September 24, 2009
FOR IMMEDIATE RELEASE

PEC to distribute up to $4 million in capital credits, extends fee waiver

In a meeting streamed live on the Internet, Pedernales Electric’s Board of Directors voted on Monday to distribute up to $4 million in capital credits to its members. The Board also decided to extend the waiver of the $100 reconnection fee through the end of 2009.

Capital credits accumulate when revenues exceed expenditures, and those credits are allocated to members based on their electric use. The capital credit amount is based on an allocation factor, and on Monday the Board passed a resolution setting the allocation factor at 0.02251975. Members can determine their individual allocation of capital credits by taking their total annual kilowatt-hour billings in 2008 and multiplying it by the allocation factor. Current plans call for members to be notified of their 2008 allocation and capital credit balance in writing in October, and members eligible for this capital credit distribution will receive a credit on their November bill.

In July, the Board had voted to temporarily waive the $100 reconnection fee to help members facing an intense heat wave and a struggling economy. On Monday, the Directors extended that waiver through the end of the year.

At a meeting earlier this month, the Governance, Bylaws and Legal Committee had unanimously approved a timetable to review and revise PEC’s bylaws. The committee presented the timetable to the full Board on Monday, and after a lengthy discussion, the Board voted to accept the timetable, which provides opportunities for members to learn about any potential revisions and offer feedback.

“On any issue, there is a diversity of opinion,” said District 7 Director Dr. Patrick Cox. “It is incumbent on us to try to improve Pedernales Electric Cooperative. If we’re going revise these bylaws, we really need to hear more from our membership and open up this process.”

Later in the meeting, District 5 Director R.B. Felps offered two resolutions to amend bylaws. The first resolution would limit Board members to no more than three consecutive terms in office, and the second would allow members to vote only for their own district’s Director. The Board voted to refer both resolutions to the Governance, Bylaws and Legal Committee.

PEC Directors passed a resolution that removed the existing board of directors of Envision Utility Software Corporation and appointed a new board for the purposes of completing the dissolution of the company. The new Envision board is comprised of Felps, District 4 Director O.C. Harmon, District 3 Director Kathy Scanlon and Advisory Director-at-Large Lamont Ramage.

The Board also discussed PEC management’s plan to give merit raises to high-performing Cooperative employees. Board President and District 6 Director Larry Landaker said, “The Board treasures and values its employees. Our employees are our front-line people, and they make us great.”

Landaker opened the meeting by announcing to those in attendance that they were participating in a bit of PEC history because, for the first time, the meeting was being broadcast live over the Internet.

“Members may now watch our Board meetings live from their homes or anywhere they have a computer,” Landaker said. “Ironically, one of the first beneficiaries of our video streaming is our general manager, Juan Garza, who is recovering at home from recent surgery. I am happy to report Mr. Garza is doing well and expects to be back at work soon.”

During the member comment section of the meeting, members supported single-member districts as defined in Felps’ second resolution, thanked the Board for publicizing committee meetings, and thanked the employees for the job they did maintaining reliable service during recent storms in the Hill Country. Members also asked about deregulation, Texland Electric Cooperative and what goes on when the Directors adjourn to executive session.

In other action at Monday’s meeting, the Board:
• Heard an update on PEC’s strategic plan. Acting General Manager Paul Hilgers said the Cooperative could award a contract to a facilitator as soon as this week.
• Approved charters for its four committees.
• Unanimously accepted the ERISA (Employee Retirement Income Security Act) audit, which is ready to be submitted to the Department of Labor.
• Instructed PEC staff to put together a report on the Cooperative’s charitable contributions, so the Board can create a formal policy on this matter. Hilgers informed the Board that PEC would not be participating in a charitable program known as “Operation Round Up,” but instead proposed an alternative solution.
• Approved nine construction projects as recommended by the Financial Strategies, Contracts and Budget Committee.
• Agreed to pay $57,516.21 in membership dues to the American Public Power Association.

The next Board meeting will be held at 10 a.m. on Oct. 19 at PEC’s E. Babe Smith Headquarters Building in Johnson City.