[Watchdogs] 'Outrage' over PEC settlement with its former law firm [GUEST COMMENTARY by STATE REP. PATRICK M. ROSE and STATE SEN. TROY FRASER, San Marcos Mercury]

Tue Jun 23 17:00:54 CDT 2009

Outrage is appropriate.  I think we should also face the fact that the
settlement agreement must have had the blessing of the present general
manager Garza.  The recent election of two new directors was encouraging but
the only true protection that members will get is from stringent new laws
regulating  electric co ops.   I hope these legislators can gain more
support for their effort.  Clyde Doyal, Lakeway

From: watchdogs-bounces at pec4u.org [mailto:watchdogs-bounces at pec4u.org] On
Behalf Of Milton Hawkins
Sent: Tuesday, June 23, 2009 3:31 PM
To: Watchdogs at PEC4u.org
Cc: Rep. Patrick Rose; Sen. Troy Fraser
Subject: [Watchdogs] 'Outrage' over PEC settlement with its former law firm
[GUEST COMMENTARY by STATE REP. PATRICK M. ROSE and STATE SEN. TROY FRASER,
San Marcos Mercury]
Importance: High

- San Marcos Mercury - http://www.sanmarcosmercury.com -

'Outrage' over PEC settlement with its former law firm

Posted By Brad Rollins On June 23, 2009 @ 7:50 am In Opinion, Pedernales
Electric channel | No
<http://www.sanmarcosmercury.com/archives/9045/print#comments_controls>
Comments

GUEST COMMENTARY by STATE REP. PATRICK M. ROSE
and STATE SEN. TROY FRASER

We are outraged that the Pedernales Electric Cooperative (PEC) Board of
Directors would agree to indemnify its former law firm by agreeing to a
settlement the same week that the Blanco County Grand Jury indicted a
principal partner with that firm. 

This action by the legacy directors is consistent with the tactics used by
Bennie Fuelberg, the former general manager, to hide information from the
members and employees. It is unbelievable that five days before a new board
is elected by the members, the old guard is still making major decisions.
These decisions should wait until the new board of directors duly elected by
the members are sworn in. 

We believe that further misdeeds of the PEC board of directors and former
general manager will be uncovered - including the possibility that there
were other misapplications of funds to the law firm. As long as a criminal
case is ongoing against Walter Demond, the former outside counsel, we would
ask the cooperative board to not settle this matter. It is in the best
interest of the members that PEC wait until it has all information necessary
in order to make the best deal possible. 

Members and employees want the whole truth, not the truth outlined in a
settlement agreement. With the indictments issued this week, and as the
criminal trials progress, we believe that the members and employees will get
the answers they deserve. By accepting this settlement agreement, the board
appears to have reverted to its former practices of putting up roadblocks to
prevent members from fully participating in the cooperative that they own.

Just like the settlement in the civil lawsuit, the only true winners in this
settlement are the attorneys - the law firm being indemnified - and PEC's
trial attorney who now gets $1.3 million for agreeing to the settlement.

These actions by the PEC board further confirm that its members and hard
working employees need protections in the law. We remain committed to
passing legislation that guarantees democratic elections and open
governance.

SEN. TROY FRASER represents Senate District 24, District 24, Bell, Blanco,
Brown, Burnet, Callahan, Coleman, Comanche, Eastland, Erath, Gillespie,
Hamilton, Kerr, Kimble, Lampasas, Llano, Mason, McCulloch, Menard, Mills,
San Saba and Taylor Counties.  He is Chairman of the Senate Committee on
Business & Commerce.

REP. PATRICK M. ROSE represents House District 45, Blanco, Caldwell and Hays
Counties. He is Chairman of the House Committee on Human Services.

RELATED IN THE MERCURY:

*	[1] PEC reaches <http://www.sanmarcosmercury.com/archives/9022>
settlement with its former law firm
*	[2] Two former PEC <http://www.sanmarcosmercury.com/archives/8999>
officials indicted on felonies

Article printed from San Marcos Mercury: http://www.sanmarcosmercury.com

URL to article: http://www.sanmarcosmercury.com/archives/9045

Milton Hawkins    mhawkins at tstar.net     830-868-9075

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