Cobb EMC Customers Foot Bill for CEO's Defense
Alleged board corruption may negatively affect wholesale power costs, which should concern Cobb EMC members.
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Although Dwight Brown, the Cobb EMC president and CEO, faces conspiracy and racketeering charges brought against him in a 31-count indictment by Cobb County District Attorney Pat Head, the board made an agreement that should any of them have legal troubles, Cobb EMC would pick up the tab.
Brown is charged with stealing from the electric co-op. The case will be costly for members, with former Gov. Roy Barnes and a team of lawyers defending Brown. Meanwhile, the organization also has a case before the Georgia Supreme Court.
Cobb EMC’s response to the Brown case is posted at https://www.cobbemc.com/en/About-Cobb-EMC/News-and-Press/NewsItems/Cobb-EMC-Questions-and-Answers.aspx.
Tom Barksdale is the chairman of Cobb Alliance for Smart Energy, a volunteer organization with a mission to reform the Cobb EMC board by changing its composition. He said Cobb EMC has not held board elections for more than three years.
Barksdale said a meeting to discuss a myriad of issues facing Cobb EMC members will take place at the Rib Ranch on Canton Road on Tuesday at 6:30 p.m.
"Part of the problem is people can be discontented, but they really don't understand the details or their equity in the process. We're trying to mobilize members to be ready to vote," he said.
Cobb EMC did not respond to inquiries for this article.
Cobb EMC Board of Directors candidate David Lombrozo of East Cobb hopes to represent Area 4, a seat now held by Johnny Gresham. Lombrozo said that as a board member he would look out for the 196,000 members who own the nonprofit energy co-op.
“It’s more than intellectual curiosity but attitude that makes me qualified to sit on the board. We're trying to get rid of the present board because they don't seem to have the long-term members’ needs in mind," Lombrozo said.
"This is certainly not a political party reformation, but this is a fight for a cooperative currently run by people who have been indicted or have conspired with people who have been indicted,” he said. “They have made decisions that the courts and the members have forced them to reverse. Clearly, they are not making decisions well.”
Electric membership corporations, or EMCs, were created in the 1930s to provide electricity to rural areas. Some, like Cobb EMC, have become huge corporations, owning power plants, dams, wires and distribution lines. Members are users and bond and equity holders. Unlike many corporations, EMCs do not pay stock dividends to outsiders.
Barksdale said all 10 Cobb EMC board members have served beyond their normal tenure. "Who puts up with that in a democratic society?"
Lombrozo added: “Members need to be concerned because they own their EMC. When they buy their house, they are required by Georgia law to buy electricity from that EMC. That will not change.”
He said members should look past the low electrical rate on their bills and focus on their wholesale power adjustment charge. "At a time when energy prices have been falling, through all of 2009-2010, our adjustments have been going through the roof. It's disingenuous, misleading and deceiving to tell members we have low costs, and we are paying far too much for electricity."
One major issue confronting the board is the construction of a coal-fired power plant in middle Georgia, the $2 billion-plus Plant Washington.
According to Lombrozo, Cobb EMC is a member of Oglethorpe Power, which backed out of building coal-fired power plants, but Cobb EMC is going forward with the plant.
"When we look at the indictments and the settlements of the civil suits, clearly it doesn't pass the smell test. We may need to revisit the coal-fired power plant decision,” Lombrozo said.
Bill Lampe
8:14 am on Tuesday, February 8, 2011
Well, so the lawyers on both sides, including Roy Barnes, will enrich themselves at our expense. How so very normal these days. Well, I suggest we take names of the Board members & expel them. Be sure you hurt them econimically, every way you can. People with any knowledge of their business dealings should post details and let the people take their pond of flesh. There has to be retributions, otherwise the frauds of the last decade will continue, insuring ruination of this country.
Martha
2:06 am on Monday, October 31, 2011
There are several other candidates. One in particular that you should consider is named Charles Spann. You can read about him at www.cspannemc.com
Dolemite
9:34 am on Tuesday, February 8, 2011
For the record, Oglethorpe still owns interests in coal plants (which supplies most of their power) and was not even scheduled to build any coal plants. Your assertion is misleading and inaccurate. If this is the kind of knowledge and truthfulness we can expect from you while serving on the board; forget it.
