SB2 Alabama 2015 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2015

Title

Municipal Electric Authority, board of directors, number of members increased, compensation of board members and accounting firm further provided for, Sec. 11-50A-6 am'd.

Summary

The bill changes AMEA’s board rules to match the number of contracting municipalities, adds staggered terms, allows board compensation, and requires annual independent audits.

What This Bill Does

It sets the board size to start at nine members and then to equal the number of municipalities contracting with AMEA for power. Board members are elected by a municipality election committee with voting weights based on how much power each municipality buys. Initial terms are arranged as 1 year for three members, 2 years for three, and 3 years for three, with future terms generally set at three years and tie votes resolved by lot. The bill also allows the board to compensate members (up to $600 per meeting) if all members vote to authorize it, and requires annual audits by an independent firm with audit reports available to bondholders and contracting parties, while emphasizing diversity in board membership.

Who It Affects

• Municipalities that contract with AMEA for bulk electric power and energy: their number determines the board size and their representatives elect the board members; voting weights for selecting directors depend on their energy purchases.
• AMEA and its financial stakeholders (bondholders, municipalities contracting with AMEA, and residents within those municipalities): the compensation policy and the annual independent audits affect costs, transparency, and accountability.

Key Provisions

• Board size shall be nine members initially and, thereafter, equal to the number of municipalities contracting with AMEA for electric power and energy, with members elected by the designated municipal election committee.
• Election and voting: each contracting municipality has representation on the election committee, with votes weighted by the municipality’s kilowatt-hours purchased (before and after any project goes into commercial operation); tie votes resolved by lot.
• Initial terms: three members for one year, three for two years, and three for three years; future terms are three years; if the board size increases, terms are adjusted to maintain a roughly equal distribution of expirations; members serve at the pleasure of the election committee.
• Compensation: board members may be compensated up to $600 per board meeting attended if the board unanimously votes to authorize compensation; otherwise, compensation is not provided; members may be reimbursed for actual expenses.
• Auditing: the authority must be audited at least annually by an independent nationally recognized firm; audit copies must be available to interested parties, including bondholders and contracting parties.
• Diversity: board membership shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities