Title
Draft Resolution - Approval to Amend Tariff and Business Rules - C Powell
Other Info
Submitted By: Christian Powell/Andrea 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
The Cooperative asks the Board to consider these amendments which aim to address business and policy issues and conform to the Member’s interaction with the Cooperative.
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All/ General |
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• Changed Line Extension to Facilities Extensions throughout • Changed Service to electric service throughout • Changed electric distribution system to Delivery System throughout |
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Section 100 |
Definitions |
• Updated Applicant to reflect interconnection applications • Updated Capacity Demand from power consumed to power delivered or received • Updated Encroachment to include situations encountered such as landscaping and structures • Updated Interconnection to include all interconnections, not just distributed generation • Added Landlord to accompany existing Landlord Provision • Updated Landlord Provision to refer to Landlord |
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Section 200 |
Description of the Cooperative’s Service Area |
• No changes proposed |
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Section 300 |
General Service Rules and Regulations |
• Updated Access to Cooperative Records to reference Open Records Request exemptions and to include Geographic Information System (GIS) mapping records • Added CEO designee to waivers for credit and deposit • Added encroachments restriction language and changed suspension penalty to disconnection in conditions of service • Updated language for treatment of Landlords and Landlord Provision for service to rental locations • Updated language for treatment of member requested temporary disconnection for 30 days or less with requirement to request extension or revert to permanent disconnect • Updated disconnect with notice to include failure or refusal to allow maintenance of PEC facilities • Updated disconnect without notice to include imminent threat to persons or property • Updated liability indemnification language to specify disconnection • Added language for assessment of a non-compliant payment processing fee • Changed settlement of final bill for nonpayment from seven business days to three business days • Added language to require Primary Level Service for all non-standard voltage service requests • Added language to metering standards and requirement for PEC approval of meter locations • Updated advanced metering opt-out to clarify removal for non-payment and close future participation • Added language for refusal of access for meter exchange • Updated meter tampering language to clarify tampering can occur without theft of electric service • Added easement amendment fee to cover processing costs for easement amendment applications • Added a cooperative trip fee to cover PEC trip costs to address safe, reliable, or efficient operation |
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Section 400 |
Line Extension Policy |
• Changed Line Extension to Facilities Extensions • Added language to require interconnection and electric vehicle site plans for applications • Added application and study fee language for all required non-residential services studies • Updated all non-residential service Contribution In Aid Of Construction (CIAC) to include pre-construction payment, all facility requirements such as substation costs, and conditions for service to loads greater than 1,000 kW • Added language to Primary Level Service covering payment of application and study fees, and adding agreements, such as interconnection requirements and cost responsibility • Updated underground service to require PEC approval of location of facilities and easements • Updated non-standard delivery service to include receipt of excess capacity and requirement for Primary Level Service |
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Section 500 |
Rates |
• Changed Peak Demand Charge to Peak Capacity Charge for maximum power delivered or received • Updated time-of-use base power charges conditions to clarify opt-out timing • Updated sustainable power credit applicability to expire all credits at the end of each calendar year • Added Time-Of-Use Base Power Credit section • Added Non-Standard Capacity Charge section • Updated residential rate schedules to include reference to short-term vacation or recreational vehicle rentals • Updated interconnect rates applicability to require interconnect agreement with Landlord and add aggregated Distributed Generation (DG) • Added Residential, Farm and Ranch Service, Interconnect TOU Rate section • Added Residential, Farm and Ranch Service, Interconnect TOU Rate, With Renewable Energy Rider section Fee Schedule Revisions • Added GIS Mapping Records Fee - $250.00 • Added Non-Compliant Payment Processing Fee - $35.00 per account • Updated Returned Check/Denied Bank Draft Fee - $35.00 • Added language to include Temporary Voluntary Disconnect Fee - $75.00 • Added Easement Amendment Fee - $100.00 or actual cost • Added Cooperative Trip Fee - $100.00 • Updated DG Interconnection fees • <50kW application fee - $500.00 • >50kW - <1MW application fee - $700.00 • >1MW - <10MW application fee - $2,500.00 • Updated DG System Expansion fees • <50kW application fee - $250.00 • >50kW - <1MW application fee - $700.00 |
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Section 600 |
Interconnection Policy |
• Changed DG facility to DG system throughout • Added language for denial or disconnection of service due to non-compliance • Added language clarifying DG application requirements • Updated application fee language to include studies and engineering review requirements • Removed Pay Interconnect Agreement and Inspection Fees section (now covered in other language) • Added language for Distributed Generation (DG) System Expansion • Added PEC right to approve or deny application to liability section |
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the amendments to the Tariff and Business Rules as attached and presented this day is approved with such changes, if any, as were discussed and approved by the Board; and
BE IT FURTHER RESOLVED that these changes are to become effective March 1, 2026; and
BE IT FURTHER RESOLVED that the General Counsel and Chief Compliance Officer, or designee, are authorized to take all such actions as needed to implement this resolution.