FAQ Raw Test

Section 705: Reliability of Service

I. Objective:

To define the standards and reporting practices by which PEC will maintain acceptable electric services reliability.

II. Policy Content:

To list and determine the various practices and set of standards for PEC to provide an acceptable level of service reliability to its members and define the reporting parameters.

III. Provision:

  1. Vegetation Management Plan
    PEC will maintain a Vegetation Management Plan which will be reviewed by the
    Board of Trustees on an annual basis.
  2. Reliability Program Reporting
    1. PEC shall, on a monthly basis, report to the Board of Trustees the Industry Standard Reliability Indices according to the latest version of IEEE Standard 1366. PEC will also report to the Board information from a major event.
    2. An annual analysis will be performed on the top 5% worst performing circuits based on the outage cause codes to determine if immediate action is necessary to alleviate the reliability performance issue. Reporting also will include any equipment and cause code summary for all outages which have occurred during the previous 12-month period.

IV. Responsibility

It will be the responsibility of the Exec. VP/CEO, Sr. Manager of Engineering & Power Delivery, and Operating Services Unit Manager to properly administer the provisions.

Approved by the Board of Trustees

  • Effective Date: June 25, 2004
  • Revised Date: August 28, 2009
  • Revised Date: August 27, 2020
Section 703: Availability & Type of Electric Service

I. Objective:

To define the types of electric service available from PEC.

II. Policy Content:

To list the various types of electric circuits available and their characteristics.

III. Provision:

A. Types of Electric Service

The type of electric service which will be furnished to the member will depend on the location, size and type of load to be served. It is recommended that the member obtain from PEC the phase and voltage of the service that will be furnished before proceeding with the purchase of motors or other equipment. Also, the point of delivery on the premises served must be determined before the member’s wiring installation is made.

PEC renders 60 hertz (Hz) service from circuits of the following characteristics:

  • Nominal Service Voltage - Type of Service
  • 120VAC: Single Phase, 2 wire*
  • 120/240VAC: Single Phase, 3 wire
  • 240/480VAC: Single Phase, 3 wire
  • 120/208VAC: Three Phase, 4 wire wye
  • 120/240VAC: Three Phase, 4 wire delta
  • 240/480VAC: Three Phase, 4 wire delta
  • 277/480VAC: Three Phase, 4 wire wye
  • 2400/4160VAC: Three Phase, 4 wire wye
  • 7200/12470VAC: Three Phase, 4 wire wye
  • 14400/24940VAC: Three Phase, 4 wire wye

*No longer provided for new services.

The preceding voltages are standard types of service supplied by PEC, where available, and when all contract terms and conditions of service have been agreed to by the member and PEC.

B. Other Types of Electric Service

The member may request and at PEC discretion receive service at a voltage other than those listed in III. A. when available and at the option of PEC.

If a special voltage is required by the member and PEC chooses not to make such voltage available, it shall be the member’s responsibility to install his/her own equipment at his/her expense which will transform the provided service voltage to the required level. Any such equipment installed must meet the approval of the Cooperative prior to being placed in service.

C. Motor Starting Requirements

Motors may be started across-the-line if the starting requirement does not exceed 50 kVA for single-phase service and 150 kVA for three-phase service. Groups of motors starting simultaneously shall be classed as one motor.

Across-the-line motor starting requirements larger than those shown above may be permitted in certain circumstances. If requested by member, PEC will perform studies to determine the maximum starting capacity for each specific installation.

If the starting of a motor or group of motors should have a disturbing influence on service to other members, PEC shall reserve the right to require the member to install suitable equipment, at his/her own expense, that will reduce the disturbing effect to levels or limits acceptable to PEC.

D. Low Power Factor Equipment

Should the member install any electrical device or devices creating a low power factor, PEC may require the member to provide at his/her own expense power factor corrective equipment which will maintain the power factor of each such device at not less than ninety percent (90%).

E. Harmonic Distortion

Where equipment is operated in such a manner that the harmonic distortion has a disturbing influence on the service to other members, PEC shall reserve the right to require the member to install suitable equipment, at his/her own expense, that will isolate or reduce the disturbing effect to levels or limits acceptable to PEC.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering & Power Delivery, Director of New Construction, and Director of Construction Engineering to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revised Date: August 28, 2009
  • Revised Date: June 25, 2020
Section 702: Members Responsibilities

I. Objective:

To set forth various guidelines/responsibilities for PEC's members in establishing electric service.

II. Policy Content:

To establish both wiring and equipment requirements for the member, their responsibilities to oversee PEC's property, and to notify PEC of any significant changes in electric load.

III. Provisions:

A. Member’s Wiring

All electric wiring and equipment installed on the member’s side of the “point of delivery” shall be at the member’s expense and shall be installed and maintained in accordance with requirements of the National Electrical Code as adopted by PEC in its Terms and Conditions of Service, and with all requirements prescribed by governmental authority having jurisdiction thereof. PEC reserves the right to refuse to connect to any wiring or apparatus which does not meet these requirements, and PEC may, without further notice, discontinue service to any member when a defective condition of wiring or equipment upon the premises of the member is discovered.
PEC will not be responsible for any loss, injury or damage which may result from defects in electric wiring or equipment on the member’s premises. In addition, PEC may refuse to make a connection when it has information or cause to believe that any installations on the member’s premises are unsafe.

B. Member Distribution Pole

If a member served by PEC requires a distribution pole as his/her point of service and is unable to obtain it elsewhere, PEC will, upon request, provide and install a distribution pole. However, all costs chargeable to the member must be paid in advance at PEC’s office prior to release of the job to install or sell the distribution pole to the member. At point of installation, pole becomes member’s responsibility.

C. Number of Services to a Building

In general, a building or other premises shall be served through only one set of service conductors.
At the option of PEC, more than one service to a single member at one location will be permitted when the physical or electrical characteristics of the facilities served require more than one service in the interest of good engineering and operating practices.

D. Point of Attachment to Building or Pole

The point of attachment of a service drop to a building shall not be less than ten feet (10') from the ground. For structures of more than one story, the point of attachment of the service drop shall not be less than fifteen feet (15') or more than twenty-five feet (25') above the ground. All attachments shall be at a height to permit a minimum clearance for conductors as required by the National Electrical Safety Code (NESC).

E. Support for Service Drop Attachment

When service wires are attached to a building or pole, a substantial means of support and attachment is to be provided by the member or his/her contractor. The type and location of the support shall be coordinated with an authorized representative of PEC.
In case the building or pole is not of sufficient height for conductors to be at least ten feet (10') from the ground, the member shall furnish, install and maintain an adequate fixture to which the service wires may be attached.

F. Service Entrance Wiring

Service entrance wiring raceways are to be terminated on the exterior of the building at a point six inches (6") or more above the service drop attachments to prevent the entrance of moisture. The service entrance and the service drop conductor connections are to be made at a point below the level of the rain-tight service head.
The member's service entrance conductors shall extend not less than thirty inches (30") outside the service head to permit proper attachment to the service drop wires.
Service entrance conductors shall be carried in approved metal raceways, and the distance to the main switch shall be as short as possible. The size of the raceway and ampacity of the conductors shall be maintained between the service head and the main disconnect device.
The size, capacity and installation of the electric service entrance and related equipment shall be in conformity with the requirements of the National Electrical Code, PEC's rules and regulations and any applicable local codes.

