BOARD
STRUCTURE
From
time to time this column has been used to update our consumer-owners on
the differences between your Cooperative and the other entities who also
supply electric service in Southern Illinois.
As
mentioned in the past, one area of considerable difference exists in the
board structure of electric cooperatives as compared to that of investor-owned
utilities. SouthEastern’s Bylaws mandate that a member must live
in the Cooperative’s service area and be receiving electric service from
the Cooperative in order to be eligible to serve as a Trustee; all of which
you have heard before.
In
addition, SouthEastern Board Members do not benefit personally when the
Cooperative generates margins, which meet or exceed our lender’s requirements
in any given year, but instead benefit collectively with all other members
through patronage capital refunds and enhanced value of membership.
That situation is in sharp contrast to that of other electric suppliers,
whose boards are most often comprised of major corporate shareholders who
directly benefit from the maximization of profits.
GOVERNANCE
The
functions of a cooperative’s board include overseeing the management of
corporate assets, developing the corporate mission, objectives, strategy
and policies, and hiring a general manager. Typically for most cooperative
boards, including SouthEastern, the general manager is the only employee
they hire. The general manager is totally responsible for hiring
all other employees required to assist him or her in the operation of the
cooperative.
The
general manager is responsible for the day-to-day activities and operation
of the cooperative, including the implementation of policies established
by the board; but the board is responsible for periodically reviewing
the general manager’s performance to ensure it complies with the mission,
objectives and policies they have established.
Generally
speaking, cooperative boards also select an attorney, who provides legal
advice to both the Board and General Manager. Technically however,
the attorney works for and is responsible to the corporate entity.
MORE
THAN YOU WANTED TO KNOW?
Although
the above information may be more than you wanted to know, it is offered
to assist our consumer-owners in a couple of areas.
First
of all, if you are looking for employment, please stop by SouthEastern’s
Eldorado Headquarters and pick up an application. Although we have
no available positions at this time, we always like to have applications
on file in the event an opening should occur. Applications are good
for one year and we are an equal opportunity employer. Contrary to
perception, SouthEastern Board Members are not involved in the hiring or
firing of cooperative employees, other than the positions of General Manager
and attorney as previously noted.
Secondly,
if you are having any type of problem with the Cooperative or the services
it provides, please contact an appropriate SouthEastern employee to resolve
the issue.
I
am very proud of the fact that our employees are trained to address about
any type of problem you might have; but in the unlikely event they are
unable to assist you, members are always welcome to contact me by phone
to discuss their specific problem or to arrange an appointment to visit
me in person. Have you tried doing that with any of the other area
energy suppliers? If so, you’ve probably discovered another major
“Cooperative Difference”. |