Title
Resolution - Approval of Review and Amendments to Rate Policy - N Mack/D Thompson
Other Info
Submitted By: David Thompson
Department: Markets
Financial Impact and Cost/Benefit Considerations: None
Discussion
Pursuant to the Board's Policy on Policies, the current Rate Policy is to be reviewed this year by August 2022.
The PEC Board of Directors last approved changes to the Rate Policy in July 2019 (prior to July 2019, the PEC Board of Directors previously approved a Rate Policy in July 2011). Those 2019 changes included clearly assigning responsibilities regarding rate design, and rate recovery processes as well as monitoring of rate recovery. Requirement for an Annual Rate Plan was established as well as codifying that a Cost-of-Service Study is required at least every three years. The Rates Committee was established as well and was tasked with monitoring and providing recommendations to the Board.
The recommended updates to the Rate Policy for 2022 include:
? Formatting the Policy to align with the latest policy format;
? Changing the review cycle to every 5 years to align with other policy review periods; and
? Updating Rates Committee members
The PEC Board of Directors has exclusive jurisdiction to set all terms of access, conditions, and rates applicable to the services provided by the Cooperative other than as provided by Texas state law. The federal Public Utility Regulatory Policies Act of 1978 (PURPA) as amended in 2005 and in 2007 also dictates that nonregulated entities, which includes PEC, consider and determine whether to implement ratemaking standards as described in PURPA (16 USC Section 2621) including:
(1) Cost of service;
(2) Declining block rates;
(3) Time-of-day rates;
(4) Seasonal rates;
(5) Interruptible rates;
(6) Load management techniques;
(7) Integrated resource planning;
(8) Investment in conservation and demand management;
(9) Energy efficiency investment in power generation and supply;
(10) Considerati...
Click here for full text