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 that pledges more than 15% of its assets in a transaction to disclose to its members within six months the assets pledged and the percentage of utility plant involved. The sponsor also said the bill requires an annual disclosure of the amount of gas the EMC purchases and resells. The sponsor described the language as “carefully negotiated” with counsel for the Georgia EMCs and said, “they wrote this bill, and with my blessings.”

Committee members asked about enforcement and the scope of the language. Representative McCoy asked what would happen if an EMC failed to disclose or supplied erroneous information; the sponsor said enforcement would likely be civil — "somebody could bring a lawsuit to enforce" the requirement — and said members could hold boards accountable at elections. Representative Roman asked whether the disclosure requirement could be expanded to other electricity providers in the state; committee members responded that expanding the measure beyond EMCs would be a substantially different change and should be handled separately.

Representatives praised the bill’s focus on transparency. Representative Francis, who said she is from Cobb County, thanked the sponsor and noted that improved transparency addressed past problems at Cobb EMC. The transcript includes discussion of historical concerns tied to a former Cobb EMC CEO; a member of the committee corrected the record that the former CEO had been prosecuted.

No members of the public signed up to speak for or against the bill at the meeting. Following debate, Representative Seeball moved the motion to pass the committee; the motion was seconded and approved by voice vote. The transcript records a voice vote with members saying "aye," and the chair declared the motion passed. The committee arranged for a House sponsor to carry the bill forward.

The bill text on page 3 (as discussed in the meeting) centers on disclosure timing (within six months of a qualifying transaction) and an annual reporting requirement for gas purchases used for resale. The sponsor described the change as narrowly tailored to EMCs that pledge more than 15% of their assets and said the language reflected negotiation with EMC counsel.

Votes at the meeting were taken by voice; no roll-call tally was recorded in the transcript.

The committee advanced Senate Bill 256 to the next legislative step; the measure will now await a designated House sponsor and further processing in the House.