MCE Board Split Sparks Creation of New Finance Committee | PRIMENEWSNOW

Board Initiates Financial Oversight Reforms Amid Internal Disputes

Facing internal disagreements over financial management and oversight, MCE’s board has decided to establish a permanent finance committee and undertake a comprehensive governance review.

Decisions Following Intense Deliberations

After a lengthy five-hour meeting, the non-profit electricity agency revealed these decisions. The session included discussions about CEO Dawn Weisz’s actions last year, where she signed contracts obligating ratepayers to substantial energy payments at rates significantly higher than current market prices, without board consultation.

Supporters of Weisz accused her critics on the board of betrayal. Board Chair Shannelle Scales-Preston expressed her disappointment, stating, “We should take pride in our board service, or reconsider our participation.”

Concerns Over Financial Decisions

Ross Town Council member Mathew Salter, an alternate MCE director, voiced concerns, questioning the board’s oversight. “Why did we incur an additional $200 million in costs without awareness?” he asked.

The decision to form a finance committee concluded a contentious meeting, relying on a complex voting system. Each of MCE’s 34 directors from Marin, Contra Costa, Napa, and Solano counties had one vote, with a secondary weighted vote based on energy consumption.

Voting Dynamics and Outcomes

Marin County held a 23.4% share in the weighted vote. Directors chose between two motions: establishing a new finance committee or renaming the executive committee to include financial oversight, as proposed by Fairfax Councilmember Barbara Coler.

Initially, the finance committee motion passed by a simple majority but lacked the weighted majority. However, after recalculations, it secured 54.1% of the weighted vote, with support from all present Marin directors except Coler.

Financial Oversight and Accountability

The meeting highlighted financial oversight issues, with some directors and public interest groups questioning management’s priorities and decision-making processes. Last fiscal year, MCE’s budget projections and actual expenses differed by nearly $200 million, with unexpected losses offset by investment income.

Mimi Willard, president of the Coalition of Sensible Taxpayers, criticized management for not providing detailed explanations of their financial results, suggesting internal conflicts were being provoked.

Contractual Concerns and Market Conditions

Stephanie Andre, Larkspur Vice Mayor, raised concerns about recent energy contracts, questioning their authorization. She noted that many contracts were signed during a period of high market prices, committing MCE to costly terms.

Belvedere Vice Mayor Sally Wilkinson highlighted the environmental impact of gas-generated power contracts, questioning the board’s lack of consultation on these expensive decisions.

Strategic Goals and Market Challenges

John Dalessi, MCE’s energy market strategist, projected a positive financial outcome for the year. However, discussions revealed that many contracts were for non-renewable energy sources, challenging MCE’s renewable energy goals.

Vicken Kasarjian, COO, acknowledged the high costs associated with MCE’s mission-driven energy purchases, emphasizing the challenges of operating in a seller’s market.

Calls for Enhanced Financial Oversight

Public comments and analyses from groups like the Marin Conservation League underscored the need for a finance committee, highlighting discrepancies in renewable energy sourcing and financial transparency.

Robert Miller noted that unlike MCE, other agencies like Silicon Valley Clean Energy had proactively addressed rising energy costs with their boards, offering a contrast in governance approaches.

Conclusion: Moving Forward with Financial Reforms

The board’s decision to form a finance committee reflects a commitment to improving financial oversight and accountability. As MCE navigates a complex energy market, these reforms aim to ensure better alignment with its mission and stakeholder interests.