The only thing that doesn't pass the smell test is this group's intentions. It's mostly a group of environmentalists hiding behind the thinly veiled cover of corporate governance/transparency. For example, Barksdales' tiny organization is mostly made up of members of radical environmental groups like the Sierra Club, Southern Alliance for Clean Energy and more. Each meetings draws maybe 10-15 people, if that. It has been that way for a couple of years now.
I also find it convenient this “reporter” claims they could not reach the EMC for comment. Totally discredits this site and its purpose.
Crystal Miron
12:52 pm on Tuesday, February 8, 2011
Perhaps Dolemite is none other than one Mike Mullet, of Cookerly PR, who has been paid by Cobb EMC to attend the group's meetings for some time (more member money misappropriated).
Having been to the majority of these meetings myself, and now serving as Secretary to the group, I can attest that the majority of our members are not directly affiliated with either Sierra Club or SACE.
The majority of those attending our meetings have one common bond... we are part of the captive market that constitutes Cobb EMC's body of customers/membership. We are all concerned about the direction the co-op has been going, the financial decisions it has been making, and how this affects us as part of the supposed "membership".
It's true, many of us feel the investment of the co-op into more coal power is a poor decision for economic and/or environmental reasons, but it is not the exclusive concern of all parties involved. Most simply feel these important decisions are being foisted upon the membership by a board and CEO who have already overstayed their welcome, and have set a precedent for what is easily perceived as making self-serving decisions, over what is in the best interests of the co-op.
It would be another matter entirely we could just cancel our service with Cobb EMC and pick another electric provider, but short of that option the best we can do as members of this co-op is endeavor to restore some integrity, honesty, and accountability to the company we are stuck with.
Tomi Johnson
10:27 am on Tuesday, February 8, 2011
For the record, Lombrozo said Oglethrope has decided NOT to build any more coal-fired power plants. Also,we contacted Cobb EMC and were referred to Sam Kelly for all media inquiries. Did not answer. Left message...no reply. If you have another contact, please advise.
Dolemite
11:12 am on Tuesday, February 8, 2011
Cute. For the record (in sticking with our theme) that guy is nowhere near an authority about short-term and long-term power generation development plans. The implication was the company is moving away from coal when in fact they own stakes in several coal plants. Thought it was misleading and disingenuous - given the context of the story.
About contacting them... You're the reporter. Am sure there's someone else per the coverage, press announcements, etc.
Crystal Miron
1:12 pm on Tuesday, February 8, 2011
Perhaps Dolemite, who appears to be privy or party to some "insider info" at Cobb EMC, can explain to me how I as a member benefited from the board's decision to give Dwight Brown a loan for $3 million dollars, which they then forgave, in order that Mr. Brown could procure "preferred stock" that also paid himself and other preferred shareholders generous dividends.
How did the $750,000 worth of preferred stock procured by Mr. Dean Alford serve my interests as a member? This being the same Dean Alford, who serves as President of Allied Energy, which was given the development contract for the coal plant without any bidding process.
I'm sorry, but taking these facts into light, it is hard to see the development of the coal plant as anything more than Dwight Brown and his coterie getting ready to put two more fists into the co-op's cookie jar. Other co-ops have thought better of doing what they are trying to do. I wonder why that is...
Kurk Johnson
12:01 pm on Tuesday, February 8, 2011
Hmmm. Sounds like someone has some connection with these guys or an insider. How does he know how many people attend "Radical" groups as he stated such as the Sierra Club, Southern Alliance for Clean Energy? Seems like when people start to question the overindulged status quo of keep it all conservatives in Cobb county, they get labeled. You can label me as a "concerned citizen". If if it weren't for some brave reporters, we would continually be bamboozled.
David Lombrozo
12:54 pm on Tuesday, February 8, 2011
Dolemite, for the record, I am not a member CASE nor of any of the groups you mentioned as 'radical environmental.' I am a CobbEMC member interested in transparency and member oversight of the CobbEMC board.
