FREDERICKSBURG, TX – Central Texas Electric Cooperative (CTEC) delivered a Notice of Termination letter to the Lower Colorado River Authority (LCRA) on August 13. The letter follows a June 28 letter in which CTEC informed LCRA that the LCRA was in breach of the longstanding Wholesale Power Agreement (WPA). In accordance with the Breach Notice, LCRA was given a 30-day opportunity to cure the Breach. “LCRA has not made any attempt to work toward a cure of the breach,” reported CTEC CEO/General Manager Bob Loth.
CTEC’s position is that the Wholesale Power Contract, first signed in 1974, and extended in 1987, guarantees uniform rates and pricing alternatives for all wholesale customers for the duration of the contract. In April 2011, CTEC’s Board voted to end the cooperative’s wholesale power agreement in June 2016, choosing instead to secure competitive power contracts on the open wholesale market. Since this decision, LCRA has knowingly offered limited access to the competitive power market to those customers that chose to sign the 25- year contract extension. The customers who did not extend the power contract beyond 2016 were denied this option. CTEC and LCRA have agreed to an expedited hearing on August 27 to resolve the remaining issue of whether an injunction should be granted, which would prevent the termination from taking effect. This follows a hearing that was held on July 24 in the 53rd Judicial District Court in Travis County where Judge Scott Jenkins did not grant LCRA’s motion for a temporary restraining order against Central Texas Electric Cooperative and six other utilities. “For months, CTEC has been trying to come to the best possible out-of-court agreement for its members, but LCRA has refused to offer any meaningful solutions,” said Loth.
For more information on this story, please contact Bob Loth at 830.997.2126