Title
Resolution - Review and Approval of Capital Credits Policy - K Jones
Other Info
Submitted By: Kat Jones
Department: Controller
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds estimated in the amount of $0 (currently included in the Cooperative's 2025 operating budget); expenditures of staff time estimated in the amount of 0 hours (other than ordinary processing requirements). Any allocation and retirement and distribution of capital credits will be pursuant to separate resolution(s) approved by the Board.
Discussion
Pedernales Electric Cooperative, Inc., as a Texas electric cooperative, operates on a nonprofit basis and periodically returns revenues not required for its purposes to the members in proportion to the amount of business done with each member during applicable periods pursuant to its Amended and Restated Articles of Incorporation Article VIII and Texas Utilities Code Section 161.059.
Pursuant to Texas Utilities Code Section 41.055, the Board has the exclusive jurisdiction to set all terms of access, conditions, and rates applicable to services provided (other than wholesale transmission rates, terms of access, and conditions for wholesale transmission service set by the Public Utility Commission) and make any other decisions affecting the electric cooperative’s method of conducting business.
The Board adopted the Capital Credits Policy in 2010 and approved subsequent amendments, last amending the Policy in 2019. The proposed amendments to the Capital Credits Policy consist of terminology updates, an exclusion update for non-utility non-operating margins and updates to establishing a beneficiary.
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS that pursuant to its regular review of Board policies, the Board has reviewed and adopts the revised Capital Credits Policy with such changes, if any, as were approved by the Board; and
BE IT FURTHER RESOLVED that the Chief Executive Officer, or designees, are hereby authorized to take all such action as may be necessary to implement this resolution.