So, what do you think?

By ken

July 16, 2008 2:00 PM | Link to this

utilities. rocky mount. As we found out last year during council/mayor elections, rocky mount can get out of electricities anytime it wants— it’s not really a difficult thing to do.

President Regan was big on deregulation and getting some services out of government oversight into the business community.

If the ‘overhead’ costs are big and adding to utility costs, that certainly needs to be looked at. Could getting out of electricities help rocky mount?.. asking a few more questions and developing scenarios of with/without might just help.

Rocky Mount pays a higher share into electricities and programs which helps subsidize other smaller communities… that’s great, but with rocky mount suffering it might be a good time to let the state or others pick up more of the tab so we can help our own in rocky mount.

larger salaries?.. public information requests should be able to shine some light on that also.

bonds?… fixed rate vs flexible rates?… another point. just how much was paid in ‘fees’ or commissions, and to whom when the large debt was refinanced?… that’s important.

here’s hoping our city council will ask for more answers, be inquisitive, obtain information and do what is best for rocky mount, its citizens, and businesses… and share that info with the public.

these rate hikes are all around, not just rocky mount. NOW, if rocky mount were to lose revenue based on getting out of electricities, what sources could we use to replace that revenue?

great topic, Jeff. whether we change or not… looks like our community wants more answers.

this’ debt’ does not require that we stay with electricities.

good day, all.

By Curmilus Dancy II

July 16, 2008 7:44 PM | Link to this

Ken,what I find so darn funny is that there are 2 local people on the ElectriCities board, one in Rocky Mount, Former Mayor the Honorable Fred Turnage and Tarboro town manager Sam Noble.

Why don’t you ask them to do what is right, tell the others what you want since they are at the table but it is of my opinion that you want to put the burden on the city council.

Why not ask the right folks who have been on the board for many years? Oh I forgot they are getting paid so they are not going to talk to you.

C. Dancy II - TPA http://www.thepoliticalagitator.com

By Robert Cressionnie

July 17, 2008 1:46 PM | Link to this

Electricities was a scam when first implemented and is still a scam. The whole thing was sold by terrorizing the public with the threat of no electricity in the future.

The scam as I understand it was for the municipalities to “buy in” to the power generating facilities so that they would have the capacity and obligation to sell the municipalities electricity in the future. This arrangement is built on the typical public-private partnership structure that always results in waste, inefficiency, and corruption.

With any business including utility companies, there is an incentive to provide a product or service where ever there is demand. To meet this demand and make a profit, the company must exercise good business judgment with an ever vigilant eye on efficiency, effectiveness, and profit.

Even non-profit entities must meet salary, operating costs, and reinvestment expenses though often they meet these needs through government funding or grants. When a situation arises where funding is provided irrespective of operational quality, the entity receiving the funds tends to ignore good business practices and soon engages in wasteful and dangerous undertakings.

I have to ask, why is ElectriCities borrowing money in the first place? They receive roughly $43 million a year from Rocky Mount and some amount from the other members. Their function as I understand it is to invest this money in power generating facilities and represent the municipalities in dealings with the power companies.

No doubt there is a cut of that annual payment that Electricities draws off to cover operational costs. Since Electricities operates no generating facilities, owns no transmission lines or distribution facilities, operates no service or maintenance fleets, what the heck are they borrowing and spending all this money on?

As far as getting out of Electricities, I have personally been told during a televised forum with the Rocky Mount City Council that there is no way to get out of the contract. If there is, the City Council needs to be forthcoming with the information and let the citizens decide. I don’t see how Rocky Mount could lose revenue by getting out unless there’s something I’m not aware of.

It’s time to cut costs where ever we can. I personally do not expect utilities for less than cost or for less than what’s reasonable but I do expect to purchase them without the additional burden of unnecessary overhead placed there by unneeded agencies such as Electricities or by the City Council using excess revenue from utilities to fund special projects.

By Tari

July 17, 2008 9:23 PM | Link to this

Thank you Jeff Herrin for paying attention to the absolute outrage.

There’s no denying that things are getting tough for local businesses because of MISMANAGEMENT and poor leadership (staff and board) at ElectriCities.

Will someone please ask the formerly honorable Fred Turnage which other entities screwed up a refinance. We keep getting “other entities used this tool” - WHO, HOW MUCH, WHEN.

The Board needs to STOP TAKING a salary. Tilton needs to resign or be removed. There need to be 20 cuts to sorry staff like Clay Norris with his inflated (thank you Tilton) salary and Esterine Davis (let’s fire everyone cause I’m jealous). We can save $3 million dollars and refund it to the cities right now.

Kudos to this paper for doing the leg work. But we need more. Get those salaries and look at those increases - 60% over 5 years. GIMMEA BREAK, That really cracks my nooodle.

