Press Release: PEC announces rate reduction and other amendments
Find out how the changes could affect you
The PEC Board of Directors approved a rate reduction, among other changes to the Tariff and Business Rules for Electric Service, which will take effect June 1.
The rate decrease reflects a reduction in the cost of power from PEC’s primary suppliers, including the Lower Colorado River Authority (LCRA). It is expected to save our members over $6 million dollars per year. At 1,250 kWh of use, this adjustment represents a savings of $1.25 per month. This cost impact may vary for members on the Time of Use Rate plan.
“The PEC Board and its employees are committed to providing reliable electric service at some of the lowest rates in Central Texas,” said PEC Board President Paul Graf. “As a nonprofit cooperative, we and our power providers are always working hard to find savings to pass on to our members.”
Power Cost Adjustment (PCA)
Members will no longer see a PCA line item on their bill. Instead, the PCA will be absorbed into and netted against the base power cost. This change will simplify bills and help members better understand their charges.
PCAs are typically used by utilities to adjust for monthly fluctuations in fuel cost. However, PEC has not had to adjust the PCA in more than three years.
Please note, the above bill does not reflect tax, franchise fees, the voluntary Power of Change contribution, or other rate schedules that may apply to a member’s account.
Document structure changes and language adjustments
The board approved additional changes and amendments to the tariff, which governs the interactions between PEC and our members.
Sections of the Tariff and Business Rules were reorganized to reflect the process members take when establishing membership, obtaining a line extension, and/or selecting rates.
Additionally, the tariff language has been modified to ensure clarity and consistency with current business practices. These changes are meant to help the document read more easily and ensure optimal understanding.
Water Well Service Rate
Soon, members enrolled in the Water Well Service Rate will be transitioned into the Residential, Farm, and Ranch Rate class. As a result of the ongoing COVID-19 situation, PEC is postponing the effective date for the changes to this rate. Only a few members will be affected by a slight increase in the service availability charge, and those members can expect to be notified at least 30 days before changes take effect.
Line Extension Policy
The tariff language changed to clarify the policy covering a member’s cost of construction to extend service and any related cost allowances from the cooperative:
- Clarifies that the residential construction cost allowance (up to $2,000) is only applicable to a member’s primary residence or homestead.
- States that line extensions for non-primary residences do not qualify for a construction cost allowance.
- States that line extensions for commercial members that have detachable facilities or infrequent power consumption do not qualify for the construction cost allowance.
The revised tariff can be viewed in its entirety online.