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October 27, 2009
No federal smart grid money for Austin
Austin won’t be getting any of the $3.4 billion in federal smart grid funding announced by President Barack Obama on Tuesday.
Austin Energy had applied for a $100 million grant to speed up its green-energy initiative, said Roger Duncan, general manager of Austin Energy.
“If you look at the ones that were awarded, particularly in Texas, most were for projects we’ve already completed or have plans to complete,” Duncan said.
Texas utilities won $258.2 million in federal money. The biggest grant went to Houston-based CenterPoint, which will get $200 million to complete the installation of 2.2 million smart meters and install more than 550 sensors and automated switches.
The president announced 100 grants in all to utilities, both private and municipal, nationwide.
At the end of the month, Austin will finish switching customers to electric meters that radio back regular reports on energy use. The new meters will eliminate the need to send an employee once a month to check how much power a home or building used.
The other utilities are “using the grant money to sort of catch the rest of the country up to where Austin is at,” said Duncan, who has overseen many of the city’s conservation programs.
Duncan announced earlier this month that he will step down in March. He said that before leaving he hopes to win approval for an ambitious plan to triple the amount of electricity Austin gets from renewable sources such as wind and solar power.
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September 15, 2009
Ercot CEO to leave in November
Bob Kahn, the president and chief executive officer of the organization that manages the Texas electric grid, will step down in November.
Kahn joined the Electric Reliability Council of Texas in 2007. He told board members Tuesday of his plans.
“I feel good about where the organization is now and can leave knowing that Ercot is on solid ground,” Kahn said.
Ercot has not yet decided on naming interim CEO or how to approach finding a successor.
The organization oversees the flow of electricity to 22 million customers.
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September 2, 2009
Top co-op exec to undergo surgery
Juan Garza, top executive of Johnson City-based Pedernales Electric Cooperative, will undergo brain surgery, the member-owned utility said Wednesday.
Garza, 64, will have a lesion on the left side of his brain removed during surgery slated for tomorrow, the co-op said.
“We will take this situation one day at a time,” the co-op’s general manager said in a statement.
The co-op said it expects the surgery to be “straightforward and expects no complications.”
“I will remain in contact with my office and keep everyone informed of my condition,” Garza said. “I am confident that the cooperative is in good hands with its management team and our wonderful employees.”
Garza took the helm of the then-troubled co-op, the country’s largest, in February 2008 and has overseen a series of reforms in Pedernales’ operations.
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June 25, 2009
Ercot asks Texans to cool their power use this afternoon
The Electric Reliability Council of Texas is asking Texans to turn off appliances and turn up their air conditioners to 80 degrees as power usage heads for a record level this afternoon.
With temperatures above 100 degrees in much of the state, the agency that oversees the Texas electric transmission grid wants to make sure there are no power problems.
“We don’t anticipate any electricity emergencies, but due to the effect of some unplanned generation outages, we expect to have minimal reserves available, which could increase the possibility that we will declare an advisory or further steps in the Energy Emergency Alert procedures,” said Kent Saathoff, vice president of system planning and operations. “We will be monitoring the grid very closely.”
Between 3 and 7 p.m. today, Ercot is expecting that statewide power demand will approach 62,500 megawatts. The record of 62,339 megawatts was hit Aug. 17, 2006.
To insure against power problems, Ercot is asking people to raise air-conditioning thermostats, use fans to cool their homes, close blinds or drapes on windows that get direct sun, avoid using big appliances between 3 and 7 p.m.
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March 17, 2009
Co-op bond rating falls, director to step down
Fitch Ratings has downgraded its bond rating for Pedernales Electric Cooperative, citing the continuing pressures of implementing management reforms and cutting costs “in response to past management practices and excessive costs.”
The co-op’s bond rating will be “A+,” down from “AA-,” Fitch said. The rating outlook is considered “stable.”
Fitch, one of the major bond rating firms, said that it will take time for PEC to transition away from the practices of past leaders, “and that PEC will face continued pressure and scrutiny from its members.”
In the past year, top PEC leaders and some board members have resigned in the wake of disclosures of lavish spending, big paychecks, questionable accounting and weak board oversight.
