ENERGY, LNG HEAVY HITTERS GIVE $10,000 TO MARTINEZ; FIRM FIGHTING RELEASE OF CITY-TENASKA MOU GIVES $5,000

By Juan Montoya
Every time that individuals and media representatives have asked to see the Memorandum Of Understanding between the private energy company Tenaska and the
City of Brownsville for the construction and funding of the $500 million, 800 MW gas-fueled electric plant, they receive a letter.

That letter came from the legal firm Davidson, Toilo, Ream and Garza of San Antonio. The letter tells the recipient that the City and the Brownsville Public Utility Board and Tenaska feel that the information contained in the MOU was considered proprietary and contained would reveal industry secrets to Tenaska's competitors.

Now, according to the April 4, 2019, campaign finance report filed by Mayor Tony Martinez, that firm was one of four donors that forked over  $5,000 each to keep him mayor.

Since 2013, the firm made that case in its argument to the Texas Attorney General when the PUB asked for an opinion on its release. As a result, the ratepayers do not know the specifics of the obligations the city and Tenaska agreed upon.

As it is, only a few persons in the city have read the MOU and the utility's board has only allowed some city commissioners and board members to see a copy but will not allow copies to be made and distributed to the media and the public. Mayor Tony Martinez, as the city's top elected official, is an ex oficio member of the board and was one of the main proponents of the City-Tenaska MOU.

Martinez rammed through the MOU with Tenaska and convinced the rest of the city commission to approve utility rates increases that have been in place since 2012, more than seven years ago. Then when people started why the plant had not been built, the PUB board explained that the MOU contained a clause that gave Tenaska the option of delaying construction until it had found clients for their share of 600 MWs of the 800 MW it will produce.

It's convenient that the portion of  the MOU that gave the company that option was revealed, but not the rest of the document. Here's the "deal" that Martinez pushed through back when.

Electric: Up 35 % since 2012

Water: Up 19 % since 2013

Wastewater: Up 6 % since 2013

Amount raised with higher rates: $100+ million

Year it was to be completed: 2016

Cost of the plant: $500 million

P.U.B. share: $325 million (PUB: 65 %)

Tenaska share: 175 million (35 %)

Share of electricity:

PUB: 200 MW (25 %)

Tenaska: 600MW( 75%)

SOOOOOO….Tenaska is paying 35% and getting 75 % of the electricity if the plant is ever built. What a deal!

The two Hunt brothers (Ray and Hunter l. Hunt) are heavyweights in the energy industry. Their website indicates that: 

"Hunter Hunt is CEO and president of Hunt Consolidated Energy, LLC, and co-CEO of its holding company, Hunt Consolidated, Inc. He oversees the operations of Hunt Oil Company, Hunt Power, and the other energy activities of the Ray L. Hunt family of Dallas, Texas. 

"Hunt Oil Company was founded in 1934 by H.L. Hunt and is one of the largest privately-owned energy companies in the world, engaging in exploration and production as well as LNG. Hunt is also engaged in refining, development of energy technologies and developing renewable energy projects.

"Hunter Hunt has led the efforts to expand the energy focus of the Hunt affiliation of companies to include the electric power industry. He established Hunt Power in 1998 to develop and invest in entrepreneurial opportunities in the electric and gas utility infrastructure industries."

It's obvious Martinez is in the pocket of the the LNG and energy companies and the $5,000 contribution by the big-city law firm can be interpreted as a kickback to Da mayor's campaign for their share of the Tenaska pie at the expense of PUB residential ratepayers.