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Letter to the Editor:

To the Editor:

The electric rates adopted recently by the Pedernales Electric Cooperative, Inc. (PEC) Board of Directors continue to gouge consumers receiving single-phase electric service – over 99% of consumers in the Residential and Farm/Ranch and Water Well rate classes and over 82% of consumers in the Small Power rate class, as well as consumers receiving electric service directly from overhead distribution lines. Here's why. The PEC provides two types of electric service – single-phase (one energized distribution wire) and three-phase (three energized distribution wires), and two types of service delivery – overhead and underground. This creates four service classes and their required investment costs per mile of distribution lines reported in the 2016 cost of service study are: (1) single-phase, overhead at $23,394; (2) single-phase, underground at $72,085; (3) three-phase, overhead at $107,553; and, (4) three-phase, underground at $346,629.

The PEC 2016 cost of service study failed deliberately to consider these substantial cost differences and spreads the higher costs of three-phase and underground services among all consumers. A cost of service study which deliberately fails to consider such substantial cost differences is fraudulent and corrupt, and is incapable of producing electric rates that are fair and equitable. The PEC Board of Directors and Management have been informed of this egregious failure in the 2016 cost of service study, but have shown no desire to address its failure to produce fair and equitable electric rates. When the PEC Board of Directors is questioned about this egregious failure, one is met with a stony silence. One wonders why the PEC Board of Directors and Management take no action to right this obvious wrong.

Mr. Merle L. Moden


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