What is an electric co-op?
In the 1930s, power suppliers would not provide service to people living in rural areas. Many members of Congress who represented these rural areas recognized the need for electricity and the idea of the Rural Electric Co-op became a reality.
Do co-ops really not care about profits?
Electric co-ops are unique because we belong to the communities we serve and share excess revenue back with the people we serve.
Why & how did electric cooperatives get started?
In the late 1930’s our nation’s government saw the need for providing electric power to the rural areas of the nation. Agriculture needed electricity, but large power companies were reluctant to provide it. On May 11, 1935, rural America took a giant step forward when Congress passed the Rural Electrification Act. This Act called for establishment of the Rural Electrification Administration (REA) which would have the authority to make available loans to groups of rural citizens working together to bring electricity to non-urban areas. These organized groups of citizens were called Electric Cooperatives.
How do I know which co-op district I am in?
Nueces Electric Cooperative has territory in parts of 8 South Texas counties as determined by the Public Utility Commission of Texas. Your Cooperative serves part of Nueces, Jim Wells, Kleberg, Kenedy, Duval, Live Oak, McMullen and Brooks counties. That area is divided into 7 districts. NEC also has a retail division that can supply power to all of the competitive retail areas in Texas. This area is represented by a tenth district. If you would like to know which district you reside in, visit the Board of Directors webpage, contact NEC at 387-2581 or 800-NEC-WATT.
Who are our current directors?
NEC has one director per district. The directors serve for a three-year term and ALL NEC directors are elected by ALL NEC members.
Director Election Process
NEC prides itself on its director elections. The election process reflects one of the Seven Cooperative Principles - democratic member control: one member, one vote.
Nueces Electric Cooperative is member-owned and is governed by an eight (8) person, member-elected board of directors. These directors represent the eight member directorate districts of the cooperative.
A portion of the co-op directorships stand for election each year - usually three districts. The board of directors determines the method for voting in the director election. For many years, the method of voting has been an in-person or proxy voting process which takes place in conjunction with the annual membership meeting. Relevant information about this meeting and the annual report appear in the Texas Co-op Power magazine. It is up to you, the members, to elect the directors best qualified to run your cooperative. There is no term limit for an NEC director but he/she must complete the nomination process every three years and be re-elected by the members.
NEC's director nomination process begins each June as members in the districts up for election are invited, through the Texas Co-op Power magazine, to request petition packets to become candidates on the annual meeting director election ballot in accordance with the bylaws. Any NEC member in a district up for election may seek to become a candidate. Those members interested in becoming candidates may request and sign for an official petition form and instruction sheet. At least twenty (15) signatures of qualified members within the voting district, received at the co-op by the designated deadline, are required to nominate a member from a district for the Board. If more than two candidates are nominated for a directorship, a primary election will be held in the district to select two candidates who will appear on the election ballot. At the annual membership meeting all members of NEC may vote to elect the new directors in the districts up for election. All members will receive a ballot by mail or attached to the Texas Coop Power Magazine. If members cannot attend the meeting, they may cast their vote by mailing in the ballot.
Directors are tasked with the development of governance policies and monitoring the financial health of the cooperative. In addition, they are charged with keeping up-to-date on industry trends, legislative actions, and other pertinent issues affecting cooperatives as well as representing the membership at cooperative related functions.
Section 8. Compensation; Expenses.
(a) Directors shall not receive a salary for their services as such. However, subject to subsection (b) below and as determined by policy adopted by the Board, directors may receive a fee, which may include insurance benefits, for each day during which they attend meetings or otherwise perform duties on behalf of the Cooperative. Fees for otherwise performing their duties need not be the same as for attending meetings of the Board.
(b) For attending meetings and otherwise performing duties pursuant to authorization thereof by the Board, directors shall be advanced or reimbursed their related expenses actually and reasonably incurred and expended by them, in accordance with the same policy established by the board for advancement or reimbursement of expenses for Cooperative employees, except that the policy may be different as it relates to uses of personal automobile.
(c) No director shall receive compensation for serving the Cooperative in any other capacity, nor shall any close relative of a director receive compensation for serving the Cooperative, except that (1) a director who is also an officer of the Cooperative, or a director, officer or committee member of or a delegate to an organization of which the Cooperative is a member or stockholder, and who as such performs substantial additional duties on behalf of the Cooperative, may be paid such compensation therefor, on a per diem basis, as is authorized by the remaining directors, and (2) a director or close relative of a director may be paid such compensation as is authorized by the Board upon its certification of such as a temporary emergency measure.
Each year NEC files IRS Form 990 (Return of Organization Exempt from Income Tax). NEC is a 501(c) (12) organization under the IRS code. Form 990 has financial information for the cooperative in addition to a list of directors and the executive manager along with their annual compensation. This document is public information. The IRS regulations, which became effective on June 8, 1999, state that every organization required to file Form 990 annually is obligated to immediately provide copies of its three most recent 990s to anyone requesting them in person, or send out copies within 30 days to any written request. You may request copies from NEC, download them via the link at left or Form 990s are also available from the IRS upon request at the district office where the forms would have been filed.
Dr. Rumaldo Z. Juarez District 1 Gregg Truesdale District 2 David Rosse - Secretary-Treasurer District 3 Donald Wayne Herrmann District 4 Bill Hartman - Vice-President District 5 (Formerly 7) Brian Menking - President District 6 (Formerly 8) Johnny Alvarado District 7 (Formerly 9) Gladys Lippincott District 8 Retail
How can I get current information on co-op happenings?
NEC considers communication with our members to be a top priority! There are several means by which we get important information to you!
Texas Co-op Power Magazine - As a member of NEC you receive this monthly magazine. While most of the magazine is prepared by our state association--Texas Electric Cooperatives, in Austin-- NEC prepares the center 8 pages and customizes the information specifically for our consumers. Be sure to give these pages a quick look each month for important information.
Messages on Your Bill - Your billing statement may have an important message printed on it each month. Be sure to read it carefully.
Bill Inserts - If we have more than a short sentence or two, NEC may periodically insert a separate notice along with your bill. These contain important information so we encourage you to read these completely!
Website - Our "Hot Topics" on our home page of this website is regularly updated with important information. Bookmark our site or choose us as a "favorite" site, and check in with us regularly for all of the latest happenings.