On Oct. 20, 2008, Pedernales Electric Cooperative (PEC) adopted a resolution initiating a rulemaking project to consider and determine whether to implement federal ratemaking standards under the Public Utility Regulatory Policies Act of 1978 (PURPA), as amended by the Energy Independence and Security Act of 2007 (EISA), Public Law No. 110-140, 121 Stat. 1492 (2007) to: 1) integrate energy efficiency into PEC’s integrated resource plans and establish cost-effective energy efficiency as a priority resource; 2) establish electric rates to align utility incentives with the delivery of cost effective energy efficiency and to promote energy efficiency investments; 3) consider smart grid investments; and 4) give PEC members direct written or electronic access and other interested persons limited access to information on time-based electricity prices at wholesale and retail, prices and usage on at least a daily basis, and sources of power provided by PEC. The proceeding has been designated Project No. 2008-TX076-0001, Proceeding to Consider and Determine Whether to Implement the Federal Ratemaking Standards for Integrated Resource Planning, Rate Design Modifications to Promote Energy Efficiency Investments, Consideration of Smart Grid Investments, and Smart Grid Information pursuant to 16 U.S.C. § 2621(d)(16), (17), (16) and (17) as amended by Pub. L. No. 110-140, 121 Stat. 1492 (2007). Persons interested in the proceeding are invited to notify PEC of their intent to participate in the project and to submit comments, data, views, arguments, and other evidence on the standards being considered.

Responses and any comments, data, views, arguments, and other evidence must include the person’s name, contact information, and relationship to PEC, reference Project No. 2008-TX076-0001, and be submitted in writing to the Cooperative at P.O. Box 1, Johnson City, TX, 78636-0001 or by e-mail to purpa@peci.com no later than January 5, 2009. A public hearing on this project will be convened to give interested participants an opportunity to comment and ask questions about whether PEC should implement the PURPA EISA Standards. Questions about this notice or project may be directed to 1-888-554-4732, or by e-mail at purpa@peci.com. All further information about this project, including the resolution, all comments received, and the date, time, and location of the hearing will be posted on PEC’s web site at www.pec.coop.