Title
Resolution - Authorization of the Cooperative to Initiate Negotiations For Acquisition of Real Property in 2026 in Accordance with Chapter 21 of the Texas Property Code - C Powell
Other Info
Submitted By: Christian Powell
Department: Chief Compliance Officer
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session.
Discussion
In 2026, Pedernales Electric Cooperative, Inc. (PEC or the Cooperative) must initiate negotiations to acquire new property for substations and related facilities.
PEC has determined that construction of the substations that are part of the projects described on the confidential term sheet attached hereto is necessary for the safe and reliable operation of electric utility system which serves its members and the electric grid for the State of Texas.
Pursuant to Chapter 161 of the Texas Utilities Code, PEC has the power of eminent domain. Accordingly, PEC will deliver initial notifications to affected landowners of potential substation locations, in accordance with Chapter 21 of the Texas Property Code, Chapter 161 of the Texas Utilities Code, and the Texas Constitution.
Body
WHEREAS the Board of Directors of PEC, pursuant to the Texas Constitution and Texas Utilities Code, Section 161.125 and other applicable law, and Chapter 21 of the Texas Property Code, hereby finds that PEC must initiate required notification and deliver materials to begin acquisition and negotiation processes in order to acquire the interests in real property.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Cooperative’s acquisition of the property interests needed for installation, construction, operation, and maintenance of substations and all necessary appurtenant facilities for public use and in the public interest to ensure system reliability for PEC members and the electric grid for the State of Texas shall follow all applicable laws; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Chief Compliance Officer of the Cooperative or a designated person, is authorized as an officer or agent of the Cooperative to negotiate on terms and a purchase price contingent on approval from the Board of Directors of the Cooperative for the necessary property interests in such form and containing such terms and conditions as may be deemed necessary, appropriate, or desirable; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that if an agreement as to the value of and/or compensation for necessary property interests cannot be reached in accordance with this resolution, then the General Counsel of the Cooperative or other designated attorneys or agents, will seek authorization from the Board of Directors to undertake all necessary actions required to exercise the Cooperative's power of eminent domain to acquire necessary property interests.
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that all actions taken prior to the effective date hereof by the officers and duly authorized agents of the Cooperative, including, but not limited to, the delivery of any relevant document in the name of and on behalf of the Cooperative relating to any bona fide offer to the owners are hereby confirmed, ratified, and approved.