WASHINGTON EMC
Cobb EMC Chair and CEO on board duties, contracts, salaries
May 14, 2012
Cobb EMC Chair Ed Crowell and CEO Chip Nelson talked at length with the Marietta Daily Journal about salaries, board decisions, contracts the co-op has, open meetings, and the forsensic audit it will conduct.
Of particular interest to WEMC members should be Crowell's response to a quesiton about the previous co-op board members and their tangled stituation with former CEO Dwight Brown,
"when you’re on the board, you accept responsibilities, I don’t think you ever get to claim victim status. You’ve accepted that role. If you don’t perform and don’t do them well, that’s your problem."
There was also an exchange concerning daily power purchasing, and a clarification, which should raise lots of eyebrows:
Q. Who is Anis Sherali?
Nelson: I really don’t want to go there, but I will tell you he’s not an employee of Cobb EMC. He does work for a company… We buy a large amount of our power through a company called CEI — Cooperative Energy Incorporated — and there is a contract with CEI and Anis Sherali. There is no employment contract. There is an agreement between ECG, the company he owns, and CEI to do work. There is no personal contract with Anis Sherali. CEI purchases and schedules Cobb EMC’s power needs, along with five other EMCs. We have to schedule our power. CEI is staffed with ECG — Energy Consulting Group — employees, and that is Anis Sherali’s company. ECG staffs the needs of CEI, and they schedule our energy and capacity needs.
Crowell: CEI is a buying group, of us and five other EMCs.
(David Johnson, EMC’s chief operating officer, offered this clarification after the meeting: Cobb EMC, with Snapping Shoals, Central Georgia, Upson, Excelsior and Washington EMCs, created and own a company, CEI, that schedules its daily power needs. “CEI has always used the services of Energy Consulting Group (ECG) to manage this effort along with estimating future energy needs, and negotiating with potential wholesale suppliers. Anis Sherali is the president of ECG. In 2011, CEI purchased 100 percent of ECG. CEI has never had any employees, but Anis does now report to the CEI board. He does not have an employment contract and lives in Atlanta,” Johnson said.)
If you have ideas or comments you would like to share about this interview or WEMC, join the conversation here.
Cobb EMC members elect litigant to Board of Directors
April 23, 2012
President Gerald Ford said this when he was sworn into office, "Our long national nightmare is over."
Perhaps that is how the owner-members of Cobb EMC feel now that they have completed electing board members.
Cobb EMC owner-members felt so strongly about the leadership and business decisions made at their co-op that they took the co-op to court, repeatedly, until they got justice restored to a company intended to serve them. Tripper Sharp, one of the litigants from the case that began in 2007, was elected to the board. Now, with a new board in place, Dwight Brown barred from working there, expensive and money losing ventures created by Brown and his business partner Dean Alford sold off (Alford bought Allied Energy Services for less than $130,000, a fraction of the $4.3M it lost in just a few years), the work begins anew.
Don McKee in the Marietta Daily Journal, wrote that the board must now move ahead with the forensic audit required to put the financial side of the co-op back on good footing. McKee, who has written about the troubled co-op for years, believes the board has the right combination of business professionals and experience to help repair the damage.
Washington EMC owner-members and Plant Washington supporters should take a keen interest in the findings of the audit, as it may be telling on any back room dealings for developing Plant Washington. There is still much work to be done.
Cobb EMC takes a $4.3M loss on P4G
March 26, 2012
The Marietta Daily Journal reports that Cobb EMC took a $4.3M loss on P4G for non-land expenses in their 3rd quarter. The paper reports that the co-op spent $13.5M on the coal fired plant, which it dropped in January of this year. The company expects profits to be lower than last year's $22M. Read the full article here.
Itemized budget for WEMC
February 24, 2012
During the Washington EMC's January Board meeting, FACE's Executive Director, Katherine Cummings asked how much has been budgeted this year for Plant Washington. Althought her request to attend the meeting specifically identified Plant Washington as the reason she wanted to attend, Frank Askew, the CEO, refused to answer.
After the meeting Cummings was told by Mike McCoy (Board Chair) and Billy Helton (her district representative) that there was no budget set yet but it would be the following week. That happened on January 26.
The following week Cummings was told by Askew that the budget was set and in fact had been in late 2011. She still didn't get a dollar amount though.
Earlier this month Cummings went back to the EMC, read six pages of a request form, filled it out, and got what Wendy Selliers identified as an itemized budget. She said disclosing any more information would involve wage rates.
The 2012 amount budgeted for Plant Washington is $128,166, which in round figures means over $1M of WEMC owner member dollars have been spent on a project that, four years after it was announced, still has no pro forma cost and revenue estimate.
FACE members, and Cummings specifically, have stated very clearly when asking about WEMC budgeting, that we are not interested in salary and benefits for employees who are not co-op executives. That would not be appropriate nor is it this organization's desire to know that type of information.
However, Board of Directors compensation and Executive salary and benefits should be readily available to the owner members. Last year FACE located the co-op's tax return online and published it. Askew's compensation is listed on page 20 at $209,488.
