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More thoughts on ElectriCities …

I appreciated Terry Smith’s comments in The Daily Southerner this week. He and I don’t see eye to eye on the ElectriCities issue, but that’s OK. In fact, our disagreement illustrates part of my problem with the power agency.

If newspaper readers in Tarboro, Rocky Mount or Nashville don’t agree with my opinion or the way the Telegram reports the news, they have other options. They can subscribe to The Daily Southerner or to the Nashville Graphic or to the News & Observer of Raleigh. A lot of them can go online and read newspapers from all over the state, country and even the world. That’s not what I would want them to do, of course, but they have that option.

With ElectriCities, we have no option.

If the agency wants to raise rates, it raises them, and we pay it. If it wants to pay its top CEO a half a million dollars a year, it can do so, and never mind what it does to struggling dry cleaners and other small businesses. If it wants to abandon fixed-rate bonds for variable-rate bonds and watch those suckers go soaring, there’s not a thing I can do to stop it.

I guess I could cancel my subscription by pulling the plug on every appliance I have and closing my power account with the city, but that’s not very practical.

And that’s what really bugs me and, I think, a lot of other folks about this situation. ElectriCities doesn’t have to be accountable. We, the customers, have next to no choice about whether we pay the agency’s rates. We have no voice in who the company executives are or how much they’re paid. We’re pretty much at the mercy of the people who serve on the board that does oversee those issues.

So, given all that, I’d like to see the one group of people whom we directly elect stand up and raise some of the same fuss that we’re raising about this situation.

A 14 percent increase in rates when almost 30 people at the agency are pulling in six figures? A 14 percent increase when at least 2 percent seems to stem from poor investment decisions?

Maybe I’m living in a dream world by hoping that someone on a city council somewhere will stand up, pound a podium, shake a fist and start ranting. But I certainly don’t think it’s asking too much to hope a town council will one day ask some tough questions and let the board know how we feel before blindly passing along a rate hike that’s going to send some people to the poor farm.

That’s not going to happen so long as town councils like Tarboro’s pass along a rate increase before the blame thing has even been approved by the ElectriCities board.

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Comments

By Darien

July 23, 2008 10:31 PM | Link to this

I do not understand why Tarboro does not get this. Why are no council members standing up and really getting upset about this? They have been duped.

I am in the same dream world as Jeff since I just dont get why no one is screaming about the injustice of this whole situation.

I am telling everyone I know in every city and that is what it will take. A complete effective grassroots effort.

It is shock week on Blue NC so people can log in there and read the good work James and Dan are doing to coach us how to get this issue out there for people to understand.

http://bluenc.com/shock-week

By Logic

July 23, 2008 11:11 PM | Link to this

Mr. Herrin

As a 21-year-old graduate student and avid reader of The Telegram as well as several other area news publications, I felt it necessary to discuss your �thoughts on Electricities�. Although I do no doubt the sincerity of your views on the subject, as a reader of your publication, I would ask you to re-think the logic behind your statements.

The Rate Increase:

As I read through local articles and later visited the Electricities website, I found the increase to be rather cut and dry. With a downtrodden economy and the prices of� well everything on the rise I don�t think that customers should be surprised to hear that the price to produce nuclear energy has increased 100% since 2006 or that the price of coal is up 136% since just last year. Those factors alone should contribute to a sizeable increase in itself.

As for the restructuring of the variable-rate bonds to fixed rate bonds, a mistake was made. Tim Tunis, CFO at Electricities explained at the June 27 rate committee meeting that the original intention would have saved us, the taxpayers, close to 10 million dollars. Businesses often take losses due to poor decisions, which are then passed onto the customers. Even so, as you pointed out the restructuring only accounts for 2% of the total.

Mismanagement:

The fact that you don�t think that Electricities is being held accountable is as much your fault as it is mine. As citizens who are served by the co-op there is no reason why you or I shouldn�t be on Electricities website, informing ourselves of the situation. I would encourage you to look around their site and see the amount of disclosure that they provide as I found it to be helpful. I would also suggest that you contact on of the officials that you elected and tell them what you are experiencing. City Councils are lots of things, but one thing that they are not is a mind reader.

The fact that there are several people making sizable incomes that work the co-op or that the CEO makes almost half a million a year doesn�t show any sort of mismanagement. It shows an organization that goes after employees that will best serve the agency. Your weak accusation that Jesse Tilton�s salary is specifically having negative effects on local small business is misleading. Cheap shots, based in weak correlations produce weak journalistic quality.

Mr. Herrin, I hope that you aren�t honestly asking government to be reactive. The Tarboro Town Council accepting the rate increase ahead of time allows for the public and their staff to prepare for it. I ask you again to use logic in knowing if the rate increase doesn�t get passed Friday I am sure the increase will retracted.

I hope in the future, all area publications can help their readers, most customers of Electricities learn to deal with what is, and not try and find insubstantial excuses. Being a part of the solution is always much better than being apart of the problem.

By Jeff

July 24, 2008 10:24 AM | Link to this

Logic, I appreciate the thought behind your comments. Here’s where you and I differ:

When an airline or a restaurant or a newspaper experiences big jumps in energy costs, those companies’ bottom lines are affected, too.

Wouldn’t it be wonderful for those companies if all they had to do was pass along every cent of those expense increases to their customers without fear of losing a single sale?

In a competitive market, it doesn’t work that way. A newspaper certainly has the freedom to jack its ad rates, subscription costs and newsstand prices by 14 percent in the face of rising gasoline and newsprint costs. But you can bet there’s going to be a fallout in the loss of advertisers, subscribers and single-copy customers.

That’s why we and other companies in competitive markets do everything we can to contain costs. In worst-case scenarios, as we’re seeing in far too many metro markets, that can mean fewer pages, less content and — worst of all — layoffs.

Does ElectriCities manage its expenses with that same discipline? Leave Mr. Tilton out of the picture for just a minute and look at those other salaries. Almost 30 people are knocking down $100,000 or more. How many people does it take to manaage a co-op?

I don’t think anyone pretends that there’s a way around the 14 percent increase. It might be a little easier to swallow, however, if ElectriCities stepped up and showed us what it’s doing to contain costs and how hard it’s working to make sure dry cleaners, restaurants and, yes, newspapers can still afford to turn on the lights tomorrow.

By JF

July 24, 2008 12:08 PM | Link to this

Logic, Jeff,

I am a 50+ year old and avid reader of many publications and I have a PHd. I suggest Logic do more than research the spin on ElectriCities� web site. No 2008 quarterly financials are posted and it is almost August. How can you really research it?

ElectriCities would not admit the refinancing screw up until a group of angry ratepayers got the information from staff and made much ado about it. Prior to that time, there was no mention of it. We literally drug it out of them. So what you are reading they were led into posting; they did not do to be open and honest.

Consider their communications advice. Use fans not a/c and save money. Ms. Agner should be fired. What a dumb recommendation. Can we really believe that is strategic communications advice. Gimmeabreak.

We still do not know what they told Fitch, Moody�s about their bonds because one day they said they told them one thing and the next day it was something else. One day rates were to be 9% in the Fall, the suddenly the rates were 14% in August. Why? Refinancing costs contributed, time contributed, what else?

And what cuts are are they considering to help? I have heard none. Logic, would that not be logical?

Consider: a refinance goes from saving $10 million to costing $12 million and while the costs are ringing up, the CEO, Mr. $500,000 man who never shows up when there is a tough meeting (rate committee), knows it is going south. He sits on it for 6 months and then tells his board. Then, they sit on it and tell us 3 months later. That is a lot of cover up and waiting for a PUBLIC organization.

