The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, December 31, 1994            TAG: 9412310309
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY THOMAS YOCUM, CORRESPONDENT 
DATELINE: BUXTON                             LENGTH: Medium:   52 lines

HATTERAS COOPERATIVE HIRES LEADER TROUBLE

Directors of the embattled Cape Hatteras Elective Membership Cooperative turned to a seasoned pro Friday to ``help us get some things straightened out.''

James D. Sherfey, a 37-year veteran of the power industry, was named interim manager of the utility that has come under fire from its members in recent months.

Sherfey's most recent job was executive vice president and chief executive officer of the Lee County Electric Cooperative in North Fort Myers, Fla.

``I'm looking forward to assisting them in working on some of the issues facing the cooperative, and resolving them in the best interest of the membership,'' Sherfey, 60, said after meeting with the directors of the Hatteras cooperative.

He said he would be here for three to six months to help find a permanent general, complete a power line project and improve community relations.

The utility has about 20 employees and provides electricity to about 3,825 customers, who also are members. Its last two managers resigned, and when John A. Nichols left Oct. 18, he disclosed that the utility's accounting firm had been paid more than $430,000 over the past year.

An independent audit of fees is under way, and last Friday the directors said no further work or payments would be authorized for the accounting firm until the audit is done. Board President Jack Gray said the suspension was made at the request of members and was not ``an accusation nor admission of any wrongdoing.''

The members also have complained about the costs of power on the island, and about regular outages that the new line is designed to curb.

Two spokesmen for the board, Dale Burrus and John Hooper, said they believe Sherfey will get the utility back on track.

``He'll be here to help us get some things straightened out,'' Burrus said. ``We need a top-flight manager to get us through these troubled times, and that's what we got.''

Hooper said Sherfey isn't coming come for the money ``but to give us a hand. I think he can help us with our growing pains.''

``He'll help us in our search for a general manager and additional employees.''

They said Sherfey would be paid a salary similar to what Echols was earning when he quit. Echols said he was making $75,000 a year.

The board picked Sherfey from a list of candidates provided by the National Rural Electric Cooperative Association. He is scheduled to start Jan. 16. by CNB