PEC announces rate reduction, revised bond rating

The Board authorized a public forum on PEC’s community giving policy. The forum will give members a chance to weigh in on proposed changes, including creation of a member advisory group that will recommend how the Board distributes funds to area non-profit organizations

Note: Remember that voting is underway for two director positions on PEC's board of directors. See this link for voting details, the candidates bios and an update on the number of members voting – 2,045 ballots have been cast online so far: http://pec.coop/CorpProfile/Election2010.aspx

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May 18, 2010

TO: All PEC-area newspapers
MEDIA CONTACT: Anne Harvey, (830) 868-4933; Austin line, (512) 219-2602

Read the whole story at this link: http://pec.coop/News/PressRelease.aspx?PRID=271

Pedernales Electric Cooperative members will get a rate cut this summer. Monday PEC’s Board of Directors heard from management that lower natural gas prices will save PEC members $5 per 1,000 kilowatt-hours (kWh) of electricity used. The Lower Colorado River Authority, PEC’s primary wholesale power provider, charged less for power due to the lower fuel prices, allowing the Cooperative to adjust its rate. The 0.5 cent per kWh adjustment will be reflected on members’ bills rendered on or after June 1.

This is the second rate reduction in less than six months. In December, the Board approved a rate adjustment that saved PEC members $2 per 1,000 kWh used. This power cost adjustment is the result of a new rate structure PEC adopted in 2009, which enables the Cooperative to separate the actual cost of power from costs associated with delivering electricity.

There was more good financial news for PEC members Monday. The Board approved a resolution deferring a $25 million advance on a line of credit issued by the National Rural Utilities Cooperative Finance Corporation. PEC Chief Financial Officer Mike Vollmer said the need to borrow is starting to decline due to a recently adopted capital improvement plan and the implementation of prudent financial controls. The Board was able to defer the May draw until November, avoiding more than $400,000 in interest costs.

“It’s all part of a positive trend as far as new borrowed funds go,” Vollmer said.

The Board also took a step toward distributing more than $14 million in patronage capital to PEC members earlier than expected. Under the terms of a settlement agreement reached in 2008, PEC was to distribute $23 million in payments to current members only between 2008 and 2012. During the past two years the Board has distributed about $8.7 million, leaving a balance of about $14.3 million.