Electric co-ops need new rules

By Joel Mendelson

The recent news regarding the 31-count indictment against Cobb EMC CEO Dwight Brown highlights some important governance issues at the dozens of electric membership cooperatives across Georgia.

Unlike regulation of Georgia Power Co., the Georgia Public Service Commission has no oversight over most decisions by EMC management. The rationale for that arrangement is that since an EMC is owned by its members, the state does not need to referee disputes between management and ratepayers. If ratepayers don’t like how the EMC is being run, they can simply elect a new board and make changes.

Currently, Cobb EMC members must request permission to attend a regular board meeting that is typically open to the public. In my experience, these requests are seldom, if ever, granted and members do not know the business decisions made until they are published at the discretion of the EMC board. Access to both meetings and information provides the necessary oversight for members so that, under the current system, they can regulate their EMC.

But the key to having effective membership oversight is allowing those members to be engaged. Members who are unable to attend meetings, access books and records, or even run for the board can’t get engaged.

Georgia law currently provides an avenue for members to get access to books and records of their EMC, but there are several broad exceptions that allow the management to lock members out. A member is then forced to sue their EMC just to get basic information.

For example, candidates for the Cobb EMC board have been unable to receive access to membership information, making the campaigning process nearly impossible.

The law should change so that members who are seeking information for a legitimate business purpose can access that information. Georgia law should:

● Allow requests by members to receive EMC records, documents and accounting, providing necessary transparency between the EMC and its members.

● Prevent the EMC from denying access to the names and addresses of all members that are accompanied by an affidavit. This access is crucial for a member running for the EMC board in order to properly campaign for office.

● Ensure that the EMC must provide a response to a request within three business days. That response must include the requested information, a specific reason as to why the information cannot be provided or a time when the information will be available to the member.

As a member of an EMC, I don’t have a state regulator that is charged with making sure that my electricity rates are fair and that my utility is managing our assets prudently. It’s up to me and my fellow members.

But without better tools for openness and transparency, EMC members all over our state will be subject to the whims of insiders. I urge the Legislature to help us help ourselves.

Joel Mendelson is the campaign coordinator for the consumer group, Take Back Cobb EMC.