by JEN BIUNDO
As the former general manager of the Pedernales Electric Cooperative prepares to face trial for money laundering, local lawmakers are telling PEC board members to expect continued efforts to reform the nation’s largest electric cooperative when the legislative session reconvenes this January.
State Rep. Patrick M. Rose and State Senator Troy Fraser harshly criticized the current PEC board of directors at their recent August meeting for their decision to terminate PEC General Manager Juan Garza, who was hired in 2008 in the wake of allegations of criminal wrongdoing by former General Manager Bennie Fuelberg.
This June, with just five days left on their terms, the last two “old guard” members left over from the Fuelberg regime joined forces with three new board members to fire Garza. District 3 Director Kathryn Scanlon and District 7 Director Patrick Cox, both of whom were elected in 2008 on a reform platform, cast the dissenting votes.
“This decision could have and should have waited until the new board members, duly elected by the members, were sworn in,” Rose said. “The two outgoing directors were part of the legacy board that allowed for and participated in the mismanagement and corruption at PEC that was brought to light over the last few years. They should not have been part of any decision that impacts the future of PEC.”
Rose asked board president Larry Landaker to explain why he and two other board members voted alongside the two departing members to fire Garza, a move that cost the co-op $1 million in severance pay.
“These actions are unacceptable and show the irresponsibility and lack of transparency that justify legislation,” Rose said.
PEC members approved a bill of rights at the most recent annual meeting that include open records and open meetings requirements similar to those faced by local governments. But Rose says he’ll take that one step further, by codifying those and more changes in state law.
Fraser and Rose say they plan to sponsor open meetings and open records requirements for PEC, along with legislation that would create smaller single-member districts within the co-op. Currently, board members must campaign to all of the co-op’s 200,000-plus members, making their constituency about twice as large as that of a state representative.
“The Legislature will reconvene in January and we will proceed with our effort to statutorily protect members’ rights,” Rose said.
Meanwhile, Fraser surprised onlookers at the August meeting by mentioning the possibility of breaking PEC up into a series of smaller cooperatives.
Fuelberg’s criminal trial has been set for Nov. 29 in Fredericksburg, in Gillespie County, which is outside of PEC’s service area.
Fuelberg, along with former co-op counsel Walter Demond, are facing charges of money laundering, theft of property in excess of $200,000 and misapplication of fiduciary duty in excess of $200,000. Demond will be tried after Fuelberg.