G. Type of Service Connection

All lighting and power installations shall be either three (3) wire or four (4) wire connections, and the member's wiring shall be arranged so that all single-phase and three-phase service shall be taken through one meter.

H. Location of Meters

In general, all meters will be located outdoors, whether on a building or a pole. Exact locations will be coordinated with the member by PEC’s personnel. A
meter, when installed, shall be readily accessible to authorized PEC personnel for meter reading, testing and maintenance and shall not be subject to severe
vibration, dust, vapors, or corrosive liquids. A meter shall not be placed in a location where it may be damaged or where it will cause inconvenience to either the member or PEC personnel.
All meters shall be installed so that the center of the meter cover will not be more than five and one-half feet (5 ½’) nor less than four and one-half (4 ½’) above the ground at final grade following any construction being done. Meters installed on a pedestal, designed for underground service or installed on a pad mounted transformer may be at no less than two and one-half feet (2 ½’) above final grade if construction and installation conditions so require. Under no circumstances shall any meter be moved or relocated except by authorized PEC personnel.
All meters and associated equipment will be maintained by PEC and remain its property.

I. Instrument Transformer Metering Installation

At the discretion of PEC, service may be metered with instrument transformers. In every case, the type of metering to be installed and the location of the meter shall be determined by PEC.

J. Inspection of Member's Electric System

PEC shall have the right, but does not assume the duty nor liability, to inspect the member's electrical facilities from time to time, and to refuse to commence or continue service if an installation fails to meet code requirements, is defective or hazardous or for any other reason considered to be an unsafe operating condition.

K. Load Balance

In every instance, where possible, the member's wiring installation shall have a sufficient number of branch circuits, and be so connected that the load is as balanced as is practical.

L. Grounding

The member's wiring system shall be effectively grounded as required by the National Electrical Code and by means and methods specified therein.

M. PEC's Equipment

The member shall not permit anyone who is not an agent of PEC to remove or tamper with PEC's property.

N. Changes in Member's Electrical Equipment

In the event a member shall add to the size of his/her electrical equipment, he shall notify PEC so that its transformer, meter and other related equipment may be enlarged sufficiently to care for the increased load. The cost of any such modifications shall be the member’s responsibility and be paid upfront.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery, Director of New Construction, and Director of Construction Engineering to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revised Date: August 28, 2009
  • Revised Date: May 28, 2020
Section 701: Point of Delivery of Electric Service

I. Objective:

To define the "point of delivery" where the member attaches to PEC's electric system and receives service.

II. Policy Content:

To establish guidelines for connecting PEC's electric facilities with our members to form a "point of delivery."

III. Provision:

  1. The point of delivery of electric service shall be at the point at which the electric supply system of PEC connects to the wiring system of the member.
  2. For overhead or underground construction, the point of delivery is that point where PEC’s overhead service drop connects to the member’s service conductors, whether on a building, structure, pole or pedestal.
    1. Where the point of delivery is on a pole, it shall be the responsibility of PEC to furnish and install the pole serving as the point of delivery. The pole shall be installed at a location designated by PEC’s personnel. Any further relocation of facilities shall be at the member’s expense.
      PEC will install the necessary meter loop on its pole. When the pole is to be used as the member’s distribution point, the member will, at his expense, furnish all wire, pipe or other equipment required to serve his electrical needs. All wiring installed on PEC’s pole will be the member’s responsibility, with the exception of PEC’s meter loop, and shall meet the requirements of the National Electrical Code as well as the regulations and rules of PEC.
    2. Where point of delivery is on a building or other structure, the overhead point of delivery will normally be at the weatherhead of the electric service entrance. The underground point of delivery will be the source side of the member’s meter base.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery, Sr. Manager of Distribution Operations, and Director of Construction Engineering to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revised Date: August 28, 2009
  • Revised Date: April 23, 2020
Section 606: Automated Deferred Payment Agreement Fees

I. Objective:

To recover the costs associated with implementing and maintaining an automated deferred payment extension system and to establish fees for using that system.

II. Policy Content:

To establish the fees which will be assessed to a member’s account when the member requests a payment extension past the cutoff date.

III. Provision:

  1. PEC will offer members the option of extending the due date of their payment 10 days past the cutoff date. During any 12-month period, each member may receive one extension at no charge. All payment extension requests that exceed the one at no charge will be billed a fee.
  2. Members using PEC’s automated deferred payment extension system will be assessed a fee of $15.00 for each extension requested that exceeds the one allowed at no charge during any 12-month period.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services and the Director of Member Services to properly administer these provisions. This policy supersedes any existing policy that may conflict with the provisions of this policy.

Approved by the Board of Trustees

  • Effective Date: January 1, 2004
  • Revision Date: July 27, 2009
  • Revision Date: May 30, 2019
Section 604: Miscellaneous Fees & Charges

I. Objective:

To recover the costs associated with PEC performing various tasks outside its normal routine.

II. Policy Content:

To establish a fee or basis to be charged to a member's account or the general public for services provided by PEC for various tasks normally considered outside the scope of normal rates, charges, fees, etc.

III. Provision:

A. Temporary Service

A member requiring temporary service shall pay the regular rates applicable to the class of service rendered for all energy used and, in addition, pay the installation and removal costs, less salvage value of PEC's facilities used to serve the member.

B. Provide Clearance for House & Equipment Moves

Where a house, structure or equipment is to be moved upon, across or over roadways or along a way over which electric wires are in place, advance notice in writing is to be made to PEC of the dimensions of the object being moved, the time it will be moved and the exact route over which it will be moved. Payment shall be made in advance to PEC for the cost of providing clearance of electric lines for the move. Such payment shall be the estimated actual cost of PEC personnel, vehicles and equipment required to provide the necessary clearance for the mover. In no case shall anyone other than authorized PEC employees remove, cut, raise or handle any wires in connection with the moving and providing of clearance.

C. Security Light - Relocation

Following the installation of a security light on an existing pole, PEC will, upon request, relocate the light for a charge of $50.00 if made for the benefit of the member and at his/her request.
Relocation of a security light, when requested by the member and involving other facilities installed to serve the light, shall be paid for by the member. Such charges shall be those actually incurred by PEC in the relocation of the light and related facilities.
Any portion or all of such costs may be waived by PEC, if justified.

D. Relocation of PEC Facilities

  1. Members
    1. Upon request from a member to move or relocate power line poles, anchors, services, meters, etc., each request will be investigated and considered individually.
    2. If such move is necessary and will improve the quality of service, eliminate hazardous conditions or prevent a recurrence of tampering or diversion of electric service, PEC may bear part or all of the cost of relocation. The amount of such expense to be paid by the member, if any, will be determined by PEC.
    3. Where the relocation is solely for the benefit and convenience of the member, the cost will be borne entirely by the member.
    4. Relocation of a meter installed on a building, house or structure to another place on the building, house or structure shall be paid for by the member.
    5. All costs due from the member must be paid in cash, or, if the member is in good standing with the Cooperative, such cost plus interest may be amortized over a sixty (60) month period. In the event the member fails to make agreed upon payment, standard collection procedures will commence.
  2. Non-Members
    1. When requests for relocation are received from non-members, the Cooperative will make the sole determination as to whether any facilities will be relocated unless required by law.
    2. Once the Cooperative has made a determination to relocate facilities, a cost will be computed for such relocation and provided to the requestor. The total cost will be borne by such requestor. All such costs shall be paid prior to the relocation of the facilities.
    3. Where the Cooperative's facilities are located on public right-ofway (along streets, roads or highways), and a request to relocate is received from a government agency (city, county, state or federal), such relocation shall be accomplished as required by law.
    4. Where the Cooperative's facilities are located on private property and a request is received from a government agency to relocate such facilities, appropriate charges shall be calculated and arrangements for payment shall be made with agency.

