There is a lot of chatter and even a parody of the CMEEC (Connecticut Municipal Electric Energy Cooperative) excursion to the Kentucky Derby. But the most important participants are a wall of silence as well as they should be. I do not condone the trips. I think it was a very poor business decision, a poor political choice to participate and just an all-around bad option. But, alas who am I but a rate payer in only one of the municipalities.
To me, a board of directors is a group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues.(from www.centerfornonprofitexcellence.org).
Essentially it is the role of the board of directors to hire the CEO or general manager of the business and assess the overall direction and strategy of the business. The CEO or general manager is responsible for hiring all of the other employees and overseeing the day-to-day operation of the business. (Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.) Understanding the roles and responsibilities should be the first task when appointed. (from www.centerfornonprofitexcellence.org)
From the Norwich Public Utilities website I learned Norwich Public Utilities operates under municipal ownership, which means that it is owned by its customers and the City of Norwich.
The Norwich Board of Public Utilities Commission is made up of five members from the Norwich community. Members are appointed by the City Council and serve 5-year terms. The Board of Utilities Commissioners also serve as the Norwich Sewer Authority. The commissioners live in the community as your neighbors, NPU’s commissioners understand the needs of Norwich and are responsible to all the citizens.
Per the CMEEC website The Connecticut Municipal Electric Energy Cooperative or “CMEEC” is a publicly directed joint action supply agency formed by Connecticut’s municipal electric utilities in 1976 under the state’s General Statutes. Headquartered in Norwich, CT.
CMEEC is responsible for the financing, acquisition and construction of generating resources and implementation of power supply contracts for the purpose of furnishing low-cost and reliable electric power to its members and participants. Electric energy purchase contracts and other resources obtained by CMEEC supply power to each of the community-owned utilities. The utilities in turn distribute the power at retail to local homes and businesses at the lowest prices in Connecticut.
CMEEC is organized as a partnership of five municipal utilities, each locally controlled. Through their ownership of and active participation in CMEEC, the member utilities are represented on the Board of Directors and thus provide the organization’s overall direction and governance.
CMEEC’s member utilities are: City of Norwich Department of Public Utilities, City of Groton Department of Utilities, Borough of Jewett City Electric Light Plant, Norwalk Third Taxing District Electrical Department and South Norwalk Electric Works. In addition to these five voting members of the cooperative, CMEEC provides wholesale power to participating utilities Bozrah Light & Power Company and Mohegan Tribal Utility Authority.
CMEEC represents members and participants as a single-entity participant in the regional Independent System Operation (ISO-New England) and the New England Power Pool (NEPOOL). CMEEC serves as the designated bargaining agent for the State of Connecticut with respect to the New York Power Authority’s allocation of Niagara and St. Lawrence power supply. CMEEC actively participates in industry groups such as: the American Public Power Association (APPA), the Northeast Public Power Association (NEPPA), the National Rural Electric Cooperative Association (NRECA), and the Connecticut Valley Electric Exchange (CONVEX).
Local representation with shared control: CMEEC’s Board of Directors is made up of two representatives from each of the member utilities. The Board sets policy for CMEEC and performs other duties and responsibilities as determined by applicable state statutes and CMEEC’s bylaws. The Board is responsible for operating CMEEC in such a way that power supply services are provided for the optimum economic benefit of all members. Member systems control the process through their active Board participation. Members and participating utilities pay for power based on a rate tariff that reflects a melding of costs of CMEEC’s total supply system.
The business model of NPU is cost-based. Customers pay rates that reflect the cost of the services provided, not simply what customers are willing to pay. This is different from investor-owned utilities, where profits may be maximized for return to individual investors. In contrast, NPU’s municipal ownership returns profit directly to the community it serves. (http://www.norwichpublicutilities.com/about-npu/business-model)
BoardSource, in their booklet “Ten Basic Responsibilities of Nonprofit Boards”, itemized the following 10 responsibilities for nonprofit boards. In a for-profit corporation, the board of directors is responsible to the stockholders — a more progressive perspective is that the board is responsible to the stakeholders, that is, to everyone who is interested and/or can be effected by the corporation.
1. Determine the Organization’s Mission and Purpose
2. Select the Executive
3. Support the Executive and Review His or Her Performance
4. Ensure Effective Organizational Planning
5. Ensure Adequate Resources
6. Manage Resources Effectively
7. Determine and Monitor the Organization’s Products, Services and Programs
8. Enhance the Organization’s Public Image
9. Serve as a Court of Appeal
10. Assess Its Own Performance
So I guess we now have to ask the Board members of CMEEC and its CEO to evaluate their performance and their trip and anything else the public doesn’t need to know about. But perhaps we can be wiser in who our City Council appoints to the Commission and their abilities to make the decisions that ultimately fall to the utility rate payers in our city and beyond, whether they are members of this esteemed organization or not.
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