Tag: Washington EMC

Cobb EMC abandons coal and chooses solar power generated in Washington County!

What a week for clean air and water in Georgia! We started the week with the cancellation of the proposed coal plant Ben Hill near Fitzgerald, and Plant Washington will have to comply with stricter standards for mercury and other toxic air emissions IF it is ever constructed.

Now the Environmental Protection Agency (EPA) has released the Greenhouse Gas rule (carbon pollution rule, or GHG), making Plant Washington’s fate even less certain. Because Power4Georgians does not yet have a final permit for construction, hasn’t made final design or engineering determinations, and has yet to secure financing for the multi-billion dollar facility, it appears Plant Washington is subject to the GHG rule. That means Plant Washington will be even more expensive and much less practical to finance, construct, operate, or return any investment to the four remaining co-op owner-members.

What options does our community have for affordable electricity? Cobb EMC, which dropped Plant Washington in January, has just inked an agreement to buy 10MW of power generated from the clean and abundant sunshine we have right here in Washington County!

Cobb EMC leaders did the math on Plant Washington and accepted the fact that it just wasn’t a cost effective investment for their co-op owner-members. After putting out requests for new power contracts, they decided in favor of clean, abundant, and job creating renewable power.

Renewable energy puts people to work. Washington County residents are already working at MAGE solar panels in Laurens County, where 350 people will be employed. Another Lauren County facility using wood waste will employ 55 people. Elbert County citizens are already working at some of the 200 jobs announced for a wind turbine company in their county.

Washington EMC Directors, elected officials, and business leaders, your former partner in Power4Georgians has done its homework and found that solar is affordable and reliable after all. It is time you did your homework too.

WEMC has a 10MW contract expiring in 2014. Give us a sound business plan that supports dirty outdated coal as the best option for our community, when solar is available just down the road.

Public health professionals wear green

“You’ve done more public health work than most public health professionals” is high praise coming from Russ Toal, the former Commissioner of the Georgia Department of Public Health. The fight to stop Plant Washington, for me, began out of deep concern for the health ramifications that a coal fired plant would have on the health of my community and my family.

Together with partners that include national, regional, state, and local organizations, we have seen two coal fired power plants cancelled since December (Longleaf and Ben Hill). A third project, Plant Washington, is now hobbled with new emission regulations, so that what was tenuous at best, now looks absolutely unfeasible.

Fighting coal for me, is all about public health. The health of our communities is directly tied to the quality of the air we breathe, the clean water we all want to to drink, fish that are safe to catch and eat, and the rivers and streams where we want our children to splash and swim. Not surprisingly, health organizations including the American Lung Association, American Academy of Pediatrics, American Medical Association, American Nurses Association, American Public Health Association, American Thoracic Society and others have taken strong positions on coal and climate change.

I’ll give the Plant Washington supporters some credit. They do have some things they can point to since they announced the plant over four years ago:

  • 5 of the 9 original EMCs have withdrawn from the project
  • the former CEO of Cobb EMC, Dwight Brown, who led Power4Georgians, has 35 indictments against him for his dealings at the co-op
  • emissions standards for coal have become much more rigorous and expensive
  • demand for electricity is down
  • natural gas prices have plummeted
  • wells and rivers are stressed by drought
  • co-op owner-members across Georgia are angry about being shut out of the co-ops they own

This morning I told two county commissioners, Frank Simmons and Edward Burton, and county administrator Chris Hutchings, “Shame on you.” They have been busy toeing the line in this one family county for outdated, expensive, and unhealthy coal, while other communities have courted renewable energy based companies and hundred of jobs that will not harm their air shed or deplete stressed water supplies.

While elected officials, and business and community leaders here still cling to coal, local residents have seen a solar panel plant opened in neighboring Laurens County (approximately 400 renewable energy jobs have been announced there, and people are already at work). In two weeks, Elbert County to our north, will hold a ribbon cutting for a wind turbine plant that is already employing some of the 200 people it will tap for jobs.

