Power of Community - Pedernales Electric Cooperative

Energy News


Additional credit returns on December bills

Dec 01, 2016

Share This Story

Revenue Adjustment Factor estimated credit

Click image to enlarge.click image to enlarge

We are excited to announce that the Revenue Adjustment Factor (RAF), a mechanism used to reduce higher-than-forecasted revenue through bill credits to members, will be included as a line item on December bills for a second consecutive year. The RAF will distribute $6 million in credits to members on December bills.

The RAF, introduced in 2015 and implemented as a per-kilowatt-hour rate, will be activated temporarily from Dec. 1-31, lowering the amount billed to members. The credit is the result of the cooperative operating in a financially responsible and efficient way, including efficient management of operations and increased member interest in automated bank draft and paperless billing options. Other factors include faster-than-expected growth, weather conditions and more. Because we generated more revenue than planned, we are passing it on to members.

We take great pride in sharing the cooperative’s financial well-being, and the RAF is a flexible and unique mechanism that prevents us from over-collecting from members. It’s another example of the cooperative difference.

Please see the chart above for more details and credit estimates.

Quick facts about the RAF:

  • First approved by Board of Directors and implemented in 2015
  • PEC distributed $2 million in 2015 via the RAF
  • Only a credit – never issued as a rate increase
  • Activated temporarily by the Board of Directors as needed
  • Used to reduce higher-than-planned revenue
  • Helps us serve members in a unique way
  • Applicable to all rate classes except Industrial and Power Plant Start Power

News Archive

Use the links below to browse PEC news items by year.