August 30, 2008
Cobb EMC Board Unanimously Approves Almost Doubling Cobb Energy Fees charged to Cobb EMC Member/Owners
Read the resolution on Cobb EMC's Website
Note that it was approved on August 26 but backdated to July 7th
    
Note that your elected Board of Directors Larry Chadwick, Sarah Brown, Al Fortney, Don Barnett, Frank Boone, David Herndon, David McGinnis, Henry Balkcom and Johnny Gresham approved the resolution increasing the management fee from 6% to 11%.
    "EMC reserve the right, at a later date, to make the increase to 11% retroactive to November 18, 2005."

Click Here to View Resolution

August 30, 2008
Cobb Energy Financials Released After 11 Month Battle To Disclose To Member/Owners
Cobb EMC/Cobb Energy CEO Dwight Brown had refused to disclose this information since the 2007 Cobb EMC Annual Meeting

6 out of 7 subsidiaries are loosing money

Click Here to View Financials


August 26, 2008
Big Victory for Cobb EMC Member/Owners
    Annual Meeting Postponed
   Voting Proceedures to be changed
   Cobb Energy and Cobb EMC to make disclosure of financials

Read the Article  Read the Court Order

Cobb EMC Member/Owners Pay 38% More For Electricity Than Jackson EMC Member/Owners
Source: AJC
Click Here to Read the Article

Cobb EMC is Rated "About Average" by J.D. Power
Click here to Read the Entire Report


Why You Should be Concerned About Your Cobb EMC:

If you purchase your electricity from Cobb EMC you are a member of the cooperative.  Thus you own a share in Cobb EMC.

According to documents filed in Cobb Superior Court, Cobb Energy violates Georgia EMC statues.  See the Georgia Supreme Court Decision, Flint vs. Barrow, 271 Ga. 636 (1999).

According to documents filed in Cobb Superior Court, Cobb Energy hires all officers of Cobb EMC and so totally controls the executive team at Cobb EMC.

 

According to documents filed in Cobb Superior Court, the Cobb EMC meters were transferred to Cobb Energy for millions less than appraised value.

 

According to documents filed in Cobb Superior Court, the entire Cobb EMC skilled work force was transferred to Cobb Energy with no compensation whatsoever paid to Cobb EMC for this transfer.

 

According to documents filed in Cobb Superior Court, Dwight Brown was made CEO of both Cobb EMC and Cobb Energy and his income went from approx. $250,000 to approx $1.6 million per year including $265,500 of “dividends” per year since 2002 on Cobb Energy stock owned by Mr. Brown and his wife.  According to documents filed in Cobb Superior Court, this has inpart been funded from fees charged by to Cobb Energy to Cobb EMC.

 

Certain EMC directors also served as directors of Cobb Energy until July 7, 2008, creating conflicts of interest.

 

 

Cobb EMC Board locked EMC into forty year contract with Cobb Energy.  According to expert testimony in documents filed in Cobb Superior Court, this causes Cobb EMC to be at the mercy of Cobb Energy, a for-profit entity.  According to the expert testimony, the Cobb EMC Board abdicated it's role to assure that EMC acquires goods and services at most favorable costs. Cobb Energy now charges Cobb EMC costs plus 11% as fees that have totaled in excess of $25 milllion.

 

According to documents filed in Cobb Superior Court, tens of millions have been paid by Cobb EMC to Cobb Energy for services Cobb EMC has always done for itself such as Human Resources, call services, and staffing.  According to documents filed in the case, these fees inpart have the effect of shifting and converting assets of Cobb EMC to a small group of private investors including Dwight Brown, his wife and current or former officers and directors of Cobb Energy and Cobb EMC.

 

According to the Cobb Energy financials, now available on Cobb EMC's website,  and expert accounting affidavits, Cobb Energy has had a cumulative loss of over $12 Million from its inception through 12/31/2006.  Despite loosing millions, Cobb Energy's directors including Dwight Brown chose to issue millions in dividends to themselves and others including Brown's wife and certain other officers and Directors of Cobb EMC and Cobb Energy.  According to documents filed in the case, these dividends were paid inpart by fees charged to Cobb EMC.

 

According to documents filed in the case, Cobb EMC has never received a dime of dividends on it's stock in Cobb Energy despite the fact that Cobb Energy directors has the authority to issue dividends to Cobb EMC.  Thus, it is argued Dwight Brown chose to issue dividends to himself before Cobb EMC.

 

According to Dwight Brown's deposition, Cobb Energy occupies numerous buildings owned by Cobb EMC and pays no rent.

 

According to documents filed in Cobb Superior Court, Cobb EMC Director Henry Balkom was provided $123,061 in retirement benefits in his first year of service; Kay Anderson was provided $107,304 in retirement benefits during her first yeart of service; and Johnny Gresham was provided $133,565 in retirement and insurance during his second year of service.  It is argued this directly violates Article III Section 5 of the Cobb EMC bylaws.

 

The Committee appointed by the Cobb EMC Board of Directors consisting of 3 directors, 2 of which are defendants, found that Cobb Energy over charged Cobb EMC and should reimburse Cobb EMC approx $12 million.  As far as we know, the Board has yet to take any action to recoup these funds. 

 

According to documents filed in Cobb Superior Court, three expert accounting auditors , and other electric cooperative experts have testified that the arrangement is inappropriate.

According to documents filed in Cobb Superior Court, a corporate governance Professor testifies that the arrangement with Cobb Energy violates recognized principles of corporate governance due to multiple conflicts of interest.