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Thursday, June 25, 2009

The Oppre$$ive Texa$ Electric Indu$try: "Phony-Baloney" lawmakers feigning outrage?


As far as Texans are concerned, by their long-time legislative inaction, Sen. Fraser, Rep. Rose and Sen. Wentworth are part of the ongoing problem re: PEC and other electric coops and companies overcharging and scamming hardworking Texans

Editor's Note: PEC's board of directors recently authorized a settlement totaling $4.1 million for claims against Pedernales Electric's former law firm from Austin – Clark, Thomas & Winters. Houston attorney Jimmy Williamson, who was hired by PEC's new management to pursue the claim, reportedly
will receive $1.4 million for his legal services. The explosive Navigant audit, which uncovered many and serious financial irregularities under PEC's past management, including its dealings with Clark, Thomas & Winters, cost PEC in the neighborhood of $3 million. The math says we member/ratepayers and our power co-op come up on the short end of this deal by about $300,000.

Some alert members over at the pec4u watchdog group have been scrutinizing another recent expenditure by the co-op's new management of between $65,000 and $70,000 for an employee training retreat. The retreat reportedly was held over in Burnet County at a Lake Buchanan resort lodge called The Canyon of the Eagles. Among the questions being posed are, why couldn't the retreat have been held at the training center right there in Johnson City, and where will the invoice(s) for the retreat show up in accounting? Hopefully not under "office supplies" like they used to in the good ol' days.

Update, morning of June 26: From PEC member/customer Al St. Louis – Yesterday we lost power in Oak Hill for about 90 minutes at a time when the temperature hit 107 and the air quality was at 104, well above the 75 limit for healthy breathing. We are all going to have be Watchdogs of the new, reform minded PEC to get energy programs going to conserve electricity.

Send your comments and news tips to online.editor@valleyspringcomm.net
or to pstern@austin.rr.com


*** Read the comments or add your own by clicking on the "comments" button below the story

By Peter Stern


In December, 2008 Sen. Troy Fraser and Rep. Patrick Rose jointly wrote a release of their "outrage" with Pedernales Electric Cooperative, that its "...Board of Directors would agree to indemnify its former law firm by agreeing to a settlement the same week that the Blanco County Grand Jury indicted a principal partner with that firm." The release resurfaced recently and has been circulating in local news media and blogs.

The two lawmakers further highlight that "We believe that further misdeeds of the PEC Board of Directors and former General Manager will be uncovered – including the possibility that there were other misapplications of funds to the law firm. As long as a criminal case is ongoing against Walter Demond, the former outside counsel, we would ask the cooperative board to not settle this matter. It is in the best interest of the members that PEC wait until it has all information necessary in order to make the best deal possible."

Being "outraged" does NOT absolve these 2 lawmakers from their own "soiled hands."


These two [and other] legislators did nothing during the past 6 years to provide any significant oversight to the electric industry, especially cooperatives — especially PEC. In fact, Sen. Fraser serves as the co-chairman of the Electric Utility Restructuring Legislative Oversight Committee that monitors the state's shift to a deregulated electric industry.

Governor Rick Perry, who pushed for the deregulation of the electric industry, also stood at the sidelines doing little to protect Texans from the scheming electric industry.

During the past several years after writing Rep. Patrick Rose regarding PEC I never received a response to my many emails of concern.

Senator Jeff Wentworth, who serves on the Board of Directors of the Natural Resources Foundation of Texas, is another lackluster lawmaker who opted to do nothing re: PEC oversight. Unlike Rep. Rose, I did receive a response from Sen. Wentworth. Unfortunately, Wentworth simply stated that the legislature “is watching carefully” the new PEC Director. Wentworth and other lawmakers continue to do little for the people they are supposed to serve and protect. In fact, how this guy gets reelected again and again boggles my mind.

In addition, when Gov. Rick “Deregulate Electricity or Bust” Perry pushed through his special interest bill neither Fraser, Rose or Wentworth stood up for the people of Texas. They approved the bill to provide the electric industry with more clout and less oversight, which resulted in higher electric costs for financially overburdened Texans.

As far as Texans are concerned, by their long-time legislative inaction, Sen. Fraser, Rep. Rose and Sen. Wentworth are part of the ongoing problem re: PEC and other electric coops and companies overcharging and scamming hardworking Texans.

Texans will continue to pay top dollar for their electric needs as long as special interests continue to buy our lawmakers via campaign contributions, perks and gifts.

So, Sen. Fraser and Rep. Rose, et. al., stop feigning "outrage" and do something about it. Poop, or git-off the potty!

FYI, Pedernales Electric Cooperative just sent out notices to its members that it will be changing its rates. One can only imagine what THAT means.

Peter Stern of Driftwood, Texas, a former Director of Information Services, university professor and public school administrator, is a political writer published frequently throughout the Texas community and nationwide. Mr. Stern is a Disabled Vietnam Veteran. He holds three post-graduate degrees.

1 comment:

Richard said...

Fraser's biggest campaign contributors are IOUs. It's pretty well known he's in their pocket, and if there's one thing an IOU hates it's an electric co-op. I've heard it from reliable sources that Fraser expected a cushy PEC board seat for himself when Fuelberg and Burnet resigned, but he couldn't convince the new PEC GM and board to break the co-op's bylaws and appoint him. He's been hoppin' mad ever since. There's a good reason why Fraser's been voted a worst TX senator four times now--they cite his over inflated ego as one reason. So should you look these two horses in the mouth and examine what their true motivations might be? Heck yes.