The following is a letter submitted by Randy Klaus, a customer-member of Pedernales Electric Cooperative. RetailEnergyX.com disclaims any responsibility for the content of the release below, and makes no averment as to its accuracy or statements.

By Randy Klaus, CPA, PEC Member since 1990, Austin

It is time to end the Pedernales Electric Cooperative monopoly.

I believe that an efficiently run tax-exempt, non-profit electric cooperative (with access to cheap capital) should be capable of providing service at rates that are lower than those found in the deregulated electric market because cooperatives do not pay federal income taxes or dividends to shareholders. But, it's not happening at PEC.

Unfortunately, PEC's rates are much higher than the rates found in the deregulated market and continue to be among the highest in Texas and beyond. And, it is only going to get worse given the status quo.

To date, PEC's Boards have failed to fulfill their mission statement to provide its members with low-cost electricity. And despite a couple of Board elections in the post Bennie-Fuelberg-era, PEC's rates -- at ~11.6 cents per kWh for the average member -- are still among the highest in the state, and are essentially the same as before. Today, in the deregulated market in Texas, consumers pay as little as 8 cents, or less.

It is time that we captive members of PEC ask ourselves the following question: What are the economic benefits of being a member of PEC in 2015.

Those big savings recently posted on PEC's website are, for the most part, an illusion. We have had only one on-going rate reduction that you can bank on in the future. That reduction was the one-half cent reduction in the delivery charge in December of 2014. That reduction will save the average member about $6 per month.

Purchased power cost, the price of wholesale electricity, is another matter. Changes in the power cost adjustment charge on your bill are transitory by design. The power cost adjustment is a true-up mechanism between the 7.2 cent base power cost charge on your bill and actual power costs. And the power cost adjustment can vary widely over time. In fact, PEC's power cost adjustment has ranged from a negative 8/10s of a cent to a positive 1/10 of a cent since January of 2014. In summary, you cannot count on PEC's last two rate reductions to continue into the future.

The load-weighted wholesale price for electricity in Texas has been below 4 cents for the last two years. However, PEC continues to pay more than 7 cents for wholesale electricity; a difference of more than 3 cents. This is the primary reason why PEC's rates are so high. Based upon public accounts, PEC's wholesale electricity costs will likely increase in 2016 primarily because of the high-priced, cost-plus contract with LCRA. Brace yourselves for higher rates in the future.

Despite all of PEC's recent rate reductions, PEC's rates are still 3 to 4 cents above the rates that are readily available in the competitive market. Put another way, your rates are at least 30% too high. The average PEC member pays about $500 too much for electricity each year.

In conclusion, after more than a decade of attending and speaking at PEC meetings, I have reluctantly come to the conclusion that Customer Choice is the only way to escape PEC's high rates. With Customer Choice, consumers choose their electric provider, choose their price, choose their term, and even choose renewable energy if they wish. Customer Choice has been available by law since 1999. By contract, PEC has to give LCRA a two-year notice to introduce Customer Choice.

So, what is the PEC Board waiting for?

It is time for the Board to put the members' interest first, immediately pass a resolution authorizing Customer Choice, and do all things necessary to make Customer Choice a reality within two years. The Board has delayed Customer Choice for far too long.

Average folks simply cannot afford PEC's Bennie-Fuelberg-era level electric rates.