City of Arab v. Cherokee Electric Cooperative

Cherokee Electric Cooperative, Arab Electric Cooperative, Joe Wheeler Electric Membership Corporation, Marshall-DeKalb Electric Cooperative, North Alabama Electric Cooperative, and Sand Mountain Electric Cooperative (the Cooperatives), appeal from a judgment of the Circuit Court of Cherokee County holding valid municipal business privilege taxes assessed by municipalities1 on the cooperatives. The cooperatives all distribute power obtained from the Tennessee Valley Authority (TVA) to residents in the respective municipalities. The primary issue is whether the cooperatives are “franchises” of…