Serving Public Power Communities Since 1965
T. Graham Edwards
Chief Executive Officer
To: Councilman Andre Knight
From: T. Graham Edwards, CEO ElectriCities of NC
Subject: Rocky Mount’s Involvement in NCEMPA
Date: June 16, 2010
Pursuant to our conversation, I would like to briefly outline your and other Council Members’ involvement in NCEMPA.
Over the past year since I have been the CEO of ElectriCities, you have been very engaged in the meetings and decisions of the NCEMPA Board of Commissioners. In fact, resulting from some of your discussions and ideas several initiatives have taken place. I have summarized some of these discussions below as well as requests you have personally made during Board of Commissioners meetings.
1) You have consistently questioned our costs in an effort to reduce the electric rate impact on your citizens. This includes the refinancing of our debt to the operating costs of the generating facilities.
2) As a result of your questioning of our Economic Development efforts, we made a specific presentation to the Board of Commissioners relative to our efforts. This lead to our staff working closer with you and Rocky Mount’s staff, developing brochures, attending trade shows, and assisting with grant development requests. In addition, we are currently working with the City staff to begin development of a long-term economic development plan for Rocky Mount.
3) You questioned the possibility of a city withdrawing from NCEMPA. As a result, our legal counsel presented to the Board of Commissioners how a city could move forward in evaluating this alternative and the legal restrictions. In addition, we met with your Council to discuss this.
4) You have asked staff to assist the cities with customer information about high bill complaints. As a result, we have implemented webinars to help train customer service representatives and share best practices.
5) We have conducted surveys across NC to seek input about public power and customer concerns.
6) We have worked with Rocky Mount to assist with energy efficiency and energy audit programs.
7) You requested that we discuss “best practices” among the 32 cities. This provided the opportunity for cities to learn from one another.
8) In addition, I have reviewed the minutes of the Board of Commissioners over the past two (2) years. Below are some excerpts from those minutes.
· July 30, 2008 – “Mr. Knight read a written statement expressing the City of Rocky Mount’s request that NCEMPA consider absorbing some of the proposed 14 % wholesale rate increase and creating incentive programs for energy conservation for residential customers”. Result – NCEMPA was not able to absorb any of the rate increase; however, additional programs for energy efficiency and conservation for residential customers were instituted.
· November 19, 2008 – “Mr. Knight stated that as the agency moves forward, he would like to see more diversity of Directors elected by the NCEMPA Board as well as officers elected by NCEMPA in an effort to represent all of the communities”.
· November 19, 2008 – “Mr. Knight moved that staff and legal counsel investigate how the Agency may approach the NC General Assembly to seek financial relief and report back to the Board on December 10 concerning the results of their investigation”. Result – This particular motion failed in a weighted vote.
· November 19, 2008 – “Mr. Knight submitted for the record a letter to the Wilson Daily Times with a list of 25 items that could affect the budget.
· December 10, 2008 – “Mr. Knight commented that the agency should take a regional approach, a state approach, and a federal approach to the high energy prices affecting the agency. He suggested a NC legislator and a member of Congress or their staff meet with the Board to discuss high utility rates and costs”.
· January 28, 2009 – “Mr. Knight distributed copies of a resolution that was adopted by the Rocky Mount City Council on January 27, 2009, and read the resolution in its entirety. The resolution is entitled “Resolution Requesting the Commissioners of the North Carolina Eastern Municipal Power Agency to Consider the Current Economic Climate and Postpone Effective Date of Recent Electric Rate Increases To Member Cities and Seek Alternatives to Future Rate Increases”. Result – the Agency could not postpone the rate increase; however, the CFO performed a complete evaluation of restructuring the outstanding debt for savings. The evaluation showed that virtually all of the debt refinancing opportunities had been accomplished.
· January 28, 2009 – “Mr. Knight restated his prior request to look at a regional, state and federal approach to address the high energy costs”.
· January 28, 2009 – “Mr. Knight reiterated his earlier statement about inviting a state and federal delegation to the Board meeting to discuss the energy crisis”.
· January 28, 2009 – “Mr. Knight moved that staff invite a legislator to a future meeting to discuss energy policy at the state level and possible impacts and issues facing the NCEMPA, and moved that staff invite a congressional representative at a future meeting to discuss national energy policy, impacts and other issues facing the NCEMPA”. Result – The motion passed.
· February 24, 2010 – “Mr. Knight suggested that forums be conducted where NCEMPA members could discuss various energy topics and apply the knowledge in their communities for the betterment of the other communities and their constituents”. Result – the initial forum is the Mayor’s panel discussion at this year’s annual conference in August.
Councilman Knight, I want to thank you for your participation on the Board of Commissioners. Through your discussions, ideas, and recommendations we have implemented various programs that have assisted the end consumers.
I look forward to working with you as we move NCEMPA forward.
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