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Thursday, November 27, 2008, 3:00 AM
No resignation package for Tilton By Rochelle Moore | Daily Times Staff Writer The employment contract for Jesse Tilton III, the former chief executive officer for ElectriCities, did not include any financial compensation if Tilton resigned from his post, as he did earlier this month. Attorney Mike Colo, who represents ElectriCities and is with the law firm Poyner and Spruill, released the terms of Tilton's contract earlier this week. Under that contract, the former CEO was paid his annual $436,283 salary until the time of his resignation Nov. 7. His contract was slated to continue through September 2009. A severance payment benefit was also in the contract that would have required for Tilton be paid one year's salary and other compensation benefits if he was fired without cause. That did not happen, Colo said. "He's not receiving compensation, and he's not receiving pay now," Colo said. Tilton resigned after a special meeting of the ElectriCities board of directors held at the Poyner and Spruill office in Raleigh. At that time, ElectriCities chairman Sam Noble did not disclose whether any financial compensation was included with the resignation. After the meeting, Tilton said he was pleased with the accomplishments of Electricities, a trade association he led for 13 years, as well progress made by the two public power agencies ElectriCities staff manages for 51 North Carolina cities, including Wilson. The city of Wilson, which owns its own electric system, is one of 32 city members of the N.C. Eastern Municipal Power Agency. NCEMPA owns share in several power plants and sells electricity at wholesale cost to the member cities. Tilton's resignation came during a time when NCEMPA cities are facing some of the highest electric rate increases in years, which ElectriCities staff attribute mostly to rising coal prices and the cost to operate and maintain the power plants. In August, NCEMPA passed a 14 percent electric rate increase and another 4 percent that will start in February. "ElectriCities accomplished much over the 13 years I have been privileged to serve as its CEO," Tilton said, after his resignation. "At this point in my career, however, I have become interested in a change of direction and new interests." The ElectriCities board picked Art Hubert, a 30-year ElectriCities employee, to serve as interim CEO until Tilton's successor is hired. Hubert, ElectriCities chief operating officer, will continue to receive his $254,299 salary and an additional $7,582.67 for each month he serves as interim CEO, said Ken Raber, an ElectriCities senior vice president for ElectriCities Services and NCEMPA. The ElectriCities board of directors, which met last Friday, delayed its discussion about a CEO search until its Dec. 12 meeting. The board will discuss plans for a nationwide search. Raber is uncertain whether the CEO search will be open to qualified ElectriCities employees. Raber said he was uncertain whether he would consider the post, if it became available. "There's not a position to be interested in," Raber said. "When the board makes a decision on what they're looking for, I'll make the decision then." The ElectriCities board of directors is in the process of evaluating the upcoming 2009 budget, which starts Jan. 1. The budget will be amended to reflect an upcoming 4 percent electric rate increase for NCEMPA member cities. Tilton is one of several ElectriCities CEOs. The first two CEOs for the trade association before it managed the two power agencies were Fritz Mills and Marshal Lancaster. Ralph Shaw was the CEO from 1978 to 1984 during the time when the power agencies started to take form. Jim Bobo succeeded Shaw and was CEO from 1984 to 1994. Hubert was the interim CEO for 16 months until Tilton was hired in October 1995. rochelle@wilsontimes.com | 265-7818
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