No one doubts the fuel costs. But everyone doubts the skill of these overpaid people. Businesses do take losses but PUBLIC entities with billions in debt act more carefully and with public disclosure.

We have been telling city councils. They have been getting mis and no information from ElectriCities and its Board. The Board likes it that way.

Mismanagement is not related to salaries. It is related to management. Tilton is a no show at work and meetings. He was not at the rate meeting. Sorry but the buck stops with him. Be accountable. He has caused legal settlements as a result of his lack of management and leadership. FACT. Legal fees are out the wazoo. FACT. Lobbying costs are out the wazoo and people are leaving at a rate of 80% over five years. FACT. He promotes people with no credentials. FACT. He boosted salaries 50%+ for some people over 5 years just to push his up. FACT.

The Rocky Mount Telegram has the salaries and can get the salaries for the previous 5 years. Clay Norris jumped from $165,000 to $250,000. WHY? Part of his division was removed from him because he caused a legal settlement. Was his pay reduced? No. This is a well known fact. As a member of the power agency board. They all talk about it. Do you think this is mismanagement? I do. Not a cheap shot, a fact. Get your facts Logic. A group of people have been researching this place FOR TWO YEARS and it gets muddier and muddier. Got to BLUENC and read Dan’s analyses of the financials. read the discrepancies between what they write on their web site and what they tell reporters. Wilson Daily Times is a prime example.

The other issue is that public entities follow public processes. You do not prepare for a decision that should be entertained with debate and dialogue before the decision is handed to you to make. Making decisions before asking questions and the process taking place demonstrates shoddy policy. Process is: rate committee, board, power agency, city. The city council is required to CONSIDER something by questioning and discussing and they sure should do that when the issue is actually before them, not by short circuiting the process because a board member tells them to. A board member saying “oh, it will pass” means there really is no public process. Done deal. that is why they took so long to tell. They told and acted. Did not want solutions to be offered or questions to be asked.

There are areas to cut and that is what management is supposed to do to ease the pain. And, Logic, do more research, there are two power agencies and a trade association. Cut the trade association and split the agencies, reduce staff, reduce costs and put the eastern one out here with the people it is supposed to serve.Save millions. Some have already identified up to $4 million in savings.

Thank you Jeff Herrin for shining some light on a dark place.

By Curmilus Dancy II

July 24, 2008 5:31 PM | Link to this

It is of my opinion that ElectriCities is another example of the good ole boy system that was put in place for friends. It started out as a way for these good ole boys to so call serve the public but in a way to make money and have fun outside of their regular job. It appears the good ole boys have gone overboard with salaries.

I bet many of them say they are church folks but can’t see the need to take a cut in pay. It don’t take $450,000 a year to live. It sure does not take $1,000 a month to attend a board meeting. This was before gas went up.

If these good ole boys really were concerned about the people they are serving they would cut their salaries because every little bit of monies saved could help. But no they don’t want to do that.

Sam Noble is the Town Manager of Tarboro and should be getting paid a decent salary so why does he need $1,000 a month to serve on the board? So why does former Rocky Mount Fred Turnage and a retired attorney need $1,000 a month to serve on the board?

And then what tickles me is that Noble allowed his Tarboro Town Council to vote on the increase before the ElectriCities board voted? The people in Tarboro ought to be mad as hell!!

See comments to my opinion:

http://www.triadblogs.com/curmilus/7890/From+the+Publisher+-+ElectriCities+in+my+opinion.html

I think Logic makes no sense and JF was right on target.

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

By James

July 24, 2008 10:56 PM | Link to this

http://www.gotarboro.com/blog/

We get it in Tarboro. Thanks Jeff Herrin. If we had to rely on our paper we would still be in the dark, so to speak.

By ken

July 25, 2008 7:39 AM | Link to this

utility rates. OK, we can understand soaring gas prices, etc.. (except much of that is coming from investors making huge profits on futures trades—at mom and pop expense. Laundry costs? heck, there’s an easy solution, declare rocky mount a nudist city and resort.

Electricities? remember the old term of the 70’s ‘culpable deniability’?? this reminds me of that.

our city council people just look bewildered, pass along the cost, can’t do anything about it, and yet.. they CAN. and the voters can.

Local business owners AND individuals need to look city council squarely in the eye(s) on this one. Rocky Mount could easily get out of the Electricities arrangement— that was found out last year?

the biggest obstacle?… a few folks saying we have this huge debt… the one refinanced with variable rates.. that was a truly dumb move… just who made money on refinancing that debt?

why not a public information request to get a list of which public officials recieve director or consulting fees, how much… and then the overhead.. management fees?… might make for good reading.

in the meantime… don’t wait to have 2 minutes of ignored glory at a city council meeting… why not send some letters to your council people asking for answers???

electricities.. hmph!!.. well, maybe it is a good arrangement for all the cities involved… but a littlel more public information might help satisfy public curiosity.

By doug

July 25, 2008 8:46 AM | Link to this

Citizens and Business Uniting for Leadership, Excellence and Responsibility

A Change in Leadership is Needed at ElectriCities of NC

ElectriCities of NC is a not-for-profit trade association, together with two municipal power agencies that serve 32 eastern cities and 19 western cities with ownership in the power agencies.

Presently the organization has approximately a one billion dollar budget and oversight is a board of representatives of cities from the east and west. The composition of the board at present time is: five town managers, one former manager, two utility managers and one utility director, two former mayors, two current mayors, one council member. The Board is paid a salary of $1,000 per month for 12 months for a term of three years.

In June, ElectriCities announced a 14% rate increase for the eastern power agency, even though the CEO was aware of problems that would affect rates in October 2007 and the Board in March 2008. The result is most cities will have to pass the rate to their customers, adding another burden to a declining economy and rising costs.

At least 2% of the increase is due to a refinance of the agency’s $3 billion debt in the variable bond market where the interest rate soared, costing $12 million in interest. The decision and then the delay in revealing the problem means citizens got one month notice to adjust personal and business budgets to a much higher electric rate, most in cities where the electric rates are already much higher than those of competitors.

Citizens and businesses are uniting across the cities to encourage City and Town Councils to ask questions now and regularly about ElectriCities management based on reports of excessive salaries, double digit salary increases, more than 30 staff members earning more than $100,000, excessive staff turnover in some divisions, multiple legal settlements with former staff, pending federal legal claims against current staff, the refinancing error, excessive spending for events and travel, many out of state.

Further we will encourage City and Town Councils to inquire as to details of these issues and demand ElectriCities do its part, via resolution, to help soaring energy costs that are burdening citizens by making operational cuts as many cities have been forced to do. Further, we will encourage City Councils to meet with Board Members and Power Agency Commissioners on these matters to monitor actions and results on a monthly basis and publicly provide reports.

Further, we encourage City Councils to evaluate their representative on the power agency board of commissioners to ensure a strong understanding of the issues and demand monthly reports on ElectriCities and power agency activities and budget and to provide that information to the public.

Suggested cuts in ElectriCities include:

$168,000 per year for Board member Salaries

Reduction in CEO salary to $250,000, a savings of $200,000 and termination of current contract for the CEO amid mismanagement, misallocation of funds for staff salary increases.

Elimination of its out of state Myrtle Beach Party, a savings of more than $100,000 plus the additional costs cities incur for travel, meals and lodging.

