n\nAny number of natural persons not less than five may, by executing, filing and recording articles of incorporation as hereinafter set forth, form a cooperative, either with or without capital stock, not organized for pecuniary profit, for the principal purpose of making energy, energy services, and other utility services available at the lowest cost consistent with sound economy and prudent management of the business of such cooperative and such other purposes as its membership shall approve: (i) provided, however, that within its certificated service territory, no such cooperative shall, prior to July 1, 2000, undertake or initiate any new program (a) to buy or maintain an inventory of HVACR equipment or household appliances, (b) to install or service any such equipment or household appliances for customers, unless such service is not provided by the cooperative but by a third party individual, firm or corporation licensed to perform such service, (c) to sell HVACR equipment or household appliances to customers metered and billed on residential rates, (d) to sell HVACR equipment to customers other than those metered and billed on residential rates except where such sale is an incidental part of providing other energy services or providing traditional cooperative activities, (e) to sell or distribute propane or fuel oil; sell, install or service propane or fuel oil equipment; or maintain or buy an inventory of propane or fuel oil equipment for resale, or (f) to serve as a coordinator of nonelectric energy services or provide engineering consulting services except when such energy or engineering services are an incidental part of a marketing effort to provide other energy or engineering services or as a part of providing services that are traditional cooperative activities; (ii) provided further, that notwithstanding clause (i), such cooperative may engage within its certificated service territory in any of the activities enumerated in clause (i) that (a) have received State Corporation Commission approval prior to February 1, 1998, (b) such cooperative is ordered or required to undertake by any jurisdictional court or regulatory authority, (c) were lawfully undertaken prior to February 1, 1998, (d) are specifically permitted by statute, or (e) are undertaken by any other regulated public service company or its unregulated affiliate within such cooperative’s certificated service territory; and (iii) also provided that such cooperative or its affiliate may not undertake such activities as are prohibited by clause (i) within the certificated service territory of another public service company unless such activities are undertaken by such public service company or its unregulated affiliate within such cooperative’s certificated service territory. In addition, such cooperative may establish one or more subsidiaries to engage in any other business activities not prohibited by law, including making unregulated sales of electric power to members of such cooperative that are served at or by dedicated or excess facilities within the cooperative’s certificated service territory and that contract for electric utility services to serve a demand that is reasonably expected to exceed 90 megawatts; notwithstanding the foregoing, no such subsidiary may engage in any business activities that the cooperatives are prohibited from engaging in under this section. For purposes of determining whether a cooperative is formed not for pecuniary profit, the establishment of one or more affiliates thereof on a for-profit basis shall not disqualify such entity from being formed as a cooperative pursuant to this article.B\n\nNothing in this article shall be construed to authorize a cooperative formed pursuant to this article, or any affiliate thereof, to engage, on a not-for-profit basis, within either the cooperative’s certificated service territory or in the certificated service territory of another public service company, in the sale of products, the provision of services, or other business activity, except for regulated electric utility services, unregulated sales of electric power to its members within its certificated service territory, and traditional cooperative activities. However, if such products or services are not currently provided by any person other than a cooperative formed under or subject to this chapter or its affiliate and the Commission determines that no such other person is likely, within a reasonable time, to effectively provide such products and services in such territory, an affiliate of a cooperative may provide such products or services on a not-for-profit basis. The Commission shall also permit an affiliate of a cooperative formed under or subject to this chapter to provide such products or services on a not-for-profit basis upon a finding that the affiliate will not receive the benefit of any federal income tax