Pedernales Electric Cooperative – Focus on Further Rate Reduction

This topic contains 1 reply, has 2 voices, and was last updated by Patrick Cox Patrick Cox 8 months, 1 week ago.

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  • #8572
     Anonymous

    PEC approves strategic plan with focus on further rate reduction

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    Pedernales Electric Cooperative’s Board of Directors approved an updated strategic plan at its May 2015 meeting. The document, outlining PEC’s direction for the next three years, was crafted over the past three months with input from Board members, the Cooperative’s management and its consultant partner.

    Some of the highlights of the newly-adopted plan include:

    • Maintaining low member rates through improved efficiency, cost reductions and a low cost energy portfolio. Rate and financial initiatives will focus on developing scenarios for achieving and maintaining a low-cost position ranked within the top 10 percent (lowest) of all Texas cooperatives, as well as rates lower than the state average for all public power, distribution cooperative utilities and central Texas retail electric providers.
    • Increasing efficiency and reducing costs by achieving a 2 percent to 5 percent reduction in transmission costs and reducing peak demands through demand side management and other efficiency programs.
    • Maintaining annual capital credit payments to members.
    • Meeting a financial equity-to-assets ratio of 32 percent to 45 percent.
    • Providing a safety culture and program focusing on the goal of no lost-time accidents.
    • Utilizing cost-beneficial solutions without member subsidy to achieve and maintain a renewable energy portfolio that meets or exceeds national and state average renewable energy levels.

    “This plan lays out the road map to guide PEC and its priorities,” said PEC Board President Patrick Cox. “It has been an inclusive process for deciding how the Cooperative’s resources will be dedicated to bring innovation, excellent service, value and reliability to the membership over the next few years.”

    PEC has had three overall billing reductions in the past six months; power cost adjustment reductions were effective March 3 and May 1 and a delivery charge reduction was effective Dec. 1, 2014. PEC’s current rates are below the state average when at least 1,000 kilowatt-hours are used. The average PEC member uses 1,275 kwh per month; those costs are also below the state average.

    “This strategic plan calls for PEC to continue to provide reliable energy services at a competitive price,” Cox continued. “The outlined initiatives focus on lowering rates, balancing resources, serving the membership, providing value and maintaining our strong financial position.”

    PEC first adopted a strategic plan in 2011, with revisions in 2012 and 2013. The updated Cooperative strategic plan reflects the changing industry landscape.

    “The Board’s vision of industry change has been well communicated through the strategic plan revisions and will allow us to formulate our strategic efforts and execute these initiatives,” said PEC Chief Executive Officer John Hewa. “Significant accomplishments, including rate reductions and a strong reliability and service record have already been recognized with respect to the current strategic plan. The new plan will provide the Cooperative and its employees further direction and new expectations regarding very key performance areas.”

  • #8574
    Patrick Cox Patrick Cox 
    Member

    The new strategic plan reflects a number of significant changes that reflect the need for change to remain competitive: the strong growth in the Central Texas area, the commitment to increasing our alternative energy portfolio, implementing the new software system that will allow for more cusomization and member access, and increasing our involvement with communities and members throughout the service area. Costs have been reduced through streamlined services, cost of service improvements, reduced fuel costs, increased reliability, improved cash management systems, and strong fiduciary oversight at all levels of operation.

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