search.noResults

search.searching

note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
| member matters


More Changes to Choctaw Electric Policies Cost of service study shows changes in line extension policy necessary to recoup costs


Note: The article below is a summary of the changes to CEC Terms and Conditions of Service. Customers requiring new service should set up an appointment with the CEC staking department by calling 800-780-6486. Visiting with your co-op ahead of time can help you avoid any unexpected costs or delays.


T


o shore up procedures and address the increasing cost of construction, Choctaw Electric Cooperative


board and management amended policies regarding line extensions and related construction. The amended policy became effective on February 1.


The board's actions result from findings from the co-op's recent cost of service study performed by C.H. Guernsey, an engineering and consulting company. The cost of service study is a tool used by electric utilities to evaluate the effectiveness of rates, set financial goals, and formulate long term business strategies.


Study results for CEC showed a need for improvement in the co-op's line extension policy to help the co-op recover costs incurred in constructing lines and related equipment.


Permanent Residences


In the past, CEC provided new residential members with 300 linear feet of line for free, however, the rise in the cost of construction materials, labor, and work equipment has now surpassed what the co-op can recoup over the life of the service. The resulting shortfalls can increase base rates for existing members. The new policy ensures new members pay their fair share of costs, but still recognizes the value they bring to the co-op by providing a credit of up to $2,500 for line extension costs.


The policy uses a set formula to calculate the amount a member is required to pay as his or her contribution to construction costs. The formula includes a fixed base fee, a variable footage charge, and the credit for CEC's allowable investment as calculated in the most recent cost of service study.


4 | MARCH 2016 | CEC Inside Your Co-op


Construction Fees for Permanent Residences OVERHEAD


Base Fee Price Per Foot of Use


Example 1. Base Fee


$ 1,500.00 $ 7.50


Maximum Credit for Permanent Residence $ 2,500.00 300' Overhead Service to a Permanent Residence


Footage Fees ( 300 ft x $7.50) Project Total


Cooperative Allowable Investment (Max. $2,500) Contribution Required From Member


Example 2. Base Fee


100' Overhead Service to a Permanent Residence


Footage Fees ( 100 ft x $7.50) Project Total


Cooperative Allowable Investment (Max. $2,500) Contribution Required From Member


Example 3. Base Fee


100' Underground Service to a Permanent Residence


Footage Fees (100 ft x $14.00) Project Total


Cooperative Allowable Investment (Max. $2,500) Contribution Required From Member


The fixed base fee covers the items required on every service that aren't part of the line extension. This includes transformers, metering equipment, brackets and other hardware. The variable footage charge covers the cost of line, poles, and labor. Once costs are tabulated with the fixed and variable costs, CEC applies a credit for the co-op's allowable investment. The sample schedules printed above show costs under the new policy and a sample calculation.


Commercial & Non-Permanent Residential


The costs involved in serving commercial and non-permanent residential accounts differ from traditional accounts and require different accounting formulas. For example, a fixed base charge does not apply because the equipment required to serve these accounts can be drastically different


$ 2,100.00 $1,400.00 $ 3,500.00 ($ 2,500.00) $ 1,000.00


than that of a typical home. To extend line to a commercial or non-permanent account, the member pays the current price of all transformer and metering equipment and line extension charges. The footage charge for single phase overhead construction is $7.50 per foot. Single phase underground is $14.00 per foot.


All three-phase services is built at actual cost. An upfront payment of the estimated cost of construction is required. If the estimate is higher than construction costs, CEC will refund the difference. If the estimate is lower than actual cost, the member is billed for the difference. 


If you have questions about the line extension policy, please call Choctaw Electric


at 800-780-6486, ext. 253.


$ 1,500.00 $750.000 $ 2,250.00 ($ 2,500.00) $ —


$ 1,500.00 $2,250.00 $ 3,750.00


($ 2,500.00) $ 1,250.00


UNDERGROUND $ 2,100.00 $ 14.00


$2,500.00


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120