Title
Draft Resolution - Approval to Amend Tariff and Business Rules - Fee Schedule - 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 changes in the Tariff and Business Rules Fee Schedule allows the Cooperative to better align fees with its costs to provide service.
Discussion
The Cooperative's Rate Policy requires a Cost of Service Study to be conducted at regular intervals to inform rate design and as an input to the Rate Plan. The Rate Plan defines how the Cooperative anticipates recovering its costs from members for services provided during the upcoming year.
In July 2020, GDS Associates, Inc. ("GDS") performed a review of fees in the Tariff and Business Rules (the "Tariff") as those fees are listed in the Fee Schedule Section 500.4 as part of the Cost of Service Study (COSS). The report included an analysis of the existing fees' cost recovery, evaluating current processes and costs incurred, as well as the need for additional fees necessary for cost recovery of services provided by the Cooperative.
PEC also tasked GDS to create a formula for each fee in the Fee Schedule that includes the cost of labor, equipment, and truck time, along with any pass through charges from outside vendors, other costs directly attributed, and overhead costs where applicable.
The COSS recommended the following:
* A decrease to the following fees: (1) Easement Release, (2) Establishment Fee, (4) Same Day Service Fee, (5) Reconnection Fee for Non-Payment
* An increase to the following fees: (1) Meter Test Fee; (2) Advanced Metering Opt Out Program - Meter Exchange, (3) Advanced Metering Opt Out Program - Monthly Meter Readings, and (4) Advanced Metering Opt Out Program - Quarterly Meter Readings.
* Renaming the following fee: (1) Curren...
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