Congress to query co-op on practices (Pedernales Electric Cooperative)

Austin Statesman ^ | June 14, 2008 | Claudia Grisales

[gopheraj]

Nation's largest utility will be focus as U.S. House committee takes closer look at industry.

By Claudia Grisales AMERICAN-STATESMAN STAFF Saturday, June 14, 2008

The Pedernales Electric Cooperative will face questions from Congress this month as the U.S. House of Representatives' main investigative committee takes up the controversy that has embroiled the country's largest member-owned utility for the past year.

The Oversight and Government Reform Committee plans a June 26 hearing in Washington focused primarily on Pedernales. The chairman of the committee is U.S. Rep. Henry Waxman, D-Calif., who Time magazine once dubbed the "scariest guy in Washington," partly for his unilateral power to issue subpoenas.

"The hearing will examine questionable practices at the Pedernales Electric Cooperative and whether such practices may be employed by other electric cooperatives around the country," said Karen Lightfoot, communications director for the committee. "It is important that electric cooperatives are accountable and transparent to their members."

[gopheraj]

Pedernales Electric Cooperative is the largest co-op in the country and the former general manager, Bennie Fuelberg, and the board have been using the co-op as their own money fund for years. The members were not able to get any information out of them or change anything including putting board members on the board who were not handpicked by Bennie so a lawsuit was filed. The GM, his assistant and the board president have resigned and there is a criminal investigation going on by the local DA and the state attorney general. A software company was bought in New Mexico and then Bennie and the board pres, Bud Burnett, bought a second home and a 14,000 acre ranch there. Then they could go take care of "company business" and have the co-op pay the way for them to go to their second homes. Bennie even had two woman being paid without having to come to work. One lives in Louisiana and was getting $30,000 a year plus benefits. Everyone thinks it is a payoff for "services rendered" or to keep them quiet.