Elimination of staff retreats, out of state travel, savings of more than $200,000

Elimination of positions in senior management and salary adjustments eliminating double digit salary increases over the past five years, savings of more than $2 million

Elimination of contract lobbyists and excessive staff lobbyists based on excessive turnover (80%), savings of $500,000

Restrict the legal budget expenses to $150,000, savings of more than $400,000

Hiring freeze

Restriction of salary adjustments to 2% for the lowest paid employees only.

Elimination of bonuses.

Streamlining functions within ElectriCities to achieve elimination of positions.

Further we recommend these cost savings be immediately undertaken, effective September 1 and applied to costs associated with the rate increase so that the reductions have an immediate reduction effect on rates.

We are citizens and businesses representing the cities and we are demanding change, accountability, and excellent leadership that includes innovative solutions to soaring energy costs.

#

By Jeff

July 25, 2008 10:11 AM | Link to this

Hey folks,

Just wanted to say a quick but sincere thank you to Tina, Tom, bast, Darien, Jason, JF, Curmilus, James, Ken, Doug and everyone else who has chimed in on this issue. You’ve given us some great leads to follow and some excellent questions to ask. We’re pursuing more stories in the next week, and we really appreciate your insights.

By Al

July 25, 2008 11:14 AM | Link to this

http://bluenc.com/electricities-out-of-state-beach-party-%28or-code-name-annual-meeting%29

This out of state expensive party right on the heels of this rate increase bugs me and bends my noodle.

There is a power agency meeting on July 30 at 10 am and it is in Wilson and all the 32 cities are to be there. This is an excellent time to get the city councils there to look over the shoulders of their managers who sit on this board.

A good time for everyone to get their petitions in with signatures and their local press there.

We cannot give up. They need to make serious cuts. The seniors got the Navy on the landing field and if they can do it with the US Navy, I think we can handle this one.

By RD

July 25, 2008 5:59 PM | Link to this

Disgusting but not surprising. There are 8 people on this board not from the east so they would not have any idea of the pain this is causing us which is why this board is not fit for the assignment. I understand the power agency has to approve this on July 30 in Wilson for it to be effective. Then, Councils act.

Does Jesse Tilton have a golden parachute so that as the mismanagement stacks up on him (and I am told there is more to come about his mismanagement of money) so we end up paying his a bundle?

Does anyone else think it strange he makes so much and hides?

Does anyone else think the stories of people getting 50% in salary increases after being brought here from out of state is suspicious?

These are all issues to be explained. I am also told last year’s annual meeting was a whopping $140,000 because someone overspent. Also told the year prior, Tilton’s secretary lost the rooms so there was additional expense then. For so many people making so much, there is a problem with competency …

I have also heard (from a city official) that there are other issues pending that could bring big legal bills and could drive rates up even more.

I want to know more about where my money is going.

By ken

July 25, 2008 6:08 PM | Link to this

Hi folks, a quick note; i enjoy being in touch with my rocky mount/nash/edgecombe families—telegram and all you other folks.

and here is a big ‘hello’ to all of you from Wisconsin. I have been working with FEMA on disaster work for parts of Wisconsin and its flooding-working with several teams.

I think often about our city and the impact from hurricane floyd—when i also worked with FEMA.

what works for our system is the ability to ask questions, get answers and work together for the good of our communities such as nash/rocky mount/edgecombe… and yes, jeff.. we have a great group of folks who interact.

my thanks and best wishes to all

ken pledger

By Tom2000

July 26, 2008 2:39 AM | Link to this

Tom2000The electricity plays an important role in the daily life, if there is any power cut, lot of works can be stunned. Without electricity we can’t do anything.

Addiction Recovery Washington

By Dawn Peterson

July 26, 2008 9:43 AM | Link to this

Something just is not right with this place. And I have heard a lot but it needs to be investigated.

Bruce Rose was trying to call for cuts but just, apparently, does not know how or what to do, which is sad. But at least there is an opening to talk to someone. $700 million budget? you can’t tell me there are not some serious cuts to be made that would be “good business” Mr. Noble.

My kudos goes to this paper for being there, asking questions and serving the community. I am sure it will pay dividends as people look to this paper for the answers from an unbiased, unfiltered perspective. It is obvious no one is leaning on this paper like the others. Wilson Times has withered and the Daily southerner has been cast under some crazy spell of kool aid drinking with Sam Noble.

How could the two power agencies be split from each other to save money? So, if the west wants its high paid staff, they pay for them.

What perks are these board members getting? What do their expense reports show over the past 5-6 years?

There are stories about kick backs, drinking parties, preview events for annual meeting, trips, the high life. These reports come from current staff and some documented it on something they sent out. What is the truth to all of that? Those are things to cut, maybe even pay back.

There are a lot of stories in Raleigh about the legal bills being half a million dollars and Mike Colo getting $200,000+ to be at meetings and follow legislation even though there are 15 lobbyists which is astronomical considering what others have. And, there has been significant turnover in the lobbying department. Three people since January this year. Something is up there.

A legislator told me their lobbyist is ineffective and kept chasing off people. That will cost us. And there is a memo floating around with complaints levied against staff for harassment, terrorizing which will end up costing us. How do we get the answers on all the “info” floating around?

When you mention this place, you get a barage of information. An N and O reporter has provided all kinds of info from past investigations.

Bottom line. Where is our money going? who is watching this group? Sure sounds like there is a problem. And where is this highly paid highly qualified Tilton guy when there is a tough issue?

Thanks, Dawn

By DGB

July 26, 2008 10:54 AM | Link to this

We are serving notice that we are watching ElectriCities and we will hold each of these Board members accountable for their performance.

Those in the west can be warned, we are contacting press and people in their cities. This is not an “eastern problem” as one commented. This is a state problem.

Did they review the Q1 and Q2 results of ElectriCities (the ones that aren’t disclosed on the website). Surely they didn’t vote without reviewing those materials. Or did they?

Have they reviewed with management around lobbying costs and legal costs. Surely they reviewed those issues, costs and problems and agreed with management before voting to raise the rates. Are there pending legal issues?

Did they review the performance and rates of ElectriCities (and the local municipalities) with the performance and rates of the publicly traded energy companies serving NC as well as the energy co-ops serving NC.

Do they have a plan for monitoring and managing the debt and the rising costs of fuel. Or, are they going to pass another rate increase next year? Or do they know? Are they going to cut costs? Any costs? Will they consider the costs put forward to them? Their staff has grown, amid lobbyists leaving, will they cut positions? Will they cut salaries?

Suggested cuts in ElectriCities include: $168,000 per year for Board member Salaries Reduction in CEO salary to $250,000, a savings of $200,000 and termination of current contract for the CEO amid mismanagement, misallocation of funds for staff salary increases. Elimination of its out of state Myrtle Beach Party, a savings of more than $100,000 plus the additional costs cities incur for travel, meals and lodging. Elimination of staff retreats, out of state travel, savings of more than $200,000 Elimination of positions in senior management and salary adjustments eliminating double digit salary increases over the past five years, savings of more than $2 million Elimination of contract lobbyists and excessive staff lobbyists based on excessive turnover (80%), savings of $500,000 Restrict the legal budget expenses to $150,000, savings of more than $400,000 Hiring freeze Restriction of salary adjustments to 2% for the lowest paid employees only. Elimination of bonuses. Streamlining functions within ElectriCities to achieve elimination of positions.

Will these cost savings be immediately undertaken, effective September 1 and applied to costs associated with the rate increase so that the reductions have an immediate reduction effect on rates.

Will they cease raises and bonuses?

What kind of golden parachute does Jesse Tilton have?

What have they done to guard against management raises to people like those Clay Norris has received 2002-2008?