We deserve better and the board needs to donate its salaries and look for a leader.

“ElectriCities board members told Henderson that the salaries paid to top executives (CEO Jesse Tilton makes almost a half-million a year) have to be high to attract the best and brightest to those positions.”

I fell over laughing at this. If these corpses are the best and brightest, I am a monkey’s uncle. Look at the departure rate, especially of lobbyists. Three is five months, 80% over 5 years. And last week when davis and tilton canned another one, TILTON registered. Good lord. My legislators told me he is a toad.

“Board Chairman Sam Noble also defended ElectriCities? borrowing practices, saying the board signed off on the deal that converted fixed-rate bonds to those with variable rates, too.”

Then we need some people with some better insight on this board.

“The top executives of ElectriCities would buy themselves a world of positive press if they would announce plans to take a pay cut this year.”

Ha - Tilton is a money grubbing drone. He lives for money and extravagance at our expense.

By tom

July 17, 2008 11:58 PM | Link to this

Can you please find out what the increases are these “senior” managers, the best and brightest are getting over the past few years.

We have seen documents on Clay Norris and it appears to be 50% over 5 years taking him from $160k to $240K

By mmt

July 18, 2008 9:29 PM | Link to this

Everyone understands the fuel costs increasing. Below is an article on a co-op increasing rates. I post it to drive the point Jeff made.

Note that the cooperative did not do a dysfunctional refinance. no group that i have heard of went from trying to save $10 m to costing $12 m all while Clay Norris was striding around trying to buy transmission, costing legal settlements, getting big raises. But see how the co-op is making cuts while having to rates.

Likewise Progress Energy is having a low key 100-yr celebration and employees are working for the community on company time.

WHAT IS ELECTRICITIES DOING? The board should give up its salary, saving $168,000 for a year; cut CEO loose or cut his salary in half (save $200,000); give up its Myrtle Beach Party where last year Estherine Davis ran up the costs DRAMATICALLY (save $100,000+) and city travel costs; cut all the drinking and boozing parties (likely $25,000+; cut travel out of state completely ($100,000+); cut positions in senior management and down the line ($2 million plus); cut the contract lobbyists and too many staff lobbyists since they can’t keep them more than a month anyway ($500,000); restrict the legal budget (Probably $500,000) now.

Now this is a start as I am sure there are more. But as you can see this is more than $3 million. It does not touch the $12 million lost, hid and layed on us at the very last minute but it is a start. Even better would be eliminate electricities; bring NCEMPA (power agency) east with 20 employees and let the west pay for the expensive mismanagement if they like it. This would really cut costs.

http://www.enctoday.com/news/cooperative4216havelock_article.html/ costsrate.html

Typical user likely to pay an average of $9 more a month July 8, 2008 - 3:06PM Havelock News

Citing rising fuel prices, Carteret-Craven Electric Cooperative has announced a wholesale power rate increase, according to a release.

Beginning with bills mailed out in July, the new rate will be $8.75 per 1,000 kilowatt hour compared to the old rate of $2.50 per hour. This amount is on top of the cooperative’s base rate. The wholesale rate is based on current market energy costs.

“Recently, our power supplier, N.C. Electric Membership Corporation, announced it would need to collect additional money to pay for unforeseen costs to purchase power,” Craig Conrad, the cooperative’s CEO and general manager, said in a statement. “As a result, the cooperative’s costs will increase proportionately, and we must ask that all our members share in these costs to help protect the integrity and financial stability of the organization.”

The new rate will mean a typical consumer will pay an average increase of about $9 per month.

The cooperative provides electricity to 38,000 customers in Craven, Carteret, Onslow and Jones counties and parts of Havelock.

Conrad cited worldwide demand for energy as one reason for rising costs.

“We had hoped that the extreme pricing volatility would be short lived, but it continues without any predictable stability in sight,” he said in a statement.

According to the release, the price of coal used in North Carolina’s coal-fired power plants has nearly doubled since January.

The cooperative is cutting its costs also, according to the release, reducing miles driven by company vehicles by six percent in an effort to offset high gas prices.

By Sebastian

July 19, 2008 5:12 PM | Link to this

Our View: Utility rate hike too much, too fast

This editorial really tells it like it is. Other towns have already voted on it too. The CEO knew there was a problem last Fall; he then tells his board in March and then they wait for a meeting in June and then they all lay it on us, all the while saying they have a board meeting July 25 and a power agency meeting July 30.

Why bother? I think this is how they have always done business. No new ideas, no innovation, no solutions. This is not democratic. This is all a farce. And this is what the legislature had created?? Why go to a meeting.

The decision has been made by people on a board who do not even understand and then they tell their councils who blindly go along. How in the world did we get to this point?

