PEC Press Release - Representatives of Pedernales Electric Cooperative and Bluebonnet Electric Cooperative met at a Sept. 4 meeting in Bastrop, Texas, at Bluebonnet Electric Cooperative headquarters to pass four resolutions relating to Texland Electric Cooperative and Texland Electric Company.
“We are pleased to be making progress in putting matters related to Texland to rest, so we can focus on running PEC, which is our top priority,” said Kathryn Scanlon, Texland board president and Pedernales Electric Cooperative District 3 Director.
“We are pleased with this action and hope it puts to rest not only this particular partnership, but the uncertainty that surrounds it,” Bluebonnet Board Chairman Rich Schmidt said.
PEC and Bluebonnet Electric Cooperative formed Texland in 1978 as a joint venture to build coal-fired generation plants. The plan was abandoned after the Public Utility Commission of Texas denied licensing for the plants. The discovery in 2008 of a still-active Texland bank account with $565,350.62 at Cattleman’s National Bank spurred a reconstitution of the Texland board by PEC and BEC, and both responded to litigation over ownership of the account.
The resolutions passed by the joint Board related to the following:
·The distribution of Interpleader funds to Pedernales Electric Cooperative.
·Authorization of Pedernales Electric Cooperative and Bluebonnet Electric Cooperative’s General Counsel to take necessary action to dissolve Texland Electric Cooperative.
·Determination that there is no business reason to continue Texland Electric Company, and authorization to call a special meeting of the sole shareholder of Texland Electric Company for the purposes of dissolving the company.
·Approval of the voluntary dissolution of Texland Electric Company.
Immediately after the Texland Electric Cooperative Board meeting, a special meeting of the Texland Electric Company was called, and a shareholder resolution was passed to voluntarily dissolve the company.
“Our Board acted expeditiously to handle this matter,” said Texland Treasurer and PEC District 7 Director Dr. Patrick Cox. “The legal expenses were minimal in this action, and we will plan to have a full accounting of Texland available to members in the future.
“We will provide a comprehensive report on Texland that includes a thorough accounting of all expenditures, including the legal expenses incurred as a result of the Interpleader action filed by Cattleman’s National Bank. Once our legal fees are paid, the PEC will have more than $500,000 rightfully returned to our members.”