Carolina Politics Online

This writer will remain anon.. This person shows a very adept knowledge of the ElectriCities controversy. The thing that I want to add is that ElectriCities is not a cooperative where every consumer has a vote to decide the direction to go. This is a government created and franchised organization that gives all of the power to the municipalities and none to the people. This is a pet project of State Representative Blue and State Senator Nesbitt. I will sponsor a bill eliminating Electricities and creating a cooperative that serves the people and is responsive to their needs. My name is Paul Terrell III and I am running against Dan Blue.

We need help in eastern NC. After months of denying a rate increase, then denying the rate increase is due to anything other than fuel costs, ElectriCities of NC finally admitted an error. They only admitted it because we showed up and pressured them. But this mistake is very costly to the good people of eastern NC. They finally admitted, after telling us to USE FANS instead of AC to save money.

Jesse Tilton CEO “converted a portion of the debt from fixed-rate loans to variable-interest loans in 2004. The move was expected to save around $10.5 million a year in interest payments, but instead, the collapse of the subprime mortgage market caused those interest rates to climb unexpectedly. Between last December and April, the payments were nearly $4 million over budget. They have since converted that debt back to fixed rates, but the damage was done. NCEMPA’s debt service payments are rising $12 million a year, or equal to a two-percent hike in the wholesale rate.”

http://www.wilsontimes.com/News/Local/Story/Electric-rates-face-August-increase—

How much has the most refinancing of the debt cost us in total? When was it discovered to be a bad deal? Officials in Wilson told us March was when they were told but the CEO knew in October. But the people, the people who have to pay were not told until June and many city officials were not told until June. When did the CEO inform the cities, the board? March some; June most.

How long had he known when he informed them? He knew in Oct. 2007 and did not tell his board until March. He let the costs increase and did not tell.

How much did it cost during that interim? Has the refinancing of the debt been cleaned up - i.e. has it been refinanced again? How much did that cost? What percentage of the rate increase is due to the poorly managed refinancing of the debt?

Why are you not informing the ratepayers of the true costs of the rate increase? They are starting to now after lying for a while to the press and the people and even some city officials.

How much have operational costs increased (%) over the past three years? What cuts will ElectriCities make to demonstrate that they understand the burden they have placed on eastern NC?
Why is the ElectriCities Board continuing to employ a CEO who has mismanaged public money, cost the ratepayers needlessly and hidden the facts? How can you employ a half million dollar CEO who screwed up this badly along with his overpaid managers? How can you lie to the press and people time after time? And how can board members take thousands of dollars in “salary” for being on a board when they are not doing their job? WE NEED OVERSIGHT

Then we find out Sen Martin Nesbitt and Rep Dan Blue (A former ElectriCities lobbyist) get a bill passed for ElectriCities and then get a PAC contribution when they have no electric city in their district. And why would a bill pass letting this group enter into ANYTHING for any longer than 3 years when the ineptness is so OBVIOUS.

So ElectriCities says “Enrolled and on its way to the Governor’s office for signature is a bill that allows joint municipal assistance agencies to make and execute contracts for more than three years. HB 1679 entitled Joint Municipal Assistance Agency Contracts, introduced by Rep. Earl Jones (D-Guilford), was given a favorable report out of the Senate Judiciary I Committee and received unanimous support on the Senate floor.

Senator Nesbitt (D-Buncombe) explained the bill on the Senate floor and stated that he had no idea why anyone would put such a restriction on an organization trying to do business. The bill amends General Statute 159B-44 by removing the three-year limit. ElectriCities will be able to bind its members in contracts for a period longer than three years.The bill is effective as soon as the Governor signs it into law.”

We are too late now. THIS IS NOT GOOD. YOU DO NOT REWARD BAD BEHAVIOR WITH MORE AUTHORITY.

Newspapers tell us their local entrenched people pressure them into leaving this issue alone. Poyner and Spruill has pressured people cause they make millions off this place. The guy that gave the presentation at the Electricities meeting kept trying to put all of the blame on the cost of fuel. However, when confronted with the variable bonds issue and those huge losses, he had to admit that they had made a big mistake and it would take raising utilities rates to “cover” some of the losses. Their bond ratings are now at triple B and not triple A…There are now additional costs because of those lower ratings and interest costs.

There are 14 counties and 32 cities involved. We all understand the higher cost of fuel, but we also understand that there should be consequences for “mismanagement”. How come all of the people who do these things never have to suffer any personal penalties?? It is like “blanket immunity” covers all of those who do wrong and we have to pick up the tab and move on, NOT. I didn’t buy into some of the excuses that were given at that meeting, and unless that guy who is making the $500,000 salary and responsible for the “little error” has to cough up some extra dollars out of his own pocket, then I will continue to “fuss.”

Why should we pay for his mistake? And he not pay? Their salary budget is $6 million and they likely have fluff spending in the millions and that could help cities help people with this rate increase. WHY? WHY does a board keep someone who is picking our pocket?

We need some proposals for oversight. We need pressure to bear on these folks, at least in the form of questions. We hope you can help in your candidate role.

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