In the mean time, FACE and our partners have worked tirelessly to see the proposed mercury emissions for Plant Washington drop from the original 122 lbs per year to 1.63 under the new Mercury and Air Toxins standards. Reports by the megabyte have been released about the higher power bills Washington EMC members will have to pay if the plant is built, the ready and plentiful supply of cheap electricity in our state, the risks to local wells if 16 million gallons of water per day are sucked out of the ground to feed Plant Washington, and the fact that our air shed will be placed in non-attainment, essentially putting a cap on any business locating here that would need to apply for an air permit.

I don’t know how much longer plant supporters can keep their heads in the sand because the clock is running for the developer of this no-bid project. Dean Alford is about to need a lot more money for his relic of a coal plant. Come on P4G, show us the return on this great investment you have promised us.

Dwight Brown wants to run the Cobb EMC faucet dry

Don McKee, who has closely followed the years long battle between Cobb EMC owner-members and management, notes in his column that for once the co-op is in agreement with the owner-members. Dwight Brown, the former CEO at Cobb EMC, has a complicated history with the co-op and the for-profit company, Cobb Energy, he helped create. Last week his attorneys were in court over contract payments Brown believes the co-op owes him (at the tune of  $13,800 per week). That Brown thinks the money faucet at Cobb EMC should continue to run for him is unbelievable.

That’s a hefty weekly check, but perhaps what makes it even worse is that former Cobb EMC Board Chair Larry Chadwick signed the contract without the board’s approval. There is a long and ugly history about closed-door operations at the co-op, much of which may be detailed when Brown is in court to defend himself on the 35 indictments against him (He hasn’t been in court for other proceedings, so noted Judge Schuster in his ruling concerning Brown’s pay last week).

Long story short, if co-op board meetings are open to the members, along with financial and meeting materials posted online and easily available to members, one would hope that such shenanigans would be much less likely to occur.

Some of my fellow EMC members in Middle Georgia have begun to pay attention to the closed-door, back room dealings that seem to control Washington EMC. Proponents of coal fired Plant Washington say they want to provide cheap electricity to members so we can keep the lights on. Instead it seems that Plant Washington has shined a bright light on the fact that the Board of Directors and Senior Staff prefer to keep the co-op owner members in the dark.

Talking out of both sides of your mouth

Since the end of January Plant Washington has been a hot topic at barber and beauty shops, grocery store lines, and church. In just over three months time local residents of Washington County, Washington EMC owner-members, and others involved in Power4Georgians (P4G) have read in newspapers and online various, and often conflicting, versions of what’s going on with the proposed dirty coal plant.

Recently, the Marietta Daily Journal reported on the minutes of the Cobb EMC Board of Directors meeting on January 24, 2012: “Power4Georgians owns the permits but he (Dean Alford) stated that P4G never intended to build Plant Washington. He stated P4G’s goal has always been to obtain the permits needed and then sell them to any interested party that could build the plant.”

On the heels of this eye-popping revelation, the Southern Alliance for Clean Energy released Follow the Money,  a report outlining and charting the complicated and circuitous connections among Plant Washington supporters.

This week The Sandersville Progress has an article about the remaining four EMCs in P4G. The article reports that all calls to the remaining four EMCs were unreturned or they declined to comment. Not one member of Power4Georgians will speak out in support of the project that has cost over 25 million dollars. . Central Georgia EMC referred the reporter to Dean Alford, and said that he will answer provide a statement for the co-op.

EMC owner-members, at least at my co-op, have long felt shut out and distanced from the Board of Directors. I doubt they will be any happier with our co-op’s leaders saying that our questions should go directly to Alford- or remain unanswered.

Dapper Dean isn’t on the Board of Directors at WEMC or any of the other EMCs. None of the owner-members have ever had a chance to vote for him, or the money and water sucking coal plant he continues to insist we need.

The members of these Board of Directors need to be mindful that they accepted a fiduciary responsibility for co-op operations, and that Plant Washington certainly falls in that category. They can’t necessarily count on being shielded by the co-op if they do their jobs poorly.

What am I doing to be a good co-op owner-member? I have sent information to them as well as questions. I’ve asked for answers via letter to the local papers and here in this blog.