Members can request financial records only by going to the EMC office, filling out a form, and then hoping the information will be released. FACE will continue to share pertinent financial information when it is available.
McKee: "Heed lesson of Cobb EMC reforms, or else"
February 17, 2012
Marietta Daily Journal columinst Don McKee urges anyone holding elected office to learn a valuable lesson from the reform efforts at Cobb EMC. After four years of court cases, indictments, andsearch warrants, the long nights and countless hours of work done by Cobb EMC owner members and other reform advocates is drawing to a close.
Earlier this week two directors who had announced they would defend their board seats will not run. Four reform candidates were elected in November and six more directors will be elected a thte end of next month. One candiate, Tripper Sharp, was engaged in the legal battles on behalf of the owner members.
McKee includes this in his column, "Every elected official should heed the lessons of the Cobb EMC reform movement. The lessons begin and end with this: if you fail to listen to the people you represent and keep them in the dark about what you’re doing, sooner or later you will get your comeuppance."
Cobb EMC member: imagine a business owner being shut out of their own executive committee meetings
February 9, 2012
The Marietta Daily Journal includes an op/ed by Dan Davis, a Cobb EMC owner member for the past 13 years. His op/ed includes, "Nearly 5 million Georgians get their electricity from EMCs — electric membership corporations. According to their trade association, Georgia Electric Membership Corporation, EMCs “are consumer-owned and consumer-governed, not-for-profit cooperatives whose purpose is to ensure safe, reliable and affordable delivery of electricity to homes and businesses.”
Imagine being a business owner who can’t attend his or her own executive meetings or review the company books and records. That’s the reality for the millions of customer-owners (or “members”) served by Georgia’s 42 EMCs. Although members can participate in EMC matters by attending annual meetings and electing the board of directors that steers their EMC, participation ends there."
Cobb EMC Energy Expert discusses pro forma estimates with WEMC
January 26, 2012
Three FACE members, Larry Warthen, Lyle Lansdell, and Executive Director Katherine Cummings attended a presenation made to the Washington EMC (WEMC) Board of Directors during their monthly meeting this morning.
The presentation by Cobb EMC member, and electric industry expert mark Hackett, was well received with several heads nodding in agreement as Hackett covered various points on sound financial decisions regarding power purchasing. Only one member, Billy Helton, the newest person on the Board having been elected in Oct 2010, asked a question about purchasing power v owning the facility, and projected supplies.
Frank Askew, the co-op's CEO, refused to answer any questions about 
funding for Plant Washington, saying that it wasn't part of the members' request to attend the meeting.
FACE's Executive Director waited outside and asked Board Chair Mike McCoy about the budgeted amount for Plant Washington in 2012. McCoy said there is no budget for this year, and in fact the four remaining co-ops (Central Georgia, Snapping Shoals, Upson, and WEMC) will meet next week to discuss that.
In two weeks time we have learned that there never was a pro forma estimate for Plant Washington, Cobb EMC, who spearheaded this project, has now abandoned it, and WEMC has not budgeted for this year.
It bears repeating: now is the time for WEMC to abandon this project. Stop spending good money after bad, today.
Contact your WEMC Board members, CEO Frank Askew, CFO Wendy Sellers, and Chair Mike McCoy today.
Mike McDonald, District 1......706–465–9414
Jeff Lacksen, District 2.........706–444–7556
Joe Taylor, District 3............478–452–7817
Billy Helton, District 4............478-348-3078
Mildred Jackson, District 5....478–552–9438
Chair Mike McCoy, District 6..478–552–0895
Ken Vickers, District 7..........478–864–2459
Washington EMC office.........478.552.2577
Email:
Frank Askew, CEO f.askew@washingtonemc.com
Chair Mike McCoy, mmccoy@washemc.net
Wendy Sellers, CFO w.sellers@washingtonemc.com
WEMC attorney Skip Wommack arrested for DUI and speeding
January 26, 2012
Fox 24 in Macon is covering the arrest of Washington EMC attorney Skip Wommack for DUI and speeding. According to Fox 24 Wommack was stopped going 77 in a 55 mph zone. His blood alcohol level registered 0.14 when the legal limit is .08.
Wommack is also a state court judge and the attorney for the Washington County Commissioners.
New Cobb EMC Board Members already working in the open
January 19, 2012
FACE and other Washington EMC members have asked the Board here to open openly so that members can do their part and be better informed and active in their co-op's business. The Board has steadfastly refused to do that, clinging to bylaws that are meant, and on the most part do, shut out members.
The four new Cobb EMC Board members have written a letter to the Marietta Daily Journal discussing their recent work, what they expect to be doing in the coming months, and outlining issues they are reviewing. That includes Plant Washington and the fiscal, environmental, and operational soundness of this project.
Most importantly, they have assured co-op members that it is no longer possible for the CEO, senior staff, or Directors to to receive gifts or loans from the organization.
The full letter is here.
