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PEC Board Sticks With Contract; Ignores New LCRA SurchargeJOHNSON CITY - The board of Pedemales Electric Cooperative voted unanimously Monday to pay LCRA's bill according to the terms of its contract rather than according to LCRA's new method ofcalculation.The power bill, which totaled $852,431 99, was $10,652 84 less than the amount the board elected to pay.We have a credit on our November bill, explained PEC manager Tom Hutchison, when the cooperative's legal counsel, A.W. moursand, asked if the bill submitted was in accordance with the existing contract with LCRAHere's How Energy Surcharge Increased..Been feeling the clutch on your pocketbook when your Pedernales Electric Coop bill arrives?You probably KNOW it's skyrocketed but the chart shown below gives a month by month breakdown of how your electric bill has been affected by the energy charge adjustmentThe first PEC energy charge of a mere seventy cents per 1 000 kiliowatt hours used two years ago (January, 1974) has climbed 3,000 percent to its present $21 10 per 1,000 KWH used. The energy charge adjustment to PEC customers has been necessitated by similar charges passed along to PEC by its electrical supplier, LCRAFob.tyr/,% LNERGYTAX CHAHGR3.70 4.20 5.80 6.00 7.40.81t i 7. '}. 22. 10 20.44 20.96 22.62 23.83 24.28 27. 30 29.48 30.73It looks like they can just charge us any damn thing they want to. he added. But, this board has got no right to pay ANY bill which is not figured in accordance with our existing contract, until this contract is amended or changed.Lower Colorado River Authority general manager Charles Herring, a guest at the board meeting, was invited to explain the current method of calculation, as well as their $2 1 million shortfall, $400,000 of which they also expect to pass along to PEC.I understand the problems, Moursund said. I don't think we need to be bored by explanations.I don't think anybody is dumb enough to think the $10,650 is a bargain in light of the $400,000 shortfall we are going to be charged.How can the current bill be $10,000 less if they (LCRA) are trying to make up a $4000,000 shortfall?” asked board member Judge Walter Burnett of San Marcos.No one had a ready answer for his question.Hutchison expanded on his feeling that PEC board should pay the bill according to LCRA's calculations.I consider part of LCRA's problem part of our problem, he said.Despite Hutchison's recommendation that the LCRA bill be paid as submitted, Moursund advised otherwise.Your recommendation as legal counsel is that we should not pay the bill this w-ay?, board president E ' Babe ' Smith asked MoursundWhat really is ridiculous is that we have no control over what LCRA does,' Moursund said Maybe they traded good, maybe bad. But the poor old guy at the end of the line has to pay for it.Moursund suggested at one point that the power contract with LCRA be discontinued if LCRA could not live up to the terms of the agreement.The only reason LCRA has a Bastrop plant is because we (PEC) and Bluebonnet (electric cooperative) set a long term power contract with them, Moursund said. I don't think we need to continue that contract.This board has a responsibility to determine what's best for our customers, said Judge Burnett.Finally, the board decided to wait to consider payment of the $400,000 surcharge to LCRA. and went on to vote unanimously to pay the November power bill according to the contract, rather than according to LCRA's lower dollar calculations.
Newspaper Details
Burnet County Bulletin
Burnet, Texas, US
Thu, Dec 18, 1975
Page 1
Full Page
Clipped by
Theodore C.
USA 22 May 2025
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