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Update, Wednesday morning, June 17: From the Austin American-Statesman: It's a busy week for the co-op. A Blanco County grand jury investigating its former top executives will meet today, and its membership will elect new directors to its board Saturday.Update, afternoon, June 16: An alert commenter, Richard, has pointed us to this breaking news from the PEC web site. Check the comments, below, for the link to the full story. The new rates, which go into effect with your August bill, include an increase in the amount paid for running a water well. You might want to check out the full story.
June 16, 2009
FOR IMMEDIATE RELEASE
PEC Board approves new rate structure
The Pedernales Electric Cooperative Board of Directors voted unanimously at its June 15 meeting to implement a revised rate structure based on recommendations submitted by C.H. Guernsey & Company. “This is the most open and transparent process for setting a new rate structure in the history of PEC,” said PEC General Manager Juan Garza. “It has included the involvement of the membership, the Board and the staff in an unprecedented way, and with the passage of these recommendations, PEC will be conforming to more common industry standards.”Garza said the average PEC member will see a decrease in their bills with the revised rates, which are effective with members’ August 2009 bills. The new rates structure is intended to clearly reflect the Cooperative’s service availability charge, delivery charge and power supply costs.
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Editor's Note: The press release below was released Monday by the PEC public information office following the much awaited board of directors meeting that was to include consideration of, and a vote on, a newly proposed rate plan.
The press release makes no mention of the rate plan or its implications for ratepayers, but a close observer of the PEC has sent the following dispatch: "The rate proposal passed as presented; the proposed bylaws passed 5 -1, with Scanlon voting against, and Cox (of Wimberley-District 7) absent for his daughter's wedding (his being there would have made no difference, since 5 votes is the 2/3's majority required for bylaws amendments); and James Spellman, an outgoing advisory director, and a second person, recommended by Kathy Scanlon, were nominated for advisory director-at-large positions. The nominations now go the the so-called executive committee for consideration and recommendation to the full board later."
Wimberleyite Merle Moden, mlmoden@gmail.com, who has carefully studied the Guernsey rate plan, says he will have a report in to the RoundUp soon. For now, here's what he has to share: "There is something going on at PEC regarding electric rates and I can't tell if its incompetence or corruption, or both. You can't get any candor out of the PEC management or the Board members. They defer to C. H. Guernsey & Company which seems to provide the answers that PEC wants in this lousy cost of service study and rate design. As a colleague of mine used to say, 'they tortured the numbers and they confessed.'"
And this from another well informed observer, Dave Collins of Johnson City, collindave@hughes.net: "The rate study (Guernsey) was ill-timed as it puts the cart before the horse. I make this assertion based on 30 years of "fixing" broken organizations, public and private, and helping senior executives of large corporations establish various aspects of business strategy.
"The PEC has no operating or expense budget, it has no capital expenditure plan or budget. We know that General and Administrative (or Management and Administrative, if one prefers) expenses are dramatically out of control, per the Navigant report. We have no plan or strategy for managing capital credits. Finally, and the first task that should have been undertaken to form a foundation for all of the financial considerations, the board and management have not set any strategic direction for the business. The closest thing that could even remotely be called a strategy is to increase the number of members, as that is the only performance metric routinely reported to the board (expressed as net new members)."
FOR IMMEDIATE RELEASE
JUNE 15, 2009
MEDIA CONTACT: Anne Harvey, (830) 868-4933; Austin line, (512) 219-2602
Johnson City, Tx – The Pedernales Electric Board of Directors authorized attorney Jimmy Williamson to work with PEC General Manager Juan Garza in settlement of claims against former Cooperative legal partner Clark, Thomas & Winters. “Discussions have reached a critical point,” Garza said, “and I remain committed to upholding our fiduciary responsibility to the membership while pursuing actions that will allow us to focus on our core business: providing safe, reliable electric service at the fairest rates possible.”
The action was unanimously ratified at the Cooperative’s June 15 Board meeting through a resolution authorizing Williamson to: “… settle any claims Pedernales Electric Cooperative, Inc. may have against Clark, Thomas & Winters, including former partner Walter Demond, on such terms as have been set forth by the Board with final settlement documentation to be approved and executed by General Manager, Juan Garza, as the authorized representative of Pedernales Electric Cooperative, Inc.” Said Williamson, “I have received my instructions and will work vigorously to obtain a result in the best interest of the Cooperative.”
Williamson, principal of Houston law firm Williamson & Rusnak, was retained by PEC in January to lead a formal investigation of questionable payments made by Clark, Thomas & Winters while the firm served as the Cooperative’s legal counsel. Williamson has focused on alleged improper payments made by Clark, Thomas & Winters to Curtis Fuelberg, a Texas lobbyist and brother of former PEC general manager Bennie Fuelberg, and attorney William Price, son of former Board Director E.B. Price. The allegations arose following the December 2008 release of the PEC-commissioned investigative report by Navigant Consulting, Inc.