E. Work Beyond Point of Delivery of Service

PEC shall perform no work for a member beyond the "point of delivery" of electric service except as provided below.
Work beyond "point of delivery" may be performed, when necessary, during an emergency if by doing so it will prevent possible injury or death to people and animals, avoid damage to property and equipment or expedite the initiation of service. PEC will charge the member in these instances all related costs and a "trip charge" per Policy No. 603.

F. Alternative Standard Meter Options

People’s Electric Cooperative installs and maintains a metering system capable of remote communication. PEC understands that, from time to time, members may wish to opt out of such meters or opt out of such meters being placed on their homes. Members wishing to accept an alternative to PEC’s standard meter on their homes must select one of the following:

  1. Pole Option
    Members may select to have PEC relocate the standard meter from the member’s home to an electric pole. Any costs associated with this relocation, including but not limited to labor and equipment, will be incurred by the member.
  2. Two-Way Communication Disablement
    Members may select to have PEC disable communication between said meter and PEC. In doing so, the member understands he or she:

    1. May not be able to receive benefits associated with PEC’s standard meters.
    2.  Is not eligible to participate in PrePaid metering.
    3. Will be charged a one-time $75.00 fee for disablement of said communication device and a monthly fee of $25.50 for on-site meter reading by a PEC representative. Members participating in either option must complete and sign the appropriate forms.

G. Meter Seal Tampering

A charge of ten dollars ($10.00) will be assessed when a meter sealing device is open, broken or missing to cover inspection, resealing or locking the metering equipment on the member/consumer’s premises. This charge will be waived if lock is open/broken due to being weather-worn, etc. If the meter seal must be replaced a second time, a $50.00 “trip charge” will be assessed.

IV. Responsibility

It will be the responsibility of the Sr. VP – Operations and Engineering, Manager of Transmission and Distribution Services, Director of Maintenance Services, and the Director of Member Services to properly administer these provisions. This policy supersedes any existing policy that may conflict with the provisions of this policy.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: January 28, 1994
  • Second Revision: September 27, 1996
  • Third Revision: July 27, 2009
  • Fourth Revision: August 22, 2013
  • Fifth Revision: December 26, 2019
Section 603: Trip Charges

I. Objective:

To recover the costs associated with PEC making special trips to the member's account location.

II. Policy Content:

To establish a fixed fee to be assessed to the respective member's account when PEC encounters unique requests or requirements to make a trip to a member's account location.

III. Provision:

  1. If PEC personnel are required to make a special trip to a member’s PEC location – not related to a standard service repair request or known power outage – a charge of fifty dollars ($50.00) will be assessed to the member’s account. This will include such requests as the following:
    1. To collect on an account for nonpayment.
    2. To restore service between 7:00 am to 5:00 pm, Monday through Thursday to an account which was disconnected for nonpayment or for violation of PEC’s Terms and Conditions.
    3. To respond to a power outage, low voltage issue, or other such “trouble call” reported by a member between 7:00 am to 5:00 pm, Monday through Thursday when the issue is on the member’s side of the meter.
    4. To provide a meter test at the request of the member. No charge will be made if the meter is found to be defective or to register improperly.
    5. To set a meter at the time of new service initiation or tie-in service to a new construction location. There will be no charge to tie-in service to a new construction location if only a single trip is required to perform the tie-in.
    6. If PEC personnel are required to make a special trip to a member’s PEC location outside of the previously noted 7:00 am – 5:00 pm, Monday through Thursday hours, an additional $50.00 after-hours fee may be added.
  2. Any exception or deviation to this policy must be approved by a Member Services Department Director or a member of Management.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services and Vice President of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revised Date: March 31, 2003
  • Revised Effective Date: May 1, 2003
  • 2nd Revision: July 27, 2009
  • 3rd Revision Date: October 25, 2018
Section 601: Returned Check(s) Fees

I. Objective:

To recover the costs associated with PEC handling returned checks.

II. Policy Content:

To establish a fixed fee to be added to the respective member's account when PEC experiences a returned check.

III. Provision:

A fee of thirty dollars ($30.00) will be applied to a member’s account for any check issued as payment for deposit(s), electric service or other transaction when returned to PEC marked "Insufficient Funds" (NSF), "Account Closed" or other reasons caused by the member that result in additional handling costs to PEC.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services, Vice President of Member Services and the Director of Member Account Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revised Date: February 22, 2002
  • Revised Effective Date: March 1, 2002
  • 2nd Revised Date: July 27, 2009
  • 3rd Revised Date: August 23, 2018
Section 505: Incorrect Register, Connection of the Meter or Multiplier on Meter

I. Objective:

To establish a policy to facilitate the handling of accounts in the event a meter is found to have an incorrect register, connection, multiplier or constant.

II. Policy Content:

It shall be the policy of PEC to refund all overcharges due to incorrect register, connection, multiplier or constant for a member's meter. In the event a PEC member has been undercharged, PEC will charge no more than the previous six (6) months' usage, unless it can be established that the error was due to a specific cause on a reasonably certain date, in which case the charge shall be computed from that date.

III. Provision:

A. Errors adverse to member (overcharges):

  1. If an incorrect register, connection, multiplier or constant to a member's meter results in an overcharge, PEC shall refund the excess charge for the full period of time as can be determined.
  2. A refund will be credited to the member's account to be reflected on the next monthly bill. A letter of explanation will accompany the bill.

B. Errors adverse to PEC (undercharges):

  1. If an incorrect register, connection, multiplier or constant to a member's meter results in an undercharge, PEC shall attempt to collect the amount determined to be undercharged up to a maximum of six (6) months, unless it can be established that the error was due to a specific cause on a reasonably certain date, in which case the charge shall be computed from that date.
  2. The member shall be notified either by personally contacting the member or, as an alternative, a letter shall be addressed to the member with an explanation of the problem. The member will be allowed to pay the undercharge in installments over a reasonable period of time.
  3. No interest penalty shall be charged on the amount determined to be undercharged.

IV. Responsibility

It will be the responsibility of the Executive VP/CEO, Sr. Vice President of Administrative Services, and Vice President of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revision Date: July 27, 2009
  • Revision Date: July 26, 2018
Section 504: Meter Records

I. Objective:

To properly account for each PEC meter, account history, and test results.

II. Policy Content:

To establish adequate records to identify all meters in use, service location, and testing performed.

III. Provision:

  1. Current records shall be kept, systematically arranged, of the identification number of each watt-hour meter and the location of the meter.
  2. Test records will be maintained on each meter. Each record shall contain the following:
    1. Sufficient information to identify the meter.
    2. The date of the test.
    3. Reading of the meter.
    4. Results of the test.

IV. Responsibility

It will be the responsibility of the Manager of Transmission and Distribution Services, Field Services Unit Manager, and Director of Technical Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revision Date: July 27, 2009
  • 2nd Revision Date: January 23, 2020
Section 503: Periodic & Sample Testing

I. Objective:

To determine an acceptable testing program to provide a level of assurance of PEC’s meter accuracy.

