4 May 2009
Candidate Response: Robbi Boone
Why do you wish to serve as a Director of PEC?
When asked to run for the PEC Board, I accepted knowing my extensive experience with boards, ability to interpret and re-write by-laws, develop policy and my past uncovering of wrong doing (much like here at PEC) will be useful skills on our PEC Board. I offer the PEC membership a strong advocate for members needs – not big business.
I also want to be certain that those of us with limited resources have a voice in our electric cooperative. I will stand up for members needs, requests and concerns by bringing member concerns to the board, making open meeting and open records of paramount importance, creating easier and faster ways of accessing PEC information and acting as an advocate for lower rates, modern technology and economical policies.
Please explain what you see as the proper role of a Director of PEC.
The proper role of a PEC Director is to knowledgably work with other Directors and the PEC Management in a spirit of cooperative collaboration. Right now the most pressing concerns include developing new policies and expanding those just begun in order to put PEC back into a position of fiscal strength. It is also up to the board to revise our corporate by-laws. This is important as our by-laws currently allow for the board of directors to alter this document without the voice of the membership. This must be changed so that 7 people alone cannot control the way PEC operates.
While I envision this as cooperative, Board Directors are not to be a rubber stamp for management interests, but are elected to question, discuss and set policy for all PEC action in concert with management. The proper role is to work together as partners to achieve the best long term results with the least costs. I have done this successfully on numerous boards over many years of civic service.
What do you see as the one or two greatest challenges facing PEC in the next year?
The greatest challenges facing the new PEC Board are to actively prioritize and implement the findings of the Navigant Report. Thanks to the interest and hard work of concerned PEC members, positive change has begun. The coming year requires dedication and effort to implement and expand this change.
Using the Navigant Report we must set policy so that all aspects of PEC are handled professionally and according to standard accounting practices. We must be certain that PEC is totally transparent with its members; meeting must be listed on the website home page, records must be open and accessible, meeting minutes must be promptly available and PEC must actively solicit member input.
There are currently pending two legislative bills in Austin regarding the governance of electric co-ops in Texas. One is known as the Rose/Fraser Bill (HB1390 and SB 921) and the other is the Swinford Bill (HB 3820). The PEC board voted on April 6 to support the Swinford Bill and to oppose the Rose/Fraser Bill. If you had been a Director, how would you have voted and why?
Sitting at the April 6th Special PEC Board Meeting, I was very surprised that the board turned down the bill crafted by Fraser/Rose by a 6 to 1 vote. As our best advocates in the Texas House of Representatives and Senate, Fraser/Rose have been closely working with PEC to assure its future. We must elect forward thinking board directors so that PEC and other cooperatives will be protected legally. I believe the Fraser/Rose Bill (HB1390 and SB 921) best articulates requirements necessary for an electric utility as large as PEC and is the bill that requires open meetings.
The Swinford Bill, accepted by the current Board of Directors, is much weaker and does not require PEC to be inclusive of members. For example, with this bill, members will only be able to attend the portions of meetings designed for public comment. I believe our members should be allowed and encouraged to attend all PEC Board of Director meetings in their entirety with the exception of matters demanding confidentiality as outlined in the by-laws.
Some members have advocated what they call a “Bill of Rights” for PEC members. Basically the idea is to require that certain aspects of governance such as fair elections open to all members, Open Meetings, and Open Records provisions can be changed only by a vote of the members, not by a By-law change adopted by the board of directors. Do you view this as a good idea? Please explain briefly.
The Member Bill of Rights is crucial for PEC members. I believe that the PEC membership – the true owners of our cooperative – must be encouraged to be actively involved in decision making. We must further open meetings, records and revise the new election system. We can become more responsive to members by creating policy permitting the direct election of directors by the people of their home district (to insure there is representation on the PEC Board that is elected by the members of the district), by setting term limits (I suggest three terms as an appropriate number for the board to discuss) and further developing the website for ease of member use (meetings posted on the home page, as an example).
I believe that any changes involving our by-laws and major policies must be voted on by the membership – not just the PEC Board of directors. Members are the real owners of PEC. It is not appropriate for an elected Board of seven Directors to be able change the entire governing document of the corporation by a 2/3 vote. While the Board of Directors is the appropriate group to initiate bylaw changes, it is the members who must vote on these alterations.
What role, if any, do you feel PEC should play in promotion of so-called “distributed generation” of electricity by members (solar panels, wind etc.)?
The PEC Board has the opportunity as the largest electrical cooperative in the nation to provide leadership in both solar and wind energy. I believe the new technologies should be encouraged, adopted as possible and rewarded where utilized. Members who conserve electricity should also be rewarded. Education of our members is also a big part of this effort and must be emphasized.
In the long run, promotion of solar and wind energy will result in savings and beneficial outcomes:
1. Achieving energy independence
2. Developing new industries in Texas
3. Creating a broader job base for Texans
4. Resulting in cleaner air and an increasing respect for the environment.
The technology exists. Now is the time and PEC can be the model to the benefit of our membership.
Based on the information available to you as a PEC member and candidate for Director, how would you rate the financial condition of PEC – strong, adequate, basically sound with a few problems, precarious, or other description. Please feel free to explain briefly.
I agree with the findings and the extensive information provided by Navigant, the consulting company hired to thoroughly review the current status of PEC. The financial position of PEC can be better managed and strengthened. By exercising responsibility, prudent action, closing financial loopholes, developing strict policies and disclosures, we can return PEC to a solid financial footing. Limiting board expenditures and investments in outside companies are two more things we can do to quickly turn PEC around.
PEC has excelled in customer service. We can also excel in financial management. Our new manager is headed in the right direction. The pending adoption of both Inside and Outside Auditors is also a big step in the right direction.
Should PEC adopt term limits for Directors?
Yes, PEC must develop term limits for directors. By carefully staggering terms, we will be assured of both well informed board members and a board that is responsible only to the membership and is not involved for its own personal interests. As mentioned above, I believe that three terms allows for board expertise and prevents entrenchment of the same people for too long a period of time.
At the same time, continuing leadership of PEC can be maintained by consistent management, professional staff and advisory board members who do not vote, but are available to advise the elected board.
Do you think the cooperative model for electricity distribution service, first adopted in the 1930s, remains a viable model for the 21st Century? Please explain your views briefly.
Yes, I believe the cooperative model to be an excellent way to manage and keep costs low. The goal of a company (corporation vs.. cooperative) that is designed for profit is organized for the financial benefit of the company and its stockholders; it is not necessarily structured with the best financial interests of customers (members).
With intelligent and involved management, hired expertise and a capable Board of Directors, PEC can excel in customer service, develop fiscally responsible policies and develop 21st Century clean energies. I believe the Cooperative model is our best hope for low rates and the best service.
Robbi Boone
1610 FM 484, Canyon Lake, Texas 78133
210-240-6565 / clranch@gvtc.com
Please take all discussions to the Candidate Forum.
2009-05-04 ::