The question of whether electricity qualifies as a "good" under the Bankruptcy Code's administrative priority provisions has sparked varied rulings from bankruptcy courts. The recent case of In re Southern Montana Electric Generation and Transmission Cooperative, Inc., from the United States Bankruptcy Court for the District of Montana, followed some courts in ruling that electricity is a "good." Other courts have ruled differently and have concluded that electricity is not a "good." In Southern Montana, the court had to address whether electricity qualified as a "good" to determine whether an electricity provider should be entitled to administrative priority for a portion of its claim pursuant to section 503(b)(9) of the Bankruptcy Code.

To continue reading, please click the link below.