Tuesday, May 19, 2009

Talk Is Cheap...So Here Are Some of the Things I've Actually Done

The past year-and-a-half has been a busy one at our Pedernales Electric Co-op. We have moved from a closed and upper echelon ruled system, to one of democracy and transparency and member involvement. Many reforms have occurred, from the top to the bottom. The primary major reforms are in place. There is still work to be done, much of which occurs at each meeting. Our new General Manager, Juan Garza, has a list of goals pertaining to all areas of management, including budgets and better fiscal responsibility to the members. By-law changes, Policies and Procedures are all evolving into 21st Century practices. These changes require time to thoughtfully create and implement. There are often complicated factors to be considered before these changes can be made. It is all a process, and at PEC, the process is rolling!

As an involved member, and now potential board director, I have been excited about this process of change. Since March 2008, as a member, I have steadily reviewed and participated in many of these processes. I have shared ideas, concerns and member input with the board and management. Most importantly, I have studied the factors that should be considered before making a decision. I have had tutors in the industry, calling on their expertise to educate me and answer my questions. Experts within PEC have readily provided information and answered my questions. I have shared this knowledge with members at every opportunity, speaking to groups and writing blogs on the Hays County Roundup. The PEC has become a dominant part of my life. This has been a choice, and I have viewed it as an opportunity to serve the members. As a board director, this will not change.

We are now at the point of electing two more new members to the board. All of us as candidates, have goals for renewable energy sources and a strong, viable, conservation plan. These initiatives are already in the process of happening. PEC just recently adopted a new PURPA Standard that will require these goals to become reality. The legislature is pushing renewable energy to become a heavier component of the market basket and power portfolios of all electrical companies. This IS the way of the future. This is going to happen regardless of who is on the board. HOW it is done will be the critical issue. Again, there are many factors to consider as these renewable resources become available. An dominant factor to PEC, is the contract with LCRA, from whom we buy about 95% of our power. (Please see future blog on this topic). No candidate has an edge on these goals, but some of us have a far better understanding of the potentials and processes for reaching these goals.

Some of the candidates have never attended an annual meeting or any board meetings. Yet they profess to know and understand the needs of the members and what the board needs to be doing. Some of the candidates are making promises of what they will do, without having the facts to support their ability to fulfill those promises. Nor do they actually have the larger member input to know if this is really what members want much less what is best for the business operations of the co-op. Some candidates are promoting actions that have already been implemented. Most of the candidates look good on paper, but “talk is cheap”. If these candidates are so concerned and interested in our co-op, where have they been? Where have they gotten their information? WHO has supplied that information? The PEC website offers much information, but not enough to supply even the basics of the business operations of the co-op. This is a time consuming operation, and the board directors MUST have the time and the motivation to do more than attend the meetings. It is generally accepted that there is a three year learning curve: the time needed to get fully educated and functional for the board. One of us has more than a year’s lead on that curve!

There are many “qualities” that make for a good board member. The actual personality is one of them. Our co-op is a professional organization. The board members are often part of state and national activities. They represent our co-op. Simple, good social skills need to be part of the package. Professionalism, including calm and logical demeanor in the face of challenge, should be a must. A positive attitude about our co-op is essential. We are being watched very closely by others in the industry, not just other co-ops. I know this to be fact, because I have had contact with some of them. Negativity and emotionalism do not have a place on the board. Members have every right to participate in the co-op as they choose, but the Board has an obligation to the members as a whole. There is simply no room for personal agendas.

Tuesday, May 5, 2009

About Me and This Blog

Welcome to my blog site and thank you for your interest. I am a candidate for the Pedernales Electric Co-op Board of Directors, District 6. Like last year, this is an at-large election, meaning members will vote for one candidate in each of the districts open for election.

I have included here, my bio as it will appear on the ballot and the PEC Candidate website. I have also included my press release, announcing my candidacy. Following these two items, you will find some blogs I wrote last year for the Hays County Roundup, a newstream that is open for anyone to read. When I wrote these blogs, they were about current events at the PEC. My goal was to give members a better understanding of the issues they were seeing in other media. These blogs were researched and written for the benefit of PEC members. There was no compensation for these articles. I ceased writing when the PEC began writing releases along the same vent. I have continued to research current events at our co-op and will be writing new blogs for this site, as well as any campaign materials I believe will enable the members to decide how to cast their vote.

