Title
Resolution - Approval of Rate Policy - N Mack
Other Info
Submitted By: Robyn Miller on behalf of David Thompson
Department: Markets
Financial Impact and Cost/Benefit Considerations: None
Discussion
The PEC Board of Directors previously approved a Rate Policy in July 2011. 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) Consideration of effects of wholesale power purchases on utility cost of capital; effects of leveraged capital structures on the reliability of wholesale power suppliers; and assurance of adequate fuel supplies.
2005 amendments:
(11) Net metering;
(12) Fuel sources;
(13) Fossil fuel generation efficiency;
(14) Time-based metering and communications;
(15) Interconnection
(16) 2007 amendments:
(17) Integrated resource planning
(18) Rate design modifications to promote energy efficiency investments;
(19) Consideration of smart grid investments; and
(20) Smart grid information.
PEC adopted various Board resolutions in 2007, 2008 and 2009 as to requirements found within Section 2621 of PURPA.
In July 2007, the Board considered certain PURPA standards and determined PEC would not adopt PURPA standards pertaining to the following: 1) Net Metering Standard, 2) Fuel Sources Standard, 3) Fossil Fuel...
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