Section 1.

Any person residing and/or owning, leasing or possessing real property in San Juan County, Washington or other counties in Washington, and desiring to become an ENERGY MEMBER of the cooperative and receive electrical energy and service from it by connection to its physical system is eligible for energy membership and may apply therefore. Such applicant may become an energy member upon approval of his/her application, agreeing to be bound by the articles of incorporation, bylaws, tariffs and rules of the cooperative, together with any future amendments thereto, and payment of the current fee fixed by the Board of Directors.

Membership in any class may be assigned to another member or reacquired by the cooperative by following the procedure established by the Board of Directors.

Every member shall be responsible for payment of his electrical service, and failure to pay for such service will be grounds for termination of and/ or forfeiture of membership.

No member shall ever become the holder or owner of more than one membership in any class, and memberships held by a member in excess of one shall be redeemed by the cooperative by repayment of the membership fee.

Section 2. Qualifications and Obligations

Any person, partnership, corporation or body politic may become an energy member in the cooperative by:

1. signing and submitting an application for membership form;

2. paying the membership fee hereinafter specified or as adopted by the Board of Directors;

3. agreeing to purchase from the cooperative electric energy and service as hereinafter specified; and

4. agreeing to comply with and be bound by the articles of incorporation, bylaws, tariffs and rules of the cooperative and any future amendments thereto; provided, however, that no person, partnership, corporation or body politic shall become a member unless and until he or it has been accepted for membership by the Board of Directors. A husband or wife, in becoming a member, shall automatically have a joint tenancy membership with right of survivorship, unless otherwise designated by them at the time he or she becomes a member. In the event of dissolution of the marital community between a husband and wife, the membership will follow the property and the person awarded the property in any decree of dissolution, in absence of which the membership will be awarded to that member of the former marital community who resides upon or has control of such real property. A husband and wife may join as a single member, designating which one of them is to be the member, in which event, upon death of the husband or wife, the membership shall be treated as any other membership under Article I, Section 8 of these bylaws.

Section 3. Membership Fee

The membership fee shall be $5.00 or as set by the Board of Directors. Upon approval of the membership application by the board and payment of the membership fee, the member shall be eligible for service. Fees for providing connections shall be established by the regulations adopted by the cooperative that are applicable at the time the connections are made.

Section 4. Purchase of Electric Energy

Each member shall, as soon as electric energy shall be available, purchase from the cooperative all electric energy purchased for use on the premises specified in his application for membership, and shall pay therefore monthly at rates which shall from time to time be fixed by resolution of the Board of Directors; provided, however, that the electric energy which the cooperative shall furnish to any member may be limited to such an amount as the Board of Directors shall from time to time determine. Production or use of electric energy on such premises, regardless of the source thereof, by means of facilities which shall be interconnected with cooperative facilities, shall be subject to appropriate regulations as shall be fixed from time to time by the cooperative. It is expressly understood that amounts paid for electric energy in excess of cost of service are furnished by energy members as capital, and each energy member shall be credited with the capital so furnished as provided by these bylaws. Each member shall pay to the cooperative such minimum amount per month as shall be fixed by the Board of Directors from time to time, regardless of the amount of electric energy consumed, but in no case, less than said minimum amount. Each member shall also pay all obligations which may from time to time become due and payable by such member to the cooperative as and when the same shall become due and payable. The cooperative reserves the right to discontinue service to any member who has not paid the amounts owed by the member.

Section 5. Non-Liability for Debts of the Cooperative

The private property of the members of the cooperative shall be exempt from execution for the debts of the cooperative, and no member shall be individually liable or responsible for any debts or liabilities of the cooperative.

Section 6. Expulsion of Members

The Board of Directors of the cooperative may, by the affirmative vote of not less than two thirds (2/3) of the members thereof, expel any member who shall have violated or refused to comply with any of the provisions of the articles of incorporation, the bylaws, the tariff or any rules or regulations adopted from time to time by the Board of Directors or any future amendments thereto. Any member so expelled may be reinstated as a member by a vote of the energy members at any annual or special meeting of the energy members. The action of the members with respect to any such reinstatement shall be final.

Section 7. Withdrawal of Membership

Any member may withdraw from membership upon payment in full of all debts and liabilities of such member to the cooperative and upon compliance with such terms and conditions as the Board of Directors may prescribe.

Section 8. Transfer and Termination of Membership

1. Membership in the cooperative shall not be transferred except as hereinafter otherwise provided; and upon the death, cessation of existence, expulsion or withdrawal of a member, or if a member has received no electrical service for a continuous period of twelve (12) months when it was available to him, the membership of such member shall thereupon terminate. Termination of membership shall not release the member or the member’s estate from the debts or liabilities of such member to the cooperative.

2. A membership may be transferred by a member to himself or herself and his or her spouse, as the case may be, jointly upon the written request of such member and compliance by such husband and wife jointly with the provisions of Section 1 of this article. Such transfer shall be made and recorded on the books of the cooperative.

3. When a membership is held jointly by a husband and wife, upon the death of either, such membership shall be deemed to be held solely by the survivor with the same effect as though such membership had been originally issued solely to him or her, as the case may be, provided, however, that the estate of the deceased shall not be released from any membership debts or liabilities to the cooperative.

4. One whose membership has been terminated for any reason, but who requires service again, may again become a member by complying with the procedure outlined in Article 1, Section 2. Such a reinstated member, however, shall be required to pay a connection fee equivalent to that required of an existing member, in addition to the membership fee.

Section 9. New Classes of Membership

The Board of Directors, by majority vote of a quorum of the board, may adopt, by resolution, additional classes of memberships, together with the rights, responsibilities and duties of such additional classes of members.

Section 10. Removal of Directors and Officers

Any energy member may bring charges of malfeasance or misfeasance against an officer or director by filing them in writing with the secretary, together with a petition signed by ten percent (10%) of the energy members, requesting the removal of the officer or director in question. The removal shall be voted upon at the next regular or special meeting of the energy members, and any vacancy created by such removal may be filled by the energy members at such meeting. The director or officer against whom such charges have been brought shall be informed in writing of the charges previous to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present evidence; and the same person or persons bringing the charges against him shall have the same opportunity. The members may, at any meeting at which a director or directors shall be removed, as hereinafter provided, elect a successor or successors thereto without compliance with respect to nominations.