II. Policy Content:

To establish certain intervals and sampling programs during a calendar year for the various types of PEC meters in use.

III. Provision:

A. New Meters

All new meters should be inspected and tested in PEC’s meter testing facility or by the manufacturer prior to installation. Each meter should meet the accuracy requirements of PEC Policy No. 502.
Meters installed with instrument transformers shall be tested on a one hundred percent (100%) basis and adjusted to conform to the accuracy requirement outlined in PEC Policy No. 502 prior to installation. In addition, a complete inspection shall be made of the wiring after installation to assure proper connections for metering.
The watt-hour meters may be tested independently of instrument transformers, provided the transformer ratios and phase angles have been determined and are taken into account in the calibration of the meters. The transformer errors may be neglected in the calibration of the meters if instrument transformers are used that conform to the 0.3 accuracy class limits of the ANSI requirements with the actual secondary burden.

B. Periodic schedule for testing alternating current watt-hour meters with surge proof magnets and without demand registers or pulse initiators.

The word “year” in the periodic test schedule stated below means calendar year. The periods stated are required test intervals, except for single phase meters which required sample testing based on Military Standard 414.

  1. Meters used with instrument transformers:
    1. Polyphase meters – at least once in 16 years
    2. Single phase meters – see B.2. below.
  2. Single phase meters.
    A one percent (1%) random sampling of all installed groups of single phase meters will be taken annually, with a minimum of twenty for each group. The sampling will be checked to be sure that the lot of each type is in accordance with that which is specified in Table A-2 of Military Standard 414.
    An as-found test will be performed on these meters and recorded. Bar X and Sigma method of computing the average calibration and the standard deviation for each type of meter will be made.
    These calculations will determine how this group of meters compares to the acceptable quality level (AQL). If outside the AQL, an appropriate correction on this group of meters will be made, such repair, recalibration or retirement, to be completed within an appropriate period of time.
  3. Self-contained polyphase meters and three-wire network meters – at least once in 16 years.

C. Varhour Meters

Varhour meters shall be tested in accordance with the schedule for the associated watt-hour meters.

D. Other Meters

Meters without surge-proof magnets and without demand registers or pulse initiators – at least once in 8 years.

E. Schedule for Testing Demand Meters

The following schedule is required for testing demand meters:

  1. Rolling or block interval demand registers equipped watt-hour meters – 12 years.
  2. Pulse recorders and pulse-operated demand meters in combination with pulseinitiator- equipped watt-hour meters – 2 years. If a comparison is made between the meter registration and the recorder registration each billing period, and the recorder registration agrees within one percent (1%) of that registered by the associated meter, the schedule for pulse recorders and the pulse-operated demand metering equipment should be 16 years. If recorder meter registration checks do not agree within (1%) one percent, the demand metering equipment should be tested.

IV. Responsibility

It will be the responsibility of the Manager of Transmission and Distribution Services, Field Services Unit Manager, and Director of Technical Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revision Date: March 24, 2000
  • 2nd Revision Date: July 27, 2009
  • 3rd Revision Date: January 23, 2020
Section 502: Meter Accuracy Requirements

I. Objective:

To install and operate accurate meters which properly record the usage of electricity.

II. Policy Content:

To establish an acceptable accuracy limit for installed electric meters.

III. Provisions:

  1. No meter shall be placed in service, or allowed to remain in service, which has an
    incorrect register multiplier, watt-hour constant, gear ratio, or dial train; or which is
    mechanically or electrically defective, incorrectly connected, installed, or applied; or
    which registers outside the limits specified in B below.
  2. The performance of a watt-hour meter is considered to be acceptable when the
    average percentage registration is not more than one hundred-two percent (102%),
    nor less than ninety-eight percent (98%), calculated in accordance with one of the
    methods described below:

    1. Method 1. Weighted average percentage registration is the weighted average of the percentage registration at light load (LL) and at heavy load (HL) registration a weight of four (4). By this method: Weighted Average Percentage Registration = LL+4 HL
      5
    2. Method 2. Average percentage registration is the average of the percentage registration at light load (LL) and at heavy load (HL). By this method: Average Percentage Registration = LL+HL
      2
  3. When the test of a watt-hour meter indicates that the error in registration exceed one percent (1%) at either light load or heavy load at unity power factor, or exceeds two percent (2%) at heavy load at approximately 0.5 power factor lag, the percentage registration of the meter shall be adjusted to within these limits of error, as closely as practicable to the condition of zero error. Where instrument transformers are used in conjunction with the meter, these limits apply to the meter equipment as a whole. All meters which are tested shall be left without creep.
  4. No watt-hour meter which creeps shall be placed in service or allowed to remain in service. A meter creeps if, with load wires removed and with test voltage applied to the voltage circuits, the rotor or disk simulator moves continuously. For practical recognition of creep in a meter in service, it is considered to creep when, with all load wires disconnected, the rotor or disk simulator makes one (1) revolution in ten (10) minutes or less.
  5. The performance of a demand meter or register shall be acceptable when the error in registration does not exceed four percent (4%) in terms of full scale value when tested at any point between twenty-five percent (25%) and one hundred percent (100%) of full scale value.
  6. When a demand meter or register indicates that the error in registration exceeds ± four percent (4%) in terms of full scale value, the demand meter or register shall be adjusted to within ± two percent (2%) full scale value. The timing element when used to keep a record of time of day at which the demand occurs, shall be adjusted to condition of as near zero error as practicable when it is found to be in error by more than ± 0.25 percent.

IV. Responsibility

It will be the responsibility of the Manager of Transmission and Distribution Services, Field Services Unit Manager, and Director of Technical Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Revision Date: July 27, 2009
  • 2nd Revision Date: January 23, 2020
Section 401: Disconnection of Electric Service

I. Objective:

To develop a policy for discontinuance of electric service and to provide standard operating procedures.

II. Policy Content:

Rules and regulations pertaining to the disconnection and reconnection of electric service.

III. Provisions:

A. Discontinuance of Service by a Member

A member may be required to give up to five (5) days' notice, either in person, by mail or by telephone, excluding legal holidays, Saturdays and Sundays, of intention to discontinue service, and shall be responsible for all charges for service until the expiration thereof. Should the lineman find that another party has moved into a residential unit prior to actual disconnection, a two-day notice shall be given to the new member on the premises and the name of the new member relayed to the Member Service Representative on the disconnect with the reading information and date notice was left.

