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Board approves reduced rates effective Dec. 1

Oct 13, 2014

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Chart outlining PEC residential rate reduction effective December 1, 2014

PEC's rate reduction will amount to a $5 savings per thousand kilowatt-hours used (about $77 annually) for residential accounts.
Click chart to enlarge.enlarge photo

At a special meeting on Tuesday, Sept. 30, the Pedernales Electric Cooperative Board of Directors voted to reduce the Co-op’s per-kilowatt-hour delivery charge effective Dec. 1, 2014.

“The Board of Directors has worked with management the past few years to get the Cooperative in a very stable and strong financial position,” said PEC Board President Dr. Patrick Cox. “Our current financial projections and careful analysis by the Co-op’s staff signal this is the right move to make at the right time.”

Residential members will see a delivery charge reduction from $0.03212 to $0.02712 per kilowatt-hour, which will result in a $5 savings for every 1,000 kilowatt-hours used. PEC's average monthly residential use is 1,275 kwh, so the majority of members should see even greater savings on their bills. The average annual savings for a residential account is expected to be about $77.

“We continue to increase equity, debt service is far above required levels and we’ve had substantial reductions in bad debt and write-offs,” said PEC Chief Executive Officer John D. Hewa. “We find this a great opportunity to provide a responsible rate reduction to the membership.”

The Co-op leadership also is actively working with LCRA and other power providers to further reduce costs. “Power supply accounts for 65 percent of all the Co-op’s expenditures,” Hewa said. “We are actively exploring ways to reduce our power costs in an effort to lower member bills and anticipate more good news in the next few months.”

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