Thursday, April 24, 2008

KUT 90.5 News Clip

Follow the link to listen to Matt Largey's piece on the PEC elections.

http://kut.org/items/show/12250

Tuesday, April 22, 2008

Why Vote?

With the Pedernales Electric Cooperative board elections upon us, it is more important than ever to get the word out about the candidates and the issues. During an election many people think that their vote does not matter. Maybe you feel that when it comes down to it, all the candidates are pretty much the same, so why bother voting. This couldn’t be further from the truth. In fact, the winning directors will have an enormous impact on our cooperative’s future and ultimately on your electric rates.

Our Board of Directors needs a change‑-for the better. Change starts at a grass roots level whether you live on a farm or in the city, and all change starts by electing people - the right people to implement that change--whether it is a voting director or an advisory director.

Your vote holds your board leaders responsible for the decisions they make. Your vote sends a message about the issues you think are important. Your vote affirms our rights as members to elect our board and take part in democracy. Without voting, there could be no democracy.

Remember, when you are unhappy with the condition of your cooperative’s service or your electricity bill, being involved, voting for and knowing your elected directors will enable you to voice your complaints to the appropriate board members. You voted for them and they work for you. That’s why it’s so important to vote for a candidate based on WHAT they know…not WHO they know, which is unfortunately how so many people try to win an election. It’s the candidates experience and knowledge in the professional industry, combined with integrity and honesty that will determine whether or not they will make the best decisions.

We are not here to serve our cooperative, but our cooperative is here to serve us — and we have the right to decide who will represent us and how we want to be represented. It means that we have one of the greatest rights any free people can have: the right to vote.

Vote because you care about your community. Vote because you believe in transparency of governance and want to add your voice. Vote because it will make you feel good to participate and have a say. Vote because it’s the right thing to do!

Sunday, April 20, 2008

Lessons learned from the Envision failure

The Sunday, April 20th article in the Austin American-Statesman by Claudia Grisales concerning the PEC owned Envision Utility Software Company speaks volumes about the integrity and professional maturity of Bennie Fuelberg, Bud Burnett, and the PEC Board of Directors.

The lessons learned from this specific case are apparent. First, a company should focus their energy and investments on businesses that are the same or similar to their core business. In this particular instance, poor decisions were made and perpetuated for over a decade costing the cooperative over 60 million dollars. Apparently the perks for a select few outweighed the benefits to all in the minds of the principals involved with the purchase and management of Envision.

Secondly, the failure of the Board of Directors to provide any sort of meaningful oversight and disclosure of the cooperative’s interests to the members reinforce that they are incompetent directors and entirely new board members are necessary. The Envision situation was no small oversight and illustrates why board members are needed who will conduct themselves in a professionally ethical and responsible manner.

Some have suggested that PEC should expand their interests to include the production of power. This, in my opinion, forces PEC back into the same trap that we were placed into by the Envision purchase. Having spent a good portion of my life in the construction, operation and maintenance of power plants I must respectfully disagree with the assumption that PEC would gain from the purchase of power plants. The permitting, environmental impacts, potential media and activist controversies, costs (ranging from $100M to $10B depending upon type of plant), and the hiring of the expertise necessary to build and manage the resources, all point to PEC over-stepping their limitations and resulting in a loss which would make Envision look like pocket change.

PEC should retract back to their core business—the distribution of electrical power to its members—which we do as well if not better than anyone in the country. PEC also needs to focus on rebuilding the trust of its members. This trust can be rebuilt by electing board members with experience relevant to the management of electric power generation and transmission.

This election is so very important. Please take the time to thoroughly research all candidates and make informed decisions regarding your next board members. Elections that yield members who espouse the “old boy network” of thought, or support “cronyism” and friends over qualifications, experience and integrity will undo the positive steps forward that PEC has gained over the past few months.

Saturday, April 19, 2008

PEC Director District Boundaries

During the upcoming board member elections you will have the opportunity to select candidates from not just your own district, but from all districts that have seats open for election. You will be voting for both the voting and non-voting advisory positions. In my opinion, this is a sound decision for all members to vote for representatives from all the districts. The reason the voting is set up this way is to ensure that all areas are represented fairly and not have a bias from any particular region. It is also important to remember that each individual board member will make decisions that impact not just their own district, but all PEC districts. Each and every PEC member will have the opportunity to review all candidates through the mail ballots containing short candidate biographies and the May 1st Board Meeting. It is important that you review each candidate's qualifications and make an informed decision on who are the best candidates to lead us through the challenges and opportunities that are in front of us.


