Pedernales Electric Cooperative – Board of Directors Meetings

File #: 2024-364    Version: 1 Name:
Type: Action Item/Other Items Status: Agenda Ready
File created: 10/21/2024 In control: Board of Directors
On agenda: 12/20/2024 Final action:
Title: Draft Resolution - Approval of Tariff and Business Rules - Amendments - C Powell/A Stover
Attachments: 1. Tariff Amendment Review 2024-364.pdf, 2. Tariff and Business Rules - Redline for EOY Annual Review - 2024-364, 3. Tariff and Business Rules - Draft for EOY Annual Review - CLEAN - 2024-364
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Title

Draft Resolution - Approval of Tariff and Business Rules - Amendments -  C Powell/A Stover

 

Other Info

Submitted By: C Powell/A Stover

Department: Compliance and Regulatory/Legal

Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds is not anticipated to be impacted; expenditures of staff time not anticipated to be impacted.

 

Discussion

Pursuant to Texas Utilities Code Section 41.055, the Board of Directors of Pedernales Electric Cooperative, Inc. (the “Cooperative”) “has exclusive jurisdiction to: (1) set all terms of access, conditions, and rates applicable to services provided by the electric cooperative, . . . , including nondiscriminatory and comparable rates for distribution . . . (7) establish and enforce service quality standards, reliability standards, and consumer safeguards designed to protect retail electric customers . . . . ; and (12) make any other decisions affecting the electric cooperative's method of conducting business that are not inconsistent with the provisions of [Chapter 41 of the Texas Utilities Code.]”

 

The Cooperative has established a Tariff and Business Rules Management Procedure to manage the review of, and amendments to, PEC’s Tariff and Business Rules. The Tariff and Business Rules consists of both the rate structures and rate schedules for Members governed generally by PEC’s Rate Policy and associated rate plans, as well as the business rules and procedures for establishing service, disconnecting of service, and other operations of the Cooperative.

 

The Cooperative officially adopted the Tariff in 2009 and then consolidated the Tariff with the Business Rules in December 2016 (collectively, the “Tariff and Business Rules”). Numerous modifications and amendments have been adopted to various sections of the Tariff and Business Rules over the years. Most recently a restructure of the Tariff and Business Rules was approved in February 2020.

 

Since that period, certain business processes and practices have been updated. As a result, the following changes to the Tariff and Business Rules, among others, are proposed. These changes include both substantive and non-substantive changes. The Tariff and Business Rules is organized into the following components:

 

Section 100: Definitions

Section 200: Description of the Cooperative’s Service Area

Section 300: General Service Rules and Regulations

Section 400: Line Extension Policy

Section 500: Rates

Section 600: Interconnection Policy

 

Section 100

Definitions

• Added the definition for Encroachment. • Revised the definition of Member. • Revised the definition of Person. • Changed the definition of Point of Delivery to Point of Interconnection. • Added to the definition of Primary Account.

Section 200

Franchise Cities Served

• Revised the order of the list to be alphabetical.

Section 300

General Service Rules and Regulations

• Added flexibility to enter large load agreements. • Updated the open records section to reference the Open Records Request form on PEC’s website. • Updated and moved easement review processes to new Section 300.15, Easement Review. • Added credit requirement flexibility for non-residential applicants and additional deposits. • Added language to clarify the transfer of Primary Accounts. • Updated language to the Service section including Conditions of Service and added additional provisions for disconnection.  • Clarified After-Hours Reconnection at Cooperative’s discretion. • Updated Disconnection for Nonpayment standards and criteria for reconnection. • Modified deposit requirement for Members enrolled in Pre-Paid Payment Plan  • Added 345,000 V to the voltage designation table. • Updated Meter Opt-Out (non-AMI meters) language to remove quarterly meter read option, remove time-of-use rate option, and remove opt-out option after disconnect for nonpayment. • Updated dispute resolution and complaint process explanation.

Section 400

Line Extension Policy

• Updated to include current processing steps and incorporate planning review deposits to cover time spent by planning staff prior to formal engagement by member or developer. • Updated language regarding removal and/or relocation of cooperative facilities.

Section 500

Rates

• Clarified definitions for Service Availability Charge and Delivery Charge to better highlight fixed versus variable costs. • Clarified reference to application of Franchise Fee. • Shortened the enrollment commitment for community solar members from 24 to 12 months. Fee Schedule Revisions • Revised Open Records Fee and Subpoena Response Service Fee from $40 to $70 to capture costs. • Added Easement Obstruction Review Fee of $775 or actual costs and revised Easement Release Review Fee to allow for capturing actual cost. • Revised Meter Opt Out Exchange Fee to capture costs and clarified Meter Reading and Processing Fees. Will include mandatory monthly processing fee of $30 and $3.50 per mile meter reading trip charge. • Removed DG Interconnection Transfer Fee that is no longer applicable. • Added $100 miscellaneous trip fee for DG for additional visits.

Section 600

Interconnection Policy

• Added clarification to the use of PEC’s website for the interconnection process. • Added a miscellaneous trip fee to capture costs for additional trips to the member’s property.

All/General

 

• Removed Appendices and Forms in order to direct attention to website and portals for processing. • Removed references to fees no longer applicable, such as DG transfer fee replaced by online intake. • Changed Point of Delivery to Point of Interconnection throughout to match current industry norms. • Made grammatical improvements and non-substantive formatting changes.

 

The Cooperative asks the Board to consider these amendments which aim to present a structure which is similar to the electric industry in Texas while conforming to the Member’s interaction with the Cooperative.

 

Body

BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Cooperative approves the amendments to the Tariff and Business Rules as attached and presented this day, with such changes, if any, as were approved by the Board, to become effective March 1, 2025; and

 

BE IT FURTHER RESOLVED that the Chief Executive Officer, or designee, is authorized to take all such actions as needed to implement this resolution.