I encourage your questions and comments, and will make every attempt to respond. Email address and phone number is posted above. Or you may use this site for comments. I have a strong commitment to be available to members and believe that the more a member understands the issues at hand, the better it is for our co-op. Thank you again, and I look forward to serving you as a Board Director. Linda Kaye Rogers

Wednesday, April 29, 2009

Linda Kaye Rogers gives speech at candidates forum

Following is the speech I gave at the PEC candidates forums. All candidates were given two minutes to speak. You can also view my speech by copying and pasting this url into your internet browser: http://www.pec.coop/CorpProfile/mov.aspx?mov=20090428_Forum_07.flv

"I am Linda Kaye Rogers, candidate for District 6. As a Board Director I will never forget that first and foremost, like you, I am a member/owner of PEC. When business comes before the Board, I will think about how it will effect each one of PEC’s diverse membership.

For the past year, I have been researching the issues that have come before the Board. I have attended ALL board meetings and public member hearings. I have listened to input from members, and assisted members in clarifying their questions about important issues at hand.

While the past year has seen many positive changes within our cooperative, PEC continues to face many critical issues. We are currently in the process of determining a new rate structure. We are committed to diversifying our power portfolio with renewables, while simultaneously juggling the need to control costs. These issues require a Board of Directors who can balance the need for fiscal responsibility with the necessary dedication to the cooperative principals of member ownership.

Like all the other candidates, I am dedicated to the continuance of transparency and responsible fiscal management. But I am also dedicated to forward-looking business practices. I believe in the power of today and the opportunities of tomorrow.

We are unique in that we are member/owners of the largest electric co-op in the nation. And, despite our troubled past, I believe our co-op is in a recovery mode and can become the shining star in the universe of co-ops. To move into 21st century business practices will require the unified efforts of a qualified Board. I am able to do this and committed to this task. As your District 6 Director, I will be your voice, your servant, and your guardian. I ask for your vote to allow me to continue the core business of PEC: keeping the lights on and the rates low. Thank you. "

Monday, April 27, 2009

Stumping for the PEC Board Brings Some Interesting Meetings

(Following is an editorial article I wrote for the Hays County Round Up in May of 2008 about my experiences as a candidate in last year's election.)

This process of campaigning continues to unfold with new challenges and new delights. While it has required a huge amount of time and energy to literally knock on hundreds of doors and meet with members wherever possible, it has consistently held the element of fun. Perhaps this is because I enjoy meeting people and am used to hearing complaints.


Since the ballots from PEC have arrived to choose new board members, the biggest question is: “How do I know who to vote for? I don’t know any of these people.” Fortunately I am not running into very many people who have thrown away their ballots. They seem to be sitting on the kitchen counter waiting for an epiphany or the courage to sort through it and make a decision. Fifty Eight candidates is pretty daunting.

I’m still running into anger regarding the law suit settlement and the compensation to the former GM Bennie Fuelberg, Assistant GM, and Board President. This is subsiding a little bit. The distribution of Capital Credits is now a hotter item and there is a great deal of confusion as to who gets it, how it will be determined and when. One dear elder lady expressed great anxiety because she had remarried and didn’t think she would be found. (I’m tracking this for her).

One has to be careful when knocking on doors, you just never know who will answer. This has come home a couple of times. One evening I was out and the very first house I went to was that of one of my opponents from Kyle, Sherry Anderson. She was working in her yard, invited me in and we had a great chat.

The second time was not quite so pleasant and really drove home something we seldom think about. Last Monday after the monthly PEC Board meeting, I decided to hit a couple of streets in Johnson City. I parked my car on a neighborhood street with my campaign sign prominently posted. I knocked on several doors before finding someone home, then had a good run and decided to head back to my car about 7:30 pm.

There were 2 women standing in the yard near my car and I went up to them. I received a strange reception, but not angry or rude. I introduced myself and was quickly told they knew who I was and really didn’t want to talk to me. Mrs. Will Dahmann (wife of former Asst. GM of PEC) introduced herself and briefly shared the grief and shame her family had suffered as a result of recent events at PEC. She was very much the lady as she excused herself. Her neighbor/friend finally began talking with me and shared many positive things about her long-time friend and neighbor. As I listened, I realized I was talking to “innocent bystanders." These are the people who have nothing to do with an event (war, robbery or whatever), but get hurt in the process. Here were 2 women (and children) who only knew the goodness and love of an individual who is perceived as a villain by others. While this may not change the facts or perceptions, it is the other side of the coin. And every coin has 2 sides.

Knocking on doors has offered other delights. I have been invited into numerous homes, delighted in viewing collections, played with dozens of family pets and run into a woman from my hometown. This was amazing because I am from a small town. I’ve reconnected with a professional liaison and boosted my new professional direction with another therapist. Standing in yards and lovely Texas front porches, discussions have ranged from gardening to other politics to spirituality to a free therapy session. You just never know!

