The Daily Southerner, Tarboro, NC

Local News

July 31, 2008

Noble’s proposal eliminates board’s pay

Commissioners pass 14 percent rate increase that goes into effect Friday

W. TERRY SMITH

Sam Noble could not sleep Wednesday night, so he got up about 4 a.m.

Tarboro's town manager grabbed a legal pad, pen and went to work on a proposal he would present a few hours later at the North Carolina Eastern Municipal Power Agency's meeting in Wilson.

The NCEMPA is made up of 32 member cities, including Tarboro. Noble represents Tarboro. He's also chairman of the ElectriCities Board of Directors. ElectriCities, a not-for-profit government service organization, provides management services to the state’s two municipal Power Agencies: North Carolina Municipal Power Agency Number 1 (NCMPA1), made up of 19 cities in the western part of the state; and North Carolina Eastern Municipal Power Agency (NCEMPA).

Noble, who has been on the board for more than 10 years and chairman twice, proposed doing away with the $1,000 a month salary board members representing the East receive effective Jan. 1. (The chairman receives an additional $500 per month.)

Board members would only be eligible for expenses such as mileage to and from meetings, meals and overnight stays.

This will reduce expenses $84,000 to $90,000 per year.

Noble expressed dissatisfaction with the makeup of the board, which includes six members from the East, six from the West and two non-agency members.

"Eight (members) who don't pay our rates are determining the fate of each of our agencies," he said.

Noble requested legal counsel provide the necessary amendments to allow the six board members representing the East to take actions that affected only the eastern agency. The six board members representing the West would take measures affecting only the western agency.

"We need to ask questions," he continued. "Are we as aware of what's going on as we were in 1995 when the Electric Cities Board of directors was reorganized?"

The Board of Directors meets once a month in Raleigh. The agency's Board of Commissioners meet quarterly in Wilson.

"Meeting quarterly on a billion dollar business results in losing touch with our business," Noble said.

He proposed having the Board of Commissioners meet no less than 12 times a year to keep up with the day-to-day operations, "to keep the cities engaged and knowledgeable about what's going on.

"We're dealing with volatile issues such as coal costs, nuclear fuel costs and rate increases. We all need to know why."

Noble's proposal also included having the chief executive officer report any upper management salary increases since 2006 when CEO Jesse Tilton reorganized his upper management staff.

"This data will be reviewed by the Board of Directors as well as the agency," Noble said.

"We want to see fiscal responsibility in Raleigh," Noble said. "Be just as accountable as we are on the local level."

"We are bleeding money and need to review all costs, including consultants costs, travel costs, salaries, lobbying costs – everything."

His proposal passed unanimously.

Noble said he will make similar remarks at the ElectriCities annual meeting next week in Mrtyle Beach.

He said he will ask the western agency to take similar steps and admitted he had no idea how that will be received.

"They are having rate increases of 2 to 3 percent compared to our 14 percent increase."

Afterwards, Noble said, "You know, $100,000 here and $100,000 there and pretty soon you have a $1 million.

"You ought to be doing this (serving on the ElectriCities board) because 1. you are interested in Tarboro, your town and city, and 2. public power – not the money."

The NCEMPA passed the 14 percent rate increase Wednesday that goes into effective Friday, Aug. 1.

The hike is blamed on rising fuel costs, maintenance cost and debt.

Tarboro passed a 13.2 percent rate increase earlier this month that goes into effect Friday.

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