(Marietta, Ga. – August 5, 2011) – Cobb EMC today announced the Federal Energy Regulatory Commission (FERC) ruled the cooperative did not violate the Federal Power Act (FPA) or anti-market manipulation regulations. In the ruling, the commission concluded “it does not find good cause to institute an investigation” of Cobb EMC and its affiliated entities, and “the complaint is denied.”
Earlier this year, Cobb EMC members, Daniel W. Davis and Mark A. Hackett, filed a complaint with the commission alleging failures to comply with the FPA and commission regulations concerning market-based rates, affiliate abuse, market manipulation and interlocking directorates by Cobb EMC, Cobb Energy, Cooperative Energy Incorporated (CEI); Power4Georgians, LLC, former President and CEO Dwight T. Brown and current President and CEO W.T. “Chip” Nelson, III. The commission determined that Davis and Hackett failed to establish the connection between the issues raised and the commission’s jurisdiction.
“We are very pleased with FERC’s ruling and extensive review of the facts,” said Sam Kelly, senior vice president of public relations of Cobb EMC. “If you remember, the announcement of Hackett’s and Davis’ complaint made back in April was a staged publicity event that was supported by radical environmental groups.”
Kelly added, “Davis and Hackett presented their legal counsel as one of the nation’s top attorneys on FERC-related litigation, yet they were unable to present facts upon which FERC could justify the conduct of an investigation. Accordingly, FERC exercised its discretion to dismiss the compliant.”