As ballots get closer to the expiration date, and the Texas heat sets in, I doubt door knocking will continue. PEC continues to be in the news and hopefully soon that news will turn into something more positive. As Eric Stratton, a candidate for District 3, has said, “I’m tired of seeing my co-op on the front page.”

One Member, One Vote.

(Following is an editorial opinion I wrote for the Hays County Round Up in June 2008. I am happy to report that the PEC Board of Directors has since eliminated multiple meters and instituted a one member=one vote bylaw.)

It seems our wonderful electric co-op, PEC, just can’t quite go along with the standards of practice of all other electric co-ops. Nope, we have to continue on the fringe and over the edge in our approaches to governance and co-op behavior.

So what is it now? Multiple meter memberships.

The IRS code for tax exemption status for 501c(12) calls for democratic control and defines that control as “one member: one vote." In the decision of Puget Sound vs Plywood, it was stated that there must be democratic control. The concept was that weight and votes not be tied to patronage capital or equity. What was not clearly stated was that one membership is ONE body/entity. So, how does PEC handle this? PEC charges a membership fee for every meter and then every “membership” gets a vote. (How they separate that from patronage capital and equity is another question). So PEC seems to be within the law, but certainly outside the intent or the spirit of the law. And they may be riding a very fine line on the legality of it.

Contact with the National Rural Electric Cooperative of America (NRECA) confirms that PEC is the ONLY cooperative who has this practice. In fact, some cooperatives are very explicit in their definition of one member: one vote, stating no single member may have more than one membership or one vote, regardless of number of meters.

So why is this important? Because MEMBERS own the coop – equally. But if some members have more than one vote, they have more control. And there are some members who have a LOT of control, which means we are outside the parameters of “democratic control."

In late May it came to light that while PEC has 222,524 “member(ships)” it has only 203,592 “customer/owners.” It has 18,932 commercial meters with 47 single member/entities having 99 or more meters/votes. These “members” are primarily developers, governments, utilities, schools, and multi-family housing. It has been speculated that Time Warner Cable is the largest entity with about 1,700 meters/votes. While there are hundreds of members who have small businesses, ranches with separate meters for wells and barns, etc., the “47” are clearly large businesses. Decisions made for business may not hold the best interests of individual members, and vice-versa. But, single-meter members are the meat and potatoes of the co-op!

So let’s look at how this plays out in a voting situation. PEC will conclude its first ever “democratic” election of board directors on Saturday, June 21. As of June 18, there were 22,247 BALLOTS returned, but there were 30,284 VOTES cast. That would be 8,037 votes that have come from multi-meter memberships – roughly 30 percent of the votes. Right now we have no way of knowing if MANY of the smaller meter holders returned ballots, or if just a handful of the BIG meter holders are controlling the vote. Either way, to my thinking, we have a problem.

This is not Democracy in action. Clearly, there is still much clean-up to be done in the house of PEC.

Somebody Turn on the Lights!

(Following is an editorial opinion I wrote for the Hays County Round Up in April of 2008)


The po
wer of apathy is amazing.

For years the board of directors of the PEC, under the iron hand rule of General Manager Bennie Fuelberg, had their way with customers by voting themselves excessive remunerations and perks, traveling in high class and ignoring the principles of co-op management and existence. These and other excesses have been exposed for all the world to see during the proceedings of a class action lawsuit filed last year against the PEC.

I've often wondered how the PEC board and top management was able to get away with fleecing its customer/owners for so long.

My theory is that the co-op's member/owners (that's us, the customers) were just tickled pink that when we flipped on the switch...the lights came on. Maybe we all simply placed our trust naively in a Board of Directors that had such impressive resumes. Many of us never questioned the old proxy voting system which gave the Board the right to nominate and vote for themselves, and where only one choice – the same old names – appeared year after year.

Members were all sent ballots each year to vote on a carefully selected group of board candidates and we were enticed to return our proxy ballots with the chance of winning a big prize. If we attended the annual meeting in Johnson City, we had even more chances of winning prizes. Whoopee! All through this time, PEC received terrific PR in the Texas CO-OP Magazine and all across the Hill Country. Who wouldn't be proud to be part of the largest and most prosperous co-op in the country? Surely, we imagined, the leadership at the PEC was doing everything right.


There's no denying that the PEC provides superior power service and customer service. And our electric rates have historically been below the national averages. Former General Manager Fuelberg was certainly no dummy. He knew the business and how to get things done. He knew how to work with (some say manipulate) a lot of people, including members of the Board of Directors. Intimidation seems to have worked pretty good, too. A number of employees, past and present, who shall remain anonymous, have related stories about retaliation in response to complaints or questions.