Was Jesse Tilton’s salary pushed to the point it is by the increases he gave staff which skewed the analysis? We have been told those increases came first, and were retroactively done to go back months. Why would the Board approve such a thing? Did they?

Send letters to Fred Turnage and ensure he earns his $100 a month. Send letters to the City Council. Send letters to Mayor Combs. They can demand answers. But we have to ask them to do so.

By Bast

July 26, 2008 1:12 PM | Link to this

He earns $1000 a month and Sam Noble $1500 a month.

The 32 cities meet in Wilson at the Operations Center at 8:30/9 am to do the final leg of the rate increase. We need to see who follows Bruce Rose’ lead of cuts for decreasing the 14% increase. Will they entertain the cuts identified to lower it more. Communications, economic development, excessive legal and lobbying all need to go. Need pay cuts for Tilton and others.

The Board meetins august 22 at 9 am in raleigh

the beach party is august 8-10 in SC at Marriott Grande Dunes - usually costs a lot.

How much did the new orleans boondoggle cost - it was July - usually about 50k because tilton pays for staff spouses etc

Does tilton have a golden parachute - old news reports said it was for millions - he can screw up and keep screwing up and these limp noodles can sit around and then boot him and pay millions to rid us of him

the harassment issue involved the lobbyists harassing four people this year alone, many more prior. Employees have complained and written information about it and she keeps on doing it. Running off three people in 5 months, one after a month and one after 4 months. Something up and this will cost us too.

By RN

July 26, 2008 2:16 PM | Link to this

What bugs me is that internally the place is screwed up which translates into more costs - legal, hr, turnover. Now, one could argue they are screwed up internally because of the external pressure but they have been spiraling down for longer. And the employees are told to ignore the external issues and they will go away. For heaven’s sake employees have been emailing people what is going on for a while now.

I am friends with someone who got the shaft just recently. Granted I am biased but there is no management and these hundred thousand dollar a year executives are not managers at all. One in particular is not at all qualified and the HR manager has been part of some shady deals tooting the horn of the CEO. We have people making a lot of money who should not be and they are covering their butts like crazy. The only way to fix all of this is new leadership.

To say there is low morale at ElectriCities is an understatement and that is a problem with getting the job done for us. And that is a cost issue. Tilton had some of the employees interrogated and there was a conspiracy created (based on lies that they knew Tilton would deny) by a small group that made the rest of the staff mad. And the Board just did nothing and certainly did not ask questions. How much did that cost?

And, the great salary and benefit divide is getting bigger. The 80% turnover with lobbyists is going to lead to some more costs.

No one wants to work there because of the strife so recruiting the best and brightest will be impossible.

By Tom

July 26, 2008 11:24 PM | Link to this

Suggestion:

To the cuts there should be added CONSULTANTS. They spent MILLIONS during deregulation on consultants. MILLIONS.

Now the spend hundreds of thousands on communications consultants (the people they have cannot get the job done). The spend it on economic development consultants. Again, the staff cannot get it done. They spend it on personnel consultants.

The Board knows that the reason the CEO?s salary is so high is because during 2004-2006 the CEO brought in four or five consulting firms to “endorse” huge pay increases for certain senior staff to bump them up a lot so he could get a bump up. He kept hiring consultants until he got the highest number. That is how Clay Norris went up by 50% in salary. Tilton spent hundreds of thousands of dollars on consulting on that effort. All one needs to do is request the expenses associated with personnel consulting and succession planning (2004-2006), another huge expenditure for consultants to assess people and place them in slots for succession.

The staff has low morale because then the CEO turned around and promoted someone who never made the succession planning “cut.” Of course, that promotion was without posting or anything. That is the person responsible for turnover in the lobbying staff which is costing a lot more.

By SC

July 27, 2008 1:13 PM | Link to this

I am married to an employee at ElectriCities and can assure the place is in complete chaos and has been for over a year now. Most employees are terrified to speak out because they have been told to ignore the comments they may read externally even though many of them are the ones providing the detailed information.

Logic? Some employees were interrogated over a complete management failure that left a bad taste in the mouths of employees because the guilty went unpunished and you may even say rewarded with huge salary increases. This is a problem that stops at the feet of Jesse Tilton no matter what the board says.

One person was promoted without merit, most believe by blackmail since she has bragged about it, and has been involved in some pretty bad attacks on other employees resulting in turnover and instability in a critical area. People are literally terrified of what will come next. That does not sit well with employees.

HR has been dysfunctional except to protect the CEO. No one trusts that department at all. A series of mistruths about succession planning did not sit well and neither did the spending on it which the employees all decided was to bump the CEO’s pay up and a few got it all. They fear hundreds of thousands were spent. The employees sit there and see the CEO come in at 10 and leave at 2, install an expensive shower in his bathroom that he tried to hide, go to lunch with his senior staff, talk about his online dating at company sponsored lunches, take senior staff on lawyer-paid extravagant “retreats”, take his senior staff to spas, reward his assistant for “losing” a block of rooms that cost more money, all while they have friends and relatives in these communities who see their bills go up. And the saddest part is they cannot defend their employer.

The place has people turning on each other, harassment and defamation are costing legal bills.

There is a hard working group of people but they are well below the $100,000 line. And the news of the number making more than $100,000 is even more disheartening.

Be forewarned. You will have to dig deep below the surface. Economic Development looks ok on the sruface but they play golf and goof off, giving money to consulting firms and regional groups and taking foreign trips so they make people happy with contributions and those people will defend to get their money.

ElectriCities pays into some Commerce group called Friends of NC and as a government entity does not need to do that. The amount some people spend on travel weekly is astounding. Clay Norris is traveling every week, after getting 50% salary increases. No one knows what he even does, except load the place with $100,000+ people layed off from Progress Energy.

When they were layed off, it meant they did not make some cut and now ElectriCities has them at higher salaries, much higher. Employees think that is a ploy of some type. There are regulatory people making big bucks and the cities are not regulated.

No one is watching the cooks in the kitchen so they are brewing quite the stew. Good luck. On behalf of many employees who are sickened by this stuff, they hope for a change.

We hope you dig deep. I have watched my spouse worry about this place for a long time now and it is disheartening. Many of the people on the lower end of pay only want the best for eastern NC and know what they are getting is not even close.

By Brian Davis

July 28, 2008 9:30 PM | Link to this

I hope these people can sleep at night with all the spending going and us paying for it.

I agree with most of the posters (and I know nothing) that there should be major cuts in the organization. When you make a bad decision, you have to look internally and make cuts to compensate for it. Seems very self-serving to me that they have offered up nothing. And, if 1 of every 10 things is absolutely true on here, we are getting ripped off.

I commend the paper and the council members and hope you all keep at it because otherwise it does not seem this organization will cut anything, rather keep on spending at the consumer’s expense.

Brian Davis

By Need Questions Answered

July 28, 2008 10:09 PM | Link to this

I decided to do what Logic did and read the ElectriCities web site.

There are no quarterly financials for 2008 which makes me suspicious. The year is more than half over.

The debt is extremely large and even a mistake like $12 million in interest costs on a $700 million budget with this debt is huge to me. No question. Hands down. They should have to eat this cost, not us. There should not be an elected official that does not see this.

If any of these spending sprees is anywhere near accurate, the cuts suggested by others seem very logical and clearcut and should be enacted. I do not want to pay for this frivilous spending and cuts in the $5-6 million range would have an effect on the rate increase but frankly I think they should have to come up with $10-12 million in costs, not so much on a budget this size.

Tilton seems to be self-absorbed and the communications people not realistic. I read the latest Hometown Connection and I am sorry but this should be the front page story not Tilton getting himself appointed to a board.

