City of Great Falls Seeks Withdrawal from Co-op
Posted on Mar 2, 2011 in Corporate Governance, Litigation | Comments Off on City of Great Falls Seeks Withdrawal from Co-op
According to the Great Falls Tribune, the City of Great Falls, Montana, has formally requested to be relieved of all of its obligations as a member of Southern Montana Electric Generation and Transmission Cooperative. Although another member of Southern Montana is currently involved in litigation over a similar withdrawal request, the city hopes to resolve its request without going to...
Georgia Legislature Proposes Law That Would Require Open Board Meetings
Posted on Feb 23, 2011 in Corporate Governance, Legislative & Politics | Comments Off on Georgia Legislature Proposes Law That Would Require Open Board Meetings
According to the Atlanta Journal-Constitution, a bill was introduced to the Georgia House of Representatives that would require cooperatives to open their board meetings to the public. Two of the bill’s sponsors represent counties served by Cobb EMC, the coop whose CEO was recently indicted on racketeering and theft charges.
New CEO Named at Pedernales Electric Cooperative
Posted on Feb 21, 2011 in Corporate Governance | Comments Off on New CEO Named at Pedernales Electric Cooperative
The Austin Business Journal reported today that R.B. Sloan Jr. was named as the new CEO of Pedernales Electric Cooperative. Sloan hails from Virginia where he served as a utilities director for the City of Danville. Sloan is the fourth person to serve as CEO of the troubled coop since 2008 when General Manager Bennie Fuelberg resigned.
Conflict at Jemez Mountains Electric Cooperative Over Bill at Hooters Restaurant
Posted on Feb 17, 2011 in Corporate Governance | Comments Off on Conflict at Jemez Mountains Electric Cooperative Over Bill at Hooters Restaurant
In the past, the Jemez Mountains Board of Trustees has criticized General Manager Wayne Sowell’s handling of internal audits and the decision to use outside legal contractors. The Board of Trustee’s most recent complaint relates to a bill from a business dinner at a Hooters restaurant. Some board members view the expense as an imprudent use of the coop’s funds. The Rio Grande Sun...
Arkansas Supreme Court Dismissed Capital Credit Suit for Lack of Jurisdiction
Posted on Feb 15, 2011 in Corporate Governance, Derivative Suits, Litigation | Comments Off on Arkansas Supreme Court Dismissed Capital Credit Suit for Lack of Jurisdiction
The court ruled that the Public Service Commissions has exclusive jurisdiction over coops’ capital credit practices. This ruling benefits cooperatives because it is usually harder for plaintiffs’ lawyers to recover large fees before a state’s utility commission. See Electric Co-op Today for more on this story.
Documentary to Investigate Carroll Electric Cooperative Corporation’s Use of Herbicides Near Transmission Lines
Posted on Feb 15, 2011 in Corporate Governance, Environmental | Comments Off on Documentary to Investigate Carroll Electric Cooperative Corporation’s Use of Herbicides Near Transmission Lines
According to the Arkansas Times, local filmmakers are taking aim at Carroll Electric’s use of herbicides, which critics claim poses a threat to local crops and water supplies. The film also highlights the corporate governance issues involved in how the coop makes decisions about its herbicide use.
Lawsuit Filed Against Coop Based On Its Treatment of Capital Credits
Posted on Feb 11, 2011 in Corporate Governance, Derivative Suits, Litigation | Comments Off on Lawsuit Filed Against Coop Based On Its Treatment of Capital Credits
According to the Fay Observer, a class action lawsuit has been filed against North Carolina’s South River Electric Membership Corporation relating to the coop’s treatment of credits owed to deceased customers. The claim involves the coop’s practice of reducing the amount of these credits based on the time value of money.
General Manager of Pedernales Electric Cooperative Sentenced to 300 Days in Jail, Probation, Community Service, and Restitution
Posted on Feb 7, 2011 in Corporate Governance, Litigation | Comments Off on General Manager of Pedernales Electric Cooperative Sentenced to 300 Days in Jail, Probation, Community Service, and Restitution
The Statesman reports that Bennie Fuelberg’s sentence includes, among other things, restitution payments of $126,000. This amount is far less than the $8.8 million that Pedernales sought to recover. The court ordered that the money is to be paid to Pedernales’ insurance company and former law firm rather than to the cooperative itself.
Georgia Supreme Court to Hear Cobb EMC Appeal
Posted on Jan 26, 2011 in Corporate Governance, Derivative Suits | Comments Off on Georgia Supreme Court to Hear Cobb EMC Appeal
The Marietta Daily Journal has an article on Cobb EMC’s appeal to the Georgia Supreme Court regarding Cobb EMC’s proxy-voting amendment to its bylaws, and whether that amendment violated the December 2008 settlement agreement. The Georgia Court of Appeals had ruled that the amendment violated Cobb EMC’s settlement with disgruntled coop members.
Pedernales Bylaw Change Threatens to Disqualify Board Member From Serving
Posted on Jan 24, 2011 in Corporate Governance, Litigation, Regulation & Policy | Comments Off on Pedernales Bylaw Change Threatens to Disqualify Board Member From Serving
The Statesman reports on the fall-out from a recent bylaw change by Pedernales Electric Cooperative. The new bylaw prevents directors from serving on the board if they have worked for a wholesale power company within the past three years.
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