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KFTC member helps highlight best and worst electric co-op practices in the nation

by Sara Pennington last modified February-18-2010 11:11 AM
"We want our electric co-op to welcome input from members. We believe that sound business practices go hand-in-hand with sound energy investments.” --Former Georgia Congressman Fletcher Thompson, an electric co-op member

This week the National Rural Electric Cooperative Association (NRECA, pronounced: "en-REEK-uh") is holding its annual meeting in Atlanta. Active co-op members across the country took the opportunity to highlight some of the best and worst co-op practices with a national press conference. KFTC member Steve Wilkins participated by phone.

A bit of background on the nation's electric co-ops and the issue of co-op reform from the press release for the teleconference:

Today, 900 co-ops still provide power to 42 million Americans in 47 states, but often these associations look more like big private corporations than the democratically-managed cooperatives of earlier days. These days, co-op members are asking a host of questions about the governance and energy decisions of their co-ops, and what they are doing to move toward democratic transparency and encourage energy efficiency and clean alternative energy production.

Some of the cooperatives represented at the [NRECA] conference, such as Texas’ Pedernales Electric Cooperative (PEC), have had a change in direction and now aim to embrace 21st century energy planning by developing aggressive, cost-effective efficiency programs and integrating renewable energy into their generation portfolios. This mode of operation represents a seismic shift from Pedernales’ previous approach. Board member Dr. Patrick Cox is excited about the co-op’s transparency, democratic board elections and adherence to business planning. He addressed the NRECA conference to spotlight changes at PEC. “I believe advocacy for member rights, ethical leadership, environmental accountability and responsible investment has resulted in and will continue to provide positive changes in PEC’s effectiveness and its relationship to its membership.”

The press conference also highlighted best practices of other co-ops in the country:

The public electric association that stands out as a champion for democratic process and for successful implementation of cost effective renewable energy is Colorado’s San Miguel Power Association (SMPA).  Board leaders have worked to make SMPA a rural electric association that is a true American institution and a model of clearly articulated democratic principles that give members a voice at every board meeting.

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In addition to lifting up some of the best practices of the most open and democratic co-ops, the press conference highlighted many of the most regressive policies and decisions of co-ops across the country. KFTC member Steve Wilkins spoke of some of the problems that co-op members in Kentucky face.

In Kentucky, Steve Wilkins, a ratepayer/member of Blue Grass Energy Cooperative, which is one of 16 co-ops that distribute power generated by East Kentucky Power Cooperative (EKPC), says that from what he can see “democracy has been lacking in EKPC where directors are almost universally handpicked by the co-ops and elected without opposition due to a lack of encouragement for open elections.” Given that EKPC “is in a relatively weak financial position because of its large debt, members are baffled that financially safe energy investments such as energy efficiency and renewables are not being pursued instead of building a financially risky coal plant, which is what EKPC is currently committed to doing.”

However, Steve didn't just tell the nation what EKPC members are up against, but also spoke about the solutions that co-op members here in the commonwealth are seeking: the plans for new power that members are sharing with EKPC and the local distribution co-ops, a strategy that would create thousands of new jobs throughout the state in energy efficiency and renewable energy while helping EKPC avoid the further financial risk of a coal burning power plant.

The work that members, including Steve, are doing here in Kentucky would bring EKPC on par with co-ops in other parts of the nation, if EKPC would pay heed:

In Colorado, Texas and New Mexico, member-owners of electric cooperatives have implemented changes to ensure open meetings, voting and election safeguards, and to guarantee other fundamental rights.

And the reforms that other co-op members are working toward, mirror similar options for reform proposed by co-op members here in Kentucky:

Former Georgia Congressman Fletcher Thompson, a Cobb EMC member, believes that adopting a “bill of rights” for the co-op will help..."We want our electric co-op to welcome input from members. We believe that sound business practices go hand-in-hand with sound energy investments.”