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Collinsville,
Oklahoma
May 19, 2006 Members Vote to Remove VVEC from Oklahoma Corporation Commission Jurisdiction |
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By a margin of more than
5,000 votes, VVEC members have approved returning their cooperative to self-regulation.
This action removes VVEC from the jurisdiction of the Oklahoma Corporation
Commission (OCC).
Members were mailed ballots in April and had until May 18 to vote and return
their marked ballots by mail to an independent auditing firm who then tabulated
the results.The cooperatives board of trustees voted earlier this year
to bring the proposal to a vote of the membership.
"We feel operating under OCC jurisdiction is simply a duplication of
regulation," says John Hibdon, president of the board. "Its
a very expensive duplication. "We feel the fact co-ops are owned by their
members who elect trustees who are members and rate-payers just as
they are offers a level of accountability and responsiveness that isnt
found in other types of utilities. Dual regulation by the OCC costs VVEC members,
on average, about $26,000 each year," he says, adding, "VVEC paid
almost $104,000 in OCC-assessed fees between 2002 and 2005. These are fees
that are passed on to the membership, but that the Commission prohibits us
from listing separately on the bills."
Hibdon goes on to say the added level of bureaucracy slows down the boards
responsiveness to members and limits its flexibility in developing and adapting
business policies and procedures.
VVEC trustees, management and staff were on hand at a May 18 meeting at the
co-op to answer any questions on the proposal from members before voting.
That was the only time members could vote in person. Only a handful of members
attended and cast ballots.
Corey Haddock of the auditing firm Briscoe, Burke & Grigsby LLP, was there
to report the result of the voting, once balloting had ceased.
He told the small group that 23,979 ballots were mailed the week of April
20. "Of those, 7,502 were returned," he said. He went on to report
6,300 ballots were cast in favor of removing the co-op from OCC jurisdiction;
1,193 were opposed and nine were categorized as 'undecided,' since it was
difficult to read how the ballots were marked.
"We appreciate the members taking this matter seriously and casting informed
votes," says John Hibdon, president of the VVEC Board of Trustees. "And
we appreciate the confidence they have in their cooperative to allow it to
return to member regulation."
VVECs vote brings to 26 the number of Oklahomas 28 electric cooperatives
who have elected to terminate OCC jurisdiction.