Title
Resolution - Approval to Amend Tariff and Business Rules - Section 400, Line Extension Policy - N Mack/D Thompson
Other Info
Submitted By: Robyn Miller on behalf of Markets
Department: Markets
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds is anticipated to be reduced by approximately $27M per year; expenditures of staff time is not anticipated to be affected.
Discussion
The Tariff and Business Rules (the “Tariff”) contains the Line Extension Policy of the Cooperative in Section 400. This Policy has generally been in place since 2009 with amendments adopted in October 2019 and February 2020 mainly to address commercial line extensions and to reduce allowable investments by the Cooperative for commercial service and developments and other modifications.
At this time, PEC has reviewed the financial impact, in conjunction with its prior analysis by GDS and Associates from August 2019 with respect to its Line Extension Policy, and determined that allowable investments by the Cooperative are no longer needed to facilitate an electric connection to the PEC distribution system for residential service or non-residential service.
For residential service, the allowable investment of up to $2,000 by the Cooperative will be removed, and current Section 400.3 “Other Residential Service” will be condensed into “Residential Service.” For non-residential service, the allowable investment of up to $2,000 by the Cooperative will be removed and current Section 400.5 “Other Non-Residential Service will be condensed into “Non-Residential Service.”
The amendments to the Line Extension Policy include the substantive changes to remove construction allowances as well as clarifications throughout the Policy.
Tariff amendments are listed below, each to become effective October 1, 2021:
• Residential Service, 400.2
• Other Residential Service, 400.3
• Non-Residential Service, 400.4
• Other Non-Residential Service, 400.5
• Residential Developments, 400.6
• Non-Residential Developments, 400.7
• Ownership of Cooperative Facilities, 400.23
• Fee Schedule, 500.4 (Section References)
Transition timeline to the approved Line Extension Policy will be as follows:
• If Construction is completed prior to October 1, 2021, the Application will fall within the current policy that contains an allowance for construction of up to $2,000 per meter.
• If the Application is received prior to October 1, 2021, and the construction is scheduled to be completed prior to April 30, 2022, then the Application will fall within the current policy that contains an allowance for construction of up to $2,000 per meter.
• If the Application is received prior to October 1, 2021, and the construction is not scheduled to be completed prior to April 30, 2022, then the Application will fall within the new policy that contains no allowances for construction.
• If the Application is received after October 1, 2021, then the Application will fall within the new policy that contains no allowances for construction.
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 hereto with such changes, if any, as were approved by the Board, to become effective upon Board approval, unless otherwise specified in the Tariff and Business Rules; 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.