Title
Draft Resolution - Approval to Amend Tariff and Business Rules - Dual Feed Rider - N Mack | D Thompson
Other Info
Submitted By: David Thompson
Department: Markets
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds is not anticipated to be impacted; expenditures of staff time is not anticipated to be impacted. Addition of this rate will better align cost recovery from PEC Members for the use of PEC’s distribution system according to cost causation. The amount of revenue from this rate, approximately $1M / year, will shift the revenue requirement for the cost to operate and maintain the PEC distribution system away from most Members that utilize the PEC distribution system.
Discussion
In February 2021, the Cooperative approved removal from the Tariff and Business Rule of the Facilities Rental Rider. The Facilities Rental Rider supported non-residential Member requests for non-standard equipment allowing payment over an extended timeframe for this equipment. These changes were needed to ensure equitable treatment of members in the line extension construction process and to ensure standardization for maintenance and tracking of non-standard equipment across the Cooperative.
To address the remaining cost alignment for non-standard equipment) the Cooperative now recommends adoption of a Dual Feed Rider. A subset of Members requesting the non-standard equipment require that the Cooperative reserve standby capacity on a secondary distribution line.
The proposed new charge ensures those Members requiring reserve capacity pay an equitable share of PEC distribution system costs. In addition, Members are responsible for all costs associated with engineering, installation, maintenance, and material costs required to provide and maintain the non-standard equipment.
The Dual Feed Rider will be based on the Member’s highest annual non-coincident peak demand, measured on an hourly basis. The demand will be updated each year according to the Member’s required capacity. The monthly charge will be $5.20 per kW reserved.
Tariff and Business Rules amendments and effective dates are shown below:
• Section Dual Feed Rider, 500.1.21 - Effective for all bills issued on and after June 1, 2023
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.