exemption that is not available to persons other than cooperatives and will not receive the benefit of any federally guaranteed or subsidized financing that is not available to persons other than cooperatives; and provided further that nothing in this subsection shall prohibit the continued operation of any business activities of any not-for-profit cooperative or affiliate formed, operating, and actively providing products or services to customers on or before July 1, 1999.","order_by":null,"text":{"0":{"id":251149,"text":"Any number of natural persons not less than five may, by executing, filing and recording articles of incorporation as hereinafter set forth, form a cooperative, either with or without capital stock, not organized for pecuniary profit, for the principal purpose of making energy, energy services, and other utility services available at the lowest cost consistent with sound economy and prudent management of the business of such cooperative and such other purposes as its membership shall approve: (i) provided, however, that within its certificated service territory, no such cooperative shall, prior to July 1, 2000, undertake or initiate any new program (a) to buy or maintain an inventory of HVACR equipment or household appliances, (b) to install or service any such equipment or household appliances for customers, unless such service is not provided by the cooperative but by a third party individual, firm or corporation licensed to perform such service, (c) to sell HVACR equipment or household appliances to customers metered and billed on residential rates, (d) to sell HVACR equipment to customers other than those metered and billed on residential rates except where such sale is an incidental part of providing other energy services or providing traditional cooperative activities, (e) to sell or distribute propane or fuel oil; sell, install or service propane or fuel oil equipment; or maintain or buy an inventory of propane or fuel oil equipment for resale, or (f) to serve as a coordinator of nonelectric energy services or provide engineering consulting services except when such energy or engineering services are an incidental part of a marketing effort to provide other energy or engineering services or as a part of providing services that are traditional cooperative activities; (ii) provided further, that notwithstanding clause (i), such cooperative may engage within its certificated service territory in any of the activities enumerated in clause (i) that (a) have received State Corporation Commission approval prior to February 1, 1998, (b) such cooperative is ordered or required to undertake by any jurisdictional court or regulatory authority, (c) were lawfully undertaken prior to February 1, 1998, (d) are specifically permitted by statute, or (e) are undertaken by any other regulated public service company or its unregulated affiliate within such cooperative’s certificated service territory; and (iii) also provided that such cooperative or its affiliate may not undertake such activities as are prohibited by clause (i) within the certificated service territory of another public service company unless such activities are undertaken by such public service company or its unregulated affiliate within such cooperative’s certificated service territory. In addition, such cooperative may establish one or more subsidiaries to engage in any other business activities not prohibited by law, including making unregulated sales of electric power to members of such cooperative that are served at or by dedicated or excess facilities within the cooperative’s certificated service territory and that contract for electric utility services to serve a demand that is reasonably expected to exceed 90 megawatts; notwithstanding the foregoing, no such subsidiary may engage in any business activities that the cooperatives are prohibited from engaging in under this section. For purposes of determining whether a cooperative is formed not for pecuniary profit, the establishment of one or more affiliates thereof on a for-profit basis shall not disqualify such entity from being formed as a cooperative pursuant to this article.