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 Develop...
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