Title
Resolution - Approval to Adjust Transmission Cost of Service (TCOS) Rate - N Mack
Other Info
Submitted By: Natalia Mack
Department: Power Supply and Energy Services
Financial Impact and Cost/Benefit Considerations: This proposal increases the Transmission Cost of Service (TCOS) rate from $0.01158 to $0.01256 per kWh, an increase of $0.00098 per kWh, effective March 1, 2018. This rate change is required to recover the estimated cost of statewide transmission charges of $72.8 million in 2018.
Discussion
Effective June 2016, customer charges related to statewide transmission costs were unbundled from the base power cost and power cost adjustment charges. Per the PEC Tariff and Business Rules, PEC will update the TCOS rate periodically to adjust for changes to PEC’s 4 Coincident Peak (4CP) demand and to changes in the statewide transmission rates approved by the Public Utility Commission of Texas. This rate adjustment is necessary to recover the expected cost of transmission that PEC will incur in 2018 as determined by PEC’s 2017 4CP and the anticipated statewide transmission rates in 2018.
Body
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Cooperative approve an amendment to the Tariff and Business Rules for Electric Service, as attached hereto with any modification made by the Board, to become effective as of March 1, 2018; 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.