Pedernales Electric Cooperative – Board of Directors Meetings

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File #: 2020-344    Version: 1 Name:
Type: Action Item/Other Items Status: Passed
File created: 9/10/2020 In control: Board of Directors
On agenda: 12/18/2020 Final action: 12/18/2020
Title: Resolution - Approval to Amend Tariff and Business Rules - Interconnected Generation - N Mack | D Thompson
Attachments: 1. 2020-12-18 Tariff and Business Rules Amendments for Interconnected Generation presentation- N Mack D Thompson, 2. 2020-12-18 Tariff and Business Rules - Interconnected Generation (Clean), 3. 2020-12-18 Tariff and Business Rules - Interconnected Generation (Redline)
Related files: 2020-343
Title
Resolution - Approval to Amend Tariff and Business Rules - Interconnected Generation - 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 not anticipated to be impacted; expenditures of staff time is not anticipated to be impacted. Recommended fee and rate changes are to address the under-collection from current Members during the distributed generation interconnection process as to fees, as well as the actual interconnection rates charged each month.

Discussion
The Cooperative's Tariff and Business Rules currently defines "Distributed Generation (DG)" as an electrical generating facility located at a Member's service location, which may be connected in parallel to the Cooperative's delivery system. In addition the Tariff and Business Rules refers to "Interconnection" as the physical connection of a DG facility to the utility system in accordance with the requirements of the Interconnection Policy of the Cooperative.
In April 2016 and March 2017, the PEC Board approved interconnection rates (currently found in Sections 500.1.9, 500.1.10, 500.3.1 and 500.3.2 of the Tariff and Business Rules) for distributed generation systems at 50kW AC and under and systems greater than 50 kW AC.
The Cooperative pursuant to its Rate Policy conducted its 2020 Cost of Service Study determined that the Cooperative is under-collecting from current Members on the interconnection rates, mainly from the rate component of these interconnection rates that is allocated to maintain the Cooperative's distribution/delivery system. Additionally, the 2020 Cost of Service Study noted that fees for interconnection (Section 500.4) need to recover all costs associated with the process to interconnect a Member's distributed generation.

Additionally, the Interconnection Policy (currently Section 600 of the Tariff and Business Rules), as well as the Applica...

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