Read Me: The Facts About the Cleco Case

On June 23, 2005 the Town Talk reported the City had filed suit against Cleco.

FACT: When the City Council went into Executive Session on June 21, 2005 to discuss pending litigation with Cleco, Energy Management Services, LLC’s sole owner and member was David Pugh. See Louisiana Secretary of State Corporate Database.

EMS was founded in April 2004 and had a change in membership in May 2004 leaving Pugh the sole member.

FACT: On September 23, 2005, Harold Chambers, Darrell Williamson and Sonny Craig were dismissed from the City. Delores Brewer moved into the position of Chief of Staff soon after.

FACT: On March 7, 2006 the City Council authorized the Mayor to sign Amendment 1 to the contract with EMS, lowering the contingency fee (compensation rate) they would recover from the Cleco suit. Delores Brewer was the Chief of Staff then and could have advised the City Council to negate the contract then if it was “illegal.” The amount EMS is due to receive is no longer at 50%.

FACT: Bridgett Brown is part of the legal team, along with 2 other Alexandria attorneys, who have since left the case, and 2 attorneys from Baton Rouge whose contract states they are to receive 35% of moneys recovered from the suit which will be split 5 ways. Even though the 2 other Alexandria attorneys departed from the contract, the most Bridgett Brown could receive under this agreement is 11.67%.

FACT: Sam Sansing, along with David Pugh, were sued by Cleco for breach of confidentiality after they left the employ of Cleco.

On October 15, 2005, Sansing countersued Cleco in an act known as reconventional demand. Sansing’s attorney of record is Jacques Roy, something Mr. Roy has never disputed. Mr. Roy does not represent EMS, nor does he represent David Pugh, nor is he one of the other two attorneys who would recover any portion of the 35% under the legal agreement with the City of Alexandria. He is representing an individual being sued by a former employer.

In order to read the Town Talk’s coverage of the Cleco case, you’ll need a credit card to access their archives. Or you could just go to the library.

40 thoughts

  1. Who is representing David Pugh and his company…that will be where the money is made if this Cleco mess turns out to be the same type of stuff where Cleco was caught doing the same type of things down in Opelousas (to a tune of $18,000,000!!)..if you read the reports, there are many from the Public Service Comm. that said the amount should have been higher..

    Sounds like a lot of jack…with that kind of money, we could get a nice waterslide with some serious bling-bling.

  2. Pugh and EMS are represented by Mike Johnson. Also, you should know the City has I believe accepted some funds from CLECO and in the acceptance signed papers to forego any further claims to money owed. This was back when the PSC investigated. Way before EMS brought things to “light” with the City.

  3. Lamar.

    The reason that Delores didn’t advisa against, veto, cancel, dissaprove, reject, etc… the EMS Contract while she was Cheif of Staff is simple. She did not have the authority to do so. The Cheif of Staff position is not part of the City Charter and therefore has no authority. The Cheif of Staff’s job is to be a liason between the Council and the Mayor’s office not to be the CEO of the City. The Mayor sets policy and the Chief of Staff implements it. Get it now?

  4. Doesn’t Pugh now own KJA Communications? Didn’t he buy it from Ken Juneau? Isn’t Juneau one of the Mayor’s advisors? Anyone else see the irony?

  5. “Doesn’t Pugh now own KJA Communications? Didn’t he buy it from Ken Juneau? Isn’t Juneau one of the Mayor’s advisors? Anyone else see the irony?”

    Yes to the first 3 questions. More ironic – KJA has had a nice big fat contract with the City of Alexandria for some time now.

  6. Who was the Ciy Atty when the City allegedly signed these “papers” to waive their rights to recover? hmmm?

  7. If such a release existed then why in the hell is Cleco in federal court and subjecting itself to an independent audit? If the City had waived further claims that matter would have been presented the day after the suit was served and it would have been summarily dismissed. Geez you people kill me. I think Cleco was secretly bottling the extra electricity and selling t to N. Korea and Iran. Can you disprove me?

  8. Go to the PSC site, do a document search for docket number U-26994. Look for the item involving the settlement. There is a specific heading for Reservation. The City of Lafayette is the only entity reserved from further proceedings in claiming any additional funds under the agreement reached with the parties involved in the trading issue.

    Additionally in his sworn testimony, George Bausewine stated before the PSC – “The Settlement also complete and finally settles, without any additional recoures, all remedial and economic issues, including refunds for same, for all FAC and base rate-making purposes (including RSP purposes), all power and gas tradining activities and all other affiliate transactions affecting Cleco power’s FAC, as wel as all transactions between Cleco power’s FAC and WMO books, for the period 1998 through 2002, and is res judicata with respect to all such matters. The parties release, waive, and forever discharge all claims relating to all such matters.

