There is new pressure this year on the besieged South Carolina South Carolina Electric Cooperatives (ECSC) and the Central Electric Energy Cooperative (CEPC) – a glorified middleman whose local utility customers are forced to pay some of America’s highest energy prices. According to our sources, at least three more rural electricity cooperatives are making moves that could eventually result in a fundamental reconfiguration of the Palmetto State grid.
As we reported in November, the Central is being sued for Marlboro Electric Cooperative (MEC) – which seeks a “fair and equitable exit” from the concessionaire in the hope of negotiating more competitive energy prices in the open market.
In recent years, the MEC has initiated what amounts to an “energy rebellion” between these small rural cooperatives – which are tired of paying inflated energy prices to the ECSC and the Central.
Two years ago, MEC leaders shocked industry observers by withdrawing from CECA – a state-owned trade group that was involved in a scandal at the time. In fact, the ECSC continues to struggle – with an increasing number of cooperatives beginning to question the leadership (and salary) of their politically connected president and CEO, Mike Couick.
Couick is close to several prominent Palmetto politicians, including SC Senate finance president Hugh Leatherman and governor Henry McMaster.
In addition to the MEC, Electric Cooperative Pee Dee has already fled the CECA (also known as “across the state”) and two other cooperatives have expressed a desire to leave. Directing these deliberations? Growing frustration with Couick – specifically his reported refusal to answer questions about his salary, perks and ECSC budget.
In addition to receiving a salary of more than half a million dollars a year, Couick received some controversial personal loans from the ECSC – including several outstanding loans that were mysteriously “forgiven” by his employer.
At the end of last year, MEC joined forces with Pee Dee – which meets an estimate 30,000 residential customers in Chesterfield, Darlington, Dillon, Florence, Lee and Marion counties. Together, they have the largest electric cooperative footprint in South Carolina. As noted at the time, this movement sent shockwaves across the cooperative world.
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Since MEC and Pee Dee joined forces, customers of the latter cooperative have seen their rates cut by up to 5% in just two months, with “more to come”, according to recent press releases. Pee Dee is struggling to match MEC rates, which are the lowest in the state of Palmetto. Meanwhile, MEC’s customers continue to see similar rate cuts – including a recent 8% cut.
It is not surprising that other utility companies are realizing these savings – and trying to follow the example of these two cooperatives.
To begin with, Pee Dee did not renew its agreement with the ECSC – and at least two other rural cooperatives are trying to do the same, citing questions about Couick’s mismanagement.
These defections not only threaten the ECSC’s political control over the state’s network of cooperatives, but may also trigger additional challenges for CEPC – which for years has struggled to supply energy at competitive prices to its members.
Why are CEPC fees so high?
One reason is this “middleman” and his more than fifty employees have only one job – managing poorly negotiated very long-term power deals Duke Energy and administered by the government Santee Cooper. Meanwhile, most of Santee Cooper’s power – roughly 60 percent of it – is purchased by Central.
This news agency has consistently credited MEC for its aggressiveness on behalf of its customers and for “taking an innovative approach to the cooperative utility model”.
“Their leaders continue to put customers ahead of connected internal users,” we noted in an article last September.
MEC’s leadership is now serving as an example for other dealerships eager to double their success on behalf of their consumers.
Needless to say, this media outlet will closely monitor this situation and report to our readers which cooperatives are seeking to assert their independence in the way that Marlboro (and now Pee Dee) did.
-FITSNews
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