The Fat Lady is looking through her sheet music

After 8.5 years, a lot of questions about Plant Washington, Cobb EMC, and Cobb Energy, a for-profit company created by Dwight Brown while he ran the state’s largest electric co-op, have been answered after a forensic audit conducted for Cobb EMC was released by Channel 2 News in Atlanta last week. (A forensic audit is a type of financial audit that is conducted concerning possible fraud or misconduct.)

The document, which includes a 150+ page Executive Summary, also shines a bright light on Plant Washington, which Washington EMC leaders spent $1Million pursuing. Allied Energy Services, run by Brown’s crony Dean Alford, holds a no-bid contract to develop Plant Washington.

The audit includes some big numbers. Dwight Brown and his wife Mary Ellen, received over $20Million in payments, loans, benefits, and preferred stock from Cobb EMC and Cobb Energy, a for-profit company, established in 1998 under Brown’s directive.

Brown’s private business partner and Vice-President at Cobb Energy, Dean Alford, hauled in about $18Million in payments and benefits, according to the audit.

Alford was selected by Brown to serve on the Cobb Energy Board. From there Alford landed CEO appointments to Allied Utility Network and Allied Energy Services, both owned by Cobb Energy. The auditors wrote that they, “found no evidence that Cobb Energy reviewed or approved any business plan for any of the businesses it acquired or created.” The audit states that, with the exception of perhaps two entities, neither of them being Allied Energy Services of Allied Utility Network, “all of the Cobb Energy spinoffs lost money, some on a grand scale.”

Cobb Energy gave Allied Utility Network $5.9M by moving money from the nonprofit Cobb co-op to Cobb Energy, the for-profit company that, according to the audit, was anything but a profit generator. The audit reports that Cobb Energy general ledger entries totaling $4M appear to have funded Allied Energy, but the bookkeeping isn’t precise (lack of clear bookkeeping records is just one of the many criticisms raised in the audit).

So what about Allied Energy Services, Plant Washington, and the group of co-ops, including Washington EMC, that organized Power4Georgians (P4G) to support Plant Washington (and another coal-fired plant to be located in Ben Hill County) that Brown and Alford were touting years ago?

Allied Energy Services, led by Alford, secured the no-bid contract to develop coal-fired Plant Washington, even though, as the audit states, “neither Alford nor Allied had any experience building or developing a coal-fired power plant, and witnesses indicated he was hired on the basis of a recommendation by Dwight Brown.”  Alford also heads P4G, which continues to promote Plant Washington even though all of the original EMCs that made up the consortium have ceased funding the project. P4G has already dropped plans for the second facility, which would have been called Plant Ben Hill.

Large tracts of land for both coal plant sites have been bought or tied up in contracts by several companies in amounts that totaled in the millions.

Where all that money came from is among the audit’s more interesting findings.

Monies paid to Cobb EMC by its members went to more than the for-profit companies owned by Cobb Energy. Both Alumni Properties LLC, which was involved in land acquisitions for the Ben Hill coal plant, and Buster and Brown, LLC, another private real estate venture, are linked to Dean Alford and his boss at Cobb Energy, Dwight Brown.

But there were even more land companies, including Ben Hill Timberland, LLC and Washington Timberland, LLC. Washington Timberland, LLC, as readers of Rural and Progressive may remember, has a history of late property tax payments in Washington County.

Dean Alford and P4G cancelled Plant Ben Hill over three years ago, but the audit raises questions about whether it was ever a real project.  The audit says that “Senior Cobb EMC officers…advised that Plant Ben Hill was a ‘decoy” designed as a subterfuge to keep land prices lower in Washington County.”

Which raises troubling questions about Plant Washington and whether it was ever a viable proposal, or merely a scheme designed to enrich P4G.  In January of 2012, Cobb EMC Board members ceased funding Plant Washington following a presentation by Alford, during which he said, “P4G never intended to build Plant Washington” and that, “P4G’s goal has always been to obtain the permits needed and then sell them to any interested party that could build the plant.”  Unfortunately, it took many more months before Washington EMC followed Cobb EMC’s lead.

I happened to attend the invitation-only announcement for Plant Washington at the end of January 2008. The event was attended by former Washington CEO Frank Askew, then CFO and now Washington EMC CEO Wendy Sellers, Washington County Industrial Development Authority Chair, and Sandersville Railroad stockholder Hugh Tarbutton, and other Tarbutton family members.  At that time, Alford was clear in stating that Plant Washington would be built, owned, and operated by P4G members to provide affordable power to co-op members.

“Senior Cobb EMC officers interviewed advised that Plant Washington is now dormant,” according to the audit.

There’s a lot of information to digest in the 150+ page audit, which was requested by the Cobb EMC Board members elected after Brown and his cronies were ousted from the electric co-op almost four years ago. Last week Cobb County Prosecutor Don Geary told Channel 2 News in Atlanta that additional criminal charges could result from the findings.

The audit concludes with this statement, “This report has clearly demonstrated that how the former CEO made business and accounting decisions from which he and his friends profited. There was no effective compliance and ethics program and no oversight on the part of the Board of either entity, Cobb Energy or Cobb EMC to stop the activities perpetuated by the former CEO.”

It is time for Washington EMC leaders to come clean with its members and the larger community about the waste of member resources that Plant Washington has been from the beginning. Members expect and deserve the truth. We must hold them, and all our county leaders, accountable for the boondoggle they signed us up for over 8.5 years ago.

Tarbuttons are big funders for Gov Deal

There’s no doubt that money follows power. When your primary measure for the most important appointments is “who has money and who will give it to me” then you have a government like Nathan Deal’s, which is dominated by a few major donors instead of reflecting the diversity of Georgia’s citizens.