This CEO has never shown his face and my relatives in High Point tell me that there are board members out there who are smug and snide about all of this - they do not care about the east. And, Clay Norris has shown his face there too to brag about his travels and his wealth at our expense.

Phooey on this farce. We need to get the legislature to investigate. This group has no controls or oversight. Who is WATCHING them and watching out for us?

By Tina

July 20, 2008 12:40 AM | Link to this

I am a native of Rocky Mount and live in Wilson and I am disgusted with the Wilson Daily Times and Mayor Bruce Rose. I commend the Rocky Mount Telegram which I will buy and read. Thank you for the taking the time to investigate something people all over eastern NC are concerned with.

Mayor Rose’ style in running the meeting on July 17 was inexcusable - rude, condescending - especially the slamming and adjourning. It is hardly the spirit of democracy and the law when we cannot understand what he says, he interrupts speakers and argues with speakers. People raised good points and people in Edenton, Hertford, Rocky Mount, Scotland Neck, Tarboro, Rocky Mount, Greenville, Kinston and Lumberton are interested and want answers and solutions too. But because Rick Dew ran against Rose and Rose had a low vote count, he is defensive and looks guilty.

The style with which the meeting took place is one of embarrassment all over the state. Mayor Rose owes it to speakers to LISTEN, and allow the council to ask questions and make comments. This is a democracy not a monarchy.

Rochelle Small with the Wilson paper missed all the information in a series of stories on ElectriCities and electric rates. How? By writing exactly what ElectriCities said and never questioning anything. BUT her reporting of the meeting Thursday night is not only bad reporting, it is irresponsible and a disservice to the citizens. Mr. Dew’s questions should be included. The issues will be raised in eastern NC one way or another and I suppose when it is validated that board members like Bruce Rose knew for months and did not tell US the people why pay, there will be an article. But right now the unsettling feeling of WDT being coerced by Bruce Rose is weighing heavily on many minds. There is simply no way the newspaper cannot write what is clearly on video - a shaken, argumentative, defensive Mayor.

But still the WDT is not reporting an ISSUE important to us all. So, again thanks Telegram. The information needs to be assessed and the process watched since it clearly is not being followed the way one expects in a democracy.

By Tom

July 23, 2008 8:16 AM | Link to this

Terry Smith’s Editorial in the Daily Southerner says he is shocked about what this paper wrote. Well, I am shocked Terry Smith does not get it. The editorial today was so far off the mark. The Telegram got on Sam Noble (rightly) for telling his council to vote NOW on the rate increase BEFORE the ElectriCities Board and power agency vote on it.

Mr. Smith contends everyone knew. Wrong. Jesse Tilton knew in October 2007. I did not and the papers did not. In fact, the Wilson paper was told by Tilton and others last fall “No rate increase” and it is documented in articles. Tilton told his board in March 2008. If terry Smith knew then, he should have written about it. I did not know.

The first I knew was June 2008. What about the rest of you? And then boom, it was 14%.

Smith’s endorsement of how Sam Noble leads his Council to make decisions means the Chairman (Noble) has no capacity for a solution of any kind. There are solutions. They are called cuts. If the market says Tilton should be paid half a mil, then we need someone who earns it not someone who has caused all of these problems. Does Sam Noble think Tilton is doing a stellar job, deserving of half a million $?

Cuts can be made. Cut the board’s salary out. Cut some of the staff. Many of them keep leaving. Trim down. Make cuts. Legal bills there are incredible. What does Clay Norris do for a guarter of a million dollars. Nothing I have heard about him has been good.

Noble is supposed to be there to be a leader, to think, to make changes. $3-4 million cut be out which will help with the $12 million Tilton caused on the interest debacle. When someone screws up, they have to be held accountable.

The salaries are out of control and over the past five years, they are ABSURD to the point of needing an investigation. Does Noble endorse the 50% pay raises Clay Norris got?

It is not democratic to tell your board to vote on it BEFORE it goes through the process. This paper was right on target.

The Daily Southerner better check its facts. I think they are spending too much time with Noble. And, ps Mr. Smith, a council is elected to make its own decisions not rubber stamp what a bureaucrat tells them. Not one person asked about options. Not the case in the other cities. Time for a change.

By bast

July 23, 2008 10:05 AM | Link to this

http://www.newsobserver.com/business/story/1150860.html#MICommentsLink

This is the story about wachovia and the cuts it needs to make and will make.

This is the model for ElectriCities - CEO screws up and goes; cuts made to departments where no one does anything; cuts made in excessive spending areas - like boondoggles and board salary, excessive staff, parties; people eliminated no one has ever heard of.

ElectriCities Board - this is how a business should be run. When there is an “error” you correct it with the right people; make cuts. Show the public you can make cuts. We deserve no less of ElectriCities.