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GVEC delivers breach of contract notice to LCRA

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Posted: Thursday, September 27, 2012 4:45 pm

Guadalupe Valley Electric Cooperative (GVEC)on Thursday, Sept. 27, delivered a letter to the Lower Colorado River Authority providing it with formal notice of a breach of contract and requesting that LCRA cure its breach within 30 days.

“GVEC is a trusted and reputable organization that lives up to its commitments and expects counterparties do the same," said GVEC general manager and CEO Darren Schauer. "LCRA’s breach of its agreement with GVEC could subject GVEC to significantly higher electricity costs, resulting in increased electric bills to GVEC’s members. We are disappointed in the LCRA’s actions, and we hope that it will agree to live up to its obligations.”

GVEC is not alone in its position that the LCRA is in breach of the contract. Seven other customers of the LCRA have submitted similar letters — the cities of Boerne, Seguin and Georgetown, the Kerrville Public Utility Board, Central Texas Electric Cooperative, Fayette Electric Cooperative, and San Bernard Electric Cooperative.

“LCRA is allowing certain customers to access the competitive wholesale market, but is denying GVEC that same right," Schauer said. "LCRA’s discriminatory treatment denies GVEC the opportunity to gain significant savings for its membership and price certainty for the future.”

GVEC alleges that this act of discrimination violates the Uniform Rate Clause in its contract and violates LCRA’s statutory obligations.

“GVEC will not stand idly by and expose its end-users to substantially higher prices and future uncertainty due to LCRA’s breach,” Schauer said.

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