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":251150,"text":"Nothing in this article shall be construed to authorize a cooperative formed pursuant to this article, or any affiliate thereof, to engage, on a not-for-profit basis, within either the cooperative’s certificated service territory or in the certificated service territory of another public service company, in the sale of products, the provision of services, or other business activity, except for regulated electric utility services, unregulated sales of electric power to its members within its certificated service territory, and traditional cooperative activities. However, if such products or services are not currently provided by any person other than a cooperative formed under or subject to this chapter or its affiliate and the Commission determines that no such other person is likely, within a reasonable time, to effectively provide such products and services in such territory, an affiliate of a cooperative may provide such products or services on a not-for-profit basis. The Commission shall also permit an affiliate of a cooperative formed under or subject to this chapter to provide such products or services on a not-for-profit basis upon a finding that the affiliate will not receive the benefit of any federal income tax exemption that is not available to persons other than cooperatives and will not receive the benefit of any federally guaranteed or subsidized financing that is not available to persons other than cooperatives; and provided further that nothing in this subsection shall prohibit the continued operation of any business activities of any not-for-profit cooperative or affiliate formed, operating, and actively providing products or services to customers on or before July 1, 1999.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":13548,"edition_id":1,"name":"Utility Consumer Services Cooperatives Act","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13182,"metadata":{},"date_created":"2026-06-26 03:45:11","date_modified":"2026-06-26 03:45:11","permalink":{"id":251325,"object_type":"structure","relational_id":13548,"identifier":"1","token":"56\/9.1\/1","url":"\/56\/9.1\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13182,"edition_id":1,"name":"Utility Consumer Services Cooperatives and Utility Aggregation Cooperatives","identifier":"9.1","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:24","date_modified":"2026-06-26 03:44:24","permalink":{"id":251323,"object_type":"structure","relational_id":13182,"identifier":"9.1","token":"56\/9.1","url":"\/56\/9.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":77567,"structure_id":13548,"section_number":"56-231.15","catch_line":"Definitions","url":"\/56-231.15\/","token":"56\/9.1\/1\/56-231.15","metadata":false},{"id":69452,"structure_id":13548,"section_number":"56-231.16","catch_line":"Organization; purpose","url":"\/56-231.16\/","token":"56\/9.1\/1\/56-231.16","metadata":false},{"id":84775,"structure_id":13548,"section_number":"56-231.17","catch_line":"Articles of incorporation","url":"\/56-231.17\/","token":"56\/9.1\/1\/56-231.17","metadata":false},{"id":62056,"structure_id":13548,"section_number":"56-231.18","catch_line":"Name of other corporations not to include term \"electric cooperative\" or \"utility consumer services cooperative.\"","url":"\/56-231.18\/","token":"56\/9.1\/1\/56-231.18","metadata":false},{"id":56649,"structure_id":13548,"section_number":"56-231.19","catch_line":"Filing articles of incorporation; effect thereof; other provisions of law applicable","url":"\/56-231.19\/","token":"56\/9.1\/1\/56-231.19","metadata":false},{"id":56722,"structure_id":13548,"section_number":"56-231.20","catch_line":"Repealed","url":"\/56-231.20\/","token":"56\/9.1\/1\/56-231.20","metadata":false},{"id":63207,"structure_id":13548,"section_number":"56-231.21","catch_line":"Dissolution and termination of cooperatives","url":"\/56-231.21\/","token":"56\/9.1\/1\/56-231.21","metadata":false},{"id":83080,"structure_id":13548,"section_number":"56-231.22","catch_line":"Charter amendments","url":"\/56-231.22\/","token":"56\/9.1\/1\/56-231.22","metadata":false},{"id":72128,"structure_id":13548,"section_number":"56-231.23","catch_line":"General powers granted","url":"\/56-231.23\/","token":"56\/9.1\/1\/56-231.23","metadata":false},{"id":81307,"structure_id":13548,"section_number":"56-231.24","catch_line":"Power to dispose of property","url":"\/56-231.24\/","token":"56\/9.1\/1\/56-231.24","metadata":false},{"id":73620,"structure_id":13548,"section_number":"56-231.25","catch_line":"Power to issue obligations","url":"\/56-231.25\/","token":"56\/9.1\/1\/56-231.25","metadata":false},{"id":82512,"structure_id":13548,"section_number":"56-231.26","catch_line":"Covenants in connection with obligations","url":"\/56-231.26\/","token":"56\/9.1\/1\/56-231.26","metadata":false},{"id":56541,"structure_id":13548,"section_number":"56-231.27","catch_line":"Power to purchase its own obligations","url":"\/56-231.27\/","token":"56\/9.1\/1\/56-231.27","metadata":false},{"id":54513,"structure_id":13548,"section_number":"56-231.28","catch_line":"Board of directors of cooperatives","url":"\/56-231.28\/","token":"56\/9.1\/1\/56-231.28","metadata":false},{"id":55041,"structure_id":13548,"section_number":"56-231.29","catch_line":"Powers of board of directors","url":"\/56-231.29\/","token":"56\/9.1\/1\/56-231.29","metadata":false},{"id":62265,"structure_id":13548,"section_number":"56-231.30","catch_line":"Rights and liabilities of members","url":"\/56-231.30\/","token":"56\/9.1\/1\/56-231.30","metadata":false},{"id":63250,"structure_id":13548,"section_number":"56-231.31","catch_line":"Payment