2 Valley Electric Association board members resign amid sexual harassment cover up allegations

Local News

LAS VEGAS (KLAS) — Two board members, including the president, have resigned from their duties at Valley Electric Association in Pahrump.  It comes amid a criminal case involving the company’s former CEO and allegations that the Co-op paid employees “hush money” to cover up sexual harassment claims. Investigators want to know who knew about it and when they found out.

More than 2,000 people in Pahrump signed a petition to oust the current board of directors at valley electric.

“This board could not have done things more wrong to get people this mad if they had tried,” said Ken Johnson, Valley Electric Association Members for Change.

Some of the board members are leaving their positions on their own. Board President Ken Derschan resigned on Wednesday citing personal reasons.

Three days later, another board member, Peter Gazsy, also resigned.  Gazsy cited a pending recall of his seat as the reason for his resignation.

In a statement, the company said:

“We are grateful for the many years of service to Valley Electric Association Ken and Pete have given, and we wish them both the very best.”

“Our goal is to get a fresh perspective in there; break up the little club and get back to each director serving their constituency and a free flow of information, not this nonsense that’s been going on,” Johnson said.

Police suspect a recent rate hike may have contributed to a possible cover up. The current CEO Angela Evans was arrested on embezzlement charges in April.

The cooperative has repeatedly denied all allegations. The board is expected to vote on a new slate of officers for the 2019-2020 year at its next meeting on May 31. 

Go here for a list o all of the Valley Electric Association board members.

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