San Marcos Mercury | Local News from San Marcos and Hays County, Texas

May 14th, 2009
PEC takes no action on rate structure

STAFF REPORT

Pedernales Electric Cooperative (PEC) took no action on changing its rate structure during a special called meeting of its board Monday.

The board will continue to review changes to PEC’s rate structure, based on proposals from C.H. Guernsey & Company, an international engineering and consulting firm. Recommended changes include allowing members to see how much of their bills go to PEC’s service availability and delivery charges, and which portions are linked to power costs.

Before voting, the board agreed to make public details on the proposed Line Extension Policy (LEP) and non-proprietary portions of the Cost of Service Study through the PEC website, in addition to the previous versions of the proposal.

PEC Deputy General Manager Paul Hilgers said that the eight-month rates discussion has been the most open, deliberative process in PEC’s history. PEC has conducted four open meetings, three committee meetings and two member specific forums on the issue. PEC also posted video and presentation documents on its website.

“It became evident to us, based on feedback from our members, and from you, that you wanted more time to study these proposals,” said Hilgers. “The board should act when it feels comfortable.”

PEC’s board discussed the possibility of adopting the proposed LEP and rates revisions separately to allow more study on the rates issue.

“The Line Extension Policy is the most pressing issue to deal with,” said PEC General Manager Juan Garza. “Our current policy has contributed significantly to the decrease in equity over the years. Removing and changing the policy will fix that.”

Both items will be placed ont he board’s agenda for its next meeting, to be held at the Lady Bird Johnson Wildflower Center in Austin on May 18 at 11 a.m. Meeting location details are available on PEC’s website.

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