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Thursday, May 08, 2008

Co-op CEO Challenges Editorial

By John Wheeler
CEO and General Manager, Central New Mexico Electric Cooperative
      I think it appropriate to apologize to anyone who was offended by remarks I made about members of this Cooperative being satisfied with everything since they didn't run for the Board of Trustees, intervene in the proceedings before the Public Regulation Commission, or show up at the Annual Meeting. Typically, that signals apathy, complacency or an indication that the membership generally feels the Board and management are doing the best they can. For the past 38 years myself, and most of my cooperative peers, have tended to accept the latter.
       The editor of this newspaper took my reference to how much it costs to process protests, investigations, etc. through the PRC as “scapegoating” on my part. I can assure the members of this cooperative that I am only concerned with the cost to an already strapped membership, and I would never try to block the members' involvement in their cooperative. I just wish there were a less expensive way to resolve these issues. I could never again agree that bending to the concerns of a few, to the detriment of all, is a good way to conduct the business of a cooperative. I think everyone knows I did that in the case of Mr. Snyder and his neighbors. It will never happen again.
       I learned long ago that starting an argument with someone who buys ink by the barrel is not smart, but here goes anyway.
       Mr. McClannahan's editorial (May 1, 2008) referred to “some” members voicing concerns about where the co-op gets its electricity, and about renewable energy such as wind and solar power. What he neglected to tell you was that prior to my starting the Q & A session, one person handed me a list of fifteen questions, which I answered as best I could. There were questions from five others, two of which were newspaper reporters.
       In the editorial it also states that I referred to PRC Investigations as a nuisance. Please notice that the newspaper did not put that in quotation marks. I do not believe I used the word “nuisance” and, the newspaper reporter who was at the meeting has confirmed that.
       Do I, or the Board think everything at the co-op is just peachy? Hardly, we have
       discussions every month about the plight of people who really have a hard time making ends meet. Do I think the problem is just a couple of people? No, I think the problem is the economy in general. I think a big part of our problem is one person putting out flyers that said the co-op was raising the rates 48 percent, which was an absolute fabrication. I don't remember Mr. McClannahan printing an editorial stating that people need to know what the facts are before they try to incite a riot.
       Speaking of the facts, what business does Denny Snyder own? Plus, Mr. Perkins was not complaining about the TOU rates being set right, he was complaining that CNMEC's rates were higher than PNM. Your cooperative serves four consumers per mile of line. PNM serves probably 35 or more per mile. That is a huge cost differential.
       More facts! Mr. Snyder did not know his rates were different than advertised when he came to our first meeting, he just thought they were too high! However, your “nonresponsive” cooperative, scheduled a special meeting for Mr. Snyder and others to address the issue of a rate increase that happened several months earlier, because they did not address the issue according to established PRC guidelines when it took place. This is where I made my first mistake. At this point, I should have told them to make a formal complaint to the PRC, but instead, your nonresponsive cooperative management, was trying to work with the members. During that meeting a lady pointed out the fact that we advertised the rates on ETS usage would not go up more than corresponding increases from Tri-State! If my memory serves me, she and others at that meeting pointed out that the time-of-use rate was still the best deal in town and that we should leave it alone. Mr. Snyder disagreed, and how could I argue with printed advertising (which we removed on Dec. 1, 2005). Did I ignore him, not hardly! I had several meetings with him to determine how to rectify the situation. I was also informed that he would be representing four of his neighbors. I finally agreed that I needed to live up to my word (advertising) and viewing this as a contract dispute, refunded money to Mr. Snyder and those he represented. I also agreed that the rate needed to be changed to reflect that advertising.
       Changing the rate was accomplished in May of 2007. Between the time of the initial dispute and the resolution of the rate change, Tri-State's rates increased an additional 27.2 percent, but to keep our word, we lowered the rate to ALL TOU consumers 9.8 percent. Now, when you do the math, the co-op is about even with all consumers, except those who received the refunds. Since the advertising said, “on ETS usage,” do non-ETS time-of-use consumers have a complaint? Mr. Snyder would like to make you think so, but facts are facts and we are trying to follow the rules.
       Did I accuse those with concerns of causing the high rates? NO! I informed the members that there is a cost involved that will be borne by all the members of the cooperative.
       The whole idea of time-of-use and electric thermal storage is to benefit the entire membership through the reduction of cost to the co-op by giving incentives to members to stay off-peak. That incentive is in the form of lower rates during off-peak periods. The co-op cannot offer lower rates and then allow the causation of cost to remain as is.
       As to Mr. McClannahan's inference to my being arrogant; number one he wasn't at the meeting to see how I tried to answer questions. Number two, I believe arrogance comes from the ability to change words, change meanings of things said by inserting words that were not said, without accountability to anyone. I am accountable to the Board, the Employees, the Membership of the cooperative (all 13,000 of them), and the media.
       Problem is, who is the media accountable to? By the way Mr. McClannahan, what happened to our press release about the good things we are doing, like replacing incandescent bulbs with CFL bulbs and putting out recycling bins for the CFL bulbs. This is an effort on the cooperative's part to promote energy efficiency, which is one part of saving energy and money for our consumers.
       Let's argue with facts, not suggestions and innuendos, if as you say, “We want to encourage debate!”
       Responses to questions asked during the Central New Mexico Electric Cooperative's annual meeting are available online at www.cnmec.coop.
   

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