of certain patronage capital to spouse or next of kin of deceased person","url":"\/56-231.31\/","token":"56\/9.1\/1\/56-231.31","metadata":false},{"id":82313,"structure_id":13548,"section_number":"56-231.31:1","catch_line":"Donation of certain patronage capital to the cooperative","url":"\/56-231.31_1\/","token":"56\/9.1\/1\/56-231.31_1","metadata":false},{"id":59045,"structure_id":13548,"section_number":"56-231.32","catch_line":"Service to members","url":"\/56-231.32\/","token":"56\/9.1\/1\/56-231.32","metadata":false},{"id":75936,"structure_id":13548,"section_number":"56-231.33","catch_line":"Adequate service; rates","url":"\/56-231.33\/","token":"56\/9.1\/1\/56-231.33","metadata":false},{"id":66118,"structure_id":13548,"section_number":"56-231.34","catch_line":"Regulation by Commission","url":"\/56-231.34\/","token":"56\/9.1\/1\/56-231.34","metadata":false},{"id":71119,"structure_id":13548,"section_number":"56-231.34:1","catch_line":"Separation of regulated and unregulated businesses","url":"\/56-231.34_1\/","token":"56\/9.1\/1\/56-231.34_1","metadata":false},{"id":82749,"structure_id":13548,"section_number":"56-231.34:2","catch_line":"Right of action; violation of rules or regulations","url":"\/56-231.34_2\/","token":"56\/9.1\/1\/56-231.34_2","metadata":false},{"id":69534,"structure_id":13548,"section_number":"56-231.35","catch_line":"Charter fees, etc","url":"\/56-231.35\/","token":"56\/9.1\/1\/56-231.35","metadata":false},{"id":58392,"structure_id":13548,"section_number":"56-231.36","catch_line":"Construction of article; conflicting laws","url":"\/56-231.36\/","token":"56\/9.1\/1\/56-231.36","metadata":false},{"id":85836,"structure_id":13548,"section_number":"56-231.37","catch_line":"How article cited","url":"\/56-231.37\/","token":"56\/9.1\/1\/56-231.37","metadata":false}],"previous_section":{"id":77567,"structure_id":13548,"section_number":"56-231.15","catch_line":"Definitions","url":"\/56-231.15\/","token":"56\/9.1\/1\/56-231.15","metadata":false},"next_section":{"id":84775,"structure_id":13548,"section_number":"56-231.17","catch_line":"Articles of incorporation","url":"\/56-231.17\/","token":"56\/9.1\/1\/56-231.17","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-231.16\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 874<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2000, chapters 964<\/a> and 989<\/a>; in 2025, chapters 499<\/a> and 598<\/a>.<\/p>","references":[{"id":84775,"section_number":"56-231.17","catch_line":"Articles of incorporation","order_by":null,"url":"\/56-231.17\/"}],"refers_to":false,"permalink":{"id":251331,"object_type":"law","relational_id":69452,"identifier":"56-231.16","token":"56\/9.1\/1\/56-231.16","url":"\/56-231.16\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-231.16\/","token":"56\/9.1\/1\/56-231.16","dublin_core":{"Title":"Organization; purpose","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-231.16","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any number of natural persons<\/span> not less than five may, by executing, filing and recording articles of incorporation as hereinafter set forth, form a cooperative<\/span>, either with or without capital stock, not organized for pecuniary profit, for the principal purpose of making energy<\/span>, energy<\/span> services, and other utility services<\/span> available at the lowest cost consistent with sound economy and prudent management of the business of such cooperative<\/span> and such other purposes as its membership shall approve: (i) provided, however, that within its certificated service territory, no such cooperative<\/span> shall, prior to July 1, 2000, undertake or initiate any new program (a) to buy or maintain an inventory of HVACR<\/span> equipment or household appliances, (b) to install or service any such equipment or household appliances for customers, unless such service is not provided by the cooperative<\/span> but by a third party<\/span> individual, firm or corporation<\/span> licensed to perform such service, (c) to sell HVACR<\/span> equipment or household appliances to customers metered and billed on residential rates<\/span>, (d) to sell HVACR<\/span> equipment to customers other than those metered and billed on residential rates<\/span> except where such sale is an incidental part of providing other energy<\/span> services or providing traditional cooperative<\/span> activities, (e) to sell or distribute propane or fuel oil; sell, install or service propane or fuel oil equipment<\/span>; or maintain or buy an inventory of propane or fuel oil equipment<\/span> for resale, or (f) to serve as a coordinator of nonelectric energy<\/span> services or provide engineering consulting services except when such energy<\/span> or engineering services are an incidental part of a marketing effort to provide other