Patrick Rose

Rep. Rose will share his role in bringing about reforms at the Pedernales Electric Cooperative

AUSTIN—State Rep. Patrick M. Rose (D-Dripping Springs) will provide invited testimony before the Committee on Oversight and Government Reform at the U.S. House of Representatives on Thursday, June 26.  Rep. Rose will share his role in addressing abuses by the Pedernales Electric Cooperative’s (PEC) Board of Directors and senior management.

Over the past year, a group of co-op members have led an effort to democratize PEC’s board elections process and to stop fraudulent spending and mismanagement by the cooperative’s leadership.  As a co-op member and legislator representing the PEC’s Johnson City headquarters and a large part of its service area, Rep. Rose will testify about legislation to stop the abuses at PEC and prevent them in the future at this and other electric cooperatives across Texas.

“I will put an end to the PEC management’s high salaries and lavish spending so that it can afford to keep electric rates low and share its profits with ratepayers.  Legislation that makes electric cooperatives across our state follow open meetings and public information laws is the only way to prevent future abuses at PEC and for the nearly 3 million Texans served by co-ops across our state," said State Rep. Patrick M. Rose.

The committee is the main investigative committee in the U.S. House of Representatives and has jurisdiction over any federal program and any matter with federal policy implications.  The 74 electric cooperatives in Texas, including PEC, are private utilities owned by their member-customers.  Co-ops are nonprofit entities that are responsible for providing electricity at the lowest possible cost to their members; nearly 3 million member-consumers in Texas.  Co-ops are tax-exempt and are also eligible for low-interest federal loans.

Also testifying at the hearing are State Senator Troy Fraser, PEC General Manager Juan Garza, and co-op members Carlos Higgins and John Watson.  On Tuesday, June 24th, subpoenas were issued for former PEC General Manager Bennie Fuelberg and former President of the Board of PEC W.W. “Bud” Burnett. The hearing will be web cast live at www.oversight.house.gov.

                                                                                           
WHAT:            Congressional Testimony
                        Governance and Financial Accountability of Rural Electric Cooperatives:
                        the Pedernales Experience

WHEN:            Thursday, June 26, 2008
                        9:00a.m CST/ 10:00 a.m. EST                    

WHERE:           U.S. House of Representatives

                        Committee on Oversight and Government Reform                         

                        2154 Rayburn House Office Building

                         Washington, D.C.

About State Representative Patrick M. Rose

As Chairman of the Human Services Committee, Rep. Rose is leading efforts to increase oversight of the Health and Human Services Commission, grow enrollment in CHIP and implement reforms of Child Protective Services.   Last session, he helped create the Cancer Prevention and Research Institute of Texas, a $3 billion investment in the fight against cancer.  Rep. Rose is currently working on legislation to bring about reforms at the Pedernales Electric Cooperative and to prevent similar mismanagement at co-ops across the state, as well as legislation to bring relief to property tax payers and public schools by extending the mid-size adjustment to Chapter 41 school districts.  Rep. Rose represents House District 45 that includes Blanco, Caldwell and Hays counties in the Texas Legislature.

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