EMC Member to the Board of Directors, "I am tired of hearing it is member controlled when it is so hard to be involved"
October 1, 2011
This morning a record number of Washington EMC members turned out to vote for three Board positions, recognize employee and student accomplishments, hear an update on operations, and have a question and answer session with the Board and co-op leaders.
The only challenger on the ballot, Gene Renfroe, a well liked and respected retired EMC employee, was defeated in his efforts to unseat the current Board Chair, Mike McCoy. Unofficial results are 508 to 377. Two machines broke during voting and some members plan to ask for a full accounting of voting results. The disappointment in the room was clear when the result was announced. Two other candidates, Mike McDonald and Jeff Lackson, were easily elected without opposition.
Following the door prizes and a short break, approximately 50 EMC members remained for the Q&A session. Questions were initially raised by FACE members but as the questions and discussion with Frank Askew and the Board continued, others felt comfortable asking their own questions.
Members question coal plant
Some questions about Plant Washington were not answered, such as the one posed by FACE's Secretary, Paula Swint. She asked about the core principles of EMC governance, the Board's decision to pursue Plant Washington, and whether, based on those principles, the Board would consider reversing its support for the plant.
Ollin Brantley, a former EMC employee, was one of several members who asked about the expense of Plant Washington and the impact the project has already had on the use of member dollars. The additional use of 16M gallons of water a day by Plant Washington
and the impact it will have on the Oconee River and local groundwater supplies was asked about in numerous questions, including several from local river enthusiast Bobby Strange.
Who Owns AES?
John Swint asked pointed questions about Dwight Brown's laundry list of legal problems and 35 counts of indictment, and Allied Energy Services (AES) development of the plant. Askew dismissed Brown's role and said that he didn't know who purchased Allied Energy Services in August and that it didn't matter who owns it.
FACE Executive Director Katherine Cummings followed up and asked how WEMC could be involved in such an expensive project and not know who owns the company (which got the project in a no-bid contract). When Askew still couldn't answer, Cummings turned to Bob Vickery, who is an AES Vice-President, and asked point blank because he gets a paycheck from AES. Vickery replied that Dean Alford, who has run the company while it incurred a $4.3M lost and was sold for a fraction of the losses at $128,256, is a part owner. WEMC, and other P4G co-op members, are encouraged to ask their Board of Directors and CEOs for that information.
Board Governance and Transparency
Questions about Board governance and ease of member engagement were either woven into several questions or asked directly. Multiple points were discussed.
Open Board Meetings
The Board insisted that members may readily attend Board meetings and several members in the audience pointed to the cumbersome procedure for attendance (EMC policy 116). Joe Taylor (Baldwin County and western district representative) agreed that the Board
would consider holding open meetings so that members can attend without any requirements to request to be placed on the agenda.
Bylaw Amendments and Candidates
On the issue of bylaw amendments and restricting all changes to the bylaws to be approved by the members, the Board said it would consider that request.
The petition requirements for candidates who self-nominate, were questioned by Ellis Douglass and Cummings, both of whom said the requirements are burdensome and seem to be written to discourage candidates. Douglass spoke at length about the nominating committee and the process the co-op uses for proposing a slate of uncontested candidates. The current requirements are on page 21, section 3.05 of the bylaws.
Quarterly Reports Requested
Members asked about making reports available on a quarterly basis so that they may stay current on EMC operations. Askew responded that it would most likely require additional costs to the accountanting firm used for statements. Several members nodded in agreement when a member said that it was clear there is member interest in using co-op funds for improved reporting and transparency.
No Answers on Coal Ash Waste Management
The lifespan of the liner in the coal ash waste dump, the never-ending maintenance it will require, and the course of action to be followed when a leak occurs (the EPD has virtually assured that will happen) were all questioned by members. Each speaker pointed out that the heavy metals piled up there will never go away unless they wash downstream, contaminating water supplies and wildlife. It was clear that members were angry when Askew had no answers about the co-op's almost four year committment to a project that will have a permanent impact on the environmental and health of co-op members and others in the community.
And in conclusion...
Skip Wommack, who serves as the EMC attorney, grew weary of the members' questions. Cummings said her final question for the session was to ask members if they understood that the Board sets the electric rates and that members have no course for appeal with the Public Service Commission. Some members indicated that they were not aware of the Board's responsiblity, and ultimate control, over this critical part of their household expenses. The Board members nodded that they were aware of this authority and responsiblity.
FACE President Larry Warthen summed up member sentiment when he said that everyone there appreciated the long awaited opportunity to ask questions and get some answers about decision making and member interest in greater involvement in the co-op. He encouraged members to follow up and to keep their concerns before the Board and other members.
Key Washington EMC Documents
September 30, 2011
FACE has some key Washington EMC documents which may help co-op
members prepare for the Annual Meeting tomorrow, October 1, 2011 at Elder Middle School. Registration and voting begin at 8:00, the business session begins at 10:00, and the member Q&A with the Board and CEO begin after door prizes.
2010 tax return