Cooperative Policy

Policy Number:     119

Subject:                Smart Metering and Time-Based Rate Schedules

Objective:             To state the Cooperative's policy regarding smart metering and time-based rate schedules

                             in compliance with the Energy Policy Act of 2005, PURPA 111(d) Standard (14).

Reference:            Energy Policy Act of 2005, PURPA Title I Standards, SEIEC Management Recommendations,

                             April 18, 2007

The Cooperative has an automated metering (AMR) system that can be utilized to provide time-of-use rates to the members.  The meters installed on commercial and industrial accounts are time-of-use meters equipped with AMR modules to allow time-of-use metering data to be available.  The meters that are currently installed on residential and small commercial accounts are not time-of-use meters and will need to be replaced with more technologically advanced meters that utilize the existing AMR system.

Time-Of-Use Pricing:  The Cooperative has developed time-of-use rates (Time-Of-Use Rate Schedule A-TOU and AH-TOU) that will be available on a limited basis for members in these rate schedules.  The Cooperative will monitor the success of these rate schedules to determine the participation level and the success of these time-of-use rates prior to possibly making them available to all members in the residential classes.

Critical Peak Pricing:  The Cooperative does not offer critical peak pricing.  The Cooperative is billed by its wholesale power provider on a monthly, non-coincidental, individual delivery point peak basis.  Therefore, the Cooperative does not pay its wholesale energy supplier according to a critical peak pricing method.  The Cooperative does not have an economical or practical method to implement critical peak pricing to its members.

Real Time Pricing:  The Cooperative does not offer real time pricing.  The Cooperative is billed by its wholesale power provider on a monthly, non-coincidental, individual delivery point peak basis.  Therefore, the Cooperative does not receive real time pricing from its wholesale supplier and therefore, does not have the information necessary or the potential savings to implement real time pricing.

Credits for consumers with large loads who enter into pre-established peak load reduction agreements that reduce a utility's planned capacity obligations:  The Cooperative along with its wholesale energy supplier have implemented an off-peak rider (SIPC, Rider 2, Off-Peak Service) that provides large consumers with economic incentives to consume energy in off-peak periods.

Approved:  August 7, 2007