Caveat: Heat & Light at Coop

By: Bill Whaley
21 April, 2010

Letter to My Pesky Friends
Parciantes Turn to Legal Eagles?

Promises and Policies

The struggle to control the schools between Mayor Cordova and Scapegoat Cordova has ended. The board unanimously approved the hiring of the Superintendent, whom the Mayor says he supports. Cordova has been put on administrative leave by the Chicano Chamber and is currently taking a sea cure on a large cruise ship. Now, the Pobrecito Mayor is turning his eyes toward the threat of litigation by parciantes on the Spring Ditch and alleged ditches being compromised by the Singing Plumber’s Autumn Acres project on Valverde Commons. Both the DA and Taos County are seeking reassurance. The county has sent a letter that expresses concern about “undocumented annexation” of the former wetlands. According to Flavio, the Town has a haphazard policy of passing annexation ordinances and filing them with the County Clerk—going back, some say to the 1974 Master Plan or even to 1948. For good or ill, history has a way of haunting Taosenos.

“Coop and Restoration activists have raised the issue of whether KCEC should risk contracting for solar-generated electricity from a proposed array designed to cover up the historic tailings pond up near Questa. Apparently, one of the proposals for the EPA restoration project includes installing enough capacity to power the community. One must ask whether the additional power will push KCEC over the five-percent limit imposed by Tri-State and whether KCEC will become liable for the unstable and contaminated dump site.”–Flavio


The electricity and Internet battles, sponsored by KCEC, are heating up, thanks to a dash of solar and a touch of propane in anticipation of the annual meeting, usually scheduled for June at the Taos High Gym. In 2008, IRS forms say Trustees and their trusty CEO, Luis Reyes (pictured smiling) spent over $100,000 for the annual day of prizes and speeches at the membership meeting. Last year, 2009, the Coop spent way less ‘cause members were voting on reducing the board and limiting terms for the longtime “traveling trustees.” The good old boys hired a parliamentarian to try and quash voting by changing customary rules regarding quorums–but they were shouted down by the members.

According to news reports Reyes & Co. applied for a federal broadband grant that will only cost the members another $20 million to match the $60 million giveaway. Add $20 million to the $60 million the Coop already owes RUS for loans and balance that total of $80 million against the Coop’s $105 million in assets and you begin to wonder if there are any accountants in the house.

The Coop has yet to present members with a business plan to show how the member-owned company will pay for loans and losses incurred due to adventurism in propane, Internet, Solar development, Call and Command Center capital expenses. And whatever happened to the capital credits pledged to Tri-State in the merger? Eh? We’re only asking.

Currently, the board has gerrymandered coop districts so the outlying villages of Questa, Penasco, Angel Fire, and Ojo Caliente disenfranchise the majority of members, who live in Taos. Even Manuel Medina, an alleged representative of Taos residents, has voted against his constituents and supported the policies of the village highwaymen. (See facts and figures below.) Unfortunately, in Taos, whether due to “faith” in green energy or due to pay-offs in green advertising, the mainstream media appears to back the bad boys at the Coop right down to their travel vouchers.

KCEC Voting Facts and Figures

District 1, Taos, represented by Francis Cordova, Toby Martinez, Manuel Medina, and Luisa Mylet, has 17, 113 meters and 12,469 eligible voting members. So each trustee represents about 3,100 members. (Almost 2,000 members voted in the last election.)

District 2, Questa and Red River, represented by Virgil Martinez and Bobby Ortega, have 3,634 meters and about 2,726 voting members. So each trustee represents about 1,376 members.

District 3, Ojo Caliente, represented by Art Rodarte, has 1,640 meters and 1,239 eligible voting members. Trustees estimate that Art, the Tri-State Rep, makes an easy 40,000 grand for representing 1,239 members.

District 4, Peñasco Valley, represented by Chris Duran and Ambrose Mascarenas, has 2,057 meters and 1,619 eligible voting members. Each trustee represents 809.5 voters plus one cheerleader.

District 5, Angel Fire-Eagle Nest, represented by Jerry Smith and Bruce Jassman, has 4,714 meters and 3,918 voting members. Each trustee represents 1,959 members. (74 members voted in the last election.)
The one man, one vote rule applies to political subdivisions but, apparently, not to the Coop.

21,971 members are eligible to vote. Yet, the elected officers represent only 6,763 members.

Who looks out for Taos members when it comes to paying for KCEC solar arrays at UNM-Taos, KTAO, and other beneficiaries of Reyes’ largess? Nada, nobody except Jerome Lucero, the activist and former finance maven Art Ortiz, who have both questioned the wisdom of coop management and debt. Lucero, with others, fought back against exploitation by trustees at tiny San-Miguel-Mora. They reduced the number of board members, instituted term limits, and did away with trustee perks. Art has challenged the KCEC Trustees to come clean on Propane and present the members with a “plan.”

Across the State

On Monday, in a Business Outlook story (Albuquerque Journal, April 19,2010, “Solar Plan Slammed”), writer Michael Hartranft discusses how the NMAG has filed “a formal objection with state regulators” opposing PNM’s solar proposal, saying the “costs too steep for users.” (How much does Solar cost KCEC for the exclusive benefit of a few?)

Now comes the progressive members of the Socorro electrical coop. See the excerpt below from El Defensor Chieftan

“SEC members vote for reform

“Written by T.S. Last
“Wednesday, 21 April 2010 06:00

“Democracy was on display Saturday night (April 17) as member-owners of Socorro Electric Cooperative overwhelming passed all 11 member-sponsored resolutions at its annual meeting at Finley Gym in Socorro. 
“We did it, and it’s the people that did it,” said Charlene West, chairman of the SEC Reform Committee that pushed for a series of reform measures that dramatically impact the board of trustees, which oversees management of the rural electric utility. “This was democracy at its finest.”

Member-sponsored proposals prevailed over all of the alternative resolutions offered by the SEC’s trustees. 
Two of the most notable changes are reducing the size of the board from 11 to five, and limiting the amount of compensation a trustee can earn in a single year to $10,000 and $15,000 for the board president. The 11 board members received more than $492,000 in compensation in 2009, an average of $44,000 per trustee. The compensation includes fees, travel and hotel expenses, per diem, and health and life insurance. Member-owners also passed resolutions to reduce the number of monthly board meetings from two to one and to mandate that the board “voluntarily abide” by the Open Meetings Act and Inspection of Public Records Act.”

Will KCEC catch up with Socorro?

California

(Where’s KCEC’s plan for affordable rooftop panels?)

Pacific Gas & Electric will fund the installation and leasing of solar panels at about 1,000 homes and businesses this year.

Panels installed by SolarCity in the hills of Berkeley, Calif. (Credit: SolarCity) The California utility announced a deal with SolarCity, a Silicon Valley start-up that will provide PG&E customers the financing to install rooftop solar panels with little upfront money. PG&E subsidiary Pacific Venture Capital will provide $60 million in tax equity to SolarCity for its installation and financing services.

Rather than own solar panels, SolarCity customers pay a monthly fee and a relatively small or no upfront investment.

SolarCity, which owns the solar panels, can sell the electricity solar panels generate and take advantage of local and federal tax incentives. The financing is structured so that customers can lower their monthly electricity rates, according to SolarCity. A contract can be a lease or a power purchase agreement, where the customer purchases the electricity the panels generate at a predetermined rate.