Title
Resolution - Approval of Delegation of Authority to Chief Executive Officer to Implement Measures in Response to COVID-19 - J Parsley
Other Info
Submitted By: Chief Executive Officer
Department: CEO
Financial Impact and Cost/Benefit Considerations: As Discussed in Executive Session
Discussion
The Governor of Texas issued a disaster proclamation on March 13, 2020, certifying under Section 418.014 of the Texas Government Code that the novel coronavirus (COVID-19) poses an imminent threat of disaster for all counties in the State of Texas.
The Board has approved resolutions in April, June, July and September 2020 to provide authority to the Chief Executive Officer (CEO) to extend and clarify certain temporary waivers and programs to assist the membership as a response to COVID-19.
On April 17, 2020, the PEC Board of Directors approved Resolution (2020-126, Approval of Delegation of Authority to Chief Executive Officer to Implement Measures in Response to COVID-19), providing authority to the Chief Executive Officer (“CEO”) to enact certain temporary waivers and programs to assist the membership as a response to COVID-19.
On June 16, 2020 the Board of Directors approved Resolution (2020-145 Approval of Delegation of Authority to Chief Executive Officer to Implement Measures in Response to COVID-19), specifying extensions to the timeframes of certain measures to assist the membership as a response to COVID-19 adopted in April 2020 through November 1, 2020 and noted expiration dates for other measures.
On July 17, 2020, the Board of Directors approved Resolution (2020-256 Approval of Delegation of Authority to Chief Executive Officer to Implement Measures in Response to COVID-19), specifying extensions to the timeframes of certain measures to assist the membership as a response to COVID-19 adopted through November 1, 2020 and beyond.
On September 18, 2020, the Board of Directors approved Resolution (2020-297 Approval of Delegation of Authority to Chief Executive Officer to Implement Measures in Response to COVID-19), specifying reallocation of unclaimed property funds to energy efficiency programs and resuming the Cooperative’s energy efficiency program.
On August 8, 2020, the Governor of the State of Texas renewed the disaster proclamation stating that COVID-19 continues to pose an imminent threat of disaster for all counties in Texas. On November 17, 2020, the Texas Department of State Health Services reported over 1 million cases of COVID-19 in Texas, with an increase of over 64,000 in one week. Given the ongoing reports of positive cases and hospitalizations in the counties served by PEC, the need for assistance to members continues.
The Cooperative offers a Payment Assistance Program to members that qualify under its Community Support - Member Assistance Programs Policy (MAP Policy). Assistance Agencies that also provide assistance to members for paying electric bills in PEC’s territory utilize federal and state funds through the Comprehensive Energy Assistance Program (CEAP). For those members that qualify, CEAP funds are utilized prior to utilizing MAP funds. These federal and state funds must be allocated within a designated timeframe or they are lost. The Assistance Agencies also received additional non-PEC funds for COVID-19 relief earlier this year. Members receiving MAP funds at the current maximum amount of $300 are, however, still in jeopardy of being disconnected and in most cases the total balance due is well over $300, so the available amount may not cover the required balance due for the down payment required for PEC’s payment installment plans. Assistance Agencies require supporting documents of individual COVID-19 impact such as proof of unemployment or furlough. By temporarily modifying certain terms and conditions in PEC’s Tariff and Business Rules and Policies, PEC members will be better enabled to pay any outstanding balances before winter peak usage occurs. Because of PEC member and employee generosity, donation amounts for COVID-19 relief to members is available to meet the needs of these members.
In April 2020, PEC began to accept donations from members and employees to assist residential members negatively impacted by Covid-19 with payment of electric bills. PEC has received approximately $85,000 in total donations and has approximately $63,500 remaining for assistance.
Temporary Waivers to Tariff and Business Rules
In its June and July resolutions, the Board of Directors specified a November 1, 2020 timeframe for the following:
• Waivers for impacted residential members applying for assistance through the MAP as to deposits and such other fees as determined by the CEO, for implementation of any payment assistance.
• Modifications to the terms of Installment Plans in Section 300.11.3.2 of the Tariff and Business Rules and other payment arrangements in Section 300.11 for requesting members and waivers as to deposits and such other fees for affected residential members, for implementation of payment arrangements for a member.
The Cooperative would like to continue these waivers through such period of time until all of the COVID-19 donated funds from members and employees are used in total.
In its July resolution, the Board also approved a November 1, 2020 or beyond timeframe as to the waiver of collection of the following fees:
• Tariff and Business Rules Section 500.4:
o Collection Fee $ 75.00 (Tariff and Business Rules Section 300.11.9)
o Late Payment Processing Fee $ 20.00 for residential accounts (Tariff and Business Rules Section 300.11.4)
Thanks to the generosity of PEC members and employees, the Cooperative could increase the availability of donated funds. Therefore, the Cooperative would like to extend these waivers for those members who have been negatively affected by COVID-19 and who are attempting to establish payment plans until all of the COVID-19 donated funds from members and employees are used in total.
Section 300.5 of the Tariff and Business Rules permits the CEO to waive, certain specific fees for a limited duration to address the circumstances of any natural disasters or declared emergencies and update the Board of any action taken.
Temporary Modifications to MAP
The Cooperative offers the MAP to members that qualify under its MAP Policy. In its April 2020 resolution and its June and July 2020 resolutions, the Board approved allowing a temporary modification to the MAP to members that qualify under the MAP Policy to remove the eligibility requirement through November 1, 2020 of having no returned checks for those who are financially impacted by COVID-19 given the current situation.
The Board may now consider further adjustments to its MAP as noted below and as determined by the CEO to assist members who have been negatively affected by COVID-19 through such period of time until all of the COVID-19 donated funds from members and employees are used in total.
• Continue the removal of the eligibility requirement of having no returned checks for those who are financially impacted by COVID-19 because given the current situation, some members may now have experienced this for the first time.
• Increase the eligibility requirement for Member’s income to be less than 400% of the Federal Poverty Level instead of 250%.
• Include loss of income or employment due to COVID-19 issues as an eligibility criteria for utilizing additional Covid-19 related donation funding.
• Increase the limit of a maximum amount for a member of $300 per year to $600 per year.
• Waive uncollectable disqualifiers related to unpaid accounts as set forth in Sections 6.1 to 6.8 of the MAP Policy and confirm past due balances will remain on inactive accounts and will not receive the assistance dollars.
Account(s) with Fund(s) from Donations and Employee Contributions
In its April 2020 resolution, the Board established an account or fund where members, employees, or others could donate to assist residential members with payment of electric bills. The date for contributions was extended in the June and July resolutions, beyond November 1, 2020. The Cooperative now stopped accepting donations.
The Board would now authorize utilizing the remaining balance of member/employee donated funds to carry over into 2021.
These waivers to the MAP expire upon use of the COVID-19 donated funds from members and employees.
Body
now, therefore, be it RESOLVED BY THE BOARD OF DIRECTORS OF PEDERNALES ELECTRIC COOPERATIVE, INC. that, the Cooperative delegates authority to the CEO to implement such measures as described herein in her reasonable discretion in response to COVID-19, subject to consideration of the financial health of the Cooperative;
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that all actions taken prior to the effective date hereof in connection with the subject of the foregoing resolution, be and are hereby ratified, confirmed, and approved; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the CEO, or designee, is authorized to take such actions as needed to implement this resolution.