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Will ratepayers benefit from the Cherryland Electric Cooperative Board of Directors decision to "Self Regulate?" (Poll Closed)

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2 Comments

  • staff - 15 years ago

    Staff response to Kelli Orford. First of all thanks for taking the time to start this conversation Kelli. This is how questions and concerns can be raised and worked through, I will try and take your points in order from your post.
    1. Sorry if you believe we are misleading about the POTENTIAL increase of rates with self-regulation. Michigan is in a very volatile utility environment at the moment. Co-opconversations.org believes that questionable influence toward one decision or another is easier to get away with if regulation is left to small boards made up of part-time but well meaning directors instead of the professionals at the Michigan Public Service Commission. Especially when the decision invovles a mulit-billion dollar project, we need the most qualified and experinenced folks working the case. We don't think that self-regulation guarantees trouble, but in this kind of decision, saving 80K is chicken feed compared to what the real numbers are looking like, and the type of influence we have seen happen in other similar co-op cases (read about Southern Montana Electric at the site)
    2. Your point about raising rates, that even if they go up, if they are in excess the members will be refunded. OK, that is co-op theory. My point is why decide to raise rates when you don't have to? There are many options available that will meet the needs of the distribution co-ops. The coal plant proposal is what is being pushed by the co-op, yet they have refused to answer some simple questions about the point you bring up. The plant is oversized for the needs of the distribution co-ops. We have asked repeatedly if the profits from the excess power is going to be refunded to the members. Just like you feel is appropriate. Wolverine and the co-op directors refuse to answer. Try asking yourself and then let us know what answer you get. If the coal plants creates excess electricity, will the profits from the sale of that power go to retail members?
    3. Your point about running for the board. According to the printed co-op bylaws,I am a member in good standing. And I was ahead of you on this one. I tried to run for the board and have the docs to prove it. But the co-op concluded that you have to actually reside in the house that you are a member in (my rental house is served by the co-op) so as a matter of fact I did try and run for the board. How about you?
    Thanksf for the comment, I hope this clears up a few things, let us know if you have any other questions.

  • Kelli R. Orford - 15 years ago

    You mislead people by wrongfully stating that their rates will increase due to the decision to opt out of rate regulation by the Michigan PUC. If anything, this will allow SAVINGS for consumers since the normal PUC rate-case procedures are long, complicated, and expensive. Electric cooperatives are not-for-profit business entities that are 100% owned by the customers they serve. Any revenue collected over and above the cost of operating the company is REFUNDED to the customers. Thus, even if the co-op did raise rates, if the annual revenue from those rates exceed the costs of running the company in a sound and businesslike manner then the excess goes back to those same ratepayers.

    Quit trying to mislead the public. If you have other agendas, then be grown up enough to tell the truth up front. If you sincerely believe that the co-op is not being managed properly, then (if you are even a member) why don't you run for election to the Board of Directors at the next Annual Meeting?

    I suspect that you would never take that step, because you are not sincerely interested in good management but is some other divisive issues.

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