Today Pedernales Electric announced plans to end its relationship with Cattleman’s National Bank. The bank currently takes deposits for PEC’s Marble Falls, Dripping Springs, Johnson City and Headquarters offices; in 2007 that total was more than $238.3 million, nearly 50 percent of the Cooperative’s annual revenue.

PEC has committed to reviewing all of its business relationships and activities, including banking records and operational procedures. “Our priority is to assess all of our professional relationships and service agreements to ensure they are in the best interest of our membership. At this time, we believe it is in the Cooperative’s best interest to realign and consolidate our accounts at other financial institutions,” said PEC General Manager Juan Garza.

The timing of this change coincides with the revelation that an account, which currently does not bear interest and holds approximately $565,000, has existed at Cattleman’s National Bank in the name of Texland Electric Cooperative, Inc., from as early as October 1986. The Texland project, a 1980s joint venture between Pedernales Electric and Bluebonnet Electric Cooperative, was designed to create an alternative electric generation source but stalled in the regulatory process and was ultimately abandoned.

“This account, tied to the Cooperative’s involvement in the Texland project, was brought to our attention earlier this week. We continue to make inquiries about the account and are awaiting answers as to its purpose, the source of the funds and the management of the account,” Garza concluded.