Pedernales Electronic Coop...

[LH Panther Mom]

They are on the hot seat with the Texas Senate Committee on Business and Commerce. :eek: :eek: :eek:



PSA Announcement for anyone who cares beside me. :D

[LH Panther Mom]

Pedernales co-op, lawmakers to face off today
Co-op releases yet more documents showing large no-bid contracts, exec expenses.
By Claudia Grisales

AMERICAN-STATESMAN STAFF


Thursday, March 27, 2008

When Pedernales Electric Cooperative officials arrive at the Capitol this morning for a legislative hearing spurred by excesses at the Johnson City-based co-op, they will be armed with evidence that management has turned over a new leaf with a spate of recent reforms.

But lawmakers will be armed as well: A new wave of records released this week adds to criticism of Pedernales for its lax governance, costly legal fees, no-bid contracts, hefty retirement packages for upper management and perks for directors.

Those are among the subjects likely to be raised during a Senate committee hearing on the state of affairs at Pedernales and the more than 70 other member-owned electric co-ops in Texas, which function largely without state oversight.

"We still have some core issues that haven't been taken care of," said Sen. Troy Fraser, R-Horseshoe Bay, who will chair the hearing as head of the Senate Committee on Business and Commerce. "Why did this happen, and how do we make sure it doesn't happen again?"

Fraser is also one of Pedernales' chief critics.

Pedernales, the largest nonprofit electric utility in the country with 220,000-plus member-owners, has faced challenges on multiple fronts in the past year, including a member-led lawsuit and a criminal inquiry joined by the Texas attorney general's office. A settlement is under way in the lawsuit.

Three of its highest-paid officials, including former General Manager Bennie Fuelberg and board President W.W. "Bud" Burnett, have departed. Juan Garza, Fuelberg's successor, has pledged — and so far, delivered — more open management at the formerly tight-lipped utility. The board of directors has revamped its bylaws, made it easier for challengers to be nominated to the board and, for the first time, initiated dividend-type payments to members.

It was Fraser's repeated requests for information from Pedernales that finally produced these new details on spending at the co-op's highest levels:

The co-op has paid more than $7.3 million in legal fees in the past five years, including $751,000 to fight the member lawsuit. Its longtime outside counsels — Austin-based Clark, Thomas & Winters and the Hill Country law firm founded by former Pedernales General Counsel A.W. Moursund — collected more than 90 percent of the fees. Neither faces a bidding process for the co-op's business.

• Fuelberg, who received close to $1.5 million from Pedernales in 2007, will collect $12,638 a month in retirement pay, for an annual total of $162,762 in pay and benefits.

• Burnett will collect nearly $10,000 a month — $119,740 a year plus benefits — as a result in large part of a board resolution that helped double his retirement by backdating his 1987 start date as employee "coordinator" to 1968. He collected $190,000 in 2007, despite not having an office, phone, staff, files or specified duties.

• The co-op has paid $41,158 in physicals for at least nine directors and four spouses at the Dallas-based Cooper Clinic since the perk was first offered in April 2003.

• Since 2002, the co-op has also paid more than $105,000 for health and dental benefits for "retired directors, widows and former spouses," according to Pedernales records. That's in addition to $430,000 in lifetime pay and benefits awarded three former longtime directors after their retirement: Edgar "Babe" Smith, Charles Winters and Harold Kongabel.

The Senate committee, which expects to be joined on the dais by some House lawmakers, is also set to hear testimony from Texas Public Utility Commission Chairman Barry Smitherman and Texas Electric Cooperatives Inc. President and chief executive Mike Williams.

Williams' group, which is the statewide association for more than 70 co-ops, has done its own survey to investigate co-op governance practices.

He contends that Pedernales' issues are isolated.

"I don't want to convey that we are perfect," he said. However, "there appears to be transparency, and members appear to be happy."

Garza said the message he hopes to get across to lawmakers today is that progress has been made and that the health and reliability of the co-op are intact.

"I want to assure the committee while we have had issues at the top, they did not seem to affect the operation," Garza said. However, he said, "we will continue to listen to the membership."

For example, Garza said, he expects a review of all contracts in the future.

"I am convinced what we have to do is look at all major contracts and competitively bid them one by one," Garza said. "That's the only way we will ever rid ourselves of that sense that things aren't quite right."

The 9:30 a.m. hearing is slated for the Betty King room, but it could be moved to accommodate a larger crowd.

For more information or to watch the hearing online, go to www.senate.state.tx.us.

cgrisales@statesman.com; 912-5933

American-Statesman link (http://www.statesman.com/news/content/news/stories/local/03/27/0327coops.html)

[Sweetwater Red]

Why does this interest you in particular? Just wondering.:)

[LH Panther Mom]

Just some notes (or my list of gripes):

* Late last year there was a big "announcement" that there would be a rate-cut effective Jan. 1.
* A few weeks ago, now there will be a rate increase because of the "increased costs". :rolleyes:
* $220 million (I believe) in money that is sitting in some type of savings, but there has never been a dividend paid to coop members.
* The board members and GM are making exorbitant amounts of money, in salary AND perks (recently retired made $361,000 in salary alone, retirement pay is $12,000/month) {I have zero problem with people making money, if they have EARNED it.}
* I'm not sure of all the details, but board meetings have been closed, elections have not followed proper guidelines, and they have not followed open records act.
* Conferences attended in Las Vegas by board members, and spouses attended FREE on the coop members dime (over $700,000 for these, including for one girlfriend).
* Porn movies being approved as expenses? Are you freaking kidding me?



