State watchdogs may oversee electric co-ops

Plan would guard against excesses by co-op boards

Jerry Bellune
Posted 3/7/19

The state’s utility watchdogs are willing to oversee Mid-Carolina and other electric cooperatives.

State Rep. Russell Ott wants state oversight of electric cooperatives including Mid-Carolina …

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State watchdogs may oversee electric co-ops

Plan would guard against excesses by co-op boards

Posted

The state’s utility watchdogs are willing to oversee Mid-Carolina and other electric cooperatives.

State Rep. Russell Ott wants state oversight of electric cooperatives including Mid-Carolina and Tri-County in Lexington County.

The Calhoun County Democrat represents many of Tri-County’s 13,600 customers.

His proposal followed reports in The State newspaper last May that part-time board members of Tri-County had enriched themselves with high pay, expensive benefits and other perks.

The co-op’s rural member owners were paying some of the highest electric rates in the state. The co-op’s members threw out the entire board in a historic vote.

This suggested the state’s 20 loosely regulated co-op leaders may pay themselves more than their co-op counterparts elsewhere.

No such charges have been made about Mid-Carolina’s board in Lexington.

“If the General Assembly decides it would be helpful for the Office of Regulatory Staff to review the operations of the electric cooperatives, the ORS is willing to step up and provide that service,” said ORS Executive Director Nanette Edwards.

A House committee last week unanimously approved a proposal to give the state’s utility watchdog oversight over the 20 electric cooperatives.

The bill, H. 3145, will allow the ORS to audit the co-ops and raise red flags if one of them is violating state law or misusing money.

Major disputes with a co-op would go to the Public Service Commission.

The bill will face opposition from Rep. Wendy Brawley who represents many Tri-County members.

She said statewide legislation isn’t always the best solution to local problems since Tri-County members worked together to fix their co-op’s board problems.

Ott said his proposal wouldn’t take any power from co-op customers but will give them a watchdog to protect them.

The bill also adds new ethics and transparency rules for electric co-ops, which traditionally have had little scrutiny.

“There is no perfect solution to bad actors,” said John Frick, a lobbyist for the state’s electric cooperatives.

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