Last week the Atlanta Journal Constitution reported that, “Three powerful Georgia boards help to bankroll Gov. Nathan Deal.” The three boards reviewed include Washington County’s own Tarbutton family.

As noted by the AJC, Ben Tarbutton, III, often referred to in conversation as Ben III by people in Washington County, currently sits on the Georgia University System Board of Regents .  Ben III is a former Chair of the Board of Regents and was appointed by Gov Deal for a second term in 2013. He will sit on that Board until 2020. The AJC reports that Ben Tarbutton, III has donated $158,100 to Deal’s campaign since 2009.

The AJC quoted Ben III  describing his donations as part of  “modern day politics.”

During Ben III’s first term on the Regent’s Board he was joined by Dean Alford, who holds a no-bid contract to build a coal-fired coal plant in Washington County called Plant Washington.

Alford’s second wife, Debbie Dlugolenski Alford, was appointed to lead the Georgia Lottery in October 2012.  The AJC reported that Ms Alford was the sole finalist for the job. She had no previous experience running a lottery. One Lottery Board member, Frances Rogers, resigned because she thought Gov Deal had interfered in the process for selecting someone to lead the Lottery.

Just a few months after Debbie Alford was appointed to lead the Lottery, Benjamin R Tarbutton (Benjie to folks in Washington County) was appointed to the Georgia Lottery Board. I don’t know if Benjie filled the seat held by Ms Rogers. Benjie is Ben III’s cousin.

Benjie’s father is Hugh Tarbutton, Sr. Hugh Sr. was re-appointed to the Georgia Ports Authority two years ago by Gov Deal. He had served 20 years on the Ports Authority Board but former Gov Sonny Perdue wouldn’t extend his term. Hugh Sr. has donated $157, 200 to Deal’s campaign according to the AJC’s infographic  and he is back on the Ports Authority Board. (Hugh Sr. has a son who is also named Hugh, hence the use of Sr. here.)

It gets even cozier.

The Tarbuttons own Sandersville Railroad, a short-line railroad, that would move hundreds of cars of coal every week to Alford’s proposed Plant Washington, if the plant is ever built. They also own B-H Transfer, a trucking company based in Washington County. The Tarbuttons have a vested interest in transportation, and Georgia’s ports are tied to transportation.

Plant Washington will also require thousands of acres of land. The proposed plant site include large tracts of land owned by Hugh Tarbutton, Sr. A few tracts of Plant Washington land that don’t belong to Hugh Sr. are connected to Washington Timberland, LLC. That LLC is registered to Dean Alford. According to county tax records (Tuesday, August 26, 2014), property taxes due in December 2013 by Dean Alford’s LLC are still unpaid, and are subject to auction next month at the Washington County courthouse.

Oh yeah-Debbie D. Alford’s daughter Sasha Dlugolenski, is Governor Deal’s Press Secretary. A complaint was filed against Sasha Dlugolenski  earlier this summer concerning her Tweeting in support of her boss, Gov Deal.

People may think Atlanta is the center of power in Georgia, but it seems to tilt towards Washington County and the checkbooks of a few campaign donors.

We own the screen rights to the movie

The story behind the long lingering proposed coal project Plant Washington reads much like a Southern Gothic novel. We’ve often been told that the work a handful of local citizens took up almost six years ago would make a great movie in the style of Erin Brockovich.

In an article published today by The New Republic, the plot line is laid out with layers of intrigue including family ties, political appointments, criminal charges, thousands of acres of land, money lost, and money to be made. I don’t think it spoils the end of this movie to say Plant Washington has been all about power, just not the kind that turns the lights on.

The best part of a film adaptation of our coal fighting adventures is that it allows for a generous cast of “seasoned” actors. I’m thinking Meryl Streep, Hal Holbrook, Sally Fields, Morgan Freeman, Ben Kingsley, Daniel Day-Lewis, Judi Dench, and Samuel L. Jackson would do us justice in a Robert Altman ensemble style film directed by Steven Spielberg. Pass the popcorn.

Is Washington County becoming a mecca for renewable energy?

Governor Deal has announced that General Biofuels will build a $60M facility in Washington County to manufacture wood pellets for fuel production in Europe. As European countries shutter both coal and nuclear and switch to renewable fuels sources, the demand of wood pellets continues to create business here in the United States. The plant will be located just blocks off Highway 15 on Waco Dr., and production is slated for early 2014 according to Deal’s office.

This plant will employ 35 people and also benefit other local businesses both during and after construction (i.e. work boots and clothing, meals out, all types of office and plant facility supplies, safety training). All of these jobs are the direct result of companies using renewable fuel sources.

Business will increase for Sandersville Railroad and Norfolk Southern as these two rail lines will move the pellets to the Port of Savannah for shipping overseas. What I have said  many times over bears repeating here: I am glad to see a business succeed, including the Tarbutton’s privately held railroad.  I can’t support Plant Washington because the project will harm the air, water, and health of local residents near the plant as well as downwind and downstream. Plant Washington is a good example of putting personal profits ahead of a community.

Charles Lee with the Chamber of Commerce and Industrial Development Authority told me he can’t provide information on public facility bonds or tax abatements as those details are still in negotiation. Regardless of the project, I urge the County Commissioners to carefully consider all projects involving taxpayer dollars.

Local citizens need to pay attention as well. The county can issue bonds through the Public Facilities Authority without any taxpayer input except comments that citizens may make at a county commission meeting. Voter approval is not required for issuing these types of bonds.

There is still a lot to learn about General Biofuels. At face value it is certainly a much more progressive and promising economic option for Washington County and our neighbors than coal, for which local leaders should be commended.

 

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