Of course, money does talk.
Who of all those carefully screened and selected board members would really complain about sitting on a board where all the business was decided before they arrived for the meeting? They sat in a beautifully appointed board room in posh chairs, rubber stamped the agenda, then went home with big fat "pay" checks in their pockets.

Fuelberg may not have been present at all the board meetings. But information is emerging that he orchestrated just about every move and decision. Current temporary presiding board president, E.B. Price, has admitted so. Price told this writer at PEC's March 17 board meeting that they (he and other board members) were "surprised" to learn of all the embarrassing managerial shenanigans being reported over the past year. He repeated this at the March 27 Senate hearing in Austin.

These are PEC's leaders, members of the PEC Board of Directors, who supposedly are on top of every major financial and management decision. Apparently they have been rubber stamping decisions without insight, foresight OR hindsight! I wonder, have they ever cared at all about the members--that's us, remember, the ones who pay the bills!

Linda Kaye Rogers Announces Candidacy for PEC Board District 6

Linda Kaye Rogers of Wimberley, TX announces her candidacy for the Pedernales Electric Cooperative Board of Directors for District 6.

Rogers was one of the first PEC members to call attention to board and management misdeeds and publicly call for reforms within the cooperative. “When I asked questions at the annual meetings, I couldn’t get answers,” explains Rogers. “This was a clear message that something was wrong. It was soon discovered just how wrong.”

Rogers has since continued her involvement with PEC by regularly attending board meetings, speaking publicly to the PEC board and management, and by meeting with PEC members to hear first-hand their needs and concerns. “I don’t know any candidate who has worked harder than Linda Kaye Rogers to understand the needs and concerns of the average PEC member,” says Dr. Sally Caldwell of Woodcreek. “She has her finger squarely on the pulse of the membership lifeline.”

Rogers, a professional with 30 years of experience, counts businesses, governments, universities, charities, hospitals and religious organizations among her extensive list of employers and clients. She has written policies, developed and managed initiatives for programs, and managed her own successful business. “I am skilled at helping both large businesses and small groups,” says Rogers “My varied experience will serve the cooperative well in its quest to once again call itself the best electric cooperative in the nation.”

At the time Rogers first got involved in the reform movement, the PEC management and board operated a closed system which allowed no democratic elections for board members and engaged in lavish spending and questionable business decisions. Thanks to the efforts of activists such as Rogers and some recently elected new board members, PEC has recently become one of the most open and transparent electric cooperatives in the nation. “Now that many of the key governance and bylaws issues are resolved, it is time to focus on the core business of providing progressive, reliable and affordable electricity to our members,” says Rogers. “I will maintain the current democratic policies of openness and transparency while diligently working towards re-establishing the PEC on sound financial footing.”

“The Navigant report recently released by PEC shows that the finances at PEC are not as rosy as previous management reported,” continues Roger. “It’s time for the board to buckle down, focus on essential business, and protect the members from the higher electrical rates which could result from previous mismanagement.”

PEC revealed at the March board meeting that the cooperative has lost approximately $1.5 million due to its contract to purchase power from the South Trent Wind Energy Farm. “This is the result of poor planning. Renewable and sustainable forms of energy must become a part of our energy resources. I recognize this transformation will not come without cost, but with proper planning, these costs can be minimized”, says Rogers. “As that technology becomes dependable and economical, I support an intelligent and responsible transition into the utilization of renewables. The board must not commit to emerging energy sources without first going through due diligence to determine their financial risk.” A dedicated conservationist, Rogers would help steer the cooperative toward a responsible, reliable, and cost-effective mix of renewable and traditional forms of energy.

Rogers could be running against incumbent Charles Tesar. Tesar, currently seated as an advisory director, announced his intention to run for the District 6 seat in February, yet has so far failed to turn in the necessary election forms. Tesar has been criticized by the membership for failing to honor his campaign promise to not accept any compensation from PEC. Instead, he invoiced the cooperative for over $23,000 in retainer and meetings fees in his first six months on the board, according to PEC records. “Given the current lack of trust that exists between the PEC membership and the Co-Op, due to past abuse by former management and board members,” said Rogers, “the membership deserves a Board comprised of elected Directors who will earn their trust through keeping their promises.”

International ratings agency Fitch recently downgraded PEC’s bond rating to ‘A+’ from ‘AA-‘ citing among many factors that the PEC board and management will continue to come under scrutiny from the membership and that a lengthy period of rebuilding trust will delay the cooperative’s efforts to reduce costs. “The Fitch rating is proof that a board that betrays the membership’s trust also negatively impacts the Co-Op’s bottom line,” explains Rogers. “Now, more than ever, we need trustworthy directors who can help rebuild PEC’s financial status.”