GLASGOW – William Ray, the longtime superintendent of the Glasgow Electric Plant Board, is retiring effective March 1.

The announcement was made during a special meeting of the GEPB’s board of directors Thursday. During the meeting, the board met in executive session for a court-ordered mediation.

The announcement of Ray’s retirement came after the board resumed its open session of the special meeting and was one of the settlement terms recited by Attorney Rick Walter of Paducah, who served as mediator.

“After March 1, Billy Ray has agreed to act as a consultant/adviser to the Electric Plant Board for a minimum of three months. At his option and his option only, he may continue thereafter for an additional three months or no more than six months total,” Walter said.

Ray, who is 66, will receive his full pay and benefits during the time he continues to act as an adviser/consultant to the GEPB. Ray declined to state what his annual pay is. In addition, he will receive as severance a lump sum payment of $250,000 on or about June 1.

“The parties contemplate that a mutual release will be prepared, and Attorney Matt Baker is charged with the initial drafting of that document subject to approval by all other counsel for all other parties,” Walter said.

Ray’s attorney, Chris Davenport, asked for clarification on whether the GEPB is to be included as a signator, along with board chairman D.T. Froedge, to the release of the mutual non-disparagement provisions, and Walter said that it would.

Ray will also be allowed through an agreed order to intervene in the Barren Circuit Court actions for the purposes of preparing all documents necessary for the enforcement of the settlement agreement.

This includes an agreed order of dismissal with prejudice, which Walter said will be given to all parties involved to sign and held in trust by Davenport until the lump sum of $250,000 has been made. At that time, the agreed order of dismissal will be filed with the Barren Circuit Court, Walter said.

During Ray’s tenure, the Glasgow EPB earned national acclaim for successfully creating in the 1990s the first municipal broadband network, which is also widely believed to have been the first citywide broadband network in the United States. In recent years, the EPB came under fire for implementing a controversial rate structure for electric service, sparking a tumultuous period for the utility that included attempts by some members of the board of directors to remove Ray from his position.

Ray declined to make a comment following the special meeting about his retirement, but said he will have a full statement in a few days after it has first been approved by counsel.

Baker, who was hired in December 2020 by the board to assist in arranging the court-ordered mediation, had filed a writ of mandamus on behalf of his clients with the Kentucky Court of Appeals against Barren Circuit Court Judge John T. Alexander and others. According to a glossary of terms in the Kentucky Circuit Court Clerk’s Manual, a writ of mandamus is filed in circuit court and directs a district judge or other party to perform a certain act.

Baker is to withdraw the writ of mandamus immediately so no further action is needed in the court of appeals.

“In addition, following the initial mediation I conducted in October, there were motions for contempt filed with the Barren Circuit Court,” Walter said.

The motions for contempt were filed against Froedge for violating the confidentiality provision of a mediation that took place in October.

“As possible sanctions, the court indicated there was consideration for attorney’s fees and other charges, but each party will notify the court that they are withdrawing any request they may have for contempt sanctions,” Walter said.

Froedge declined to comment about the terms agreed upon during the mediation.

“I really can’t say anything about it but to say we are pleased with it,” he said. “I’ll have to let it go at that because I’m under obligations not to say anything.”

The GEPB board also met in special session Friday morning, during which it agreed to drop the lawsuit filed against the Tennessee Valley Authority by Lexington-based law firm Frost, Brown and Todd on behalf of the board.

The law firm was ordered to look into restoring a 90-day consideration period for a flexibility option to a 20-year contract with the TVA. If granted the 90-day consideration period, the GEPB could also reject its contract with TVA.

Froedge had said Wednesday that he reasonably believed that the board would drop the lawsuit, and Mayor Harold Armstrong had indicated the same Monday during the Glasgow City Council meeting.

A stipulation for dropping the lawsuit was if the TVA would allow Maureen Carpenter, director of the Barren County Economic Authority, to “use all of the tools in her bag” to attract a group interested in locating in Glasgow.

The decision to drop the lawsuit falls on the heels of the city council voting Monday to adopt a resolution stating the future economic development of the city relies on a partnership with TVA and that it would be harmed greatly if the board rescinded its long-term agreement with TVA.

Also Monday, the city council acknowledged receipt of a letter presenting a joint position by the BCEA and the Glasgow-Barren County Chamber of Commerce opposing actions to be taken by the board to rescind and cancel the 20-year contract with the TVA due to the negative impact such action would likely have on economic development and existing businesses and industries.

Froedge sent a letter to city council members Monday and said any suggestions made by anyone that the board was wanting to withdraw from the TVA were untrue.

“GEPB is simply seeking to restore for itself an important right that it bargained for with the TVA in the LTA (Long-Term Agreement),” the letter said.

On Friday, board member Libby Short also asked that the board request that Frost, Brown and Todd submit their bill immediately, and Froedge said he would do that.

Ray recommended the board authorize him to write the law firm a letter asking that the lawsuit be dropped and cancel the engagement letter rather than calling the law firm.

By canceling the engagement letter, the law firm would have no way to continue billing the board for hours or service, Ray said.

“I think that would be a very good idea,” Short said.

Froedge, on the other hand, didn’t think canceling the engagement letter with the law firm was a good idea.

“We may need attorneys yet,” he said. “If we need an attorney, this is probably the best firm in Kentucky for doing litigation in the electric arena. It doesn’t cost us anything if we don’t ask them to do anything.”

The board is scheduled to meet for its regular monthly meeting Feb. 23.