At a PEC board meeting Monday, co-op General Manager Juan Garza said the rating downgrade was “disappointing.” However, he said, the co-op is “still solid.”
Also Monday, longtime board member Val Smith said he would not run for re-election in June. Smith has been a board member for 25 years and said he wanted to spend more time on his personal business, a petroleum company.
“I’m 76, and I think it’s high time for me to move on,” said Smith, one of seven co-op directors with voting power.
Smith’s move virtually guarantees that new leadership will gain control of the board when the elections are held. Reform-minded members have taken three board seats in recent months.
Smith’s move will leave co-op board President R.B. Felps and voting directors Vi Cloud and O.C. Harmon as the lone holdovers from the previous era. Cloud said Monday she couldn’t confirm whether she will run for re-election yet.
The deadline to file to run for election is in early April.
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August 4, 2008
ERCOT sees possible power use record this afternoon
With temperatures in the triple digits across Texas today, the Electric Reliability Council of Texas is asking people to reduce their power use between 3 and 7 p.m.
“We don’t expect any electricity emergencies, but due to the effect of any unexpected generation outages, we will be monitoring the grid very closely,” said Kent Saathoff, vice president of systems operations.
Peak electricity demand today could hit 63,000 megawatts. The record was set Aug. 17, 2006 at 62,339 megawatts.
ERCOT is asking consumers and businesses to set air conditioning systems at 80 degrees or higher; use fans for cooling; close blinds and drapes on windows that get direct sun; turn off unncessary lights, appliances and electronic equipment; and avoid using big appliances between 3 and 7 p.m.
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July 14, 2008
Pedernales Co-op directors elect Felps as new president
Pedernales Electric Cooperative directors elected a new president Monday, handing the reins over to a member of the co-op’s old regime, cattle rancher and business owner R.B. Felps.
Felps takes over for former president E.B. Price, who played a key role in the reforms so far of the co-op and declined to seek re-election when his term expired last month.
The vote was the first significant action for the board since co-op members elected three new voting members and two advisory members last month, in the most open election in years. Members have raised protests and filed lawsuits over Pedernales’ management, including high board salaries and perks.
Felps voted for himself, along with veteran members Vi Cloud, Val Smith and O.C. Harmon. New board members James Williams, Kathryn Scanlon and Patrick Cox voted for Cox.
For vice president, the directors voted 5-2 for Williams, a senior manager in the electric utilities business, over Cox.
The board’s current secretary and treasurer, O.C. Harmon, got to retain that seat since no one else was nominated.
Also, a special board committee on compensation issues recommended that directors no longer get health care benefits. That would bring average compensation for directors, who work part-time, to $40,000 a year. Directors would be able to separately buy into the co-op’s employee insurance plan.
Two longtime directors, Linebarger and advisory director Kenneth Kennedy, officially resigned at the meeting.
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June 26, 2008
Fuelberg spotted at PEC the day he skips hearing
Bennie Fuelberg, the former general manager of the Pedernales Electric Cooperative, was spotted at a PEC office in Texas on Thursday paying his electric bill, PEC spokesman Michael Racis has confirmed.
Meanwhile, across the country in Washington, leaders of a congressional committee were complaining that U.S. marshals could not find Fuelberg, who had been subpoenaed to attend their hearing reviewing the co-op’s problems.
Apparently, he’s more afraid of a late fee than of the United States Congress.
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Video from congressional hearing on PEC
Here is some video from the congressional hearing today on the Pedernales Electric Cooperative.
First up is Rep. Patrick Rose talking about some of the reforms he hopes to implement in the next legislative session.
Next up is John Watson, a PEC member. First he talks about dealing with the National Rural Electric Cooperative Association and state oversight of PEC.
Here Watson talks about his ongoing concerns with the PEC board.
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Duke Energy buys major Texas wind farm owner
Duke Energy is buying Catamount Energy Corp., whose holdings include the giant Sweetwater wind farm in West Texas.
Sweetwater, which went into operation in 2005, is a major supplier of green power to Austin Energy. It is one of the biggest wind farms in the world.