Thursday, April 17, 2008

Why I am running for the PEC Board of Directors

What makes a person run for a seat on a Board of Directors? Is it altruism, a chance for personal improvement, an initiative to make a difference, or maybe even an opportunity to apply experiences and life lessons to an important task or project? In examining the reasons that I am excited about this opportunity to be on the Pedernales Electric Cooperative’s Board of Directors, I find that all of the items noted above are applicable, some maybe more so than others.

PEC is a reputable and respected cooperative with many notable achievements to its credit. Achievements made as a result of the efforts of a hard-working staff, an informed, involved and intelligent membership and finally, through sound business practices and decisions. Unfortunately, the reputation of PEC has been tarnished over the past year--due to the actions of its upper management and board--particularly in the media and among the membership. While the upper management has been replaced by new leadership that seems more committed to member concerns, it will still be an arduous task to restore the confidence and trust of the members. The new Board of Directors will require individuals that are both educated and dedicated to this task. They will need to be knowledgeable of the utility business environment and willing to “work” instead of “sit” on the Board.

I feel that PEC is at that critical point where the change has to be a “step-change.” A step change is one that requires immediate attention coupled with an expedient decision. These step-change activities include the Board membership, Board compensation, adopting open meeting laws, environmental awareness and conservation opportunities. The fact that so many decisions need to be discussed, reviewed, and completed emphasizes the need for board members who are up to the task with experience in resolving conflicts and effecting positive change.

My professional career and reputation has been built upon accepting the most complex of projects, especially those at a critical juncture of the process and needing strong oversight and support. I see a similar challenge in the PEC Board and believe that through hard work and diligence to the task I can effect a positive change.

Tuesday, April 15, 2008

Renewable Energy Benefits Everyone

Electric cooperatives such as Pedernales Electric Cooperative should advocate common sense public policies on air quality, water and land resources that balance environmental stewardship with the need for energy to power the region’s economy.

Non-traditional energies from geothermal, hydroelectric, tidal, wind and solar are available and should be a part of a responsible energy portfolio. The National Rural Electric Cooperative Association notes, "Long range, consistent and common-sense environmental policies can ensure a clean environment without imposing severe economic penalties on electric cooperative consumers."

In the spirit of conservation, Pedernales Electric Cooperative should actively explore greater opportunities for green power, partner with green power providers, and offer the option of purchasing green power to its 220,000 members. Offering green power to our customers would be consistent with our commitment to improving the quality of life in the communities we serve. Additionally, we should explore with our partners the opportunity to implement programs which encourage home owners and business owners to invest in the future by purchasing green power.

PEC should focus its exploration of green opportunities with energy suppliers who have achieved the national Green Pricing Accreditation for its Green Works Program. These accredited utility programs undergo an annual independent verification process to document that they have delivered the green power promised to their customers.

Currently PEC’s Green Works program has made a commitment of purchasing 50 MW’s of Green Power per the information posted on the company website. PEC should attempt to increase the utility's green energy portfolio. This is not a goal that is unachievable. If anything it should be considered a target--not stretch goal-- with the understanding that more progress is expected and necessary to ensure that the environmental plan remains a key focus in our future.

The Cooperative Way

Things aren’t as simple as they used to be. I appreciate tradition and traditional values, but like everyone else I must make decisions based upon today’s current events. PEC, which dates back to 1938, has a tradition of providing great service at affordable rates. That’s the cooperative way! In that spirit, PEC should make decisions based on what’s best for its customers. After all, they are the owners of the company! The 2008 PEC Board of Directors elections are a good example of tradition joining up with current events.

Looking at the bigger picture, we see clearly there is a great deal of change occurring in the electric industry. The population growth in our area and the rising cost of power are challenges we need to tackle and solve. Exploring alternative energy sources while simultaneously continuing the delivery of affordable power to all of our members is one of our greatest challenges.

We will need to figure out a way to manage the increasing electricity needs caused by the growth in our region while staying on top of providing excellent service to the many people who move into the area. They expect good reliability, customer service, low rates, and a company that listens to its owners. We can’t stop progress, but we have the ability to plan for the growth. Taking advantage of these opportunities is vital in ensuring that we stay competitive and responsible in managing our member’s interests.

Traditionally, the local cooperative does more than provide electric service to the community; in many areas, it’s a major economic driver. As the PEC mission statement explains, our co-op is committed to the community and to enhancing the quality of life in Central Texas area. Because we are owned by our members, we should take this aspect of our business very seriously.

Progress is blind to county lines. Co-ops have a role in not just providing power, but in making our communities good places to work and live. As I meet other cooperative members from across the area, I am impressed with how active cooperatives are in their communities. With the recent changes in management and Board membership, PEC must now work to regain the trust of its members. In order to do that we must ensure that the Board of Directors is composed of qualified, dedicated and highly regarded individuals who have real experience relevant to the cooperative’s operations and who understand the complexities of the cooperative’s business environment.