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PEC Board revises Line Extension Policy
Wednesday, May 20, 2009 • Posted May 19, 2009

PEC Press Release - The Pedernales Electric Cooperative Board of Directors voted May 18 to change its Line Extension Policy to better align it with industry standards. The new policy takes effect July 1.

The new policy changes the current $1,050 Establishment Fee to a $200 System Impact Fee. Pedernales Electric will calculate the cost of each new line extension to include labor, materials, engineering, right-of-way acquisition and clearing, and all other costs directly associated with the extension of service. PEC will cover the first $2,000 of estimated cost, but members requesting line extensions now will pay any costs over that amount. Charges above the $2,000 threshold will be booked as contributions in aid to construction to improve equity and lower upward pressure on rates.

“This is a significant action for this cooperative,” PEC General Manager Juan Garza later said, “and brings us more in line with industry standards.”

In related action, the Board delayed a vote on the proposed rate structure recommended in the Cost of Service Study to allow more time for review. Directors will take up the issue at the June 15 meeting, scheduled for 10 a.m. at PEC headquarters.

The Board also accepted staff recommendations on ratemaking standards called for by the Public Utility Regulatory Policies Act of 1978 (PURPA), as amended by the Energy Independence and Security Act of 2007. PEC initiated this rulemaking in October 2008 and accepted member comments through April 2009. The modified standards adopted by the Board address integrating energy efficiency into resource planning, modify rate designs to promote energy efficiency investments, address investments in smart grid technologies and make smart grid information available to members. The final determination adopted by the Board is available on the Pedernales Electric web site.

In other action during the meeting, the Board:

•Engaged Bridgeport Consulting for internal auditing services.

•Engaged Padgett Stratemann & Co. to perform audits of PEC’s retirement and 401(k) plans.

•Renewed PEC’s health and dental coverage with BlueCross BlueShield of Texas.

•Voted to create a written affirmation of responsibilities for new Board members to sign.

•Approved a selection and vetting process for future Advisory Directors.

•Received an update on PEC’s current communication activities.

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