B. Discontinuance of Service by PEC

PEC may discontinue electric service for any of the following reasons:

  1. Nonpayment: Nonpayment of all or any portion of undisputed bills.
  2. Agreements Not Honored: Failure to comply with the terms and conditions of a DelayPay Agreement.
  3. Improper Application: Failure to make application for service or to satisfy the credit requirements for membership.
  4. False Pretenses: Misrepresentation of identity or facts for the purpose of obtaining service, or use of an alias, trade name, business name, relative's name or another person's name to escape payment of an unpaid obligation for utility service provided to the member, co-occupant or co-tenant of member.
  5. Previous Bad Debt: Failure to pay past due obligations, bad debts or power diversion charges from the present location or from another account, even where these obligations are discovered by PEC after the member has begun to receive electric service.
  6. Tampering/Stealing: For unauthorized use of electricity through any method or tampering with PEC equipment such as meters, transformers, wires, pipes or other PEC equipment. PEC may disconnect without notice in these cases.
  7. Hazardous Conditions: Whenever PEC has reason to believe that continued service will create a condition on the member's premises that is hazardous to persons or property. Prior notice before disconnection is not necessary.
  8. Access: Where the member refuses to grant access or maintains any obstruction on the premises that would deny access to PEC for the purpose of installation, maintenance, inspection or replacement/reading of meters.
  9. Causes Adverse Effects to Others: Potential adverse effect to the electric service required by other members, provided the member causing the problem has been notified and given a reasonable opportunity to correct the same.
  10. Threats to PEC: Causing injury, or threatening to cause injury, to an employee or agent of PEC, the family of an employee or an agent of PEC or the property of PEC for the purpose of preventing an employee from engaging in activities authorized by PEC's policies or in retaliation for such activities. In the case of threats, member will be notified by certified mail and if necessary, local law enforcement will be notified. In the case of actual injury, PEC may discontinue service without notice.

C. Special Provisions on Discontinuance of Residential Service

  1. PEC shall not disconnect residential service for nonpayment during periods of severe weather where the predicted temperature will drop below 32 degrees Fahrenheit for any time period during the following twenty-four (24) hours if the electric service is used for heating purposes. PEC must obtain the most recent local forecast for the member’s location from the National Weather Service reports between the hours of 6:00 a.m. and 8:00 a.m. on the morning of the day that the member’s shut-off is scheduled. If the National Weather Service issues an updated forecast on the day of disconnection, then such updated forecast shall be used in place of the earlier obtained forecast.
  2. PEC also shall not disconnect residential service for nonpayment if the National Weather Service issues a local forecast predicting the heat index will be 101 degrees Fahrenheit or higher on the day of disconnection, or if the actual heat index is 101 degrees Fahrenheit or higher. PEC must obtain the most recent local forecast for the member’s location from the National Weather Service reports between the hours of 6:00 a.m. and 8:00 a.m. on the morning of the day that the member’s shut-off is scheduled. If the National Weather Service issues an updated forecast on the day of disconnection, then such updated forecast shall be used in place of the earlier obtained forecast.
  3. Life-Threatening Condition: If a member notifies PEC that disconnection of service shall give rise to a life-threatening condition for the member or a permanent resident of the premises, PEC shall suspend disconnection of service or reconnect a disconnected service to allow the member to make arrangements for and make payment of a past due account. The member shall confirm the life-threatening condition by presenting a written certificate on the form prescribed by PEC within ten (10) calendar days of the original notification to PEC. A life-threatening condition certificate is only effective for thirty (30) calendar days from the initial notification. After thirty (30) calendar days, normal collection action will resume. The 30-day period may be extended by PEC at the request of the member for one additional contiguous 30-day period, but only if necessitated by the life-threatening condition as indicated on the written medical form, and only if the request is made by the member prior to the end of the initial 30- day period. PEC is not required to furnish service beyond a total of sixty (60) calendar days for the life-threatening condition without full payment on the account or acceptable payment arrangements. The life-threatening condition certificate shall identify the medical emergency, specify the effect of disconnection of service, and specify the time period during which disconnection of service shall give rise to a life-threatening condition. Continuation or reconnection of service shall not in any way relieve the member of liability incurred for services. Failure to make payment in accordance with arrangements made shall result in immediate disconnection of service. False information given to PEC by a member in order to utilize the life -threatening condition plan shall be grounds for immediate disconnection of service. Additionally, if a member notifies PEC of a life-threatening condition and receives an extension of time as a result, but then does not follow through with providing the appropriate required documentation listed above, a fee of $15.00 may be added to the member’s account.
  4. Assistance Program: Residential members receiving financial assistance from a federal, state or local social service agency shall not be disconnected if PEC has received written verification from the agency. The confirmation of the amount to be paid must state that full payment will be made directly to PEC.
  5. DelayPay Agreement: PEC shall not disconnect residential service for nonpayment if a DelayPay Agreement has been accepted in compliance with PEC's policy on such agreements prior to disconnection of service.

D. Notice of Discontinuance of Service

  1. Service shall be disconnected for nonpayment of all or any portion of an electric bill only after ten (10) calendar days after the date on which a notice is posted in the United States mail addressed to the member's last known address.
  2. PEC shall not send reminders to residential members who have not been delinquent for the last twelve (12) months. Only after the second late payment will a notice be generated for residential members with excellent pay records.
  3. Form and Content of Notice:
    The notice shall be entitled "IMPORTANT NOTICE" in bold letters, and shall contain in non-technical language the following information:

    1. Payment was not received by the due date.
    2. The date on or after which service will be disconnected unless the
      member takes appropriate action.
    3. The amount owed for past due service.
    4. The charges and hours for reconnection service.

E. Notice of Dishonored Payment

Payments received via physical or electronic check and/or credit card which are returned to PEC as unable to be processed are considered “Dishonored Payments.”

  1. First Dishonored Payment: If it is the first payment returned in the past twelve (12) months for this member, a letter should be sent to the member at the address on record requesting payment made within ten (10) business days. The customary returned check fee will be assessed to the account.
  2. Second Dishonored Payment: If the payment is dishonored a second time the following shall apply:
    1. If returned due to insufficient funds, closed account, or credit card charge back/dispute, a 48-hour notice shall be left at the location, allowing the member to pay cash or money order for the dishonored payment. A special trip charge shall apply, and the account shall be disconnected if there is no response to the notice.
    2. If returned due to invalid account number or similar “user-error” reason, a letter should be sent to the member at the address on record requesting payment made within ten (10) business days. The customary returned check fee will be assessed to the account at the discretion of the Director of Member Services.
  3. Subsequent Dishonored Payments: A 48-hour notice shall be left at the location, allowing the member to pay cash or money order for the dishonored payment. A special trip charge shall apply, and the account shall be disconnected if there is no response to the notice. After two (2) Dishonored Payments in a twelve (12) month period, PEC may notify the member via letter or electronic mail that PEC will no longer accept checks or credit card, whichever applicable, as payment on the account for at least twelve (12) months.
  4. Dishonored Payments for Collection Trips:
    1. Accounts with payments given on collection or in order to avoid disconnection of service which are returned "account closed,” “charge back/disputed” or "not sufficient funds," may be disconnected due to Dishonored Payment between the hours of 8:00 am – 5:00 pm, Monday – Thursday. PEC will not disconnect on any day preceding a holiday observed by PEC or the day before or day of banks or other financial institutions will be closed.
    2. Accounts with payments given on collection or in order to avoid disconnection of service which are returned due to invalid account number or similar “user-error” reason shall receive a 48-hour notice at the location, allowing the member to pay cash or money order for the dishonored payment. A special trip charge shall apply, and the account shall be disconnected if there is no response to the notice.
  5. Security Deposits: Payments given as security deposits and returned unpaid for any reason will require a two (2) day notice left at the location prior to service being disconnected for nonpayment. A collection trip fee will be charged to the account.

F. Manner of Discontinuance of Service and/or Reconnection

PEC may discontinue service on the date specified in the notice or within thirty (30) days thereafter during regular business hours of 8:00 a.m. to 5:00 p.m., Monday through Thursday and 8:00 a.m. to 12:00 p.m. on Friday. PEC will not disconnect for reasons of nonpayment and/or NSF checks on any day preceding a holiday observed by PEC or the day before or day of banks or other financial institutions will be closed.

