Nov. 8--TUPELO -- Northeast Mississippi's 10 electric power associations hold $17.4 million in investments and $14.8 million in cash, their latest financial reports show.

While the way they approach using those funds differs, officials say they must plan for emergencies and use cash to pay their power bills.

"Our biggest potential for loss is the weather," said Ronny Rowland, general manager for 13,731-member Prentiss County Electric Power Association based in Booneville. "That could put our customers in a problem, if we didn't keep reserves."

As an example, he recalled the infamous ice storm of 1994. That natural disaster cost the utility about $1 million in losses.

Questions about EPA investments came up recently with the revelation that McComb-based Magnolia Electric Power Association sank some $5.3 million during 2008 into Stanford Financial Group, which collapsed earlier this year under the weight of a U.S. Securities amp& Exchange Commission investigation.

Magnolia officials say they have recouped about $3 million, with hopes for the other money, which is under control of a court-appointed receiver.

A Daily Journal survey of the state's 25 EPAs showed no other Stanford investments.

But the Magnolia experience raised questions about how other EPAs are handling investments and cash for their member-owned organizations.

Brandon Presley of Nettleton, Northern District Public Service commissioner, is asking his own questions, especially about the safety of the EPAs' investments over traditional bank products.

"I don't think state law contemplated investments" outside of bank and trust companies, Presley said late last week.

He says he plans to ask for PSC authority to require EPAs to undergo compliance audits every year to review whether they've adhered to regulatory guidelines.

Big business

A look at the region's EPAs shows a nearly $500 million industry serving more than 227,000 people.

Mississippi has 25 EPAs, which are private, member-owned corporations created by an act of Congress to provide electric power to their jurisdictions. They are governed by local boards of directors elected annually by the membership of the rural utility's customers.

Northeast Mississippi EPAs are on two reporting cycles, depending on if they buy power from Tennessee Valley Authority or not. TVA buyers make annual financial reports through June 30, while the others are on a calendar year.

Tombigbee and 4-County are the region's largest power associations.