Leaders in local homeowners’ associations (HOA’s) have shown interest in the Perry Mitchell-organized Consumers for Alternative Power (CAP), giving the potential residential electric cooperative more life.
On May 17, Mitchell spoke in front of ACTION, an umbrella group of nine HOA’s, representing as many as 2,500 local residents. At that meeting, the leaders of the HOA’s gave Mitchell the right to negotiate with suppliers using the grass-roots interest of 2,500 residents, according to Mitchell and a HOA board member in attendance. Mitchell has already talked to one supplier and discounts might be available, he said, although a credible source said that 10,000 residents would have to register to attract suppliers.
“We were certainly encouraged afterwards that there did need to be some action taken to try to help all of the homeowners’ associations,” said Bob White, a board member on the Hunter’s Run HOA who was at the May meeting. “It certainly has to help us. At this stage, our hands are pretty much tied.”
Although Mitchell is sending out letters implying that 2,500 local residents are interested in cooperative participation, he would have to receive applications from all of them before they registered to actually participate. The 2,500 number, for now, is just leverage for a group that, before May 17, had less than 100 people on board.
“I think Mitchell is still in the investigation stage,” said Bill Pinckney, the president of the Forest Reach HOA. Forest Reach, a relatively small development compared to some, only includes 58 homes. “I don’t think (Mitchell) has the base yet,” Pinckney said of CAP. “He’s checking into something, but it hasn’t gone anywhere as of now. I would suggest that he is expecting the board members of the ACTION group to go talk to the residents.”
Pinckney said that after talking to neighbors and other residents in Forest Reach, he doesn’t think there is interest for CAP in Forest Reach, although it might help.
“I think they’re doing what most people are doing: waiting to see what happens. I don’t think they’re going to be jumping on the bandwagon,” he said.
Joe Richardson, the president of South Hampton’s HOA, said that CAP’s effort is something in which his 217-home community would “definitely be interested.”
Richard didn’t attend the May meeting but got most of his information — which he considers optimistic — from the vice president of South Hampton’s association, Ed Dickerhoff.
“There’s certainly a lot of interest,” Dickerhoff said, adding that South Hampton’s board could in the future mandate a residential electric switch to CAP if the benefits encouraged such a move.
Dickerhoff said that the community is sending out a poll but added that 2,500 is not a large number and it will be an “uphill battle” to form such a cooperative effort.
“We would like to get into a co-op to give some competition to the monopolistic utility companies,” he said “But it’s not going to happen overnight.”
Mitchell started the grass-roots organization in late-April, before Delmarva Power rates increased an average of 59 percent for residential customers.
According to Richard Anderson, a principal with CQI Associates, a Maryland-based aggregator, 10,000 residents would indeed have to register for the co-op to attract suppliers.
Mitchell said, though, that with HOA assistance, he has already talked to a local supplier’s president, and discounts might be available. Mitchell asked that the supplier’s name not be disclosed until he talked with its marketing specialist sometime late this week, after the Coastal Point went to press.
E-mail Mitchell at pmitchell@mchsi.com for more information on the group.