Social media controversy revived in PEC board elections
More than two years have elapsed since a racially tinged comment on social media embroiled Pedernales Electric Cooperative in controversy, triggering fallout that prompted its chief executive to allege a hostile work environment and abruptly resign — with a $1.1 million severance payout.
But the incident is back on center stage as James Oakley, a director of the electric utility who wrote the Facebook comment, seeks reelection to his District 5 board seat.
Oakley's conduct is being debated anew — both in his race and in the race for the District 4 seat currently held by Jim Powers that's also up for reelection — alongside more typical co-op issues such as governance, electricity rates and policies regarding renewable energy.
PEC is the largest nonprofit, member-owned electric cooperative in the country, providing power to about 315,000 accounts. Based in Johnson City, it had nearly $595 million in total revenue in 2017, the most recent figure available. Its service area encompasses 8,100 square miles, taking in Junction, Marble Falls, Liberty Hill, Cedar Park, Dripping Springs and parts of Austin.
"Had I been on the board, I would have advocated removal" of Oakley, retired lawyer John Watson, one of three District 5 challengers to Oakley, said during a candidate forum. “Plain speaking is one thing, and I'm for that. But offensive speech which harms (co-op) employees and members — that should not be tolerated.”
In addition to Watson and Oakley, Kenneth Reneau, a retired city manager, and Lisa Ivie Miller, an investment adviser, are seeking the District 5 seat. Kathi Thomas, who runs a floral design business, and Joe Pool, an attorney and former energy company executive, are challenging Powers in District 4.
Voting begins May 24 and runs until the co-op's annual meeting June 22, which is being held this year at Horseshoe Bay Resort.
Board members are elected from geographic regions instead of at large, with District 4 encompassing portions of Hays County, including Dripping Springs, and parts of Blanco and southern Travis counties, including Oak Hill. District 5 is split in two, with the eastern section taking in Blanco County, including Johnson City, and portions of Burnet, Llano and southwestern Travis counties.
Oakley, who also serves as Burnet County judge, wrote on Facebook in fall 2016 that it was “time for a tree and a rope” in reference to an African American suspect in the killing of a San Antonio police officer.
He apologized at the time and said he had no racial intent, but the State Commission on Judicial Conduct formally reprimanded him, and the aftermath sparked turmoil at Pedernales Electric. Former CEO John Hewa resigned in May 2017 — publicly castigating the co-op's board for failing to back employees who spoke up against racial insensitivity — and his replacement, current CEO Julie Parsley, was hired about about five months later.
Oakley, who is seeking his third three-year term on the co-op board, was rebuked again by the state judicial agency last month, for an unrelated incident in which it concluded he had inappropriately "lent the prestige of his (Burnet County) judicial office" to his endorsement of a candidate for a PEC director seat in 2018.
Oakley said in a recent interview that he's appealing the April admonishment, and he dismissed the renewed attention being given to his 2016 Facebook comment as politically motivated. He said he's running for reelection to continue what he views as positive strides at PEC, as well as to help explore the possibility of using co-op infrastructure to extend high-speed internet service to rural parts of the utility's service area that don't have access to it.
The Facebook post "was made out to be a racial comment, and it wasn’t — period," Oakley said. “I took my licks, I did it and now I’m still being punished for it."
But some board challengers contend the negative fallout for the co-op isn't over either. They say Pedernales Electric has backpedaled on its commitment to renewable energy since Hewa left and co-op governance has become less open.
“The repercussions of what (Oakley) did really hurt" the co-op, said Thomas, who is running for the District 4 seat currently held by Powers. “I really think the board should have done more in terms of censoring him instead of just slapping his wrist. (Powers) really didn't do anything and didn't seem overly concerned."
At the time, the board voted to reprimand Oakley and to demote him from a board leadership position, but it stopped short of removing him as some co-op members had advocated.
Powers, in written responses to questions from the American-Statesman, didn't provide his opinion of whether the sanctions against Oakley were sufficient, although he noted that board members receive ethics training and are screened in advance to "determine if any prospective board member has any past or present issues which may disqualify" them from serving. Powers operates a media and business consulting firm.
Both he and Oakley disputed the notion that co-op governance has become less open to public scrutiny. PEC attorneys "determine what is open to the public" regarding co-op operations, Oakley said, and the board only goes into executive session to discuss issues behind closed doors when it's advised to do so.
A PEC spokesman recently declined to disclose to the American-Statesman the percentage of the co-op's energy mix that comes from renewable sources, saying the figure is confidential for competitive reasons. The co-op previously had a publicly stated target of 30% renewables by 2020, but it hasn't been in effect since the board adopted a new strategic plan in January 2017, the spokesman said, and there no longer is a publicly stated goal.
