Important information for VEA members

This topic contains 5 replies, has 3 voices, and was last updated by  Jane Veritas 8 months, 3 weeks ago.

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  • #412

    Jane Veritas
    Participant

    When was the last time you knew what your capital credits are? Call Valley Electric at 775-727-5312 and ask how much you have in capital credits and when you will receive a check for them.

    Are you aware that VEA can take 20 years or longer to retire capital credits of persons who are no longer members? Is that money being used to start up the internet business?

    Are you aware that Tom Husted, the CEO of Valley Electric has had his salary increased every year since 2005 and is now presently making approximately $600,000 a year with benefits? That is over 3 times what the Governor of Nevada makes.

    The six directors voted every year to increase Husted’s salary along with the salaries of the top management people. Those six directors are supposed to represent you but their allegiance is to Husted and they don’t care about the members.

    VEA paid into the Retirement accounts for
    Tom Husted ( CEO) Rick Eckert (COO)
    Year 2012 $72,408 $30,086
    Year 2013 $117,680 $149,565
    Year 2014 $87,411 $128,400
    Year 2015 $137,591 $233,251

    The data form 2016’s tax return won’t be available until November 2017 as VEA is always late filing their IRS Form 990. Those figures are in addition to their salaries, “other compensation” and “non-taxable benefits”. In 2015 Rick Eckert, the Chief Operating Officer, made $522,444 with benefits. Based on past history, might we assume that Rick Eckert makes a lot more than $522,444 in both 2016 and 2017?

    In tax year 2014, a bonus of which there were many, was paid to Chris Brooks for $95,463 and John Perra received a bonus of $58,957. These bonuses were in addition to their 6 figure salary.

    In year 2013 there was an absolute bonanza of bonuses given out to the top 8 management team. The highest bonus went to Christopher Tomchuk for $110,835. VEA is spending so much money that you will rarely receive any retirement credits before you die no matter long you have been a member.

    Did VEA have to sell the largest asset they had to prevent the company from losing their tax exempt status and losing the ability to borrow capital for expansion?

    Why does a company like VEA have to spend hundreds of thousands of dollars to advertise to a captive membership? That advertising expense could have been used to put money into your pockets by the retirement of capital credits sooner instead of waiting years or reduced rates comparable to other co-ops.

    Tom Husted has run VEA into the ground with enormous debt. The Milk and Cookies along with a $7.00 buffet attracts the members likes fly’s to honey to be fleeced. A $7.00 buffet while Husted robs the members blind and increases their electric rates. The $579.00 probably will never be seen because the sale of the transmission line may never go through.

    Why does VEA need a office in Las Vegas paying rent to the tune of $13,000+ a month rent?

    Management is literally stealing money from the members to live the high life. And the present six Directors of VEA have promoted this wasteful spending.

    It’s time to send David Dawson packing by voting for Gene Hobson, candidate for director District 6 who has YOUR interest instead of Tom’s Husted. Everyone residing North of highway 372 please vote for Gene Hobson and take YOUR company back from the clutches of these thieves.

    #414

    Jane Veritas
    Participant

    I couldn’t help but laugh when I saw VEA CEO Tom Husted on TV Channel 46 via youtube lying to the members about what is holding up the sale. True, the Federal Energy Regulatory Commission has to approve the sale but it only needs one member to vote on it. There are 5 commission slots on that committee but has operated with 3. There has been a resignation end of January 2017 when Cheryl LeFleur was elevated to chairperson leaving now 2 on the commission and cannot have a quorum. Until a new person is appointed NOTHING GETS DONE. No pipelines, no VEA sale. Nothing to do with energy.

    The deal is ALSO being held up in California by some of the 230Kv grid companies that are contesting rate increases that the buyer, Gridliance, of the transmission line is insisting on. Husted didn’t say anything about that except everything was proceeding fine and all the hurdles are passed except the FERC vote.