9 comments:
Once again you are merely passing on biased opinions from sore losers. The PEC members showed their strong lack of support for Dave Collins in last year's election (yet he continues to state his so-called resume in everything he writes in an attempt to redeem himself). Merle Moden was thoroughly trounced by Guernsey in numerous rebuttals that apparently Mr. Moden failed to share with you. The PEC management has hid nothing from the members in regards to the rates study and accepted an unprecedented amount of member feedback and made modifications accordingly. I suggest you get some input from AGM Paul Hilgers, who led this effort, before continuing on with your spread of one-sided and intentionally slanted misinformation. All this information is public and you can include it in this blog if you care to share the whole story with your readers.
If that's not you Linda Kaye Rogers (PEC member), it sure sounds a lot like you. If it is, I wish you had the guts to identify yourself. I hear tell you attended yesterday's PEC board meeting and enthusiastically supported the rate plan that was passed mostly with the support of the old guard board members, with whom you appear to identify with very closely. I hope for your sake the new rate plan you have championed lands gently on us ratepayers. And I hope you get passed over again by the members of the PEC for a seat at the board. I think we've all had enough of apologists for the management.
You know, this is all a part of the ongoing vying for power that has gone on for the past 5 years or so.
Neither of the commenters on this blog are willing to identify themselves, so their comments are relatively useless.
Since legislators once again did NOT do the job they need to do for the people of Texas, the lax and absurd regulations remain for the electric industry, especially for coops like PEC, which in my mind stands for Public Extortion & Corruption.
The feather-rustling going on now at PEC is just indicative of the nonsense coop members have had to watch and accept for many years.
PEC is the only option in many areas of our county. Hopefully, getting in another coop for competition could make a difference, but that isn't happening either.
As long as the laws protect PEC little will get any better for its members.
A monthly cost increase is coming and we just will have to grin and bear it --- as always. We members have no rights with PEC.
Our legislators "resolve" the coop issue by saying that we need to keep coops in business because they keep down the higher costs of other electric companies. Big Deal!
In addition, it is urgent that we need to get rid of Sen. Jeff Wentworth and Rep. Patrick Rose, who have done very little to resolve much of anything in our district. I am sick of them and so should you other voters.
The only ones who can change the laws governing PEC and other coops are legislators. Our head leaders, Gov. Perry, Lt. Gov. Dewhurst and House Speaker Straus are useless to us. They are not leaders or people with real vision.
Only by pounding down the doors and inundated our lawmakers with letters, emails and phone calls can we hope to make our lives a little better.
I will say that PEC provides good service but monthly costs are too high. While they may not appear too high in comparison to regular electric companies (11 cents per kilowatt hour) they still are too high. We will see how high they are pretty soon, in July and August of a record draught and high heat.
Right now, no matter who we elect to the PEC Board little will change due to the laws favoring the coops.
PEC member, you say check with AGM Paul Hilgers. Do you know him well?
Isn't he one of those assistant general managers that receives a quarter-million dollar a year salary? Please check me on that. I believe there are two or three other AGMs at the same pay scale lurking about at the PEC.
For that kind of money, why don't they do the rate studies instead of paying additional millions to Wall Street consultants just so we can all get hit with another cost of service increase anyway?
I hope the new board develops the courage, the knowledge, and the vision to grab hold of our coop and lead us thru the troubled waters ahead.
I recommend strongly that they begin with a true cost-cutting effort, and start with an across the board pay cut for management. I am not forgetting that the board members are paid a pretty nice little sum, too, and should answer directly to us, the member/ratepayers, and not to management, as some candidates seem to think they must.
FYI, here's a link to the PEC press release:
http://www.pec.coop/News/PressRelease.aspx?PRID=163
Thanks for the link, Richard.
That press release would be totally laughable if I didn't have to pay PEC for my electricity.
BREAKING NEWS!
Let them repay the money they stole with 30% interest, penalties and late fees --- like credit card companies do --- and give that money to PEC coop members for them to pay their monthly bills more easily.
FOR IMMEDIATE RELEASE
June 17, 2009
www.texasattorneygeneral.gov
Subscribe to E-News CONTACT
Press Office at
(512) 463-2050
Statement from Texas Attorney General Spokesman Jerry Strickland
“Today, a Blanco County grand jury indicted two defendants on felony charges resulting from the Office of the Attorney General’s investigation into unlawful conduct at the Pedernales Electric Cooperative.”
“The grand jury charged both defendants with the following three felony charges: misapplication of fiduciary property in excess of $200,000, theft of property in excess of $200,000, and money laundering between $100,000 and $200,000.”
“Misapplication of fiduciary property in excess of $200,000 and theft of property in excess of $200,000 are both first-degree felonies, which carry punishment of up to 99 years or life in prison and penalties of up to $10,000. Laundering between $100,000 and $200,000 is a second-degree felony, which carries a penalty of up to 20 years in prison and a fine of up to $10,000.”
“The OAG’s investigation is ongoing and additional information concerning the indictments handed down today will become public once the defendants have been served.”
Hear! Hear! On getting rid of Rose and Wentworth...items long overdue!!
The press release stated '...once the defendants have been served.' Seems to me given the fact the Grand Jury indictment is for several very serious felony charges these two should be arrested post haste. In a civil suit a defendant is 'served'. Does this press release coming out of the A.G.'s office indicate these two are going to get special treatment?
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