A judge ruled that Texland Electrical Cooperative’s (TEC) bank account at Cattleman’s National Bank belongs entirely to TEC.
TEC was a joint venture between Pedernales Electrical Cooperative (PEC) and Bluebonnet Electrical Cooperative (BEC) in the 1980s. Its purpose was to build coal-fired electric generation plants in Central Texas. However, TEC was abandoned after the Public Utility Commission of Texas denied the plants licenses.
In 2008, a bank account with $565,350 still in TEC’s name was discovered at Cattleman’s. The discovery led to the reconstruction of TEC, its board and litigation over the ownership of the account. Cattleman’s contested the ownership of the funds, seeking to seize them.
“We have always maintained these funds belong to Texland,” said Kathryn Scanlon, Texland Board President and Pedernales Electric Cooperative District 3 Director.
District Judge Dan Mills recently handed down the ruling in Blanco County, saying the court concluded that TEC proved its rights to the funds, as no other parties claimed ownership.
“We have acted in the best interests of the membership and PEC in pursuing the recovery of these funds,” said Texland Treasurer and PEC District 7 Director Patrick Cox. “The legal expenses associated with the recovery have been largely the result of the contested issues brought by Cattleman’s Bank.”
Cox indicated that once the 30-day deadline for appeals have passed, TEC will be able to convene, disburse the funds to PEC and dissolve the failed cooperative.Email | Print