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Tracking Legal Events involving Electric & Telephone Cooperatives

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Here we attempt to highlight some of the more interesting and thoughtful editorials and opinion pieces concerning Rural Electric Cooperatives and Rural Telephone Cooperatives involved in litigation.

We neither endorse nor do we reject what these folks have to say but they are interesting and elicit additional thought so we believe they deserve wider distribution.

Some of these links take you outside of the Coop Litigation News website so we aren't responsible for the content.





Cobb Electric Membership Cooperative (Georgia)


"Throw the Rascals Out"


Otis Brumby, Bill Kinney, Joe Kirby
Marietta Daily Journal

September 11, 2009


BUTCH THOMPSON AND BO POUNDS and their two-year effort to oust Dwight Brown as head of Cobb EMC and Energy recently picked up a high profile radio talk show host as an ally.

WSB radio consumer advocate Clark Howard called during his July 20 show for Cobb Countians as part of "their civic duty" to "throw the rascals out at Cobb EMC."

If you are not one of Cobb EMC's 200,000 customers in the five county area, the normally mild-mannered Howard said, "just count your blessings that you don't have to deal with what's gone on there with all the money that's been siphoned off and absconded by insiders who set up a for-profit entity known as Cobb Energy and have run off with the money of the citizens of Cobb County who are members of the EMC."

Howard was apparently set off by what he said was an EMC-paid-for-poll that EMC executives used to convince Cobb EMC members to keep the current directors that have steadfastly supported Brown, who Thompson and Pounds are trying to replace. Brown has a contract as CEO through 2010, but others want him gone sooner.

Howard told his listeners that he was aware of District Attorney Pat Head's criminal investigation into Brown and several directors and admitted that they are innocent until proven guilty, but went on to say "the stink there is so severe, I cannot believe (it)."






Cobb Electric Membership Cooperative (Georgia)


Cobb EMC's rates, new coal plant make little sense


Milt Aitken
Marietta Daily Journal

September 11, 2009


Cobb Electrical Membership Corporation was formed to bring affordable power to an underdeveloped rural area. That mission was accomplished long ago and the company's territory is now mostly non-rural. While the employees of Cobb EMC do a commendable job of bringing reliable power to the ratepayers of this cooperative, the price we pay for it is way too high. Some argue that a new coal plant would solve this problem. But that just isn't true.

On my last Cobb EMC power bill, my net cost including taxes and Wholesale Power Adjustment was over 14 cents per kwh. Friends who live near me, but use Georgia Power, paid 9.2 cents per kwh. My bill is much higher this summer than last, despite cooler weather.

The Wall Street Journal recently published an article declaring that low demand has pushed spot market prices for electricity down by 40 percent. So, why are our Cobb EMC rates still rising. . . .

EMC's owners want the hard facts and figures on this project. What is Cobb EMC's electrical demand now and the projections for the future? How long will it take for demand to rebound? Why has the WPA gone up while demand and open market prices have gone down? What other sources of power have been considered and why were they ruled out? Has a sale of Cobb EMC to Georgia Power been considered? And why must we pay more for the same power?

Many of us have lost confidence in the current administration of our EMC. Our bills indicate that management is not working in the best interests of the members. These issues must be addressed in an open and public manner. Show the member owners all the numbers of demand, supply and costs. We are entitled to help make informed decisions.

Cobb EMC member Milt Aitken owns and operates Net2Atlanta, a Cobb County-based Internet Service Provider and holds an Electrical Engineering degree from Georgia Institute of Technology.






Carroll Electric Cooperative (Arkansas)

1984 revisited?
Open house -- insert sock


The Lovely County Citizen
Friday, July 3, 2009

One of the most dearly held tenets of living in a democracy is that citizens have a right to speak out.  Before major decisions are made, normally public hearings are held where people speak out, expecting that their views will be taken into consideration. . . .

It appears Carroll Electric Cooperative Corp. (CECC) has gone one step farther than the Delphi Technique.  Although it is a non-profit, member-owned cooperative, it doesn't even pretend to operate in a democratic fashion.  Members are not allowed to attend board meetings or get full minutes of board meetings.  Members are not allowed to speak or ask questions at the annual meeting.  And bylaws have been rewritten so it's virtually impossible for members to nominate someone to the CECC board or put a resolution before CECC members.


While claiming they are spraying herbicides to save money, CECC board members (the only ones who get to decide who else is on the board) are compensated at more than $30,000 per year, and last year (not a good year for the economy!) handed the CEO a $100,000 per year pay raise.  And a recent lawsuit alleges CEO is hoarding members' money for "unjust enrichment."



Cobb Electric Membership Cooperative (Georgia)


Cobb EMC raids stall image repair


Atlanta Journal Constitution

Sunday, April 26, 2009


Wednesday’s raids on offices and homes connected with Marietta-based Cobb EMC did more than signal a criminal investigation of the embattled electric cooperative’s leaders. . . .


The co-op also continues a legal battle to control a series of court-ordered membership elections that put its current board at risk.


But the stakes for Cobb EMC just went up.


District Attorney Pat Head confirmed Wednesday that his office searched Cobb EMC’s offices and the homes of Cobb EMC Chief Executive Dwight Brown and three of its board members as part of a criminal investigation of theft and racketeering. Authorities sought personal banking and tax records in addition to corporate files related to allegations that co-op officials siphoned its assets for their own benefit.  The evidence will be examined by a grand jury.


The move stunned the community.  Head isn’t known for drama or grandstanding.  And his targets have been known as community pillars for years.






Pedernales Electric Cooperative (Texas)


Many enablers led to indictments in scandal

Austin American-Statesman

Saturday, June 20, 2009


It took a civil case, a criminal investigation and relentless reporting by the American-Statesman to shed light on how the ousted leadership of the Pedernales Electric Cooperative spent ratepayer money.


All of that probing and digging resulted in a civil settlement, a stack of newspaper articles and now criminal indictments accusing Bennie Fuelberg, the former PEC general manager, and Walter Demond, the co-op's longtime legal adviser, of felonies.  If convicted, both men are looking at lengthy prison terms.




This page was last modified on Saturday, January 16, 2010