[Watchdogs] Troy Fraser files PEC reform bill on last day to file bills for 82nd Legislature

Sat Mar 12 21:05:44 CST 2011

Senate Bill    1743  applies to all co-ops – some parts of it apply to those with over 170,000 members, some parts apply to those with under 170,000 members.  Our PEC would definitely be affected.

Some provisions in this Bill need some work.  

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1.       (e)  At the board's discretion, the board may convene an 

executive session to which the members do not have access to 

deliberate and take action on sensitive matters, such as matters 

involving confidential personnel information, contracts, lawsuits, 

real estate transactions, competitively sensitive information, 

information related to the security of the electrical system or the 

electric cooperative, or other privileged, confidential, or 

proprietary information.

       (f)  The board shall reconvene the open session of the 

regular or special board meeting to announce the final action taken 

The Open Meetings Act of Texas allows a Board to go into Executive Session, but any final action or vote must be taken in an open meeting following the closed session.  This Bill should be amended to require co-op Boards to take action or vote in an open meeting.  We members should be entitled to know how each Board member votes on a given issue.

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2.       (k)  An electric cooperative with not more than 170,000 

members shall hold an election at the electric cooperative's first 

annual meeting held after December 31, 2011, on the question of 

whether the electric cooperative will be subject to the 

requirements of Subsections (d)-(i). If a majority of the members 

voting at the election vote in favor of the electric cooperative 

remaining subject to those requirements, the electric cooperative 

shall hold another election on the same question at every 

subsequent fifth annual meeting until the majority of members 

voting at an election under this subsection vote against the 

electric cooperative remaining subject to those requirements.

This would not apply to the PEC, but it should be changed.   They have this requirement backwards.  It is in the interest of the members to have their co-op remain subject to provisions (d) – (i).  
A co-op should not be compelled to hold an election every five years whether or not anyone wants one.  The shall in red should be changed to may.
Either that, or better, the provision should be changed to read:

 If a majority of the members 

voting at the election vote against the electric cooperative 

remaining subject to those requirements, the electric cooperative 

shall hold another election on the same question at every 

subsequent fifth annual meeting until the majority of members 

voting at an election under this subsection vote in favor of the 

electric cooperative remaining subject to those requirements.

3.       Sec. 161.080.  MEMBER'S RIGHT OF ACCESS TO RECORDS. (a) 

Except as provided by Subsection (c), a member of an electric 

cooperative may, at any reasonable time and on written request that 

states a proper purpose for the request, inspect and copy the books 

and records of the electric cooperative relevant to that purpose.

What is a ‘proper purpose’ and who in the co-op is to decide what is proper?  This provision is an invitation for a co-op to routinely deny a member’s request for information on the basis the member does not have a proper purpose.  It should be eliminated, or at least the co-op should be required to define the term ‘proper purpose’ in a written policy, and define it in a way that a member can get information about the co-op even if the member’s purpose is merely to stay informed about the co-op.

 4.      Sec. 161.127.  NOTIFICATION OF CERTAIN INVESTMENTS. Not 

later than the 30th day following the completion of a transaction 

that results in an electric cooperative or an affiliate of the 

electric cooperative creating or acquiring an interest in an entity 

that does not generate, transmit, or distribute electricity, the 

electric cooperative shall provide a notice to members that 

contains:

             (1)  the name of the entity;

             (2)  a description of the entity;

             (3)  the reasons for the decision to enter into the 

transaction;

             (4)  a description of the costs associated with the 

transaction, and the method of financing for those costs; and

             (5)  a description of the anticipated effect the 

transaction will have on the electric cooperative's electric energy 

rates or prices.

If the PEC decides someday to again waste our money on another wild venture, I believe co-op members should be told about it BEFORE it becomes a done deal.  This provision should be changed to read:

       Sec. 161.127.  NOTIFICATION OF CERTAIN INVESTMENTS. 

A transaction that results in an electric cooperative or an affiliate of the electric cooperative creating or acquiring an interest in an entity that does not generate, transmit, or distribute electricity shall not be valid until the Board has given notice to the cooperative members and holds an open meeting during which the Board listens to the concerns of members before voting on whether to approve the transaction.  The prior notice to the membership shall contain:

             (1)  the name of the entity;

             (2)  a description of the entity;

             (3)  the reasons for the decision to enter into the 

transaction;

             (4)  a description of the costs associated with the 

transaction, and the method of financing for those costs; and

             (5)  a description of the anticipated effect the 

transaction will have on the electric cooperative's electric energy 

rates or prices.

Carlos Higgins
Austin, TX
512 258 3564 CarlosTX at sbcglobal.net

--- On Sat, 3/12/11, Andy Wilson <andy.citizen at gmail.com> wrote:

From: Andy Wilson <andy.citizen at gmail.com>
Subject: [Watchdogs] Troy Fraser files PEC reform bill on last day to file bills for 82nd Legislature
To: "Watchdogs" <watchdogs at pec4u.org>
Date: Saturday, March 12, 2011, 1:45 AM

http://www.legis.state.tx.us/BillLookup/Text.aspx?LegSess=82R&Bill=SB1743

Only applies to co-ops over 170,000 members. 

Mandates single member districts

Disallows proxy votes with very few exceptions

Disallows offering incentives for proxy votes

Requires some minimal open meetings and records policies (basically that co-ops have to follow their bylaws)

What does everyone think?  I'll keep a watch on this and let people know if a committee hearing is called.

~~Andy Wilson

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