New committee to brainstorm uses of Tenaska fund

At noon Friday, the  Brownsville Public Utilities Board finance committee will meet to discuss proposed uses of the fees, rates and other funds collected to support the now-terminated Tenaska Project, including proposed uses/distribution of the Tenaska Equity Fund, according to the agenda.

During Monday’s BPUB meeting, the board passed a motion by member Arthur “Art” Rendon to create a committee and move forward.

Serving on the committee will be Brownsville Mayor Trey Mendez, District 3 City Commissioner Roy De los Santos, District 4 City Commissioner Pedro Cardenas and two additional PUB board members.

The board also discussed when and how the $29 million in equity funds should be returned to the community, but no final decision was made. 

Discussion surrounding the potential uses of the Tenaska Equity Funds comes in light of the Carr, Riggs & Ingram LLC Forensic Examination Report, which investigated BPUB’s activities leading up to and after an agreement with Tenaska Inc., an international power development company, to build a local natural gas-fired generating station, according to the CRI report. 

Utility rates were increased to fund the project, which never came to fruition.

“You can start by giving that money back, and we’re not gonna stop before you guys pay the rest of the money back,” Brownsville resident Keila Taboada said during the meeting’s public comment period.

John Shergold, a Brownsville resident and attorney who also spoke during public comment, said people are having to decide between paying high utility bills or things such as medicine.

“People that are in service by PUB, they can’t handle it anymore with the bills,” Shergold said.

BPUB Finance Director Miguel Perez suggested the Tenaska Equity Fund money go toward the Bill Reduction Program.

“The easiest way for us is through the Bill Reduction Program so that everybody shares equally based on their usage,” Perez said. “That’s how it was collected and that’s the easiest way to give it back.”

Brownsville Public Utilities Board Vice Chair Patricio Sampayo said the community should be consulted through town hall meetings and workshops before the board makes any decisions on the funds.

“What we’ve heard from the community is that we should do a better job at listening first,” Sampayo said. “… We all have our opinions on what should be done with the Tenaska fund. Personally, I believe that the money should be returned. Most importantly, what the community feels should be done with this fund.” 

Mendez, who serves as an ex officio member of the board, said the overwhelming sentiment from the public is wanting the money back and not taking action only delays the matter further. 

“How much time, what percentages, is for us to decide,” Mendez said about the logistics of handling the money.

Friday’s meeting is open to the public and will take place in the BPUB Annex, located at 1425 Robinhood Drive. 

–Copy Editors Natalie Lapsley and Arisbeth Rodriguez contributed to this report.