In the March newsletter of the Carroll Electric Cooperative Corp. (CECC), it continues its campaign against renewable energy, which it refers to as intermittent (weather depending) sources of power, and in favor of nuclear, coal, natural gas and hydroelectric power, which it refers to as dispatchable electricity (controllable) made from burning coal and natural gas. The newsletter asks members to lobby against new Environmental Protection Agency regulations to reduce carbon dioxide emissions from coal-fired power plants “that will force a massive premature closure of dispatchable coal plants.”
The newsletter said that considering policies advocating electric vehicles, the growth of cryptocurrency data centers, artificial intelligence, cannabis cultivation, and population growth, “we need more dispatchable power generation, not less.”
But some local residents are concerned about the unprecedented number of climate change disasters like wildfires, flooding, more severe tornadoes and hurricanes, rapid melting of polar ice caps, record heat and cold, and disruptions to food production.
Some CECC members have complained publicly for years that CECC doesn’t act with the best interest of members in mind and is not democratic in that only hand-selected people are allowed to run for the board of directors.
The newsletter has surveys that environmentalists criticize as designed to get the answers that CECC wants to continue its campaign to keep burning fossil fuels, even as scientists are warning that climate disruptions are increasing rapidly, such as the Smokehouse Creek Fire that started Feb. 26 and rapidly spread over 1,700 square miles of Texas killing at least 7,000 cattle.
Top news publications in the country had front page stories this past weekend that quoted experts expressing concerns that climate change is happening faster than predicted. A Los Angeles Times article published on the front page of the Arkansas Democrat Gazette April 1 was headlined, “Scientists scramble to explain hot 2023.
“Deadly heat in the Southwest. Hot-tub temperatures in the Atlantic Ocean. Sweltering conditions in Europe, Asia and South America,” the article by Hayley Smith said. “That 2023 was Earth’s hottest year on record was in some ways no surprise… but last year’s sudden spike in global temperatures blew far beyond what statistical climate models had predicted.”
Local resident and CECC customer Gwen Bennett said the fact 2023 was the warmest year on record for the past 10,000 years is of great concern.
“It’s way over the top,” Bennett said. “We are in uncharted territory as far as climate change goes. We should be doing all we can, but Carroll Electric is consistently telling customers that we have to rely on fossil fuels for electric generation while also not promoting and pursuing renewables.
“CECC and other power companies got legislation passed a year ago to reduce what people with rooftop solar power generation get from net metering agreements. They were paying the market price back to home producers, and now they have reduced it. That’s underhanded. If we all produce power, it seems they would have more reliability. Their claim is that renewables are unreliable, but they could be doing things like storing energy with batteries or water. This is a red state. The mantra of CECC and other utilities in Arkansas is that burning fossil fuel is necessary permanently.”
Ironically, with both more extreme cold and heat, more power generation is needed which can lead to more emissions that cause climate change to accelerate. As the population grows, more people are moving into wildfire-prone forests.
“There is tremendous colonization of the forests,” Bennett said. “People are moving into forests that previously didn’t have people. So, when there are wildfires, there is more of a tragedy. Now communities in vulnerable areas have to plan their lives around this problem of a hotter, drier climate with less predictable rainfall. Climate change is not going backwards. This is just the beginning, I believe.”
Bennett said CECC and the Arkansas Cooperative Electric Cooperative, an electric generation and distribution network for rural electric cooperatives in the state, use money collected by their captive ratepayers to advocate against proposed EPA rules to reduce carbon dioxide emissions from burning fossil fuels that are a major contributor to climate change.
“Buddy Hasten, the president and CEO of AECC, says we have to rely on fossil fuels,” Bennett said. “Their publications are constantly indoctrinating people. It is what they believe, and they are proselytizing.”
AECC, CECC and other cooperatives in the state use their publications to advocate members contact elected officials to lobby against EPA regulations. In the most recent issue of Arkansas Living, Hasten said they are in phase two of their Balance of Power campaign to educate Arkansas’ electric cooperative members, elected officials, and the general public about the need for a balance of proven, dispatchable baseload power generation resources and non-fossil resources.
The CECC newsletter asks customers to respond to Issue 4 by scanning a QR code or responding by email. “As we continue to build on this grassroots support, we have developed tools to activate your voice in policy making decisions if and when it is productive,” the newsletter states. “…When Carroll Electric triggers a call to action, please be prepared to answer that call.”
Part IV, question 4 of CECC’s Form 990 for 2022, a form required by the IRS of tax-exempt corporations, has a question, “Did organization engage in lobbying activities or have a section 501(h) election in effect for the year?” The columns for “yes” or “no” are left blank.
The IRS states, “In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status.
“…An organization will be regarded as attempting to influence legislation if it contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if the organization advocates the adoption or rejection of legislation.”
According to IRS Form 990 for 2022, CECC President and CEO Robert Boaz earned $613,121 as of an IRS Form 990 filing for 2022. That tax filing indicated Boaz received an estimated $494,632 in other compensation making his total compensation more than $1.1 million. The salary for the President of the U.S., by contrast, is $400,000 per year. Filings from 2022 indicate Director David Glass is paid $42,966. Other directors earned between about $31,000 and $44,000 per year.
CECC reported about $276 million in revenues in fiscal 2022. CECC has indicated it is one of the fastest growing electric cooperatives in the state.
In the past, some CECC dissenters questioned why members don’t receive rebates, known as patronage credits, when CECC earns more than it spends because profits are to be returned to members. Vice President of Corporate Relations Cory Smith said that $8.1 million was recently returned to members on March 15.
“Carroll Electric retires patronage capital on a routine basis,” Smith said. “Carroll Electric reported positive (i.e., income exceeded expenses) margins in both 2022 and 2023. Those margins will eventually be returned to the membership in the form of patronage capital retirements.”