Since the end of January I have emailed the officers of Washington EMC-Frank Askew (CEO), Wendy Sellers (CFO), Mike McCoy, (Board Chair), and Billy Helton (my rep to the Board) each three times (I finally got an email address for Mike McDonald, another board member, who was copied in the third email I sent).

I got one response from Mr. Helton concerning news about Dwight Brown’s legal battle with Cobb EMC over $2.1M he thinks his former employer owes him, and an article on  profits soaring 20 percent since 2008 at King & Spalding, the law firm representing P4G (Plant Washington was announced in January 2008)

And now, in this week’s Sandersville Progress (which isn’t available online) the paper reports that none of the EMCs involved in P4G will answer questions from  reporters. Instead, Dean Alford speaks for them.

So, to smooth out some of this tangled mess: leaders at Washington EMC want Dean Alford, who testified under oath in 2010 that the P4G EMCs intend to own and operate Plant Washington, but according to the Cobb EMC January 2012 Board Minutes, Alford told Cobb EMC leaders that P4G never intended to own or build the plant. And now WEMC leaders have chosen Alford to speak for them.

And just to remove any doubt about the ownership of Plant Washington, Dean was quoted in the Marietta Daily Journal immediately after the plant was announced over four years ago, saying, “These 10 cooperatives (P4G)… are building this facility — 100 percent used by them, for them, — to keep energy rates affordable.” (I can’t find any record of him disagreeing with the quote).

Developed, built, and owned by the EMCs- or not. Do the leaders in Washington County and our EMC know?

 

The fog is lifting on a “smoke and mirrors guy”

The Marietta Daily Journal’s “Around Town” column confirms what many of us have suspected for almost four years: Dean Alford never intended to build Plant Washington.

Cobb EMC is now posting board meeting minutes on its web site for access by co-op owner-members (pass word protected with no ability to electronically copy or print). The minutes from the January 24 meeting where Dapper Dean made a final pitch to convince the co-op to continue bankrolling his project have now been posted.

The MDJ reports from the minutes, “Mr. Alford … commented that coal is still the backbone of the country and that it is important to have a diversified portfolio of energy. Power4Georgians owns the permits but he stated that P4G never intended to build Plant Washington. He stated P4G’s goal has always been to obtain the permits needed and then sell them to any interested party that could build the plant.” (emphasis added).

The MDJ goes on to say about the project. which Cobb EMC spent at least $13.5M on,  “The power plant was the ‘baby’ of now-indicted ex-Cobb EMC head Dwight Brown and his sidekick Alford, who also served as vice chairman of corporate spinoff Cobb Energy. ”

The Marietta newspaper quotes a power industry expert in “Around Town” about the possibility of selling the permits if they could be secured, “As for the argument that the permits could be sold? “Good luck,” our first industry source said. “Who would buy those, if Cobb and others are saying they don’t need all that power?”

The MDJ quotes a second industry expert saying, “I questioned myself if they ever intended to build it, and I’m convinced that if they had pursued that course, it would have driven Cobb EMC into bankruptcy. But I think Dean’s a smoke-and-mirrors guy who’ll say anything to keep his business going.”

I saw the smiling faces at the Washington EMC when Plant Washington was announced in January 2008 because I was invited to the very hush-hush event. The Washington EMC Board of Directors, CEO Frank Askew, Dean Alford, Chamber President Theo McDonald, and Hugh Tarbutton Sr. were all grins despite Dean’s statement that they were counting on “some environmentalists” trying to stop the plant.

My eyes, like those of others in the room, were opened wide that day. We heard the promises ourselves: Plant Washington would be built, owned, and operated by the co-ops.

I didn’t know much about energy production that afternoon, and no one would have accused me of being an environmentalist. And I sure didn’t know anything about being a good co-op owner-member.

I still have a lot to learn about energy production. But now I am a flag waving, treehugging, dirt worshipping environmentalist. And the good co-op owner-member? I’m working tooth and nail on that too.