  1. Accounts to be Disconnected by a PEC Employee or Representative:
    1. PEC's employee or representative sent to disconnect the service will make a reasonable effort to make personal contact with the member at the residence and shall be authorized to receive payment of past due bills; and, upon the receipt thereof, cancel the disconnection order.
    2. If payment is offered by check, the employee or representative may notify an authorized office employee to contact the bank involved for verification of sufficient funds in the account to cover the check prior to the field employee leaving the location. If the account does not have sufficient funds, the field employee may reject the check for payment of past due bills.
    3. If the member is not at the premises or does not respond, the employee may disconnect the service.
    4. The employee will leave a written statement at the premises that the service has been disconnected, the reason for the disconnection, and the telephone number and address where the member may arrange to have the service reconnected.
    5. Members may arrange for connection by either paying the amount on the notice at the PEC office or by telephone or electronically no later than 5:00 p.m. the day of disconnection. No employee will be dispatched to collection funds on accounts with an electronic disconnect device installed. Reconnects requested after 5:00 p.m. will require an additional $50.00 after-hours fee.
    6. PEC will make a reasonable effort to reconnect the service in the normal course of its reconnection workload, as soon as possible, but no later than twenty-four (24) hours after the member eliminates the reason for disconnection and requests reconnection.
  2. On accounts which have an electronic disconnect device installed, the member will be made aware that the service may be disconnected without an employee or representative actually coming to the premises. Members with an electronic disconnect device installed may arrange for reconnection by paying the past due amount no later than 5:00 pm on the day service is disconnected. PEC will then take the steps necessary to initiate an electronic service restoration. In the event of equipment failure, PEC will dispatch an employee to reconnect service.
  3. Members presenting a valid hardship also may request an employee or representative be dispatched to reconnect the service and collect the full amount of the bill. The Director of Member Services, Senior Vice President of Administrative Services, or Senior Engineer will approve all hardship requests. All service reconnects made under a hardship request will result in an after-hours reconnect charge being assessed.

IV. Responsibility

It will be the responsibility of the Director of Member Services and Senior Vice President of Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: January 28, 1994
  • Second Revision: April 23, 1999
  • Third Revision: February 22, 2002
  • Fourth Revision: June 30, 2009
  • Fith Revision: February 28, 2014
  • Sixth Revision: June 25, 2015
  • Seventh Revision: July 25, 2019
  • Eighth Revision: November 26, 2019
Section 307: PrePaid Metering

I. Objective:

To provide PEC’s members an option to pay in advance for electricity.

II. Policy Content:

To establish a procedure to properly administer charges, enroll members, and address various scenarios for PEC’s PrePaid Metering (PPM) program.

III. Provisions:

A. Enrolling in and Removal from PPM

  1. Eligibility for PPM
    Any self-contained, single phase Residential or General Service account with a 240 volt, 30 amp, 3-wire meter with ability to communicate remotely is eligible for PPM with the following exceptions:

    1. Locations where an occupant has a condition considered life threatening without electric service are not eligible for PPM. Members are required to sign the PPM Agreement acknowledging this statement and agreeing to notify PEC should any occupant meet this criterion in the future.
    2. Accounts participating in PEC’s Loan Programs are not eligible for PPM.
    3. Members requesting to enroll in PPM must have the means to check their account balance through PEC’s online payment portal or by telephone.
  2. New Service Applicant
    1. New applicants who wish to participate in PPM may do so by completing a PPM Agreement in addition to the standard Agreement for Permanent Electric Service.
    2. Deposit and/or cosigner requirement will be waived.
    3. New applicants will be required to post “$50/$50/50%”
      1. $50.00 Connect Fee. Connect fee will be applied toward the Minimum Credit Balance if remote disconnect/connect sleeve already installed at the location where service will be established.
      2. $50.00 Minimum Beginning Credit Balance (includes $5.00 Membership Fee).
      3. 50% of an Uncollectable Amount or balance on member’s prior, inactive account(s) must be paid prior to reconnection. The remaining 50% will be placed in the PPM arrears account.
      4. After enrollment, 50% of each PPM payment will be applied toward any arrears amount until said amount is $0.00.
  3. Existing Members
    Members meeting Eligibility requirements may join PPM as follows:

    1. Member must sign PPM Agreement.
    2. Member must post “$50/$50/50%”
      1. $50.00 Connect fee. Connect fee will be waived if a remote
        disconnect/connect sleeve is already installed at the location
        where service will be established.
      2. $50.00 Minimum Credit Balance.
      3. 50% of Past Due Usage. “Past Due Usage” is defined as any amount previously billed which is still due after the most recent due date. For example, any balance owed after the 10th of any given month would be considered “Past Due Usage.”
      4. Any usage billed and not yet due as well as any usage from prior billing through date/time of application for PPM will be calculated and placed in arrears.
      5. After enrollment, 50% of each PPM payment will be applied toward any arrears amount until said amount is $0.00.
    3. Any existing deposit plus interest will be applied to the PPM Reconnection Fees, Past Due Usage, and PPM account.
    4. If member who has been disconnected for nonpayment applies for PPM, any existing deposit plus interest will be applied toward amount for which member was disconnected and toward the reconnection fee, with the remainder being applied toward the PPM account.
  4. Members requesting to be removed from PPM and placed on regular monthly billing must post a security deposit equal to 2 months average bill for the service location with a minimum as established by Terms & Conditions of Service 201, II, C, 1, b, have a cosigner, or a satisfactory credit report if member owns service location.
  5. PEC may charge a $50.00 trip fee if the meter must be changed to accommodate the member’s request.

B. PPM Billing

  1. PPM accounts adhere to established Cooperative rates.
  2. Usage will be calculated on a daily basis using the account’s rate schedule.
  3. Should the meter fail to communicate a proper reading, an estimated reading will be calculated and applied until the true reading is communicated, at which time the account will be adjusted for any differences.
  4. Any charges billed on a monthly cycle will be prorated and billed daily. Such charges include but are not limited to the Minimum Monthly Charge (base charge), Minimum Monthly Bill, Security Light Rental Fees, and PowerShield Fees.
  5. Once all necessary data is received for regular monthly billing, a “true up” will occur to accurately bill PPM accounts.
  6. Each PPM account will be billed an additional $6.00/month for Transaction Fees, with a total of up to $6.00 eligible to be credited back during “true up” according to III, D, 2 below, prorated daily.
  7. If applicable, Security Light KWH revenue charges will be billed at “true up.”
  8. To offset potential changes in account balances due to “true up,” a $10.00 charge will be prorated throughout the month and then credited back at “true up.”
  9. Late fees are not applied to PPM accounts.

C. PPM Account Notifications

  1. PPM members with Internet access do not receive paper bills.
  2. PPM members may check account balance at their convenience through the following methods:
    1. PEC’s Pay-by-Phone System.
    2. PEC’s Smarthub site.
  3. PEC will automatically notify members when their PPM credit balance reaches $20.00 or below, or below a threshold established by the member. Notification will be made by one or more of the following methods, which will be determined by the member during PPM application:
    1. Electronic Mail
    2. Automated Telephone Call
  4. In addition, members may select to receive notifications via cellular phone text message.
  5. Members are responsible for notifying PEC should their methods of contact change.
  6. Automatic notifications will not be sent between the hours of 9:00 pm – 7:00 am.

