Energy: Pedernales Electric Cooperative
"Energy bills in Texas are soaring; the fourth highest electric rate increase in America."
"I demanded an end to the mismanagement, inexcusable salaries, and lavish spending at Pedernales Electric Coop. Excess profits now go to ratepayers where they belong."
"It’s time to shine a light on every electric provider, protect Texas families, create financial transparency and put an end to this corporate greed."
Rep. Patrick Rose
Patrick Rose: Protecting Texas Ratepayers
Rep. Patrick Rose demanded an end to the mismanagement and abuse at PEC and now he is leading the effort to make sure that what happened there does not happen again at any Texas co-op. Public power has an important role in our energy market–allowing for true competition in electric rates. Especially during these economic times, we need to ensure real local control of Texas co-ops in order to guarantee financial transparency and to keep rates low.
Next session, Rep. Patrick Rose will file legislation to:
- Require all electric cooperatives in Texas to comply with Open Meetings and Open Records statutes;
- Require all Texas co-ops to submit annual audits to the state’s Public Utility Commission for review;
- Limit co-ops investments outside their core business of providing electricity;
- And to guarantee fair and democratic elections for boards of directors.
The Texas Legislature must require all four of these critical reforms in statute so that reform is lasting. Strong local control for Texas’ 3 million co-op member-customers is the surest way to prevent fraud and abuse, while guaranteeing the lowest electric rates possible.
Read Rep. Patrick Rose’s latest Op Ed about PEC and his legislative package>>
Rep. Patrick M. Rose Testifies Before U.S. Congress
"As a co-op member and legislator, I am working to put an end to the Pedernales Electric Cooperative management’s high salaries and lavish spending so that it can afford to keep electric rates low and share its profits with ratepayers. This is my pledge to the over 220,000 Texans served by the PEC and to its over 800 dedicated employees." State Rep. Patrick M. Rose
The PEC is the largest member-owned electric utility in the United States, and it provides electricity to more than 221,276 members here in Texas. It is a critical source of power in fast-growth communities like ours, and its long term success is imperative for the stability of our local economies.
Both co-op members and employees need and deserve a PEC that is transparent and democratic. Over the last year, Rep. Patrick Rose has worked with community members committed to reforms. Deficiencies in PEC’s bylaws make it difficult for members to know the financial details of their co-op and, until recently, made it almost impossible to run for a position on the PEC board.
As the state representative for the PEC headquarters in Johnson City and for a significant amount of its service area, Rep. Rose is committed to ensuring the long-term success of the PEC.
In August 2007, Rep. Rose wrote PEC proposing five actions to address member concerns by the PEC. Those recommendations were:
- Compensation information for PEC senior staff and board members from 2004 to the present should be submitted to the IRS as required by federal law. PEC members have a right to know this information, and it should be disclosed;
- A standing policy should be implemented, effective immediately, prohibiting board members from serving as employees of PEC;
- The bylaws should be changed with regard to the process of electing board members. In addition to a nominating committee, PEC members should have the right to nomination by petition;
- PEC should start paying some level of capital credits in the next year. I understand the pressures that accompany the remarkable growth throughout your service area, but there is some level of capital credit that can and should be returned to members annually; and
- PEC should disclose immediately to the public, and particularly to interested members, audited financials for PEC as well as any and all subsidiaries. On an ongoing basis, PEC should disclose this information at its annual meetings and on its website.
Read Rep. Patrick Rose’s letter to PEC’s General Manager here>>
Rep. Rose believes that taking these steps will go a long way toward restoring the confidence and trust in the PEC that its employees and members expect and deserve. Today, Rep. Rose is working to ensure that the court mandated audit of PEC is directed and controlled by the Public Utility Commission of Texas, the state agency with regulatory authority of the electric industry.
If this audit does not adequately identify past practices and transactions at the PEC and make strong recommendations for new benchmarks and standards,Rep. Rose will pass legislation to ensure a audit by the State’s Auditors Office. In addition, Rep. Rose will file legislation in January 2009 to require all electric cooperatives in Texas to follow Open Records-Open Meeting statutes. He believes that this is the only to fully prevent prevent mismanagement and fraud not only today but in the future.