Good governance isn’t just for co-op owner-members

The cows are still coming home to Cobb EMC. The Marietta Daily Journal is reporting that Dwight Brown is taking legal action against Cobb EMC because he thinks he is due the full $2.1M from a consulting contract.

If I were Dwight Brown I would do the same: who wouldn’t want to collect $13,800 per week plus expenses for three years (plus attorney’s fees of $5,000 for the contract he had drawn up).

This is a perfect example of how open meetings and transparency help Board members too. Larry Chadwick, the Board Chair of Cobb EMC, signed the contract without the approval or authorization of the co-op’s Board of Directors. That wouldn’t happen if business and voting take place in an open meeting, along with access to documents and records (and there are co-ops that discuss personnel and  contractual matters in executive session but vote in an open meeting. It can and is done successfully) .

Maybe the previous rubber stamp board would have agreed to the contract too, but we will never know. Now the co-op has to spend yet more of the owner-member dollars in an effort to break the contract and recover some of what has been paid.

All of the “doing and deals” cooked up by Brown and the Board of Directors in control prior to November 2011 defy good business practices. A court agreement between owner-members and the Board required that Brown leave the co-op at the end of February 2011. After insisting that Brown was the only person on the planet who could effectively run the co-op, the Board hired him as a consultant on March 1, 2011 to work as a consultant where, according to the MDJ, he essentially continued to work as the CEO.

It is stunning to watch the machinations of people who have long lost sight of what is best for the community they live in, the co-op they work for, and the owner-members who elected them to conduct business on their behalf.

It bears repeating: open meetings and transparency held Board members too.

What say you now Washington EMC leaders? Still think keeping the door slammed shut to members is in the co-op’s best interest? What about your best interest?

Power4Georgians law firm reports “fat” profits

The going rate for attorneys like the ones at King and Spalding, who represent Washington EMC and the remaining three co-ops in Power4Georgians, is about $650 per hour, per attorney. They usually have no fewer than three attorneys at their table. Billing just under $2000 per hour isn’t chump change.

So how did last year go for King and Spalding? According to the American Law site, the firm’s revenue increased 9 percent, jumping from $718M to $781.5M. The cut per equity partner (lawyers in the firm eligible for distribution of profits) went up 12 percent from the previous year, falling just short of $2M at $1.975M.  The article reports that K&S’s revenue has increased 20 percent since 2008, and the profit per equity partners (lawyers in the firm eligible for distribution of profits) soared by 56 percent.

When was Plant Washington announced? January 2008. 

Every Washington EMC owner member contributed directly to those profits when they paid their bill or bought an appliance. It just doesn’t seem right that “our” attorneys are making out like bandits with our money.

Do the phones at K&S sound like a cash register when Dean Alford calls? Just wonderin’

 

You may own us, but we won’t let you in

The Friday Photo
A weekly photo inspired by spontaneity, art, and community.
February 24, 2012 

The sun was shining brightly on the sign at my electric co-op yesterday.
It needs to shine brightly on operations and decisions made there.
The owner members must request, in writing, permission to attend
any part of a board meeting.
It is the same as owning your own company
(because the customers are the owners)
but being told you can’t come to the Executive Committee meetings.

 

Flannery O’Connor could have written this

Today the team I play on stepped our game up to a higher level. We started together to stop Plant Washington, a coal plant supported locally by the Tarbuttons (Southerners know to how things happen in a “one family county.”). The more my friends and neighbors, along with our partners, learned about our respective electric co-op’s  governance and business relationships, the more tangled the story line became.

This story is set in a rural community blanketed with tall trees, a black water river, and, because it is the rural South, a swamp. Another chapter was published today, and this one has a picture that outlines the characters and the plot.

The plot picked up again this morning. Some of the characters left early on in the story. Others held on into the fourth year since the story outline was announced in Sandersville. One of the lead characters, Dwight Brown, awaits trial on 35 indictments which include racketeering, theft, making false statements, and witness intimidation. At least one forensic audit is in the near future which may reveal yet more intrigue.

The story isn’t over, but this much is certain: it hasn’t played out like the writers announced in late January 2008. Flannery O’Connor loved a good plot twist too.

 

Rural and Progressive

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