energy<\/span> or engineering services or as a part of providing services that are traditional cooperative<\/span> activities; (ii) provided further, that notwithstanding clause (i), such cooperative<\/span> may engage within its certificated service territory in any of the activities enumerated in clause (i) that (a) have received State Corporation<\/span> Commission<\/span> approval prior to February 1, 1998, (b) such cooperative<\/span> is ordered or required to undertake by any jurisdictional court<\/span> or regulatory authority, (c) were lawfully undertaken prior to February 1, 1998, (d) are specifically permitted by statute<\/span>, or (e) are undertaken by any other regulated public service company<\/span> or its unregulated affiliate<\/span> within such cooperative<\/span>’s certificated service territory; and (iii) also provided that such cooperative<\/span> or its affiliate<\/span> may not undertake such activities as are prohibited by clause (i) within the certificated service territory of another public service company<\/span> unless such activities are undertaken by such public service company<\/span> or its unregulated affiliate<\/span> within such cooperative<\/span>’s certificated service territory. In addition, such cooperative<\/span> may establish one or more subsidiaries to engage in any other business activities not prohibited by law<\/span>, including making unregulated sales of electric power to members<\/span> of such cooperative<\/span> that are served at or by dedicated or excess facilities within the cooperative<\/span>’s certificated service territory and that contract<\/span> for electric utility services<\/span> to serve a demand that is reasonably expected to exceed 90 megawatts; notwithstanding the foregoing, no such subsidiary may engage in any business activities that the cooperatives<\/span> are prohibited from engaging in under this section. For purposes of determining whether a cooperative<\/span> is formed not for pecuniary profit, the establishment of one or more affiliates<\/span> thereof on a for-profit basis shall not disqualify such entity from being formed as a cooperative<\/span> pursuant to this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Nothing in this article shall be construed to authorize a cooperative<\/span> formed pursuant to this article, or any affiliate<\/span> thereof, to engage, on a not-for-profit basis, within either the cooperative<\/span>’s certificated service territory or in the certificated service territory of another public service company<\/span>, in the sale of products, the provision of services, or other business activity, except for regulated electric utility services<\/span>, unregulated sales of electric power to its members<\/span> within its certificated service territory, and traditional cooperative<\/span> activities. However, if such products or services are not currently provided by any person<\/span> other than a cooperative<\/span> formed under or subject to this chapter or its affiliate<\/span> and the Commission<\/span> determines that no such other person<\/span> is likely, within a reasonable time, to effectively provide such products and services in such territory, an affiliate<\/span> of a cooperative<\/span> may provide such products or services on a not-for-profit basis. The Commission<\/span> shall also permit an affiliate<\/span> of a cooperative<\/span> formed under or subject to this chapter to provide such products or services on a not-for-profit basis upon a finding<\/span> that the affiliate<\/span> will not receive the benefit of any federal income tax exemption that is not available to persons<\/span> other than cooperatives<\/span> and will not receive the benefit of any federally guaranteed or subsidized financing that is not available to persons<\/span> other than cooperatives<\/span>; and provided further that nothing in this subsection shall prohibit the continued operation of any business activities of any not-for-profit cooperative<\/span> or affiliate<\/span> formed, operating, and actively providing products or services to customers on or before July 1, 1999. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nORGANIZATION; PURPOSE (\u00a7 56-231.16)\n\nA. Any number of natural persons not less than five may, by executing, filing\nand recording articles of incorporation as hereinafter set forth, form a\ncooperative, either with or without capital stock, not organized for pecuniary\nprofit, for the principal purpose of making energy, energy services, and other\nutility services available at the lowest cost consistent with sound economy and\nprudent management of the business of such cooperative and such other purposes\nas its membership shall approve: (i) provided, however, that within its\ncertificated service territory, no such cooperative shall, prior to July 1,\n2000, undertake or initiate any new program (a) to buy or maintain an inventory\nof HVACR equipment or household appliances, (b) to install or service any such\nequipment or household appliances for customers, unless such service is not\nprovided by the cooperative but by a third party individual, firm or corporation\nlicensed to perform such service, (c) to sell HVACR equipment or household\nappliances to customers metered and billed on residential rates, (d) to sell\nHVACR equipment to customers other than those metered and billed on residential\nrates except where such sale is an incidental part of providing other energy\nservices or providing traditional cooperative activities, (e) to sell or\ndistribute propane or fuel oil; sell, install or service propane or fuel oil\nequipment; or maintain or buy an inventory of propane or fuel oil equipment for\nresale, or (f) to serve as a coordinator of nonelectric energy services or\nprovide engineering consulting services except when such energy or engineering\nservices are an incidental part of a marketing effort to provide other energy or\nengineering services or as a part of providing services that are traditional\ncooperative activities; (ii) provided further, that notwithstanding clause (i),\nsuch cooperative may engage within its certificated service territory in any of\nthe activities enumerated in clause (i) that (a) have received State Corporation\nCommission approval prior to February 1, 1998, (b) such cooperative is ordered\nor required to undertake by any jurisdictional court or regulatory authority,\n(c) were lawfully undertaken prior to February 1, 1998, (d) are specifically\npermitted by statute, or (e) are undertaken by any other regulated public\nservice company or its unregulated affiliate within such cooperative’s\ncertificated service territory; and (iii) also provided that such cooperative or\nits affiliate may not undertake such activities as are prohibited by clause (i)\nwithin the certificated service territory of another public service company\nunless such activities are undertaken by such public service company or its\nunregulated affiliate within such cooperative’s certificated service\nterritory. In addition, such cooperative may establish one or more subsidiaries\nto engage in any other business activities not prohibited by law, including\nmaking unregulated sales of electric power to members of such cooperative that\nare served at or by dedicated or excess facilities within the\ncooperative’s certificated service territory and that contract for\nelectric utility services to serve a demand that is reasonably expected to\nexceed 90 megawatts; notwithstanding the foregoing, no such subsidiary may\nengage in any business activities that the cooperatives are prohibited from\nengaging in under this section. For purposes of determining whether a\ncooperative is formed not for pecuniary profit, the establishment of one or more\naffiliates thereof on a for-profit basis shall not disqualify such entity from\nbeing formed as a cooperative pursuant to this article.\n\nB. Nothing in this article shall be construed to authorize a cooperative formed\npursuant to this article, or any affiliate thereof, to engage, on a\nnot-for-profit basis, within either the cooperative’s certificated service\nterritory or in the certificated service territory of another public service\ncompany, in the sale of products, the provision of services, or other business\nactivity, except for regulated electric utility services, unregulated sales of\nelectric power to its members within its certificated service territory, and\ntraditional cooperative activities. However, if such products or services are\nnot currently provided by any person other than a cooperative formed under or\nsubject to this chapter or its affiliate and the Commission determines that no\nsuch other person is likely, within a reasonable time, to effectively provide\nsuch products and services in such territory, an affiliate of a cooperative may\nprovide such products or services on a not-for-profit basis. The Commission\nshall also permit an affiliate of a cooperative formed under or subject to this\nchapter to provide such products or services on a not-for-profit basis upon a\nfinding that the affiliate will not receive the benefit of any federal income\ntax exemption that is not available to persons other than cooperatives and will\nnot receive the benefit of any federally guaranteed or subsidized financing that\nis not available to persons other than cooperatives; and provided further that\nnothing in this subsection shall prohibit the continued operation of any\nbusiness activities of any not-for-profit cooperative or affiliate formed,\noperating, and actively providing products or services to customers on or before\nJuly 1, 1999.\n\nHISTORY: 1999, c. 874; 2000, cc. 964, 989; 2025, cc. 499, 598.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}