Wilson NC - Press Release: Citizens and Business Uniting for Leadership, Excellence and Responsibility (ElectriCities)

Wednesday, July 30, 2008 at 11:55 AM

Posted in ElectriCities

by DCN

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 the 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.

Ricardo Dew

Wilson NC

See related link:

Monday, July 28, 2008: Rocky Mount NC - Council OKs 11.5 percent increase (ElectriCities)

2 Comments | Post Comment | Email This

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Wednesday, July 30, 2008 - Untitled Comment

Hats off to Rocky Mount councilmen Knight and Blackwell.They are on top of this all the way.Any way they can help the people in there city. Keep pushing .Thanks

Note: This comment was edited to correct the spelling of Councilman Blackwell's name.

Edited by curmilus on Wednesday, July 30, 2008 at 10:19 PM
Posted by rickdewjr

Wednesday, July 30, 2008 - Today's meeting

I talked to some people who attended. Sam Noble accused Bruce Rose of playing politics at the Board Meeting, when Rose, under pressure, voted no. Now sam makes a motion to end board salaries in 2009, why not 2008 and isnt he playing politics now?

We need to keep on them to make more cuts.

Note: This comment was edited only to separate paragraphs.

Edited by curmilus on Wednesday, July 30, 2008 at 10:19 PM
Posted by Anonymous