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Thursday, September 18, 2008 10:33 AM NCEMPA seeks more control By Rochelle Moore | Times Staff Writer Government leaders serving on the N.C. Eastern Municipal Power Agency board decided Wednesday to beef up their involvement in decisions that will ultimately impact electric rates across the region. Wilson City Manager Grant Goings, who serves on the board, was one of 23 municipal leaders voting in favor of a NCEMPA bylaw change that requires the board to meet once a month, starting in October, at the Wilson Operations Center. NCEMPA has met quarterly in Wilson since 1995, but recent concerns about rising electric rates and management of the power agency led the board to seek closer involvement in decisions impacting the power agency and its customers. Two NCEMPA board members -- Fremont alderman Leon Mooring and Michael Wilson, Apex assistant town manager -- voted against the change. Several board members, including Wilson, also expressed concern about the additional time commitment as well as drive times. Richard Olson, Elizabeth City town manager, said he drives two hours one way to Wilson for each meeting. "I would hope the commissioners, if that's what you're commissioned to do, would be here," said Sam Noble, Tarboro town manager. Jesse Tilton, chief executive officer of ElectriCities, which manages NCEMPA and the North Carolina Municipal Power Agency, said the quarterly meetings were set in 1995 during a time when electricity costs were stable. "I am really concerned about the U.S. economy," Tilton said. "This is an extremely unsettling time. I wholeheartedly support the idea that this board of commissioners should be more aware, more engaged and I think the idea of monthly board meetings is a good thing." The board decided to hold the meetings on the fourth Wednesday of each month at 10 a.m. in the Wilson Operations Center, unless scheduling conflicts arise. A schedule through 2009 will be presented during the board's next meeting on Oct. 22. The meetings will provide the board with monthly financial information, working capital updates, project and power supply costs and legislative updates, Tilton said. The board also decided to increase its voting power in relation to electric rate increases. Currently, rate increase decisions are handled by the ElectriCities board of directors first with the NCEMPA board of commissioners only having the power to affirm the vote, but not oppose it, said Ken Raber, senior vice president of NCEMPA. The ElectriCities board has 12 members from public power agency cities, including six within the NCEMPA region. The change now requires the rate committee to present rate proposals to the NCEMPA board of commissioners for a vote. The board may reject the proposal and ask the rate committee to present a better proposal. If the proposal is rejected a second time, the board may set its own electric rate increase or decrease, as long as the agency is able to pay its debt service obligations. The rate decision will then be sent to the ElectriCities board for final approval. During the meeting, Noble also asked that the board receive the upcoming NCEMPA budget proposal early enough to review it before a vote. "If we adopt it in December, can we have it in October?" Noble asked Tilton, who said he planned to have the budget available with enough time for board review. Mark Williams, Wake Forest town manager, asked if another rate increase was expected in January. "Let's not dance around it," Williams said. "Let's talk about it now." Raber has said in previous meetings that an increase is likely. He said Wednesday that the ElectriCities staff will need to evaluate the financial impact of NCEMPA's recent 14 percent wholesale increase. "The rate increase has been in effect for one month so we haven't had the time to see the effect of the rate increase," Raber said. Another topic of controversy was also raised during the meeting -- whether or not NCEMPA would extend its debt to lower electric rates. Scott Stevens, Kinston town manager, asked if there was any benefit to extending the debt. Paul Fisher, a Southport alderman, said that an extension of the debt was reviewed several years ago but was viewed unfavorably. Raber added that an extension would only increase costs for member cities in the long run. "To just play politics and extend the debt after we've been dealing with debt for about 30 years for a short-term decrease to have an increase on our grandchildren for the next 20 years is not very favorable," Noble said. rochelle@wilsontimes.com | 265-7818 |
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