A River Road couple’s request to be allowed to switch from Washington Electric Utilities to Tideland Electric Membership Corp. for power service should not be granted, according to a memorandum fro WEU Director Keith Hardt to City Manager Brian Alligood.
“I recommend that the City Council take no action and deny Mr. Morgan’s request for release. … I ask that the City Council think of the long-term ramifications of allowing this release. If a precedent is set it could have a large impact on the operating revenue of the electric fund,” Hardt wrote in the memorandum.
The council took no action on the matter during its Dec.9 meeting.
At the Washington City Council’s Nov. 18 meeting, Randall and Shelia Morgan asked to be allowed to make the switch. They told the council that Tideland EMC would accept them as customers if the city would permit the switch. The Morgans told the council that Tideland EMC has power lines that run behind and in front of their home.
At that meeting, then-Mayor Archie Jennings asked city staff what would be involved in releasing the Morgans from WEU so they could be served by Tideland EMC. Alligood replied such a move was something the city has never made in the past. Alligood said that under state law, once a power provide such as the city serves a customer, the provider retains the customer until the provider removes that customer from service
The Eastern North Carolina Municipal Power Agency, from which Washington buys its power wholesale, would have to approve the transfer of service, Alligood said.
Jennings and the council asked staff to look into the issue and return to the council with a recommendation.
In the memorandum, Hardt outlines his reasons for denying the request as follows:
“1) The North Carolina electric territory law allows a utility to serve a premises (customer location) as long as that premises exists. (i.e. once a customer is served by an electric utility that customer shall always be served by that utility) By releasing a customer from the service requirement we would go against the intent of the NC territorial law.

_2) There may be implications with the bond covenants of the North Carolina Eastern Municipal Power Agency (NCEMPA). (see attached) These covenants do not allow the City of Washington to sell or eliminate a customer or portion of the electric system that would have material adverse effect on the revenues or operations of the City’s electric system. One customer released from service of the City may not contribute to an ‘adverse effect’, but allowing this release would open the door to many customers requesting the same release. Once the precedent is set if a large number of customers left the electric system NCEMPA could determine that there is an ‘adverse effect’ on the City’s system.”