“But who watches the watchdog, especially if he shows signs of distemper?” wrote Ken Picard of Seven Days in his lengthy piece about the Vermont State auditor’s race in last week’s Seven Days entitled Which Watchdog.

 If the latest press and press releases are any indication, Vermont State Auditor Candidate Doug Hoffer isn’t shy about focusing on the facts and campaigning in the process.

More than a month ago, auditor candidate Hoffer chastised the other auditors currently campaigning for the seat, past auditor Ed Flanagan and current auditor Tom Salmon, for calculation errors in their campaign finance reports.  Last week Hoffer focused on the integrity required by the office (see quotes below), and now this week is chastising Tom Salmon for not releasing the audit of the Vermont Yankee Decommissioning Fund that was requested by the state legislature almost three years ago.

According to Dan Barlow in the August 7 Rutland Herald article Policy analyst Doug Hoffer is proud to run on his record,

The mistakes – ranging from carry-over funds mysteriously showing up to double-reporting contributions to inflate the total – were embarrassing for his opponents, especially since they are running for an office that audits state government.

“I don’t think either of them had any bad intent, it was just sloppy work,” Hoffer said during a telephone interview this week from his Burlington home. “But considering the job they are running for, they shouldn’t have made these mistakes.

Maybe its Hoffer’s legal training or his 17-years as an independent business consultant to the State of Vermont and the City of Burlington, just to name two of his clients, but Hoffer appears to be on top of the facts, thorough in his research, and doesn’t mince words.

Hoffer’s press release this morning was entitled,

“Hoffer calls on Salmon to Release Overdue Entergy report”

Democratic candidate for State Auditor Doug Hoffer today asked Tom Salmon to explain why his office has not released an audit of the Vermont Yankee decommissioning fund requested by legislators nearly three years ago.  

More below the fold…

In his direct email request to Salmon, Hoffer said,

From: drhoffer@comcast.net

To: tom.salmon@state.vt.us

Sent: Wednesday, August 11, 2010 11:26:47 AM

Subject: comment

Tom — It has now been almost three years since four state senators asked you to conduct an audit of the Vermont Yankee decommissioning fund (letter sent 11/6/07).  The owners of the plant are gearing up for the coming legislative session and the information requested by the senators is extremely important.  I am unclear why it has taken so long to complete the audit but policymakers and the public need to see it.  I hope you will release the audit as soon as possible.

Thank you – Doug Hoffer

The firm I founded in 2003 and incorporated in 2005, Fairewinds Associates, Inc, first alerted the State Legislature to the issue of the lack of funding in the fall of 2007.  Until I read Hoffer’s press release today, I had forgotten all the details and efforts leading up to our report(s), subsequent legislative action, and the complete lack of action by current auditor Tom Salmon for more than 3-years!  

Hoffer included this letter, which I had totally forgotten about, in his press release.  With all the oversight work Fairewinds has done on Vermont Yankee and on the lack of money in its decommissioning fund, I had forgotten that Senator Shumlin; Senator Cummings; Senator MacDonald, and Senator Lyons had written to auditor Salmon requesting a complete review almost 3-years ago.  My experience with the auditor began months before this letter and the issuance of the Fairewinds’ Report.

November 6, 2007

Dear Tom:

We are writing to express our concern about the status of the fund for decommissioning Entergy Nuclear’s Vermont Yankee power plant in Vernon.  The enclosed information, compiled by Fairewinds Associates, Inc., raises serious questions about the size of the fund relative to projected decommissioning costs, the management of the fund by Entergy Nuclear, and the corporate structure of Entergy Nuclear Vermont Yankee relative to its parent company and the potential ramifications of that structure for Vermont taxpayers.

As legislative leaders, it is our responsibility to ensure that the decommissioning fund – which is composed of ratepayer dollars – is managed and used in a way that best benefits the State and its citizens.  We would like to request an independent audit by your office to explore whether or not this is the case.

Senator Shumlin; Senator Cummings; Senator MacDonald, and Senator Lyons

Fairewinds Associates, Inc is a paralegal services and expert witness firm that I founded in 2003 after earning my paralegal certificate from Burlington College.  My intent upon my career change from teaching to paralegal was to work with kids in juvenile justice, but a request by New England Coalition for my services in the Vermont Yankee Uprate Case before the Public Service Board started me down a different path.  The request came because in addition to my paralegal background, I also had years of experience in the nuclear industry, first in nuclear reload core design as an engineering assistant and later in nuclear public relations, sort of the female Rob Williams of the site to which I was assigned.

Now nearly 85% of my Fairewinds Associates’ business revolves around nuclear safety and nuclear engineering issues with the remaining 15% divided between basic paralegal services on small business or personal contracts (rental agreements, etc) and pro-bono child abuse work.

In July 2007, with Fairewinds 4-year history in nuclear safety and engineering analysis, we went to newly elected auditor Tom Salmon to ask for clarification regarding significant discrepancies Fairewinds Chief Engineer Arnie Gundersen and I had found in the VY decommissioning fund.  We met with auditor Salmon and members of his staff several times during that summer and early fall.  We asked questions and provided them with all the information we had.  

I had assumed that the auditor would have answers to some of our questions.  He did not.  I hoped we would get answers quickly so that we could speak with legislators during the fall and the legislature could address Fairewinds’ concerns beginning in January.  I did not want to see VT taxpayers stuck with a huge tax liability when VY was decommissioned because the fund was underfunded.  