I suppose that means more trips to DC. His time should be focused on fixing the mess he has created and then vamoosing to someplace else. And the article on going to Las Vegas - now is that a good article to post? I see more money going with people to Vegas for a “conference.” Very poor article choices and a waste of money for a publication. And the tone of the NCEMPA wholesale rate piece is very flip, not at all reflecting on accountability or responsibility.

And the annual meeting page says they have a “project manager” for it. Hmmph. That thing should be cancelled no matter what kind of charge it costs. The very thought of cities toddling off out of state to a resort on top of this rate increase is in poor taste, wasteful, a slap in our faces and wrong.

So, after reading, my conclusion is that the place should be investigated and every category, especially legal fees and lobbying should be exposed. I called a staff person and DC and they had no idea who the current lobbyists are so that tells you how influential they are; The staff person only knew former lobbyists at ElectriCities.

I am eager to see what the Telegram discovers.

By Tom T

July 28, 2008 11:53 PM | Link to this

Just read what the City Council did. I wonder if I was the only one who felt Tilton was smug and arrogant. Did I hear any comment about super-spending? No. I don’t believe the problem in Washington DC Mr Tilton. I think the problem is you in Raleigh NC. And while you may gloss over it, it is there.

Washington DC and Congress is such an easy target but they did not direct a refinance that went belly up, give raises, steal a big salary from the people of the state who pay these rates, dismantle a lobbying team and hire excessive numbers, run up legal bills, spend money on succession planning. How did Congress do that exactly? Gime me a break.

And to the board, Washington DC does not pay you $1000 a month to look after us. ElectriCities needs to cut like we all do. I cut out a lunch today so Tilton needs to cut back on his lunches.

I hope Lamont Wiggins follows up on the demand for cuts. Wednesday should be interesting.

Frankly the lack of accountability, lack of concern, deflection of the issue makes me more convinced that we are screwed until he is removed.

By Tina

July 29, 2008 12:28 AM | Link to this

Why would Angela Bryant want Jesse Tilton to spend money on programs to help our folks here? He would raise rates to do it. Cut him out, cut his staff, cut the overspending and after rates are reduced, give the money for all this fluff communications and economic development junkets to the cities and let them decide what they need to do.

By Staff very upset

July 29, 2008 8:23 PM | Link to this

While you all are are at it, you really should look into the practices of the HR director. This guy makes over a 100k and is charged with protecting the employees of this organization.

In reality he is Jesse Tilton’s yes man along with their shady attorney and a few other VP’s. He has participated in some very very bad deals. We were told to file reports about issues and more than 20 people did and what happened? Nothing. Some of us will talk anonymously.

HR manager has no interest in the employees at this company, only his own self interests and his wallet like so many others.

The man has overseen numerous sexual harrassment settlements, employee “resigations” and unjustified firings of employees who have tried to make ElectriCities a more accountable and open company to the public.

I’ve never known an HR director held in such low regard by the very people he’s suppossed to be looking out for. Ask the Board and if they tell you there have not been complaints about the situation, they are lying. While people out there are suffering so are we. Those of us below $100k cannot afford to leave until we find jobs. There needs to be a dismissal of about 10 people and new leadership.

The problem is, he’s not bright enough to realize the employees are on to him.

By Bob Calvert

July 30, 2008 7:14 AM | Link to this

No Accountability is a Bad Idea!! The market system provides accountability via competition. DUH…

By David S

July 30, 2008 8:03 AM | Link to this

Why is this place so complex? It is nearly impossible to figure things out. I understand that we bought into plants with 31 other cities and we are stuck with the debt until it is paid (which is hard when it keeps getting refinanced and we have to pay more). How much interest have we paid since the inception? I see the total debt is at $2.5 billion for the east and we are not done until 2025. Who knows maybe all these plants will have been shut down by then - what happens in that case?

I further understand that the power agency has a contract with ElectriCities for management and that is what created the board but the power agency still has to approve rates and budgets and can question any of that. This is how we are stuck with Tilton apparently but originally these contacts ran 3 years so a power agency could break away but now they run to the legislature and get legislation secretly so they can bind for more than 3 years (they go this this session, interesting timing aint it?) so a city council may not even know if their manager does not tell them that they have been bound over for 15 years or 20 even though they have a choice to break away for ElectriCities.

Seems like there are too many secrets and a group of old boy managers are sealing their city’s fates for a long time and the councils do not even know.

Why are there not appointed business people on these groups? They would make sounder decisions than bureaucrats all rolling in the mud and muck together.

I hope we will get answers to these questions. Thanks

By Concerned Citizen

July 30, 2008 11:21 AM | Link to this

I have a few questions for the City of Rocky Mount�s City Counsel.

  • Are you still going to use the utilities as a vehicle to create revenue for your SPECIAL PROJECTS? Please don�t insult the citizens and say you don�t use the utilities for profits. That has been well established pursuant to Angela Bryant and the City of Rocky Mount�s own Utilities Director.

  • Does the City of Rocky Mount know the definition of CONFLICT OF INTEREST? This means for example: Former Mayor of Rocky Mount sits on the Board of Electric Cities and during some period when he was Mayor was the Chairman of the Board of Electric Cities; Andre Knight is a member NCEMAP Board and Rocky Mount�s City Manager is the Chairman of that Board. Then one must ask why do they not vote against Electric Cities rate increase of 14%?

  • Did anyone ever hear of the saying �talk is cheap!� then the City of Rocky Mount�s City Counsel should put their efforts and power to stop Electric Cities Rate increase and also stop using their own utilities sales as a profit making business and stop looking for State and Federal Government for help paying the citizens of Rocky Mount�s utilities for them. It is the City�s own responsibility to stop the profit making on the utilities that is also a necessity of life!

    Stop blaming everyone! It is both Electric Cities and the City of Rocky Mount�s City Counsel that has been overcharging the citizens of Rocky Mount for years.

    Next election, vote ALL of the City Counsel out and vote in ALL new members. Only one City Counsel Member showed concern for the seniors and the poor by voting against the rate increase. Good for you Lois Walkins and for the rest of you, where is your concern for the seniors and the poor? Insofar as the Chairman of Electric Cities presenting award to the City of Rocky Mount, it is time for the City of Rocky Mount to tell Electric Cities that their citizens don�t want awards they want lower utilities!

    By Rochelle

    July 30, 2008 10:54 PM | Link to this

    I thought I was over being mad and now I am mad all over again. What the heck is the deal.

    52 people out of 103 make more than $80000? What a place. What a waste. Will we find out if it is true people got 16%, 20%, 50% over 5 year bump ups and 5k and 10k bonuses? This is absolutely incredible. I feel like I have been violated.

    No accountability YET. Has Tilton ever said he knew about the debt payments increasing long before he told us?? Can we keep asking him that?

    “The officials also went along with a motion brought forth by Tarboro Town Manager Sam Noble, who serves as the chairman of ElectriCities’ board of directors, to eliminate the $1,000-a-month payment to board members. He said that will save about $100,000 a year. Board members will receive mileage for going to the meetings, and there is normally food served at them.”

    Why not eliminate it in 2008 Sam Noble. When I add it up, 14 board members at 12 months and $1000 a month equals $178,000 and someone told me Noble gets $6k more as chairman for a total of $184,000. Cut it now.

    Why not scrutinize the 2008 budget with 5 more months in it?? They should have been “carefully scrutinizing” before now.

    Will we ever find out the truth as to legal, lobbying, salaries or will there continue to be the grapevine of information? We have a right to know.

