The Boss, The Coopsters, The Members, The Mission

On Monday, July 11, 2011—11/11—the Public Regulation Commission hearings for the Kit Carson Electric Coop (KCEC) continue. The case has been going on since the local Coop filed for the hike in electricity charges last fall. According to news reports, the local distributors of electricity, born some 70 years ago during the new deal era, have spent some $300,000 in legal fees and advertising promotions–as well as trustee compensation– in an effort to convince the public and the PRC of their just and valid claims.

Local members and activists, who volunteer their time, say the rate request is too high. A report issued by the PRC utility economist basically agrees with the protestors. Activists say they have saved consumer-members about $2 million by protesting the fee hike so far.

While most members support a modest rate increase for the electric coop and want to see it continue as a stable enterprise, the members also look askance at Coopster oligarchs –CEO Reyes and the Trustees–who have entered into money-losing enterprises: Propane, Internet, and the Command Center, costing electric coop members some $10 million so far.

Now, the Coop is entering into a new $60 million Broadband expansion program, which requires members of the Coop to assume another $20 million in loans on top of $62 million in current debt for electric infrastructure and diversification projects mentioned above. Coop members are on the hook for ongoing expenses incurred by the “traveling trustees,” who spend more money than their peers in other coops, according to the PRC staff reports.

The five million dollar loss in propane can be attributed to the CEO’s attempt to build up the market at the expense of other propane sellers. According to those in the industry, KCEC Propane has stimulated competition and deprived the independents of their bad accounts. Similarly, in the Internet business ($2 million loss), KCEC has been criticized for its notoriously poor service while introducing rural residents to the glories of Google, who have now gone on in search of carriers like Qwest and Taos Net. Wherever KCEC must compete, it loses money—unlike the electric-side, where a monopoly exists.

The idea of a unified Command Center call it the public product of the post-9/11 panic, makes no practical sense. CEO Reyes has been trying to sell the concept to the town, county, and various state and federal agencies since his personal post-Mother’s day imbroglio in 2003. The whole impetus for this smoke and mirrors project is crudely personal.

Basically Reyes and a family member got arrested on May 11, 2003, due to a DWI charge, during a post Mother’s Day debacle and celebration sponsored by the CEO’s buddy, musician and broadcast station owner, and now Mayor, one Darren Cordova. Call the catch blowback, due to Reyes and the Trustees having retaliated against an employee.

At the cop shop Reyes got in to it with town cops, who charged him with “Assault and Battery on a peace officer” as well as disorderly conduct, according to police reports. Despite the severe nature of the charges, the energizer bunny was allowed to plead to misdemeanor charges and given a deferred sentence.

Reyes’ puffy face and swollen eyes then testified to the feisty rabbit’s give and take with the cops. According to the police reports, the little CEO allegedly threatened cops and E911 personnel or whatever employee was in the vicinity with their jobs. When he approached the E911 employees with the Command Center concept they were reluctant to join forces with such an abusive young fella. Ever since 2003, Reyes has been trying to rehabilitate his image as the chief safety officer of the community. Nobody was buying.

Yet Reyes convinced the trustees to pay $400,000 for two acres without an appraisal for land under a cloud at the Centinel Bank on which to build the command center. (The president of the KCEC board worked at Centinel for 40 years where Reyes’ brother is currently CEO!) Reyes built the redemptive Command Center with KCEC cash flow, according to trustees. An RUS loan was finally secured this spring to capitalize the costs for the empty 9/11 Taos Homeland Emergency facility.

Last week, Reyes’ buddy, Mayor Cordova, said the town was in negotiations with the KCEC for a seat at the empty table. Earlier Reyes told trustees he has three votes on the council to support moving the E911 PSAP center into the facility. The county, which pays for half the E911 budget does not support the movida. And, according to a town councilor, neither the manager nor the council has ever seen a budget or proposal from the Coop.

Reyes’ public relations gambit concerning the Command Center is exemplary of the Propane project, warned against more than a decade ago by then trustee and still current state Senator Carlos Cisneros. KCEC has consistently refused officers of assistance from successful local Internet providers. The future of Broadband under Reyes’ auspices looks like a car wreck coming down the canyon.

Both the Trustees and Reyes have forgotten that KCEC’s historic mission is solely to distribute electricity for the sake of residents and to stimulate–not compete with local enterprises. Today’s trustees seem solely concerned with using the Coop as a cash cow to pay for travel expenses while Reyes, the Boss, apparently looks at local ratepayers as a source of Viagra for his ego.