4 May 2009
Candidate Response: Cristi Clement
Why do you wish to serve as a Director of PEC?
I want to help keep the reform momentum moving in the right direction. I know it will be challenging, but I have the tenacity to stick with it until the co-op is stabilized, on healthy financial ground, and more responsive to member/owners. I believe I can contribute constructive skills and will work with all board members for the common good of PEC.
Please explain what you see as the proper role of a Director of PEC.
I see a Director’s role as that of a guardian of member/owner interests and a contributor to the board to help establish policy and guidance for co-op management to implement and follow. I believe a Director fairly assesses General Manager performance, ensures good oversight of the financial health of co-op and may advise the General Manager on non-delegated authority areas in concert with the board. A Director maintains open lines of communication with members and is their voice on the board.
What do you see as the one or two greatest challenges facing PEC in the next year?
The number one challenge we face is to get an accurate assessment of the true financial position of the co-op and get expenses under control. Another area would be to asses how much “mission drift” we have and what areas may need to be assessed for consolidation, elimination or other efficiencies.
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?
I would have supported the Rose/Fraser bill although there are some requirements that I would like to see amended or given further consideration, such as the size standard. I would suggest dropping the size down to around 100,000 to ensure PEC would be included.The bill actually codifies the reforms to date at PEC and gives member/owners the best protections from backsliding by future boards. We now have a very hostile TX Senator/PEC member in our midst due to PEC management position on the bill. I have actively encouraged supporters to support the Fraser bill, and now the Rose companion bill.
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.
I am embracing the concept of Members’ Bill of Rights and think the idea can be developed to seek member participation and define the core elements for protection. I think it is a practical process to encourage member participation again and a great way to re-build the trust that has been trampled.
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.)?
I believe PEC can and should be a promoter and perhaps partner along with LCRA to facilitate and provide incentive programs that encourage use of distributed generation systems. We have the goals, now we need the inertia to move toward them. It’s a step in the right direction.
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.
It appears to me that we may still not know our final true financial position, so I would select a cautious category of TBD – to be determined. Once our new auditors are on board and start digging into things, perhaps they can come up with a preliminary assessment that could be more encouraging. I am concerned with other unknowns that are NOT evidenced in our normal accounting channels. Senator Fraser speaks of possibly $50 million that may have been misused. I am interested in the facts of that view. Also I see little evidence of internal initiatives to address major cost cutting.
Should PEC adopt term limits for Directors?
Yes, I would suggest no longer than 3 terms.
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.
The co-op model from the 1930’s still makes lots of sense to me. Just like in the REA days, we have sparsely populated service areas where our members need electricity. Private or public for-profit entities would not view those customers as attractive economically. We do have some mixed areas of urban/rural, but the co-op model still serves the common needs of all members. Margins, if any, always go back to the members so the co-op is better suited for our needs as opposed to a stockholder owned entity. We as a co-op, avoid the extra pressure to drive up the bottom line for higher profits for stockholders.
Please take all discussions to the Candidate Forum.
2009-05-04 ::