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New Line Extension Policy Started July 1, 2007 See Line Extension Tariff (PDF file) On July 1, 2007 a series of new policies went into effect for all applicants seeking to have a power line extended to a new meter location, or desire a line to be relocated. These were a substantial change from previous BEC practices, but they are necessary to maintain the financial integrity of your Cooperative. Historically, a significant portion of the cost associated with the construction of new line extensions has been funded by BEC’s current Member-Owners through the electric bills they pay. The effect on the financial well-being of the Cooperative is not significant if the cost of a line extension is offset by a reasonable return on the investment. However, it is not unusual for BEC to incur expenses of $10,000 or more when constructing new line extensions. In such instances, the debt incurred exceeds the anticipated revenue generated through the rates. “The policy changes will shift a larger percentage of the construction funding to those who are requesting the line extension,” said Bobby Waid, CEO and General Manager. “This will reduce BEC’s future long-term debt requirements, which defers the need for potential rate adjustments. These new policies are consistent with the current practices of other utilities in the state.” Summary of Changes Below is a summary of the new policies:
Details of the Policies Our engineering department staff can respond to specific questions our Members may have regarding these policy changes. In addition, these policies will be available here at our website in the near future. Maintaining Reliability While the new policies will ease the cooperative’s obligation to find additional money to fund some new construction projects, BEC still faces additional challenges in managing the rapid growth occurring on our system. As a result of this growth, new substations, main power transformers, feeder line upgrades and a host of other equipment have been and will continue to be upgraded as growth continues. BEC employees work tirelessly to provide reliable electric service at the lowest reasonable cost consistent with sound business and safety practices. |
Bandera Electric Cooperative, Inc., P. O.
Box 667, Bandera Texas 78003, 1-866-BANDERA
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