According to 2006 un-audited figures, the 7 directors of HILCO Electric Cooperative, Inc. spent approximately 30% (over $200,000) of the total profits on themselves (travel expenses, meals, etc.), and then raised our electric rates.

The directors that we elect to the HILCO board of directors are significantly compensated for their service in addition to reimbursement for any expenses that they incur serving on the board.  The cost to the members for the seven directors in 2006 was more than $200,000 and the budget plan for 2007 is more than $250,000 (it was more than $350,000 until a couple of members began to ask probing questions last November).

Directors are paid $600 monthly, with an additional $600 for attending a single board meeting.  They are paid additional fees for attending miscellaneous meetings.

Directors receive free transportation for their spouses, free internet service, and have given themselves $8,400 in Christmas bonuses each of the last several years.

Directors defend their spending by saying that they are serving the company and are being trained to do their job.  It appears that they are trying to make a living off our company and have continued to increase their spending without any limits or accountability to the co-op members.  The directors’ cost to the company grew from $110,000 in 2003 to $208,000 in 2006, an increase of 89%.

After taking expensive trips and attending meetings (at up to $410 each in fees and meals) that directors might not have needed to attend, the profits were substantially reduced.  The board of directors responded by implementing a 38% base facility charge rate increase.

Your electric bill went up so board members could attend meetings in places such as San Antonio and Las Vegas.  Were the meetings necessary?  You be the judge -- one director attends meetings of another co-op in San Antonio, where he just sits and listens. He attends almost every meeting even though he cannot vote.  HILCO pays him not only $300 for attending the meeting, but also up to $110 daily for food, plus all travel expenses (hotel, airfare/mileage).  Perhaps the director has family or friends in San Antonio?

While we've come to expect this from some members of congress, it's simply outrageous when it happens in our own co-op, by our own elected officials.

Rescue HILCO -- Take our Co-op Back!