None of the Board members are or are expected to be authorities on short-term or long-term power generation development plans. CobbEMC is supposed to find the experts to make their case to the board for approval. Rather than rubber-stamp as this board does, they need to ask the hard questions and select the best option. We can see no evidence that this board did anything but rubber-stamp what was given to them.
Sticking to the facts, long-term ownership by CobbEMC or Oglethorpe Power of coal (as well as hydro and nuclear) plants will not change nor was it addressed in the interview nor was it implied. Most of the Power4Georgia participants backed out of this plant. That's a fact. Why can only be speculated.
Gary L. Farmer
1:29 pm on Tuesday, February 8, 2011
Thank you for keeping the spotlight on this story. My Cobb County home is the first I have ever owned where my winter electric bills are higher than my gas bills. It is interesting that the person not happy about your article did not give his name. More than likely he is an insider or perhaps an EMC officer or employee assigned to watch for articles like this and then try to anonymously discredit their authors, or obfuscate the issues while carefully avoiding any substantive response. There was also a good article in the AJC this morning about how the current board's lawyers (their clients wildly desperate to avoid new Board member elections) had just appeared before the Georgia Supreme Court. They were explaining how their clients' intentional actions, taken to avoid compliance with a lower court's order to set a meeting to establish new board member elections, was not actually a failure to follow the court order. This whole thing smells to the high heavens, and a resolution criminal and racketeering charges in the courts continues apace. It is only a matter of time before the truth comes out, as it always does. Ultimately, new board members will be elected, with access to all records, and this will cause much consternation among those on the Board, who have made a fortune off of EMC and its members while all this has been going on.
Eric Broadwell
2:34 pm on Tuesday, February 8, 2011
For the record I am not a member of CASE, Sierra Club nor any environmental group. I was contacted by the Mayor of Roswell, Jere Wood. He asked me if I would be interested in running for the Cobb EMC board to instill some integrity. Cobb EMC is one of three energy suppliers to the City of Roswell. I have met with the executives at Cobb EMC and inquired deeply into the IT infrastructure. The employees of Cobb EMC are proud hard working people.
The board and Mr. Brown have set a situation that has detracted from the Cobb EMC mission. I plan to be elected to the board and help right the ship onto a path that serves the members.
I was part of the interview but my comments were left off as my address is Roswell like many Cobb citizens. My district is number 9 encompassing NE Cobb, Cherokee and North Fulton. I am running against Mr. Chadwick the board chairman and electing me to the board would remove the current board leadership.
Hopefully the North Fulton Current will soon run my story so we can expand this discussion.
my FaceBook page: http://www.facebook.com/pages/Broadwell-for-Cobb-EMC-Board/121935297877346
Dan Davis
2:07 am on Friday, February 11, 2011
Interesting. Wherever coverage of the fiasco that is Cobb EMC appears, you can be sure a shill will show up to comment, and always, of course, under a pseudonym.
You can always tell because the tactic is always the same: discredit the messenger(s) and throw in some half-truths to disinform. This, quite simply, is because a fact-based defense is not possible. It's a tried-and-true tactic: Deflect, cast doubt on the messenger, set up strawmen that are easy to knock down, and throw in a few pseudo-facts to lend an air of legitimacy. Te goal? Win the war of public opinion.
I've been a Cobb EMC member for 11 years. I'm not a member of CASE. But Plant Washington is nothing more than a new revenue stream for a small group of influential men. The needs analysis data published to justify the plant is cherry-picked and no longer accurate. The site was chosen to funnel revenue to the owner of the land purchased (at a premium price per acre) - who also happens to be the owner of the railroad company that will deliver coal to the plant. (Ever wonder why a site was selected that requires a 20+ mile dual pipeline just to pump water in and out?) And Dean Alford's Allied Energy was "selected" to oversee the design and construction on a no-bid basis, even though neither Alford nor any of his handful of employees have ever done it before.
All this is a matter of public record. To fight these people, we have to fight with data, and insist that their response be fact-based and verifiable.
Martha
2:05 am on Monday, October 31, 2011
There are several other candidates. One in particular that you should consider is named Charles Spann. You can read about him at www.cspannemc.com