D. PPM Payments

  1. 50% of each payment made toward a PPM account will be applied toward any arrears balance, if applicable.
  2. Members are encouraged to remit payment toward their PPM account once per month and will receive credit toward Transaction Fees during “true up” based on the following schedule:
    1. 1 payment made/month = $6.00 credit (Full refund)
    2. 2 payments made/month = $4.00 credit toward Transaction Fee
    3. 3 payments made/month = $2.00 credit toward Transaction Fee
    4. 4+ payments/month = $0.00 credit toward Transaction Fee
  3. Payment may be made through PEC’s Smarthub site, PEC’s Pay-by-Phone System, or in person. Payments mailed, made through pay sites or online bill pay will be applied upon receipt.
  4. Energy Assistance Pledges
    1. Notations of pledges of Energy Assistance will be placed on account by Collections Manager.
    2. If Energy Assistance is being pledged specifically on an arrears amount, the Collections Manager will monitor and apply as such.
    3. If Energy Assistance is being pledged otherwise, 50% of the payment will be applied toward any arrears balance.
    4. Energy Assistance will be applied toward the PPM balance once physically received at PEC’s office.
    5. Only pledges for Energy Assistance from a State or other government agency will prevent an account from being disconnected or initiate a reconnect.

E. Disconnection/Reconnection of PPM Accounts

  1. Accounts with a balance of $0.00 or less will be reviewed each weekday
    morning, exclusive of legal holidays, by a PEC representative for accuracy
    and disconnected.
  2. Service will not be disconnected on weekends nor during inclement
    weather, in accordance with Terms & Conditions of Service 401, III, C, 1.
  3. Once a payment has been made to bring the account to a credit balance, the
    service will be reconnected automatically.
  4. Returned Checks
    1. Check payments returned unpaid will result in a $30.00 returned check fee and will be applied toward the member’s PPM balance.
    2. If returned check plus fee results in a balance owing, the member will be notified and given 24 hours to post payment resulting in a PPM credit balance. Failure to do so will result in disconnection.
    3. “Payment by Check” option will be removed after 2 returned checks within a 12-month period.
  5. Services disconnected for seven (7) consecutive days will be closed with a final notice mailed to the member.
  6. No charge will be made for Disconnection or Reconnect, unless a trip to the member’s location is required as a result of the member’s delinquency.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services and the Director of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: June 28, 2012
  • Revised Date: November 29, 2012
  • Revised Date: March 28, 2019
Section 306: Definition of Active Accounts & Idle Accounts

I. Objective:

To define accounts which are active or idle based on kWh consumption in conformity with PEC's established rates.

II. Policy Content:

To establish a definition by which accounts are determined to be active based on kWh consumption or idle where no kWh usage has been made during a given period. Further, to determine the method by which patronage is paid depending on the status of the account.

III. Provisions:

  1. For the purpose of this policy, an active account is hereby determined to be any account which purchases kWh during the previous 12-month period. Active accounts are billed a monthly base charge, determined by PEC's established rates. By rate, the charge is considered patronage.
  2. For the purpose of this policy, any account which has no kWh usage during the previous 12-month billing period is considered idle. Members who wish to maintain the option to reconnect in the future and avoid costs that may be incurred if service equipment is removed may enroll in PEC’s Idle Service Program. Participating accounts are billed a facilities cost charge on an annual basis. The annual facilities cost charge (also called “Idle Service Charge”) is exempt from patronage.

IV. Responsibility

It will be the responsibility of the Senior Vice President of Administrative Services, Vice President of Member Services, and the Director of New Construction Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: November 19, 1998
  • Second Revision: June 30, 2009
  • Third Revision: September 27, 2018
Section 305: Average Monthly Payment & Bills Electronically Transferred (AMP & SureBET)

I. Objective:

To provide PEC's members a plan to avoid high seasonal billings by allowing an average
payment amount in lieu of paying the actual current bill and to provide PEC’s member
the option of having said average or actual bill automatically withdrawn from member’s
financial institution.

II. Policy Content:

A. Average Monthly Payment (AMP)

This program is available to all PEC members who have retained electricity at the location for one year or longer. The average shall be calculated by taking the annual historical usage or the estimated annual kWh usage and dividing by twelve (12). This amount plus any estimated or actual demand will be applied to the appropriate PEC rate. The result will be the initial average monthly payment amount.

  1. The amount may be increased or decreased at any time by PEC if, in its view, the amount will result in an over or under recovery of the actual amount over a one-year period. Example of events which would bring about a recalculation in amount are:
    1. A change in PEC's rate.
    2. A change in the member’s usage.
  2. All PEC changes in amounts will be provided in writing to the member at least ten (10) days in advance.
  3. The plan may be terminated for the following reasons:
    1. Termination of electric service by the member. The entire balance will become due immediately.
    2. Nonpayment of electric bill or other violation of PEC's Terms & Conditions of Service. The entire balance must be paid prior to PEC restoring service.
    3. The member may cancel by bringing his/her account to current status and have no balance outstanding.
    4. PEC may terminate if the member fails to pay the average amount on a current basis.
  4. Accounts are subject to a late penalty if payments are made after the due date.

B. SureBET

Members may elect to have either the actual monthly electric bill or average monthly electric bill (AMP) automatically deducted from their checking or savings account.

  1. Actual Draft
    1. The member allows PEC to electronically draft his/her financial institution on the tenth of each month the amount stated on member’s electric bill. If the tenth falls on a weekend or holiday; the draft will be posted to the member's account on the next business day.
    2. If the electronic draft is returned unpaid for two (2) or more times during a twelve (12) month period, PEC will have the option to terminate the program and require the member to bring his/her account current or be subject to PEC's rules for disconnection of service.
    3. Any discrepancies or questions regarding the current electric bill should be resolved by the fifth (5th) of the current month to allow sufficient time to process bill changes prior to draft.
  2. Average Monthly Payment (AMP) Draft
    This program is calculated using the same method(s) as the "AMP" listed above under II, A. Basically, all the provisions applicable to the "AMP" are the same for this program with the following exceptions:

    1. The member allows PEC to electronically draft his/her financial institution on the tenth of each month the amount stated on member’s electric bill. If the tenth falls on a weekend or holiday; the draft will be posted to the member's account on the next business day.
    2. PEC will pay interest on overpayments on an annual basis.
    3. If the electronic draft is returned unpaid for two (2) or more times during a twelve (12) month period, PEC will have the option to terminate the program and require the member to bring his/her account current or be subject to PEC's rules for disconnection of service.
    4. Any discrepancies or questions regarding the current electric bill should be resolved by the fifth (5th) of the current month to allow sufficient time to process bill changes prior to draft.

III. Responsibility:

It will be the responsibility of the Director of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Second Revision: June 30, 2009
  • Third Revision: November 30, 2010
  • Fourth Revision: February 26, 2019
Section 304: Billing – Late Fee

I. Objective:

To compute and charge a late fee on accounts not paid on a timely basis.

II. Policy Content:

To establish a late fee on accounts where monthly bills are not paid by the due date.

