HUNTSVILLE, Ala. (Legal Newsline) - An Alabama electric cooperative was sued on Jan. 26 over allegations it didn't refund profits back to its members as required by state law.
Stewart P. Sparks filed the lawsuit against Cullman Electric Cooperative, which provides electricity to rural areas in Cullman County.
Under state law, electricity cooperatives have a few options when dealing with excess revenue including prorated refunds, rate reductions or a combination of both options.
The lawsuit alleged Cullman puts its excess revenue in a separate Patronage Capital fund, but has not distributed the revenue to its members. As of June 30, the fund had more than $91,000 in it, according to the lawsuit.
Sparks is seeking class status for former and current members of the cooperative, and more than $10,000 in damages plus court costs.
He is represented by Thomas E. Baddley, Jr., Jeffrey P. Mauro and John Parker Yates, of Baddley & Mauro, LLC in Birmingham, Ala.; and Andrew P. Campbell, John C. Guin and Stephen D. Wadworth, of Campbell, Guin, Williams, Guy and Gidiere, LLC of Birmingham.
On Feb. 23, the defendant removed the lawsuit to federal court in Huntsville.
U.S. District Court for the Northern District of Alabama-Northeastern Division case number 5:15-cv-00322