We maintain a revolving credit facility to cover our short-term and medium-term funding needs that are not met by cash from operations or other available funds. Available funding under this facility totals $400 million and commitments under this syndicated credit agreement extend through December 7, 2028. As of June 30, 2024 and December 31, 2023, we had outstanding under this facility $100.0 million and $191.0 million in borrowings, respectively.

Our operating revenues are derived from sales of power and renewable energy credits to our member distribution cooperatives and non-members. We supply power requirements (energy and demand) to our eleven member distribution cooperatives subject to substantially identical wholesale power contracts with each of them. We bill our member distribution cooperatives monthly and each member distribution cooperative is required to pay us monthly for power furnished under its wholesale power contract. We transfer control of the electricity over time and our member distribution cooperatives simultaneously receive and consume the benefits of the electricity. The amount we invoice our member distribution cooperatives on a monthly basis corresponds directly to the value to the member distribution cooperatives of our performance, which is determined by our formula rate included in the wholesale power contract. We sell excess energy and renewable energy credits to non-members at prevailing market prices as control is transferred.

ODEC sells excess purchased and generated energy not needed to meet the actual needs of our member distribution cooperatives to PJM, TEC, or other counterparties. Our financial statements represent the consolidated financial statements of ODEC and TEC and through the consolidation process, all intercompany balances and transactions have been eliminated and TEC’s sales are reflected as non-member revenues.

The rates we charge our member distribution cooperatives are regulated by FERC and FERC has granted us authority to charge our member distribution cooperatives utilizing a formula rate and market-based rates.

Our operating revenues for the three and six months ended June 30, 2024 and 2023, were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in thousands)
Operating revenues:
Member distribution cooperatives:
Formula rate:
Energy revenues	$	122,351	$	125,321	$	266,976	$	282,160
Renewable energy credits		91		90		201		173
Demand revenues		124,297		108,946		239,991		212,644
Total Formula rate revenues		246,739		234,357		507,168		494,977
Market-based rates:
Energy revenues		9,803		4,390		17,255		7,875
Demand revenues		2,689		559		3,974		1,100
Total Market-based rates revenues		12,492		4,949		21,229		8,975

Total Member distribution cooperatives revenues		259,231		239,306		528,397		503,952

Non-members:
Energy revenues (1)		2,861		12,185		4,207		23,452
Renewable energy credits		519		2,649		1,491		2,649
Total Non-members revenues		3,380		14,834		5,698		26,101

Total Operating revenues	$	262,611	$	254,140	$	534,095	$	530,053

(1)

TEC did not have sales to non-members after first quarter 2023. TEC’s sales to non-members were $8.9 million for the six months ended June 30, 2023.

In May 2023, the EPA proposed performance standards for both new and existing generating units for reducing carbon dioxide emissions. The proposed standards included emissions guidelines that would set limits for new gas-fired combustion turbines, existing coal, oil, and gas-fired steam generating units, and certain existing gas-fired combustion turbines.

On May 9, 2024, the final rule, which contains requirements to either retrofit existing coal units with carbon controls or retire the asset, was published in the Federal Register and became effective July 8, 2024. Also beginning on May 9, 2024, multiple lawsuits were filed against the EPA to seek judicial review of the final regulation and multiple petitions were filed seeking to stay implementation of the rule. On July 19, 2024, the United States Court of Appeals for the District of Columbia Circuit denied requests to stay the rule. On July 23, 2024, multiple entities filed an emergency stay application with the United States Supreme Court and are currently awaiting a ruling. We are continuing to monitor this standard as it relates to our generating facilities, particularly Clover. We will be able to determine our compliance strategies after state implementation plans have been developed related to the rule. The expenditures to either implement additional emissions control measures or retire an asset could have a material impact on our results of operations, financial condition, or cash flows.