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Randy R. Klaus, CPA
Director District 3

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Randy R. Klaus has over 21 years of public service at the Public Utility Commission of Texas. Randy is a licensed CPA. He has 37 years of experience in the electric, telecommunications, and water utility industries as an expert witness on utility matters, and was previously employed by MCI.

Randy’s goal is to provide members with safe, reliable, low-cost electricity.

He knows the electric industry, the cooperative business model, and has observed PEC since joining the PUC in 1980. He is not a politician. Randy is a numbers guy and is very concerned about members’ pocketbooks and rising utility costs in the wake of stagnant wages for many folks, especially seniors on fixed incomes.

Randy has been an outspoken critic of PEC’s high rates at recent annual meetings. Despite the best efforts of the “reform-board” directors beginning in 2008, PEC’s rates remain high relative to the competitive market to this very day.

IMMEDIATE ACTIONS ITEMS
PROFESSIONAL QUALIFICATIONS AND EXPERIENCE

Randy has testified many times as an expert witness on rates, cost of service, and public policy issues. He testified in electric cooperative and investor-owned utility rate cases during the 1980’s.

Randy also participated in over 100 investigations which have resulted in millions of dollars in administrative penalties paid to the State of Texas.

He has advised Commissioners on a myriad of public policy matters, prepared reports for the Texas Legislature, performed bill analysis, drafted legislation and settlement agreements, and assisted the Office of Texas Attorney General on enforcement matters.

He is intimately familiar with every aspect of the cooperative business model and management thereof, including the financing, rate-setting process, capital credits, quality of service, purchased power, energy markets, energy efficiency, ERCOT protocols, PURA, and public policy issues that directly impact members’ rates, terms & conditions.

Other highlights include: detected employee embezzlement from petty cash, testified to numerous multi-million dollar accounting adjustments in numerous rate cases, exposed wide-spread overearnings in the Texas telecommunications industry, initiated the creation of the PUC’s Earnings Monitoring Report, investigated and uncovered a multi-million dollar fraud involving a government fund.

Randy was the accounting witness on behalf of the PUC in the Southwestern Bell Telephone Company rate case following the court-ordered breakup and divestiture of the Bell Operating System, which resulted from MCI’s successful anti-trust suit against SWBT’s parent, AT&T.

NON-PROFIT ELECTRIC COOPERATIVE

Non-profit, member-owned electric cooperatives have significant cost advantages. Cooperatives do not pay dividends to shareholders to prop-up stock prices, do not pay federal income taxes, and have easy access to reasonably priced capital.

Given these advantages, Randy believes that an effective and efficiently run cooperative should have lower rates than publicly-traded, investor-owned electric utilities, and retail electric providers operating in the deregulated electric market.

ADDITIONAL INFORMATION

Randy previously served as President of the Board of Directors of North Central Austin Growth Corridor Municipal Utility District No. 1. The Board set the rates, terms, and conditions for water and wastewater services, property tax rates, and the overall supervision and management of the MUD’s operations.

Randy initiated and sponsored a board resolution that resulted in the City of Austin’s annexation of the MUD decades before the scheduled annexation in order to immediately reduce water rates and property taxes.

Randy is a fourth generation Texan and has lived in Austin for 59 years. Randy earned a Bachelor of Business Administration degree, with a major in Accounting, from the University of Texas at Austin in 1977. He has been married for 42 years, has three children, several grandchildren, and counting.

Randy enjoys the Texas Hill Country, boating, skiing, jogging, fishing and hunting.

PEC member since 1990.