I felt like I was sending this critical information into a black hole.  I was told that the auditor had more important issues on his desk and it might be many, many months before he would be able to adequately review this issue.  Of great concern to me was the fact that I was not just asking Salmon to review VY’s fund, although that is the auditor’s job, but I was also asking for information as a member of the public and as a taxpayer with legitimate concerns.  Neither of which I received.  

Finally, I took my Fairewinds’ internal document, bundled it and took it to the only person I knew at the time who might be interested, Senator Virgina Lyons.  I picked Senator Lyons because she was the Chair of the Senate Natural Resources Committee and one of the Chittenden County Senators I had met at several events.  Senator Lyons was stunned by Fairewinds analysis and took it for review by Senator Shumlin, Campbell, and Cummings, all of whom were equally concerned and therefore requested the audit from Tom Salmon.

Back to present time, Hoffer said in today’s press release:

“These were not idle thoughts by the senators,” said Hoffer.  “Their concerns were based on information provided by Fairewinds Associates about the adequacy and management of the funds.”  

Shortfalls in the decommissioning fund led to passage of S.373 in 2008 that required Entergy to guarantee funding now instead of decades hence.  The bill was subsequently vetoed by Governor Douglas but the issue is alive and unresolved.  

“With Vermont Yankee’s owners gearing up for a fight in the next legislative session, it is critical that legislators and the public have access to the audit,” Hoffer said.

Hoffer noted that the Auditor was visited by officials from Entergy during the legislative debate over S.373.  Shortly thereafter Salmon sent a letter to all legislators expressing concern that “S.373 could add undue risk to the state.”  The letter was sent on April 22, 2008, over five months after the Auditor was asked to audit the decommissioning fund.

But Hoffer asked “having not completed the audit, on what basis did Salmon decide that S.373 ‘could add undue risk to the state.'”  

Hoffer continued, “We will never know what transpired in those conversations between Tom Salmon and Entergy officials, but it is not unreasonable to ask whether Mr. Salmon feels at all biased or personally impaired in the matter.  

Government Auditing Standards make it clear that ‘auditors…must be free from personal impairments’ to objectively carry out their duties.”  

Hoffer concluded, “In any event, two and a half years ought to be sufficient to complete even the most complex audit.  The legislature needs the requested information and Tom Salmon should release the audit and explain why it has taken so long (and tell us the cost of the audit as well).”

Doug Hoffer’s quote that

Government Auditing Standards make it clear that ‘auditors…must be free from personal impairments’ to objectively carry out their duties.

really struck me and reminded me of Hoffer’s Opinion piece sent out last week and featured in full in VTDigger entitled Hoffer: As auditor, I will ensure taxes are spent effectively

The State Auditor is the elected official responsible for ensuring the integrity of every tax dollar spent. In carrying out that responsibility, the Auditor’s office itself must conduct its business with the highest integrity.

As Auditor, I will restore the integrity of the office. I will do this in two ways: first, by adhering to a personal code of conduct appropriate to the Auditor’s position, and by revitalizing the office to be a robust watchdog for Vermont taxpayers.

I believe confidence in the State Auditor is at a new low because of personal conduct issues. Of most concern to me is the use of taxpayer dollars for political campaign use. This has been well-documented and reported, and yet it bears repeating.

As a business owner who brought an issue of legitimate concern forward to our state auditor, I am appalled that in more than three years, Salmon has been unable to write a report that was almost written for him.  The issues raised by Fairewinds became part of a large national story broken by Vermont AP Reporter Dave Gram, that showed that more than 25% of operating nuclear power plants have seriously underfunded decommissioning funds.  Vermont’s Auditor could have been leading the country in uncovering this critical issue.  

Now all I see in Salmon is someone hiding and most likely manipulating data in order to attempt to boost his election credibility with a report release during the last 3-months of his reelection bid!

I remember when I first moved to Vermont in 2001, how impressed I was with reports from the auditor’s office.  To me this seemed like a great state where an elected official had the awesome responsibility of protecting the taxpayers of the State of VT.  



Doug Hoffer gives me the confidence that he will protect all of us from the over-reaching arm of any corporation as well as any state agency.  

As Picard said, “But who watches the watchdog, especially if he shows signs of distemper?”

I think Hoffer is already doing the job he will be elected to do in November – if you vote.

**********

PS

I wondered, isn’t there some type of oath that state officers must take to uphold the integrity of the office???  I know that I take an oath with documents I prepare; I take an oath as a Justice of the Peace and as a notary public; and I take an oath as a City of Burlington Public Works Commissioner.

Here is the oath of office that I found in the Vermont Constitution that State Officers like Tom Salmon take:

OATH OF ALLEGIANCE; OATH OF OFFICE

§ 56. Oaths of allegiance and office (notes)

Every officer, whether judicial, executive, or military, in authority under this State, before entering upon the execution of office, shall take and subscribe the following oath or affirmation of allegiance to this State, (unless the officer shall produce evidence that the officer has before taken the same) and also the following oath or affirmation of office, except military officers, and such as shall be exempted by the Legislature.

The Oath or Affirmation of Allegiance

You do solemnly swear (or affirm) that you will be true and faithful to the State of Vermont and that you will not, directly or indirectly, do any act or thing injurious to the Constitution or Government thereof. (If an affirmation) Under the pains and penalties of perjury.

The Oath or Affirmation of Office

You do solemnly swear (or affirm) that you will faithfully execute the office of __ for the __ of __ and will therein do equal right and justice to all persons, to the best of your judgment and ability, according to law. (If an oath) So help you God. (If an affirmation) Under the pains and penalties of perjury.