    “Noble told the city leaders that Tilton’s job performance and salary also will soon be evaluated.”

    Cant wait to see how they decide that. What a joke.

    If there salaries are that high and these worthless people making so much money were cut, there is no way there would not be an effect on rates. bull.

    and then I read tarboro and see old sam Noble got a raise since he is such a leader and his whole council (in the dark on rates I guess) gave themselves a raise.

    Rise up people and object.

    http://www.dailysoutherner.com/local/ localstory211112347.html?start:int=15

    By ACm

    August 1, 2008 3:44 PM | Link to this

    A couple of observations

    1) I am struck by two paragraphs in the Elizabeth City Daily Advance editorial that could not be more true. They are struggling with this as much as Rocky Mount.

    http://www.dailyadvance.com/opin/content/news/opinion/stories/2008/07/30/0730editeure2.html

    “NCEMPA board members are probably right about how Tilton’s salary compares to that of other CEOs’. The question they seem to be avoiding, however, is whether they, as trustees of an agency made up of municipal governments, should be paying an employee like he was working for a private-sector corporation. We question the size of Tilton’s compensation, especially given the performance of NCEMPA on ratepayers’ pocketbooks in recent years.

    Customers of Elizabeth City’s electric utility were hit with a 5 percent rate increase in 2005, a 4 percent rate hike in 2006 and a 14 percent rate hike this year. (The rate hike in 2006 actually would have been 10 percent if not for City Council’s decision to have the city absorb 6 percent of it.) That’s 23 percent more for electricity in three years. Not exactly a convincing argument for paying someone half-a-million dollars a year.”

  • Second observation, I think people are struggling with “sudden gestures to correct the wrongs” by a couple of board members. They paid no attention to any of it (and that is requests made of them, communications with them) until they were “found out” with this rate increase. I still want to know why Tilton was telling the Wilson Paper in Nov 2007 “no increase” when he knew his interest rates were rising the month before. And, I really want to know why so much time passed before we knew. And why, the first launch of it was all about fuel with the refinance left out. The 14% was launched on us in one month but they knew for a long time. Why?

  • I think the frustration now is that we know what we suspected - salaries, salary increases that are dramatic, legal and lobbying bills that are astronomical, etc. And the chairman enacts a gesture to cut his salary in January! 5 months from now. Why did we not get 5 months notice of the increase? And why would he make rather dramatic statements about caring and no need for pay (his hometown paper) but delay giving it up. We did not have a choice to delay. In my opinion, they should all give it up now starting today, August 1.

  • Why would the chairman start talking about scrutinizing budgets in 2009 with this immediate issue now? Budgets can be amended. There is no way a person of average intelligence believes they did not know most of what has evolved. If they did nothing, they should admit it now and correct it. Why spin all around it? And everyone knows the hometown paper has been to ElectriCities events and partaken of the apple from the Garden of Eden so many people there are very frustrated by the lack of objectivity because of benefits derived.

  • But, lets bring out the facts, be respectful and continue to advocate the solutions. I, agree, with most people I have spoken to in that ElectriCities has to have massive cuts now. Those savings can be managed in some way to be of benefit. This whole situation is almost surreal. Never in a million years would I have guessed all of the issues, missteps, errors, lack of oversight.

    I think I want what others do - New leadership, credible leadership, oversight, accountability, cuts in that massive budget, and I know I want the east to be separate from the west organizationally because of the gravity of the situation and the difference in issues.

    By TT

    August 1, 2008 4:14 PM | Link to this

    Why do the 32 power agency cities (NCEMPA) have to pay for the city that is not in the power agency, Fayetteville, to be on the board?

    Fayetteville is not in the power agency (no debt, rate increases, or any of this other muck) but they do not even pay their own way on the Board. We pay for them.

    So, I think Nobles said 1995, so from 1995 to 2008, We have paid some guy $12000 a year to be on the board and not understand what we are going through? Fayetteville owes the power agency $150,000. Unbelievable. Who came up with this idea?

    By CommonCentsRM

    August 2, 2008 11:17 PM | Link to this

    RE: �NCEMPA board members are probably right about how Tilton�s salary compares to that of other CEOs�. The question they seem to be avoiding, however, is whether they, as trustees of an agency made up of municipal governments, should be paying an employee like he was working for a private-sector corporation. We question the size of Tilton�s compensation, especially given the performance of NCEMPA on ratepayers� pocketbooks in recent years.

    Why do you expect someone working for government to make less than if in the private sector? You get what you pay for. You may not like the fact that Tilton and others at ElectriCities make > $100k per year but that is the salary that people in that industry make. Did you ever ask your doctor what he or she earns? How about an attorney?

    As far as the comment on performance are you not aware of the energy cost increases that have been taking place across the country? Instead of complaining about Tilton and ElectriCities you would be better served to contact your federal legislaters and demand that they work together to develop a comprehensive national energy plan.

    If you think the recent rate increases have been high wait until you see what the global climate change legislation will do. Estimates are 30 to 50% increase in the cost of electricity.

    By open and accountable Government

    August 4, 2008 7:17 PM | Link to this

    Well to Common Cents RM, we should not be paying this group like it is the private sector. But if that is the pay needed for the public sector we should hire the “best and brightest” and most of these people do not appear to be that. With all of this junk, how could they even compare.

    It does not seem bright to me to be Giving double digit salary increases to bureaucratic drones before rate hikes, trips to Myrtle Beach (and I do not buy Mr. Raber’s arguments at all - that sponsor money is from consultants, lawyers, bankers - the people the pay exorbitant amounts all year - what a deal, pay Poyner and Spruill $500,000 and they kick back $15000 for a meeting. Or give the bankers huge commissions for bad refinancing advice and they kick back $10,000. Another farce), hiring 14 lobbyists. All this points to me is they do not have the best and brightest and better go looking for better deals and more qualified people.

    My question to the author in Tarboro of the letter to the editor. Why the defense? If you have known for so long and wanted your customers to know what was “imminent” why didn’t you, as chairman, tell all of us. Hostility may be less if we had known last fall when Tilton knew or in Spring when the author of the letter knew. Whay wait so long if you wanted people to be prepared? you told us in June (end) just before it took effect.

    I am concerned about global warming but Tilton’s flippant response about “go to Washington” was an escape route to avoid the question. We all need to make calls there but sending this guy on junkets with local officials is a bad idea.

    And, I have heard stories from cities about ElectriCities buying dinners and alcohol beverages for cities at their annual meeting, a cost you failed to capture in the total. And then there’s the golf and freebies that add up.

    By Tom

    August 5, 2008 7:18 AM | Link to this

    They signed a contract through 2012??

    Why lock yourself into a place for five years? And one out of state? That does not make good business sense. They will have to pay a pretty penny to get out of that contract if they have to. Things change. The economy changes. Gas prices go up, Electric rates go up.

    That sounds a bit like the refinance blunder it is costing $12 million to get out of.

    And Richard Worsinger says it’s not a party? It’s a party. They have taken dinner cruises, they have had band parties where the ElectriCities staff gave out thousands of alcohol drink tickets. They always give out thousands of dollars in door prizes which is why many people attend.

    I hope we see some information on legal spending, I hope we see some information on the double digit salary increases - at least a range over the past few years so the Board (if they really did not know) and others can see how their money is being spent. Though the more I learn the worse it seems to get.

