Pennsylvania Consolidated Statutes

15 Pa. Cons. Stat. § 7330 (2026)

Nonprofit operation.

✓ current as of May 2026

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§ 7330. Nonprofit operation.

(a) General rule.--Each electric cooperative corporation shall be operated without profit to its members, but the rates, fees, rents or other charges for electric energy and any other facilities, supplies, equipment or services furnished by the corporation shall be sufficient at all times:

(1) To pay all operating and maintenance expenses necessary or desirable for the prudent conduct of its business and the principal of and interest on the obligations issued or assumed by the corporation in the performance of the purpose for which it was organized.

(2) For the creation of reserves.

(b) Disposition of revenues.--The revenues of the corporation shall be devoted, first, to the payment of operating and maintenance expenses and the principal and interest on outstanding obligations and, thereafter, to such reserves for improvement, new construction, depreciation and contingencies as the board may, from time to time, prescribe.

(c) Patronage distributions.--Revenues not required for the purposes set forth in subsection (b) shall be returned, from time to time, to the members on a pro rata basis, according to the amount of business done with each during the period, either in cash, in abatement of current charges for electric energy or otherwise, as the board determines, but the return may be made by way of general rate reduction to members if the board so elects.

Notes of Decisions

Cited in 2 cases, 2017–2018 · leading case: Cessna v. Rea Energy Coop., Inc., 258 F. Supp. 3d 566 (W.D. Pa. 2017).

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Cessna v. Rea Energy Coop., Inc., 258 F. Supp. 3d 566 (W.D. Pa. 2017). · cites it 6× “) Plaintiffs also point to § 7330 of Pennsylvania’s Electric Cooperative Law of 1990 ( 15 Pa. Cons. Stat. § 7330 ), and argue that if REA’s bylaws give its board of directors absolute discretion over the disbursement of patronage capital, then such discretion would violate §…”

Leonard Cessna v. REA Energy Coop. Inc (3rd Cir. 2018). · cites it 3× “They claim that, by retaining all the members’ Patronage Capital for years 2 at a time and failing to pay its members with any regularity, REA has violated its bylaws, which incorporate 15 Pa.C.S. § 7330. The statute requires Pennsylvania electrical cooperatives to “return[],…”

— 15 Pa. Cons. Stat. § 7330(c) — 1 case

Leonard Cessna v. REA Energy Coop. Inc (3rd Cir. 2018). “They claim that, by retaining all the members’ Patronage Capital for years 2 at a time and failing to pay its members with any regularity, REA has violated its bylaws, which incorporate 15 Pa.C.S. § 7330. The statute requires Pennsylvania electrical cooperatives to “return[],…”

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