Committee approves disclosure requirement for EMCs that pledge assets to buy gas subsidiaries

The House Energy, Utilities and Telecommunications Committee voted to advance language requiring electric membership corporations (EMCs) to disclose to members when they pledge more than a statutory share of utility assets to acquire gas distribution or gas marketing subsidiaries.

The bill’s sponsor, identified in the meeting transcript only as “the senator” and introduced as Senate Bill 256, told the committee the measure restores disclosure provisions that were part of a prior negotiated compromise. He said the change was intended to “close the loop” on last year’s change increasing the percentage of assets that can be pledged from 15% to as high as 25% and to provide members with information about the percentage of utility plant pledged and annual gas volumes being resold.

The measure requires an EMC…