A US electric co-op has been criticised by New Hampshire’s Office of Consumer Advocate after two of its female board members resigned citing a culture of sexism and bullying.
In June, consumer advocate Donald Kreis formally asked the state’s utility regulators to investigate the New Hampshire Electric Cooperative (NHEC), expressing concerns over the recent turmoil within the co-operative’s board of directors and its potential effect on procurement of power for its members.
“I was extremely concerned to learn about today’s resignation of two veteran directors, who allege they have been the victims of sexism and bullying,” Kreis said in a statement. “That’s deeply troubling in any circumstances, but in this instance, it may threaten the ability of the co-op to provide default energy service in an affordable and stable manner.”
As a customer-owned utility, NHEC enjoys the right to opt out of most of New Hampshire Public Utilities Commission’s regulations, which, according to OCA, means the commission “has little if any authority to oversee what occurs in the NHEC boardroom”.
However, the consumer advocate pointed out that regardless of the certificate of deregulation filed two decades ago, “the enabling statute of the Office of the Consumer Advocate authorises the OCA to defend the interests of all New Hampshire residential electric customers – even members of the NHEC.”
OCA noted that PUC can intervene when it finds that such action is required to ensure that such deregulated rural electric co-operatives do not act in a manner that is inconsistent with the policy principles that are supposed to guide electric industry restructuring.
Writing to PUC, Kreis raised concerns over the policy principles related to customer choice, universal service, benefits for all consumers, full and fair competition, and near-term rate relief.
“Against that backdrop, the Office of the Consumer Advocate is concerned about the board of the electric co-operative substituting its judgment for that of the power procurement professionals on the payroll of the NHEC who have done just an exemplary job of keeping co-op power rates both low and stable in times of volatile wholesale power markets,” OCA said in a statement.
Kreis pointed to remarks made by the former vice chair of the co-op, Madeleine McElaney, at the annual meeting on 18 June. During the meeting, McElaney complained about the treatment female leaders had been subjected to.
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“Together with [then-board chair] Sharon Davis and [CEO] Alyssa Clemsen Roberts, we’re the first female leadership team at NHEC,” she said at the meeting. “It has not been an easy road. In fact, I believe there is a double standard for female leaders at NHEC.
“We’re questioned, interrupted, dismissed, more easily than our male counterparts,” McElaney added. “This behaviour is wrong and at odds with our values and co-operative principles. We have tried repeatedly to find a better path, but to no avail. Sharon and I are not returning to our leadership roles next year because we have spent the last year being attacked and bullied by other board members. I hope we can do better.”
Both McElaney and Davis quit the board a week after the AGM. Davis was first elected in 2003 and had served since then aside from a break in 2018, while McElaney had served since 2019.
The two announced their decision to resign during a subsequent board meeting on 25 June.
“The board has made decisions that we fundamentally disagree with and has operated contrary to good governance principles,” McElaney said on the day. “We feel strongly that this board has failed to do its own job and has prevented management from doing theirs, and that this jeopardises the co-operative and its future stability and viability.
“We have tried repeatedly to protect the reputation of the co-operative by dealing with this quietly, but at this juncture, we feel the risk of staying silent outweighs the risk of reputational harm. It has become evident that we have no means to influence or rectify the situation.”
“As it happens, I have a deep background in co-operatives myself,” said consumer advocate Kreis, “including three years chairing the board of the state’s largest co-operative grocer, and several years of private law practice representing worker and consumer co-operatives. I will do everything in my power to hold our state’s only electric co-operative to the co-operative values and principles, and to make sure NHEC members get the default energy service they deserve. This situation screams out for public scrutiny.”
NHEC has been contacted for a comment.
