November 10, 2016 at 7:06 pm #314
How valuable are Transmission Lines?
If they are so valuable as stated in the following articles, then why is VEA in such a hurry to sell the power-line?
Constructing Transmission lines were absolutely necessary to bring large amounts of power the co-op members required into the VEA service area, where smaller distribution lines then distribute it to VEA members. In November 2002, VEA directors approved construction for a new transmission line from VEA’s Vista substation in North Pahrump Valley to connect with VEA’s 230kv transmission line. It was needed to flow more power into VEA’s service area and to increase reliability, decrease power outages, brownouts or blackouts to VEA members if a portion of the transmission system should go down.
You can read what VEA management was concerned about in 2004 here:
>>> Ruralite Magazine March 2004
Back in 2004 before Tom Husted arrived on the scene at VEA, the company was run by General Manager Brad Gaskill. In that year, VEA refunded $2,000,000 in capital credits to its 4000 members….roughly $500.00 per member. And without having to sell any assets as the present CEO Tom Husted is doing.
Capital credits are defined as revenues in excess of the associations operating costs and expenses in a given year.
Read about it here>>>>>>>>> Ruralite Magazine December 2004
Lou Holveck was interim General Manager of VEA. In an October 2005 Article by VEA, “Titled VEA Member and Power Load Growth Drive Plans to Build More Transmission”, it is started that “Valley Electric Association is growing both in memberships and in power load growth. With continued growth, VEA will need more and possibly bigger transmission lines to bring electrical energy into the service area and ensure service reliability.
VEA needs transmission lines and it always will. That’s because the co-op does not produce any of the electrical energy it provides to VEA members, and must get that energy from elsewhere and transport it over transmission lines into the Co-op’s service area. Regardless of the source of the power it buys, it is up to VEA to get that electrical energy into its service area from the outside world, and it must do that over large transmission lines.”
You can read the VEA article here>>>> Ruralite Magazine October 2005
Tom Husted is hired as new VEA General Manager. But it didn’t take him long to start building his empire. In 2006, Husted asked the Board of Directors to make him CEO of Valley Electric Association and they promptly voted to do that. VEA never had a CEO, it was always a General Manger as it should be.
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