Staff report

Two new members and one incumbent were elected to the Pedernales Electric Cooperative board of directors Saturday, subtly changing the balance of power and virtually guaranteeing internal debates about the co-op’s role in the future.

Both new board members seated Saturday at the conclusion of elections were heavily promoted by a new group from outside the co-op, Texans For Affordable Electric Rates, whose officers represent corporate energy interests in Dallas and Houston. 

That group has championed opening the historic electric cooperative – the nation’s largest – to competition from private power suppliers, arguing it would be cheaper. Defenders of the present co-op structure have challenged those assertions and questioned whether energy executives with a possible financial stake in changing how the co-op does business should be allowed to influence co-op elections. Those who are more skeptical of giving up the co-op model point out that only one co-op in Texas has switched to a corporate choice model, with higher rates as the result. On the current board, director Chris Perry of Dripping Springs has been an outspoken advocate of opening the co-op to corporate competition, even going so far as to sue the co-op and earning a reprimand from his former board members. 

Meanwhile, the election of Burnet County Judge James Oakley as president of the board of directors at Saturday’s annual meeting indicates that a majority of the co-op’s seven directors still support the co-op structure. 

New directors are Paul Graf of Spring Branch, elected in District 6. Graf, one of those supported by Texans for Affordable Electric Rates, which also sometimes goes by the American Reform Coalition, defeated incumbent and former board president Larry Landaker of Wimberley, 13,330 votes to 7,727. A third candidate, Max Hosford, received 1,632 votes. 

In District 7, where two local candidates were on the ballot, Amy Lea S.J. Akers, who lives between San Marcos and Wimberley, defeated Doug Kadjar of the Kyle area and Jeff Barton, also from the Kyle-Buda area. Akers won 9,943 votes to 9,327 for Barton, and 3,357 for Kadjar. Akers was also supported by the Houston-Dallas Reform Coalition/Affordable Electric Rates group, but was the sole candidate who did not attend the PEC candidate forum.

Akers replaces retiring board president Patrick Cox, who led a series of reform at the co-op over the past half dozen years, including instituting more open elections, decreasing director pay, and more transparency in the co-op’s finances.

In District 1, incumbent Christi Clement, of Burnet County, survived a challenge from Mark Axford, another critic of co-op pricing and use of renewable energy. Clement won 11,500 votes to Axford’s 11,228. Axford claimed during the campaign that the co-op’s electric rates are among the highest in the state, a charge disputed by the co-op’s CEO John Hewa, who has noted that PEC members pay lower rates than neighbors in Austin or San Antonio. 

Computing “average” electric rates can be challenging, because different households and businesses use different amounts of power, and in many parts of Texas energy costs vary depending on how much is used each month or what time of day. But Hewa presented figures at the annual meeting indicating PEC is in the middle of a rate chart from across the state, and below state and national averages. He has noted in the past that claims from private energy companies to beat those rates are sometimes based on artificially low rates. 

Though board directors run from geographic districts, they are elected by the membership at-large, from all are parts of 24 counties across Central Texas and the Hill Country. 

Other issues in this year’s election revolved around Hewa’s leadership, whether the co-op should pursue “green” renewable energy, and single member districts. Landecker and Barton, who lost, were generally enthusiastic about pursuing more renewable energy, while the other candidates were not necessarily opposed but ranged from somewhat supportive to skeptical. 

Voting results by area were not made available by PEC or its independent election contractor despite repeated requests. PEC issued a statement saying those results would be released before the July board meeting. 

Members attending the meeting learned about the Co-op’s upcoming new software and member service features, visited with co-op staff about renewable energy and energy conservation, and observed a presentation by a PEC lineman about efforts to bring electricity to parts of Haiti.

Hewa emphasized the millions of dollars saved over the past year, noting that there is more work yet to be done. He highlighted co-op achievements, including highly ranked service reliability and member services, improved financials and three rate reductions in the past year.    

“While we understand there is much to be done, it’s important members leave here today knowing that PEC is making substantial progress,” Hewa said. “Some of our new initiatives are providing real value to our members, along the order of $10 million in savings, and we’re excited about future opportunities,” according to a press release by PEC.

2015 PEC election results:

District 1 director

11,500 votes: Cristi Clement

11,228 votes: Mark Axford

District 6 director

13,330 votes: Paul Graf

7,727 votes: Larry Landaker

1,632 votes: Max Hosford

District 7 director

9,943 votes: Amy Lea SJ Akers

9,327 votes: Jeff Barton

3,357 votes: Douglas Kadjar