Coal Fired Plant Washington

Only 2 Cobb EMC Directors support Plant Washington,
Cobb withdraws from project
January 26, 2012

The Marietta Daily Journal coverage of Cobb EMC's decision to abandon Plant Washington and Plant Ben Hill. One new board member, David Tennant, is quoted as saying about Dean Alford's appeal for their continued support,“We asked him a lot of questions, and in my mind, a lot of questions still weren’t answered,” Tennant said. “Our questions were very substantive, and even some existing board members were asking questions. (Alford) gave his best case for why he thought the plant is worth going forward with, but at the end of the day, we just didn’t see it his way. Things have changed.”

Read more here about the decision. 

Cobb EMC Customers Vote their Discontent
Coming Cobb Board Elections Could Spell Trouble for Plant Washington
September 21, 2011

Marietta, GA—Over 3600 members of Cobb EMC turned out to vote this past Saturday in an election to amend the electric membership corporation’s bylaws regarding director compensation and mail-in balloting. Members critical of the EMC’s activities over the past five years cautioned that mail-in ballots combined with the complete lack of restrictions on Cobb EMC’s funding of its own candidates’ campaigns with member money would derail reform efforts. They called for a no vote on mail-in balloting, and the amendment failed by a margin of over 2 to 1-- 2,561 voted against, and 1,113 voted for mail-in ballots.

Cobb EMC has been a key player in the proposal and continued push for two 800 MW coal plants in Washington and Ben Hill Counties. The EMC’s former CEO signed as the official ‘organizer’ of the plant; Allied Energy, a former subsidiary of Cobb Energy is the developer of the plant; and Cobb EMC has invested around $20 million, more than any other EMC to date, in the plant’s permitting, legal defense and other development costs.

Cobb EMC must now conduct elections between November and May for its entire 10-member board of directors, and members concerned about EMC decision-making are committed to running robust campaigns against incumbent directors.

Doc Howard, a member of Snapping Shoals EMC, which is part of Cobb EMC’s effort to construct Plant Washington and Plant Ben Hill, commented on the election results:

“It’s inspiring to see EMC members calling for reform and getting it. Right now my EMC and Cobb EMC are calling for the construction of two water guzzling coal plants that could raise my rates by $200 yearly when there are viable alternatives to such construction. I hope this wave of reform continues and I hope it means these EMCs come to their senses about these coal plants and realize that other utilities around the country are moving away from coal.”

For More Information: Jennette Gayer, 404-892-3573

Allied Energy Services has finally been sold as required by court
September 14, 2011

The audit just released by Cobb EMC includes the sale of Allied Energy Services, the company Dean Alford runs which received the contract to build Plant Washington in a no-bid process. The company, according to analysis by the Cobb EMC Owners' Association, lost millions while it operated. The buyer information has not been released. (There is an Allied Energy Services in Arizona, but FACE confirmed that there is no connection). This raises the question of who owns AES, what Alford's role is with AES, and if P4G will continue to pay AES for the project.

Judge Schuster has said that he is fed up with the Board's collective foot dragging. They have been ordered back into court at the end of this month. Read more here.

Co-op Reform at Cobb EMC
August 29, 2011

After many years of legal battles, Cobb EMC members are having their first meeting annual member's meeting in almost three years. All of the Board of Directors are serving expired terms. Members will meet on September 17 to vote on bylaws, and a series of elections are scheduled from November 2011-May 2012.

As the largest EMC in Power4Georgians, there is great interest in what direction the co-op will take now that Dwight Brown, the former CEO under 35 counts of indictment, and Board of Directors, have been forced to honor an earlier court settlement barring him from being employed by the company.

As well, Allied Energy Services, which received a no-bid contract for Plant Washington, is part of of Cobb Energy. Cobb Energy is for-profit division of Cobb EMC that has been ordered to be liquidated.

