Municipality Monopoly Is Not Fun For Everyone

Law360, New York (February 24, 2012, 1:28 PM EST) -- Unlawful tying arrangements are a frequent point of contention between electric cooperatives and municipalities. On Jan. 17, 2012, the U.S. Supreme Court let stand a decision that permits an unlawful tying/monopolization claim to go forward against the city of Newkirk, Okla.

The underlying facts are as follows: Newkirk and Kay Electric Cooperative are both electric providers in Oklahoma. Newkirk typically provides electric service to customers within its city limits, and Kay, a nearby utility, normally serves customers outside the city limits.

After it was announced that...
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