Rural Electricity Sues USDA For Withheld Loans

Law360, New York (September 26, 2008, 12:00 AM EDT) -- East Texas Electric Cooperative Inc. launched a suit Thursday alleging the Sierra Club’s efforts to thwart the development of coal-fired electric plants wrongly prevents the company from receiving hundreds of millions of dollars in loans guaranteed under the Rural Electrification Act.

The complaint for declaratory relief, lodged in the U.S. District Court for the Eastern District of Texas, claims litigation by the Sierra Club caused the Rural Utilities Services to deny the company approximately $240 million in loans for the purchase of shares in two power...
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