The Charleston Post and Courier obtained spending reports and credit card statements indicating that board members of the five state gas authorities spend tens of thousands of dollars on travel, meals and sightseeing tours as part of attending annual conferences and training all the years. A response to the recent Chester County Natural Gas Authority newspaper’s “Uncovered” story, however, says that the training received at these conferences is not only essential, but also serves a great benefit to taxpayers and saves money in the long run.
The Post and Courier launched a one-year series covering public corruption in South Carolina, particularly that found in smaller cities, somewhat isolated rural areas and so-called “news deserts” that are poorly served or not served at all. surveillance media. Post and Courier is partnering with smaller newspapers (including News & Reporter) as part of that effort. The analysis by gas authorities included obtaining thousands of pages of credit card statements and receipts to examine the expenses of members of the board of gas authorities, particularly on trips to annual gas association conferences.
In 2019, members of the Lancaster and York council of gas authorities attended the American Public Gas Association summer conference in Stowe, Vt., Accumulating expenses in excess of $ 130,000. Two executives from the Chester County Natural Gas Authority (CCNGA) were present (along with their spouses), but the local council was not. According to the Post and Courier findings, Chester’s council “did not like the rugged location” of Vermont’s Green Mountains. Instead, they attended a three-day retreat at the Omni Grove Park Inn a few months later. Located in Asheville, in the Blue Ridge Mountains, Grove Park is a five-star facility offering an underground spa, golf course and other amenities.
Check-in for the Chester contingent (which included board members and their spouses, along with at least two company executives) was at 4 pm on October 6, 2019. That night, the group had dinner at Vue 1913, a AAA four-diamond restaurant located within the Grove Park Inn, with a total bill in excess of $ 3,300. Apparently, a detailed receipt of what was ordered was not available.
The next day’s itinerary included a continental breakfast from 8 am to 9 am, followed by two hours of meetings (which included a 15-minute break for snacks). After that, at least part of the group played golf on the Grove Park course (with the total bill reaching $ 910.63). The group had dinner later that day at the Red Stag Grill, which presents itself as a “sophisticated, rustic and chic steakhouse at the Grand Bohemian Hotel”, generating a total bill of $ 1,616.
On Tuesday, October 8, the group again had a one-hour continental breakfast, starting at 8 am, followed by about two and a half hours of meetings. The meeting agendas lack many details or specifics, simply saying things like “Jason Stewart (CCNGA)” and “Gary Alexander (Dominion Energy)” with nothing to denote what was discussed. That day there was another tour, this being a group tour of the Biltmore Estates palaces (which cost a total of $ 736), followed by dinner at Grove Park’s Sunset Terrace restaurant (total bill of $ 3,209.36).
The next day there was an hour of meetings, followed by checkout. Council members drove to and from Asheville and were reimbursed for miles. The room bill reached $ 22,000 and the three group meals counted on credit card statements carried an accumulated bill of more than $ 8,000. With travel, golfing a $ 1,100 account for “Accents of Asheville” (a “destination management company” that specializes in meeting planning) and a tour of Biltmore Estates included, the three-day trip, which included a total of five and a half hours of meetings, with a total cost of at least $ 34,000.
There were other exits reflected in the Post and Courier conclusions. In July 2018, officials and board members from the gas authorities in Chester, Lancaster and York flew to Portland, Oregon for the American Public Gas Association’s annual conference. With many having their spouses in tow, the total bill (paid by taxpayers) generated by the three county contingent was more than $ 160,000. Minor expenses included almost $ 500 worth of alcohol for a “Christmas party” for Chester’s board. The CCNGA employee handbook notes that employees “must limit expenses to reasonable amounts” in terms of travel, accommodation, meals and other expenses related to business travel.
On Monday, CCNGA general manager Jason Stewart sent a statement about the Post and Courier article and a list of questions sent by News & Reporter.
Stewart said it is incorrect to label trips to conferences sponsored by the American Public Gas Association (APGA) as trips or vacations, as they offer essential education, training and relationship building. APGA, he said, represents the interests of public gas before Congress, federal agencies and other “energy-related stakeholders”, developing and presenting regulatory and legislative policies that promote the objectives of its members. Its conferences offer “meetings, seminars and workshops with the specific objective of improving the safety, reliability and operational efficiency with which, and the regulatory environment in which public gas systems operate”.
“In order to better serve the CCNGA and, by extension, its larger communities, its board must remain up-to-date and fully informed of all that it does … which is why it is vital for the board to remain involved and informed by APGA,” Stewart said .
Regarding the three-day conference in Asheville, he said the venue was selected because of “the comfort of the speakers and guests and, most importantly, the ability to drive, rather than fly, Chester”. The CCNGA issued an agenda in advance, publishing it at the CCNGA office and online, as required by law. Outstanding speakers included those from Patriot’s Energy Group, Dominion Energy, Shell, Municipal Gas Authority of Georgia and others. He provided a long and detailed list of topics discussed. The costs indicated were not exclusively attributable to the board of directors, but the meals and activities of the conference guests and speakers were also included in the total. These were provided, Stewart said, since all the speakers waived any payment or fees for their time and efforts. It is also customary, he said, to allow board members to bring their spouse.
“Some are a little older and, understandably, would hesitate to travel without family support,” said Stewart. “As educational sessions require a considerable amount of time and are so valuable to the CCNGA’s mission, it was decided to cover the expenses of board members and a partner, usually the spouse … In fact, many of the conference functions invite the participation of spouses, such as meals, seminars and receptions sponsored by APGA. Some of the events are specifically aimed at the participants’ spouses ”.
Council members and their spouses have formed relationships with many experts in the field of natural gas and finance through participation in the conference. Stewart believes that “these connections helped to develop important contracts and partnerships that saved and will save … hundreds of millions of dollars”.
CCNGA board members are not paid, except US $ 35 per day for each of the five meetings they attend each year. There is a budgeted line item for training and attending conferences.
There are five public gas agencies in the state, all dating from the middle of the last century. Chester, Lancaster and York have independent authorities, while Newberry and Clinton share one, as do Anderson and Pickens (Fort Hill). Each authority has a board technically appointed by the governor, but it seems more correct to say that the governor simply approves the recommendations made at the local level. In the case of Chester, the legislative delegation makes two appointments, the city of Chester makes two and the city of Great Falls makes one. Board members serve six-year terms and can be reappointed at the end of a term. They do not respond to state regulators in the way that private gas companies would. The name of the Chester board members who actually appear on the CCNGA website does not appear. There is a list of meeting agendas that date from 2019. From that list, the board appears to have met five times in 2019, four times in 2020 and, more recently, on February 4 this year. However, although there are agendas, there do not appear to be minutes from any of the published meetings that indicate what actions the board has taken. However, Stewart said the minutes are kept and are available for public inspection.
Travel and spending are not really illegal. Members of special-purpose districts are not required to submit declarations of economic interest to the state.
CCNGA, established in 1954, built and moved to a new facility on Ballymena Road in 2018 that has 13,500 square feet of office space and a 15,000 square foot warehouse. It was built on land obtained in Chester County through an exchange of land, which both sides considered a “win-win”. The CCNGA has often been cited as one of the county’s best partners in terms of economic development as well. Stewart provided a list of other local entities in which the CCNGA invests and has a partnership, which includes the Penny Sales Tax Commission, Chester County Chamber of Commerce, public schools and other entities.