    Thanks

    By Curmilus Dancy II

    August 6, 2008 9:05 PM | Link to this

    ElectriCities chairman sold mom’s van to town

    Noble seemed surprised the matter was coming up six months later. “I certainly did not try to hide anything,” he said. “I was trying to …

    http://www.triadblogs.com/curmilus/7965/Tarboro+NC+-+Town+manager+Sam+Noble+sold+mom%92s+van+to+town.html

    Visit me on the web @ http://www.thepoliticalagitator.com

    By JGF

    August 8, 2008 6:08 PM | Link to this

    Mr. Herrin,

    Are you going to find out how much the Meeting Sponsors get paid as consultants and then how much they give as sponsors so we can see what we are really paying for with this beach party?

    And are you going to tell us how many people got double digit salary increases over the past few years and how much the lawyers get paid annually? I think people want to know these amounts as much as the lobbying and meeting.

    Thanks

    By Jeff

    August 8, 2008 6:25 PM | Link to this

    We’ve been chasing down legal fees information for a story next week, JGF, but thanks for the suggestions. That certainly sounds like a follow-up story after the Myrtle Beach meeting.

    By ken

    August 16, 2008 9:21 AM | Link to this

    Electricities, interesting reading lately. Since it is a nonprofit organization, its affairs ought to be especially made available to the public.

    Consider this: 1. make a call to Electricities and you will find that rocky mount can get out of the electricities group anytime it sees fit and requests to do so. granted, there may be valid reasons for staying in the group.. but they need to be made public and with specifics of why..

  • that ‘debt’ everyone keeps talking about.. the ‘huge’ debt from 20 or 25 years ago?… let’s take a step further and ask ‘why?” why did they refinance the debt in 2004 and with a variable rate… everyone knows if rates are low on a variable, they can only go up.. which they have..
  • want to make a few folks start sweating, get nervous, and tell you what a jerk you are for even questioning this?… ask Why refinanced with a variable rate in 2004?..

    next, look into the money… find out ‘who’ helped arrange the refinancing of bonds… next, look and see who made ‘commissions’ or got payments for arranging the bond refinancing.. next, who got any other type of payments, fees, etc for helping to arrange the refinancing.. including law firms related to any municipal officials or electricities officials…

    next,… talk about a conflict of interest? how can our municipal officials take issue with bad decisions at electricites if they are paid director’s fees, board fees, etc? the can’t…

    our city officials are already paid by the municipalities or entities they serve… how about, stop ALL payments to municipal officials who are also serving electricities??? then, let them make decisions…

    you know, perhaps some other investigative government agency should be looking into this whole mess—- two reasons: 1. either investigate and confirm that all is OK to satisfy the public.. or 2. investigate and find out if money is in fact being wasted, paid to friends/related companies, and if there is more than ‘smoke’ involved with the 2004 refinancing of the bond debt…

    take this to the bank. i’ve already ticked off a couple of people on this topic…visibly… maybe the public is asking too many questions.. follow the money..

    if all is OK with electricities, fine, but the general public seems to want a few more explanations.

    legal fees, yes those can be valid, but not if used in matters involving personal choices of officials going beyond the organization’s purpose.

    By Curmilus Dancy II

    August 16, 2008 11:37 PM | Link to this

    Ken you keep saying it is so easy to get out of ElectriCities however I find that strange when it appears no city has done it thus far. I would think that every city has a paid attorney and if it was that easy they would be out. Ken just maybe you are right and maybe time will tell.

    But in the meantime to learn more click here.

    By Too Much money being spent

    August 17, 2008 1:02 AM | Link to this

    with all this money being spent, i guess they are spending a bundle on travel too. any chance anyone is going to get the budget and show us a pie chart or something and any chance the city council will demand an audit and cuts. This group needs repurcusions or something. Any chance the state auditor will look into it. Sure looks like no one is watching electricities and we all suffer.

    By ken

    August 17, 2008 7:36 AM | Link to this

    all it takes is a call and reading documents to find the answer. your comment does bring up one other thought: if no cities are getting ot of Electricities, then maybe there are many good and valid reasons for staying with Electricities—personally, i can think of plenty of reasons for staying with electricities; likewise a few reasons to get out..

    more importantly, if Electricities is good for us… and i can see how it might be.. then if poor management practices are going on.. then it seems management changes might be in order—if those are costing the organization.

    for sure, there is nothing wrong with the public asking more questions of ANY nonprofit organization—

    the big topic with some i’ve spoken with is the big debt issue… that’s the explanation and reasons for concern.. or so they say.. if so, let’s have someone examine the 2004 refinancing matter a little closer… just WHO.. recommended refinancing with a variable rate??? see, what i heard last year was ‘that debt from 25 years ago’.. now i’m hearing ‘that refinancing with a variable rate’… this inconsistency itself tells me someone is trying to cloud the real picture… how many dollars and by whom was made in the 2004 refinancing?? and were any of the principal players directors, officers, or shareholders in the organizations involved with the refinancing??

    $$$$$$$$ ????

    By Doris Creech

    August 17, 2008 3:55 PM | Link to this

    Wilson

    We are really talking about this in Wilson.

    Rick Dew got different lobbying numbers from you. Which are right?

    by rickdewjr on Sat Aug 16, 2008 5:32 pm

    These are a list of the contract Lobbyists and their salaries. I got this out of ElectriCities and I am awaiting the staff Lobbyistsand the salaries of them.

    Electricities Contract Lobbyists January - December 2008 State Contract Lobbyists Kenneth Melton - $20,000 Jennie Dorsett - $30,000 Johnny Tillett - $30,000 Joyce Peters - $30,000 Gene Ainsworth - $30,000 Man/in Mussselwhite and David Barnes (1 contract/2 people) - $40,000 Federal Contract Lobbyist Robert Talley - $80,000

    Who is getting to the bottom of this? BlueNC is comparing electric rates BlueNC and ROcky Mount and Wilson are the highest so far.

    The board has people from the west and Fayetteville and they can outvote us in the east and mess us up. We need to be on our own. Who is getting to the bottom of all these big salary increases and lobbying and legal costs and whether they are justified. WHo is auditing this place? Realtors andbusiness people are suffering because of this. We cannot compete with other places and no one will want to move here.

    Doris Creech Wilson

    By Find Solutions Now

    August 17, 2008 7:52 PM | Link to this

    Ken, others

    What I found is that Electricities is the trade association and cities pay dues so they can get out of it any time. Electricities then contracts with the power agencies, one east and one west, for management services like all these overpaid people. I dont think Rocky Mount or the other cities can get out of the power agency unless they pay off the debt or sell their system to pay off the debt. Wilson Times did a good editorial about how it appears management is trying to saddle us longer than we need to be in it.

    the debt is from the 70s but they refinanced some and it went up and cost $12 million but they knew and did not tell us until July even though the CEO knew in Oct and the bOard found out in March. That is a problem. I have no confidence in them.

    There needs to be a state audit and new management. Legal, lobbying, annual meeting - just look at how these costs add up - no wonder our rates are high. Mrs. Creech is right. Look on bluenc.com and see how we compare. Rocky Mount is in bad shape. We need solutions, there need to be cuts. We need to take the eastern agency and split from the west since they have none of these issues. They are hurting us.

    By Curmilus Dancy II

    August 17, 2008 10:31 PM | Link to this

    Thanks Find Solutions Now in your findings, “I dont think Rocky Mount or the other cities can get out of the power agency unless they pay off the debt or sell their system to pay off the debt.”

