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LCRA Drops Injunction Request
Cooperative Soon Able to Purchase Power on Competitive Market
Wednesday, August 29, 2012 • Posted August 29, 2012

Fredericksburg- Hours prior to an injunction hearing on August 27 in Travis County, LCRA attorneys notified Central Texas Electric Cooperative (CTEC) personnel that LCRA was dropping its pursuit of a temporary injunction.

CTEC, along with six other utilities, made a bold move on behalf of its members by notifying LCRA on August 13 that it was terminating an exclusive wholesale power agreement that prevented CTEC from purchasing power on the open market. The temporary injunction would have prevented the termination from proceeding.

The decision to drop the temporary injunction clears the way for CTEC to purchase power from a less-expensive supplier beginning on September 13.

CTEC Board President Gerald Kaspar described the development as “momentous for CTEC members. We are no longer held captive by LCRA’s discriminatory practices which have resulted in significantly higher costs to our members.”

Bob Loth, CTEC CEO, is taking steps to put a new power contract in place. “The switch to a new provider will be seamless and members will not notice any change,” Loth emphasized. “Our Board of Directors should be commended for its leadership, resolve, and steadfast pursuit of lower prices for our members.”

At the August 27 hearing, the court heard arguments from the parties on whether any further action would be tried in Austin or Fredericksburg. The judge’s decision is expected soon.

The seven utilities include, City of Boerne, City of Seguin, City of Georgetown, Kerrville Public Utility Board, Central Texas Electric Cooperative, Fayette Electric Cooperative, and San Bernard Electric Cooperative.

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