  9. DB could have spoken up about the contracts and definately WAS in a position to try to do something about them–along with Provosty.

  10. Wow. Some of you really believe CLECO commercials. They are not the fine upstanding corporate citizens that they pretend to be.

  11. Thanks Perry Mason,

    I hate to burst your bubble but the PSC has no jurisdiction in the Cleco/COA case. It is an issue of contract law between two unregulated entities.

  12. Except that PSC investigated post FERC on the trading scandal specifically to make sure the rateholders were reciving all moneys due to them. Go read the J. Kennedy and Associates report. It even indicates that PWC the auditor hired by Cleco found poor practices separating the two companies both with employees and bookkeeping.

    The trading gains and losses impacted Cleco’s base rates and their Rate Stabilization Plan – which the PSC has control over.

  13. Lamar:
    Please check on the door to door activities of the camps and report back. What’s the rhetoric out there?

  14. I have heard some reports about Brewer’s door to door campaigning in Charles Park.

    I would imagine that there is some truth to the rumor that she is targeting those precincts, belieiving them to be heavily Republican and understanding that they turned out in higher numbers than any other area in town.

    As far as what Roy has been doing:

    He and his supporters have been canvassing all over town. He’s in a different neighborhood practically every day.

  15. Lamar —

    Please ask Mr. Roy if his client Mr. Sansing will be employed by the City of Alexandria if Mr. Roy is elected Mayor? I anxiously await your response.

  16. Lamar, Great breakdown of the whole cleco situation. I just wish the clown talk would explain it like that to their readers. Also, Roy is gallavanting in to every neighborhood with slew of Hotties.

  17. They were fired because they were breaking the law that regulates cost share agreemments with subdivision developers. It’s really that simple.

  18. I wonder if Delores will come to my home in Charles Park? She came once before, and it just so happened that the night before she came, my Roy sign was stolen from my yard. When I woke up this past Saturday morning, guess what was missing from my yard again. I have no idea who is responsible for sign thefts, but it only makes my resolve and support for Jacques Roy stronger, and it also reminds me that I need to spread the word to as many people as I can that he is the only choice if we truly want to move this city in a positive direction.

  19. Back to this Cleco mess….why do they spend thousands of dollars advertising? what is their slogan? “We are here for you”….? You better be since you have a monopoly on electricity in this area? How much of my bill goes for you to tell me you are watching over me when the Feds say you better watch over me or else they will find some other Enron, I mean utility provider, to give me some juice!!

  20. What DB said to me when she came to my house was that she tried to get rid of the BBrown lawyer contrac but Mayor Ned wouldn;t listen to her when she was at the city. She also said he told her to cover up the BR meeting, so essentially blaming him for her lie! Talk about biting the hand that feeds you. Who hired her 16 years ago? Who made her chief of staff? Who appointed her husband to important boards? IMHO, with friends like that, who needs enemies?

  21. Maybe she’s the one lying since Ned made it clear to Shotgun Billy that he’s not endorsing anyone. Let’s see – we all know about the cat fight with Bridgett at the Council meeting. Pugh has now jumped over to Jacques side and Ned won’t stand by her. Anyone see a pattern here? She’s attacking everyone who can prove she’s inadequate or has abandoned her lately.

  22. “Even though the 2 other Alexandria attorneys departed from the contract, the most Bridgett Brown could receive under this agreement is 11.67%. Not the amount Mrs. Brewer is claiming.”

    Didn’t DB say she would recieve 10%?

  23. “they were breaking the law that regulates cost share agreemments with subdivision developers”

    Thats a lie. Yep. A lie. You might check your facts before you get Sonny all fired up again. Or better yet ask Ned.

  24. Actually I believe “they” tried to tie Darrell to the subdivision cost share deal and I know which one – btw not one of Harold’s brother-in-law’s developments either. Sonny and Harold’s dismissal was a total separate issue.

  25. So it had nothing to do with the “cost shares”? I can buy that. I always thought it was much simpler than that. Maybe the Nigras downstairs wanted them gone and they got what they wanted.

  26. Prhaps Mr. Dorsey’s dismissal was retaliation for that. BTW anybody else hear that he is trying to start a new Church on Enterprise Road?

  27. Dorsey was stealing from more than FEMA. APD wouldn’t look at the evidence to put him away. The fix was in until it suited A and J to get rid of him.

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