MATTER OF CAJUN ELEC. POWER CO-OP., INC.

No. 95-30941.

109 F.3d 248 (1997)

In the Matter of CAJUN ELECTRIC POWER COOPERATIVE, INCORPORATED, Debtor. UNITED STATES of America, on Behalf of the RURAL UTILITIES SERVICE, Appellant, v. CAJUN ELECTRIC POWER COOPERATIVE, INCORPORATED; Louisiana Public Service Commission; Concordia Electric Cooperative, Inc.; Dixie Electric Membership Corporation; Valley Electric Membership Corporation; Pointe Coupee Electric Membership Corporation; Washington St. Tammany; Teche Electric Cooperative, Inc.; South Louisiana Electric; Northeast Louisiana Power Cooperative, Inc.; Claiborne Electric Cooperative, Inc.; Jefferson Davis Electric Cooperative, Inc.; Beauregard Electric Cooperative, Inc.; Southwest Louisiana Electric Membership Corporation; Cajun Electric Members Committee, Appellees.

United States Court of Appeals, Fifth Circuit.

April 9, 1997.


Attorney(s) appearing for the Case

Douglas N. Letter, Washington, DC, William Kanter, U.S. Dept. of Justice, Civ. Div., Washington, DC, for Appellant.

David H. Kleiman, James P. Moloy, Dann, Pecar, Newman & Kleiman, Indianapolis, IN, for Appellees Cajun Elec. Power Co-op., Inc., Concordia Elec. Co-op., Inc., Dixie Elec. Membership Corp., Valley Elec. Membership Corp., Pointe Coupee Elec. Membership Corp., Washington St. Tammany, South Louisiana Elec., Northeast Louisiana Power Co-op., Inc., Jefferson Davis Elec. Co-op., Inc., Beauregard Elec. Co-op., Inc., Southwest Louisiana Elec. Membership Corp. and Cajun Elec. Members Committee.

John C. Weitnauer, Alston & Bird, Atlanta, GA, William Hardy Patrick, III, William H. Patrick, John Schwab, Schwab & Walter, Baton Rouge, LA, for Cajun Elec. Power Co-op., Inc.

Michael R. Fontham, Noel Joseph Darce, Laurie A. Barcelona, Stone, Pigman, Walther, Wittmann & Hutchinson, New Orleans, LA, Brian Andrew Eddington, Louisiana Public Service Com'n, Baton Rouge, LA, for Louisiana Public Service Com'n.

V. Russell Purvis, Smith, Taliaferro & Purvis, Jonesville, LA, for Concordia Elec. Co-op., Inc.

John M. Sharp, Baton Rouge, LA, for Dixie Elec. Membership Corp.

Henry Cole Gahagan, Jr., Natchitoches, LA, for Valley Elec. Membership Corp.

James B. Supple, Biggs, Trowbridge, Supple & Cremaldi, Franklin, LA, for Pointe Coupee Elec. Membership Corp.

J. Wendell Clark, Joseph H. Kavanaugh, Adams & Reese, Baton Rouge, LA, for Washington St. Tammany.

Nicholas F. LaRocca, Jr., Morgan City, LA, for Teche Elec. Co-op., Inc.

James Madison Funderburk, Duval, Funderburk, Sundbery & Lovell, Houma, LA, for South Louisiana Elec.

Edwin Rudolph McIntyre, Jr., Winnsboro, LA, for Northeast Louisiana Power Co-op., Inc.

William Marshall Shaw, Sr., Patrick Edgerton Henry, Shaw, Weaver & Henry, Homer, LA, for Claiborne Elec. Co-op., Inc.

Carl Harmon Hanchey, Jones, Tete, Nolen, Hanchey, Swift & Spears, Lake Charles, LA, for Beauregard Elec. Co-op., Inc.

James J. Davidson, III, Davidson, Meaux, Sonnier, McElligott and Swift, Lafayette, LA, for Southwest Louisiana Elec. Membership Corp.

Before BENAVIDES, STEWART and DENNIS, Circuit Judges.


DENNIS, Circuit Judge:

Under the Rural Electrification Act of 1936, as amended, 7 U.S.C. § 901 et seq., ("RE Act") the Secretary of Agriculture ("Secretary") is empowered to make and guarantee loans to wholesale power supply borrowers that generate electric energy for retail electrical systems which furnish electricity to persons in rural areas. The principal issue in the present case is whether the RE Act authorizes the Secretary by regulation to (1)...

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