    VEA members really didn’t think they were not going to get a rate increase after the 230Kv line was sold? You listen to the con artist Husted and he will steal the company blind from you low information members.

    Gridliance wants a rate increase immediately. That’s something that VEA management and the incompetent six VEA Directors are hiding from you.

    Do not think for one moment that those 6 Directors are working for you, the members.

    I think VEA members will wait for a very long time for the sale to finalize….if ever.

    Check back often for more VEA enlightenment

    #432

    William Wallace
    Participant

    I’ve always been curious why valley electric gives members money away as if it is operating as a charity.

    Since day one I’ve always thought that the mission of rural electric cooperatives was to supply electricity at cost returning “profits” back to the members as capital credits. Why is vea so far from the original concept of a co-op?

    #449

    Deep Throat
    Participant

    I went to the District 1 meeting last Thursday and came away with a bad feeling that the CEO is driving the co-op into the ground. A few people tried to take him to task but were shot down by the employees on a vote to run the meeting.

    Husted went on about how great the company was growing but I failed to see how that related to lower energy bills or reducing debt. No doubt the Directors have allowed him to build an empire on the backs of the members.

    What caught my eye was $73,000,000 in revenue from the members and after all VEA spent the ‘profit” was only $663,000. Absolutely terrible.

    #450

    Jane Veritas
    Participant

    I was at the meeting sitting in the back near the coffee and a few members made some very interesting points. But overall most of the people in attendance where there for the cookies and door prizes. Such a shame that there is so little interest to understand their own co-op that Husted is allowed to run the company with an iron fist usurping federal laws. In any event here is some additional information to those who are concerned about their co-op.

    • Why did VEA expand beyond their territory into Creech Air Force Base and how does that lower our rates and what are the consequences of that decision?
    • Was the sale of the 230KV transmission line sold at fire sale prices because Tom Husted and the Board of Directors put VEA in crushing debt?
    • Ask your Director if after Gridliance signed the contract with VEA, the buyer immediately asked for a $10.8 million dollar increase on the 230KV line.
    • Do you know that Tom Husted, the CEO, said that VEA would get a new revenue source for the sale of the transmission line? Remember that? Well it appears that those who OWN the transmission line receive approximately $10,000,000 from California Independent System Operator (CAISO) to maintain the power line. Once the new buyer owns the line the $10 million goes to them and not VEA. Then the buyer gives VEA $10 million to maintain the lines. NET RESULT TO MEMBERS IS ZERO. If the sale is completed why aren’t members allowed to vote on where the additional $60,000,000 goes after paying off the $579.00 bribe to each and every member for their YES vote?
    • Electric Cooperatives are not charitable organizations and should not be giving member’s money away but instead retiring capital credits, reducing rates or paying down debt. VEA already has a Charitable Foundation to handle charities.
    • When Valley Electric Association was created back in 1964 it was a small, lean, member owned utility literally built by the members and focused on a simple goal. Bring reliable, affordable power to their communities. Today it has evolved under Tom Husted into a bloated 17 member management team most of who are receiving over $200,000 a year with benefits and the CEO over $600,000 with benefits.
    • Many Co-operatives in the Western US have lower rates and its management takes a much lower salary maintaining the spirit of the Electric Co-operative. Not VEA and Tom Husted, its CEO. Higher rates and outrageous salary’s is why our rates are so high.

    #466

    Jane Veritas
    Participant

    The Deployment of Counter-Measures is used by the CEO and Board of directors at VEA to counter incoming public inquiry and protect them from anger expressed by the members.

    To obtain any information from VEA one is required to fill out a DISCLOSURE OF INFORMATION form consisting of 7 pages and have it notarized and then it is forwarded to the CEO and Board of Directors for approval to dispense the requested information. In many cases this is in violation of IRS code 501 which tax exempt companies come under.

    Public Disclosure for Non Profits

    • This reply was modified 7 months, 1 week ago by  Jane Veritas.
    • This reply was modified 7 months, 1 week ago by  Jane Veritas. Reason: bad link
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