Title
Draft Resolution - Approval to Amend Tariff and Business Rules - Base Power Charge, Sustainable Power Credit, Service Availability Charge & Delivery Charge, Single & Three-Phase Rates, Lamp Charges - W Symank/R Kruger
Other Info
Submitted By: Randy Kruger
Department: Chief Financial Officer
Financial Impact and Cost/Benefit Considerations:
Base Power Charge
The Base Power Charge is a pass-through of costs incurred in connection with the development and management of Pedernales Electric Cooperative, Inc.'s (the Cooperative) power supply, which serves the membership's electric energy requirements. Given the Cooperative's forecasted expense for power, an increase is necessary to ensure adequate cost recovery. The increase of revenue from the recommended adjustment to the Base Power Charge is forecast to be approximately $17.5M in 2025; expenditures of staff time is not anticipated to be impacted.
Sustainable Power Credit
Expenditure of Cooperative funds is not anticipated to be impacted; expenditure of staff time is not anticipated to be impacted.
Service Availability Charge & Delivery Charge
Recommended changes to the Residential Delivery and Service Availability Charges (SAC) are calibrated to recover the Cooperative's forecasted expenses and are adjusted to align this revenue more closely with the fixed costs incurred. Given the projected revenue requirements, an increase in revenue is necessary, and these adjustments in aggregate are forecast to produce approximately $12M in additional revenue during 2025; expenditure of staff time is not anticipated to be impacted.
Single & Three-Phase Rates
Recommended changes to the Small Power Delivery and Service Availability Charges are calibrated to recover the Cooperative's forecasted expenses and are adjusted to align this revenue more closely with the attributed costs by each type of service. The decrease in revenue from these adjustments in aggregate is forecast to be approximately $4M in 2025; expenditur...
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