Duke, based in Charlotte, N.C., will pay $240 million for Catamount. Last year, Duke bought Austin-based Tierra Energy, a wind power developer.
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Members of Congress take pass on start of PEC hearing
It’s not exactly the Roger Clemens show.
At the outset of the House Committee on Oversight and Government Reform’s committee on the Pedernales Electric Co-Operative, most of the seats on the dais are empty.
There are about 40 members of the U.S. House on the committee. So far, nine are here for the hearing. (Not at all unusual when there aren’t many cameras here). The one Texan on the committee, Republican Ken Marchant of Coppell, is here.
More members are likely to come in and out.
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May 31, 2007
ERCOT names new CEO
A news release from the Electric Reliability Council of Texas
The Electric Reliability Council of Texas, Inc. (ERCOT), the grid operator for most of Texas, has named Bob Kahn as chief executive officer to succeed outgoing CEO Sam Jones, who is retiring later this year, Board Chair Mark Armentrout announced today.
Kahn, deputy general manager for Austin Energy and a former ERCOT board member, agreed to a five-year contract, Armentrout said. Kahn is tentatively scheduled to begin his tenure at ERCOT on July 9. His selection follows a search that began last December.
“Bob Kahn brings a tremendous amount of seasoned experience and knowledge of the electric industry to ERCOT’s management team” said Jones who has been with ERCOT since 1996 and served as CEO since May 2006. I am looking forward to turning over the reins to Bob and will work with him to assure a smooth transition.”
Prior to becoming Deputy General Manager in 2005, Kahn was General Counsel and Vice President for Legal Services for Austin Energy for eight years, responsible for providing counsel on all electric utility legal, regulatory and legislative matters for the Austin Energy. He has represented clients in the electric industry for over 20 years, including in rate cases and rulemaking proceedings before the Public Utility Commission of Texas (PUC). He played a key role for the public power industry in the negotiation and drafting of retail deregulation legislation for Texas.
Before joining Austin Energy, Kahn was in private practice where he provided advice to municipally-owned electric utilities, and served as lead counsel in proceedings before the PUC, the Texas Commission on Environmental Quality and the Texas Railroad Commission. Previous to private practice he was a staff attorney in the Texas PUC General Counsel’s Office, where he represented the public’s interest in electric and water utility rate and certification cases. Kahn served in the United States Air Force as a Judge Advocate, directing administrative hearings and investigations, and represented the Air Force before the Merit Systems Protection Board.
He earned a juris doctorate in 1978 from the University of Dayton School of Law, and a bachelor of arts from Ohio University in 1975.
Kahn served on the ERCOT board from 2002-06.
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August 17, 2006
ERCOT expects record Texas power demand today
A news release from the Electric Reliability Council of Texas
The Electric Reliability Council of Texas, Inc. (ERCOT), the electric grid operator for most of the state, is encouraging the public to practice energy conservation today as continued high temperatures lead to a record-breaking demand for electricity.
“There is a high probability that we will break our peak demand record today,� said Sam Jones, ERCOT CEO. “Barring unexpected major generation outages, ERCOT expects to have enough electricity to meet this demand. However, conserving electricity gives us an extra cushion of reserves to help ensure adequate power supplies.�
The Public Utility Commission offers conservation tips for the public on its PowerfulAdvice Web site: http://www.puc.state.tx.us/ocp/conserve/index.cfm
Examples of steps customers can take to conserve energy include: Close blinds and drapes to block the sun and keep cooler air inside Postpone using major electric household appliances until cooler evening hours If health permits, set air conditioning thermostats higher than usual Turn off electric appliances and equipment that you do not need or are not using Use microwaves or outdoor grills instead of an electric range or oven Turn off your pool pump during peak hours.
ERCOT is not planning or anticipating rotating power outages at this time, such as the ones that occurred April 17.
“Although the temperatures this week have been hotter than the April heat wave, our situation today is drastically different,� Jones said. “That day we had 20 percent of our generation resources out for seasonal maintenance. In August, we expect high temperatures and expect to break records in a growing state like ours, so we are prepared.�
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