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GVEC responds to suit filed by river authority
GONZALES -- On Nov. 14, the Guadalupe Valley Electric Cooperative (GVEC) was notified that the Lower Colorado River Authority (LCRA) filed a lawsuit claiming the cooperative is unilaterally violating its long-term contract with the intent to purchase a portion of its energy requirements from other providers beginning Dec. 1.
The filing was in response to a letter the GVEC delivered to the Lower Colorado River Authority on Sept. 26, providing the river authority with formal notice of a breach of contract based on discriminatory treatment among its customer base and requesting that the river authority cure its breach within 30 days.
Guadalupe Valley Electric Cooperative General Manager and CEO Darren Schauer stated, “GVEC is highly disappointed that the LCRA has chosen to file suit instead of living up to its contractual obligations and remedying its breach. GVEC will not subject its customers to discriminatory treatment and stands ready defend its position.”
The GVEC is not alone in its position that the river authority is in breach of the contract. The entity is facing similar disputes with eight of its other customers -- the cities of Boerne, Seguin, and Georgetown, the Kerrville Public Utility Board, New Braunfels Utilities, Central Texas Electric Cooperative, Fayette Electric Cooperative, and San Bernard Electric Cooperative.
Schauer added, “LCRA is allowing certain customers to access the competitive wholesale market, but is denying GVEC that same right. LCRA’s discriminatory treatment denies GVEC the opportunity to gain significant savings for its membership and price certainty for the future.”
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