    I have always been told that the cities couldn’t get out. Since attending meetings dating back over 10 years ago before the Flood of the Century when Carol Batchelor, now Rocky Mount Councilman Rev. Andre Knight; Lewis Turner, myself and a couple of other members of a group called Northeastern NC Committee on the Affairs of Black Folks met at Truth Tabernacle Church in Rocky Mount and we had the city to come in we found out about the millions of dollars of debt with ElectriCities. And then Knight, Turner and myself later became members of Common Ground whereby now Rocky Mount City Councilwoman Chris Miller was chairwoman we had other meetings about utilities. And then when now House Rep. Angela Bryant became a Rocky Mount City Councilwoman she chaired meetings about utilities because she was appointed to the utilities commission. Out of all these years I have not been in one meeting that someone has stated that cities can just get out of ElectriCities.

    Learn more about Electricities here.

    By Find Solutions Now

    August 17, 2008 11:13 PM | Link to this

    Curmilus,

    Electricities is the trade association and each city pays dues to be in it so they can drop it. We can find out what Rocky Mount pays, probably $50,000 a year or so. That can be dropped now.

    The power agency, NCEMPA, is the group of cities and owns the nuclear and coal power and that is where the debt is. In researching the statutes that created it, if a city can sell its electric system and pay its share of the debt, then it should be able to get out. That is the ball and chain on our feet. Not that that is an easy thing to do. The debt is well above the value of the system.

    ElectriCities has some kind of contract with the power agency for management so to cut costs of management, we would have to insist on that contract being reworked. The two power agencies are tied together through this Board and ElectriCities and that should be broken, IMO, because the west is not in the same situation, and competitively they could be screwing us over to get ahead. We have nothing in common with them, and having a board with cities with no debt (that we have to pay for) and western cities making decisions about us is past due for elimination.

    By ken

    August 18, 2008 7:08 AM | Link to this

    would we REALLY want to get out of the current setup with Electricities, etc?

    that’s a question to think about. What IF rocky mount decided to get out of Electricities? each individual city on its own couldn’t afford to do what Electricities does for us as a combined effort—lobbying the legislature, etc?— that IS important to each city.

    how about administrative costs? would rocky mount and other small towns wind up having to hire additional people with salaries/benefits to take over some of what Electricities does for us?.. might wind up costing us more.

    legal fees. OK, maybe i’m wrong, but $600,000 doesn’t seem like a lot when you consider the number of towns/cities Electricites represents—not just rocky mount, not just a few in the east… a large number—really a drop in the bucket for high power representation.

    the debt? sure looks like it might be a good time to look at getting a fixed rate before the rates go higher next year.

    looks like the rest of you have the answers; i look forward to reading.

    By Robert Cressionnie

    August 18, 2008 1:40 PM | Link to this

    Given that many non-Electricities small towns seem to be doing just fine with their power and rates, I’d have to ask is what Electricities is doing really that valuable. Of course if you listen to their representatives they’d have you believe we’d all be raped by the General Assembly and the power companies is Electricities didn’t exist.

    If they were really worth what it’s cost thus far it would be easy to present some numerical data showing how we purchase our ownership allotment at far below the wholesale price. Also it would be nice to see some data showing why Electricities power is costing the consumers less. The problem is that we - the consumers - are not buying our ownership allotment at cost nor is our power less than non-Electricities consumers.

    It looks to me like we are ultimately getting the short end of the stick on this deal and no one with Electricities is producing one shred of evidence to the contrary.

    I’d really like to see what one gentleman suggested and have RM divest the electrical division and get out of the power business all together. It’s doubtful they would ever do that since as one Councilwoman put it “we use the revenue from the utilities to fund special projects.”

    Maybe it’s time to get everyone’s hands out of the pie and see just what’s left.

    By Curmilus Dancy II

    August 18, 2008 4:33 PM | Link to this

    One thing about it I am an informed community activist and don’t have to rely on others nor the newspapers to tell me what is going on in the community and local government. I don’t live in Rocky Mount but I am very much knowledgeable of what is going on. So therefore I will continue to voice my opinion because I speak for folks who live in Rocky Mount that allow me to speak for them but first and foremost because I am my brother’s keeper.

    It is just a darn shame that instead of going to where the problem began and still exist and that is with the previous council. The former mayor who served for 30 plus years and serve on the current ElectriCities board has not and still is not being held accountable by folks like you who want to blame a current council member.

    The current council member did not create what is in place and he difinitely can’t clean up 30 plus years of mess overnight. So what is he suppose to do stop what they have in place while the fight goes on with ElectriCities? Get real!!

    The previous council has funded special projects all of these years and nothing was said but when the current council which is doing a darn good job attempt to level the playing field trying to make sure all of Rocky Mount get their fair share, it is a problem.

    What tickles the heck out of me is that if the council member you speak of knew that he could get out of this mess he would because he has several properties on both sides of Rocky Mount. I have heard other council members talk about their high utility bills so it is just don’t make sense to think that the current council black and white would want to continue to pay high utilities just so they can fund special projects.

    To learn more about what is going on in Rocky Mount click here.

    By Open and Accountable Government

    August 18, 2008 7:17 PM | Link to this

    All,

    Interesting conversation. Why has this not been had over the past 30 years? I am with Curmilus Dancy that the former Mayor has not told all and is really not answering now. He said “you get what you pay for” - oh really. What have we paid for? We have no idea.

    Ken - ElectriCities is a trade association. You are confusing the power agency and the trade association. Heck yeah cities can afford to do this stuff. Cities have lobbyists - Wilson have 5 of its own. Cities have the leage if municipalities they all pay for. We do not need 14 at ElectriCities when 2 or 3 good ones could do the job. People keep leaving there so they keep hiring more. That division has had 80% turnover in 5 years. How good a representation is that ? Many of the cities have their own lobbyists. These are excessive, duplicate costs and costs for turnover. ElectriCities has 3 times as many lobbyists as PROGRESS ENERGY. What is that about?

    Lawyers- where did they save us money? I heard no example. Ken Raber said the costs would be higher. Oh really. How much higher what did the $3000 meeting lawyers do to make the 14% increase lower.

    The refinance deal is on the debt. Who did that. What did we pay them. Did the same lawyers review it.

    The eastern power agency has nothing in common with the western one. There is already staff. You would shed hundreds of thousands of dollars of waster. Read Daryl Barber’s letter in the Wilson Times. Waste Waste waste

    Please read the WIlson times editorial too about reining in ElectriCities. We need explanations, more city involvement and control, honesty and better management there.

    You are paying for their blunders, mismanagement and errors in judgment.

    By Find Solutions Now

    August 18, 2008 10:08 PM | Link to this

    Good reading. I am not surprised. The ole guys who created this place have kept many a secret like what they were getting paid, how the place was and is run, how much they spend on parties and mismanagement. Time for the Rocky Mount and Wilson city councils to stand up and demand reform now. Demand an end to this excessive spending. Open this up for people to see.

    By Annoyed Customer

    August 19, 2008 7:28 PM | Link to this

    No numbers match up. No examples of useful spending given. No CEO at rate meeting.

    Elizabeth City Daily Advance (a cox newspaper) really landed a punch about that stupid annual meeting at Myrtle Beach.

    Editorial

    By Jeff

    August 20, 2008 1:18 AM | Link to this

    Have to agree with Annoyed Customer about The Daily Advance’s editorial. Wish I had written that one!

    By Open and Accountable Government

    August 20, 2008 11:12 PM | Link to this

    How will we find out the discrepancies in the numbers like lobbying?

    Elizabeth City is mad

    because they spent $6,900 on city officials to go to a sorry ElectriCities conference. How much did Rocky Mount spend?

    Will the telegram go to the Board Meeting Friday and tell us what they do about the super spending CEO and his sorry staff, the overspending on ridiculous items, the proposals the eastern agency group made. I dont think there will be accountability unless someone is watching.

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