Stay up to date on Cobb EMC member efforts to reform their co-op and make it serve the members by visiting Take Back Cobb and Cobb EMC Owners Association.

Leadership at Cobb EMC required by law to change

June 27, 2011
Who will lead Cobb EMC as CEO, as well as the composition of the co-op Board of Directors, will be changing as a result of member efforts to regain control of the co-op. Late Friday afternoon Judge Schuster ruled that Dwight Brown may not be employed in any capacity by the co-op, elections for the Board are overdue and must be held, the Board has attempted to insulate itself from court rulings, and that Cobb Energy entities such as Allied Energy Services must be liquidated as required by earlier court action and settlements. Read more here.

New report shows that Plant Washington could increase ratepayer bills by up to $250 per year

June 23, 2011
A report released by consumer advocacy group Georgia Watch demonstrates taht co-op members involved in Plant Washington could see their bills increase by up to $250 per year if the plant is constructed. Read the report and Georgia Watch's comments.

Financial Concerns about Coal Plants Spread as Cobb EMC Chief Dwight Brown Is Indicted

Brown's Business Schemes Included Power4Georgians

Media Release
January 7, 2011

Katherine Helms Cummings, FACE - 478.232.8010
Colleen Kiernan, Georgia Chapter of the Sierra Club - 404.992.9745
Ulla-Britt Reeves, SACE - 828.713.7486
Midge Sweet, Georgians for Smart Energy - 404.667.4476
Justine Thompson, GreenLaw - 404.659.3122

ATLANTA, GA – Environmental organizations across the state were not surprised to learn that Dwight Brown, the Chief Executive of Cobb EMC and the organizer of Power4Georgians, has been indicted by the Cobb County District Attorney for theft and racketeering.  Cobb EMC has already been embroiled in litigation questioning the EMC's financial accountability to its members.  Questions had also been raised about Cobb EMC’s involvement in the proposed construction of two coal-fired power plants which could cost over $4 billion.  As CEO of Cobb EMC and of Cobb Energy, Brown organized Power4Georgians, a corporation with five other EMCs, to build and operate the two coal-fired plants, Plant Washington and Plant Ben Hill.

Cobb EMC rate-payers are being socked with the financial liabilities that will come from building these coal plants at a time when coal-fired power plants across the nation are being cancelled by most states and utilities.  No coal plant has commenced construction in over two years, and dozens have been cancelled due to concerns that they are not sound financial investments.  In fact, four of the original ten EMCs have pulled out of Brown’s Plant Washington project, citing these exact concerns, yet under Dwight Brown's leadership, Cobb EMC has proceeded.

During the hearing on the Plant Washington air permit in October of last year, Dean Alford of Power4Georgians testified that Power4Georgians received a no-bid contract to develop the proposed coal-fired power plant despite having no previous experience building a coal-fired power plant. 

According to the Marietta Daily Journal, “the indictment alleges that Brown used Cobb Electric Membership Corporation as a piggybank to fund various operations and activities of Cobb Energy without approval by the cooperative’s members, as required in EMC’s bylaws.”  It is estimated that the development of Plant Washington has cost $27 million to date, of which Cobb EMC paid a significant portion that has never been approved by the coop’s members.

 Katherine Cummings, Director of the Fall-Line Alliance for Clean Energy (FACE) and a customer of Washington County EMC, a member of Power4Georgians, posed this question, “Will Washington EMC be able to get its rate-payers’ money back from Dwight Brown’s Plant Washington scheme?” 

Ulla Reeves of Southern Alliance for Clean Energy responded to this development: “Investing in a coal plant is already a bad idea. Investing money where corruption has been alleged at the helm is a boondoggle and simply irresponsible.  The EMCs involved in Power4Georgians ought to take a hard look at their involvement in this plan.”

Mark Woodall, Chair of the Georgia Sierra Club observed that, “a lot more transparency for the customer-owners of these electric coops is needed in this state to prevent the sort of acts that Dwight Brown is accused of committing.”