Shake-up in store for French Broad Electric utility?

Interesting press release here. Looks like some folks are angling for what appears to be an overdue shake-up in leadership at the French Broad Electric Membership Corp. There are interesting points here regarding executive pay, the rates people pay, property rights issues and sustainability issues.

MARSHALL—On May 4 at Madison High School, the French Broad Electric Membership Corporation (FBEMC) will hold its annual meeting where members will vote on who will lead the utility’s board over the next year.

For the first time in at least a decade, FBEMC members will have a real choice about that leadership, as three candidates are actively seeking to change the way FBEMC is run and to ensure its transparency and accountability to its member-owners.

Barron Brown, Sue Lomenzo and Sherry McCuller say they are “Putting the Members back in ‘Membership” as they build a constituency from FBEMC members who are increasingly dissatisfied with its management.

The current administration appears to be a top-down model that is unresponsive to the concerns and needs of members. Its lack of transparency in management—and the absence of women on the board of directors for its entire history—are issues that the candidates have pledged to correct when elected.

Brown, Lomenzo and McCuller will also address economic disparities within FBEMC. As the economic slow-down continues to impact local mountain families and businesses, electric bills have increased substantially. FBEMC workers have been laid off and their benefits have been cut.

However, executive pay at FBEMC has skyrocketed: the top four staff at FBEMC, and the board members, received $1.1 million dollars total compensation in 2011, a significant increase since 2007.

General Manager Jeff Loven had a total compensation of $352,000 in 2011, an increase of 88.9 percent since 2007.

During this same period, FBEMC’s net profit decreased by 31 percent.

FBEMC has some of the highest electric rates in the region. Financial hardship for its residential members is a concern for the candidates, and they worry that the rates are discouraging industry and small business from coming to the area, or from staying. Brown, Lomenzo and McCuller have heard from members that they support keeping costs low, but not when cost-cutting appears to be at the expense of FBEMC employees and electric customers.

One cost-cutting measure, according to Loven, is to use herbicide spraying by private contractors to maintain the powerline right-of-ways, in lieu of using mechanical means.

But many landowners have grave concerns about the health impacts of the spraying of herbicides around members’ springs and water wells, mountain streams, gardens, farms and homes where their children and grandchildren play.

Some members believe their property rights have been abused and, in most cases, no warning has been given to property owners about the herbicide spraying.

Herbicide spraying has also affected organic farming and beekeeping—two of the fastest growing small business types in the region. Certified organic growers believe their business and way of life is at risk when spray drifts onto their property, threatening their hard-won organic certification. Often, these are farmers who have converted to organic growing as an alternative to tobacco.

Meantime, while the state of North Carolina has taken the lead to support renewable energy from sources like solar, water, and geothermal, FBEMC policy has made it difficult for members to buy, install, and invest in solar and other renewable sources.

Brown, Lomenzo and McCuller say this is a short-sighted and even regressive policy, as earlier FBEMC administrators were once very supportive of alternative energy, going back to the late 1970’s.

FBEMC also offers almost no energy efficiency support or incentives for members.

These three candidates believe that, as a member-owned non-profit corporation, FBEMC should be directed by its members through an accountable and representative board of directors.

Members will be voting from 3-5 p.m. on Saturday, May 4.

Each voter in attendance can also provide five signed proxy votes. More information about the new candidates and their platform can be found at www.memberscoop.wordpress.com, or by contacting Taylor Barnhill, 380-9336.

wiki background on utility cooperatives.