(The Senate committee is reading them the riot act.....hopefully there will be a positive resolution for the coop, and for electric coops statewide.)

[LH Panther Mom]

Originally posted by Sweetwater Red
Why does this interest you in particular? Just wondering.:)
PEC is our only choice of electricity. :(

[Sweetwater Red]

Originally posted by LH Panther Mom
PEC is our only choice of electricity. :D


Gotchya.:thumbsup:


Sometimes you have to simplify things for me.:doh: :D

[LH Panther Mom]

Originally posted by Sweetwater Red
Gotchya.:thumbsup:


Sometimes you have to simplify things for me.:doh: :D
It's okay, you wouldn't know without asking. Apparently several coops across the state have some of the same illegalities going on. :dispntd: But PEC is the ONLY coop to NEVER pay out dividends to the members. :mad: And they are "supposedly" a non-profit organization that does not pay income taxes, are holding millions of dollars and think they can raise rates by 11%? :mad:

[SintonFan_inAustin]

Originally posted by LH Panther Mom
PEC is our only choice of electricity. :( Cant be as bad as CPL, central power lighting, my bill was constantly $350-450 every month. Switched to Streamline Energy and now every month its around $130 :eek:

[Ranger Mom]

I have no choice but to use Cap Rock Electric.....our Co-op here!!

We were SUPPOSED to be deregulated in 2006....but we still aren't.

The electric bill that I have to pay tomorrow is $487.24 and that's barely running the heating at all!!!

[jason]

i havent and dont plan to run my heater this 'winter'....

thats right, not ONCE has my heater been turned one, not even when it when we had an inch of snow on the ground...

[AP Panther Fan]

Originally posted by Ranger Mom

The electric bill that I have to pay tomorrow is $487.24 and that's barely running the heating at all!!!


That is crazy for this time of the year...I would hate to see your August bill.:eek:

[LH Panther Mom]

Originally posted by Ranger Mom
I have no choice but to use Cap Rock Electric.....our Co-op here!!

We were SUPPOSED to be deregulated in 2006....but we still aren't.

The electric bill that I have to pay tomorrow is $487.24 and that's barely running the heating at all!!!
PEC is "unregulated" right now, but the Senate Committee Chair has just let them know they do have to power to regulate them again.


Some of the board members answers remind me of posts on here. "Blah blah blah" then someone calls them on it and there's major back-peddling going on. ;)

[Ranger Mom]

Originally posted by AP Panther Fan
That is crazy for this time of the year...I would hate to see your August bill.:eek:

LOL!! Last year I decided the vents didn't seal off good enough in rooms we didn't use much...and the coolest room in the house was the living room, which we rarely use.

I got window units for my bedroom and the other two bedroom that were being used...turned the big unit OFF and my electric bill went WAY down.

By the time summer is here, I don't think I will have any kids living at home....so I may just do that again!!

[AP Panther Fan]

Originally posted by Ranger Mom
LOL!! Last year I decided the vents didn't seal off good enough in rooms we didn't use much...and the coolest room in the house was the living room, which we rarely use.

I got window units for my bedroom and the other two bedroom that were being used...turned the big unit OFF and my electric bill went WAY down.

By the time summer is here, I don't think I will have any kids living at home....so I may just do that again!!

I hear you...drastic times call for drastic measures (but it still sucks).

I have my electric through Stream Energy and the rate is .1185 which still isn't all that great. I hope you and Deb get more options soon. That becomes a bit of a headache too...trying to figure out which company/contract is the best. blah

[LH Panther Mom]

Screw looking for a job. I am going to find 25 PEC coop members to add my name to the board member ballot for the June election. These dudes are making serious cash and perks and have lifetime health insurance for their entire family. :D

[LHMom]

I'll be first for ya', LHPM.

[sinton66]

Originally posted by SintonFan_inAustin
Cant be as bad as CPL, central power lighting, my bill was constantly $350-450 every month. Switched to Streamline Energy and now every month its around $130 :eek:

CPL stands for Central Plunder and Looting.:D

[Haunta Yo]

Originally posted by AP Panther Fan
I hear you...drastic times call for drastic measures (but it still sucks).

I have my electric through Stream Energy and the rate is .1185 which still isn't all that great. I hope you and Deb get more options soon. That becomes a bit of a headache too...trying to figure out which company/contract is the best. blah

My friend's been working for Stream for a few months. He signed me and a few friends up with them and he got a comission check from Stream for over $800 last month.