III. Provisions:

  1. All bills issued shall be due and payable by the 10th of the following month in which the bill is issued, and this date shall be considered the "due date." Any payment received after the 10th will be considered late.
  2. If the 10th falls on a weekend, bank holiday or a holiday observed by PEC, the "due date" will revert to the next business day.
  3. A two percent (2%) penalty shall be added to the amount owing after the due date.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services and the Director of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Second Revision: June 30, 2009
  • Third Revision: August 22, 2019
Section 303: Billing Adjustments

I. Objective:

To allow certain adjustments in meter readings and bills resulting from the member's error, untimely meter reading(s), member's equipment failure, delays in mail to PEC and/or meter inaccuracies.

II. Policy Content:

To establish a procedure to properly manage various adjustments in meter readings and bills rendered for electric energy.

III. Provisions:

  1. While estimated or inaccurate meter readings are corrected during the monthly billing process after accurate readings are obtained, members may request a prebilling adjustment to the account, resulting in a more accurate bill.
  2. When payments were mailed on time according to the members statement and there is no evidence to the contrary, the late penalty may be waived one (1) time per every twelve (12) month billing period.
  3. When excessive or abnormal bills are created due to excess usage from electric equipment connections being improperly made, faulty equipment or some other factor beyond the member's control, an adjustment may be made. The adjustment will be based on the excess kWhs being charged at the actual delivered cost of power from PEC's power supplier(s).
  4. Fast meters, slow meters, non-registering meters and incorrect register/multiplier on a meter shall be adjusted in accordance with Policy No. 505. Basically, an "overcharge" bill will be refunded and credited to the member's account for the full period of time as can be determined by PEC. For any undercharge, PEC will attempt to collect up to a maximum of six (6) months, unless it can be established that the error was due to a specific cause on a reasonably certain date, in which case the charge shall be computed from that date. PEC will allow installments for any such undercharge to be made over a reasonable period of time.

IV. Responsibility

It will be the responsibility of the Executive VP/CEO, Sr. Vice President of Administrative Services, and Vice President of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Second Revision: June 30, 2009
  • Third Revision: July 26, 2018
Section 302: Disputed Bills

I. Objective:

To assist members in resolving various disputes with their monthly electric bills.

II. Policy Content:

To establish a procedure for handling members’ disputed bills.

III. Provision:

  1. In the event a member disputes a bill, the member should address his/her concerns to PEC’s Member Services Department. The dispute need not be in writing unless requested by member or People’s Electric.
  2. Until the dispute is resolved, PEC will postpone disconnecting service for
    nonpayment until conditions in C and D below have been met.
  3. If the member’s request has been responded to and his/her concerns have been addressed, the member should pay his/her electric bill in full within five (5) business days of receiving PEC's response in order to avoid electric service from being disconnected. If member is participating in PEC’s PrePaid meter program, member should bring account to a credit status within five (5) business days.
  4. Should the member continue to dispute the bill, he/she can request a decision by PEC's Board of Trustees by posting a deposit sufficient to cover the disputed amount.
  5. PEC's Board of Trustees shall have the final decision in resolving any dispute.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services, and Vice President of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Second Revision: June 30, 2009
  • Third Revision: June 28, 2018
Section 301: Billing

I. Objective:

To compute and bill each account on a periodic basis in conformity with PEC's established rates.

II. Policy Content:

To establish a billing date and due date for all electric bills/account statements to be issued.

III. Provisions:

  1. PEC may mail to the consumer at the address shown on the application for service, or change of address order, a bill/account statement for electric service delivered thereunder, but PEC reserves the right to adopt other methods of delivering bills/account statements.
  2. Except for consumers participating in a pre-paid metering program, all bills for electric service are due and payable ten (10) days after the date of mailing.
  3. All balances are to be paid at PEC's office, via PEC’s automated telephone or Internet services, or via PEC’s electronic draft program within the time specified on the bill.
  4. Final bills shall be processed within thirty (30) days of an account disconnected at the request of the consumer, an account transferred to a subsequent account holder, and/or an account disconnected for failure to comply with the Provisions listed in Terms and Conditions of Service 401.0.
  5. Failure to receive a bill in no way exempts the consumer from payment for electric service.
  6. Except for consumers participating in a pre-paid metering program, all bills presented to the consumer for payment become delinquent if not paid by the tenth (10th) day after the date of mailing. PEC may discontinue service and remove the meter for such delinquency no sooner than ten (10) days after written notice has been mailed to the consumer advising him/her that the bill is delinquent.
  7. If service has been discontinued for non-payment of a bill or for violation of PEC's Terms & Conditions of Service, the consumer shall pay all delinquent bills, collection charges, charges for restoring service, and shall be responsible for securing account in accordance with Terms and Conditions of Service 201 before such service is reestablished.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services and Vice President of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • Second Revision: June 30, 2009
  • Third Revision: May 23, 2018
Section 806: Temporary Service

I. Objective:

To provide a standard procedure of providing line extensions for a temporary service.

II. Policy Content:

To list the requirements to an applicant for PEC to provide a temporary service extension.

III. Provision:

A member requiring temporary service shall pay the regular rates applicable to a class or classes of service rendered for all energy used and, in addition, shall pay the installation and removal costs of facilities installed by PEC to furnish temporary service to the member. Temporary service is defined as service for purposes which by their very nature indicate short duration.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery and the Sr. VP – Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

Effective Date: January 1, 1994
Revision Date: August 28, 2009
Revision Date: January 28, 2021

Section 805: Extension to 1,000 kW & Above Loads

I. Objective:

To provide a standard operating procedure to provide line extensions to electric loads of 1,000 kW or above.

II. Policy Content:

To list the contract requirements and cost consideration for extending service to 1,000 kW and above loads.

III. Provision:

  1. PEC may require the applicant to pay the cost of the extension prior to the construction of the extension.
  2. PEC, at its sole discretion, may enter into a contract with a non-residential applicant to make provisions for a monthly line extension payment in addition to charges made pursuant to the applicable rate schedule.
  3. PEC shall take into consideration when preparing such contracts to serve loads of 1,000 kW or more the following:
    1. Investment in extension of facilities to serve.
    2. Estimated annual revenue produced by the load.
    3. Terminated risks, including duration of service and customer's credit.
    4. Initial term of contract.
    5. Unusual fluctuation of disturbance to PEC's system.
  4. Determination of Cost
    In determining the amount of payment which shall be required of the applicant on an extension to be made under this section, the total construction cost of the extension shall be based on the estimated cost of construction as determined by PEC. In addition, PEC may provide for a credit toward the cost of construction based upon a formula that contemplates the estimated usage and job type of the proposed extension, at PEC’s sole discretion.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery and the Sr. VP – Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: April 25, 1997
  • Second Revision: August 28, 2009
  • Third Revision: December 23, 2011
  • Fourth Revision: January 28,2021
Section 804: Non-Residential Service Extensions

I. Objective:

To establish standard operating procedures in assisting PEC members with non-residential service extensions.

II. Policy Content:

To list the requirements necessary for PEC’s members to obtain non-residential service extensions which include determining the cost and contract terms.

III. Provision:

  1. PEC may require the applicant to pay the cost of the extension prior to the construction of the extension.
  2. Determination of Cost
    In determining the amount of payment required of the applicant on an extension to be made under this section, the total construction cost of the extension shall be based on the estimated cost of construction as determined by PEC. In addition, PEC may provide for a credit toward the cost of construction based upon a formula that contemplates the estimated usage and job type of the proposed extension, at PEC’s sole discretion.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery and the Sr. VP – Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: April 25, 1997
  • Second Revision: January 23, 2009
  • Third Revision: August 28, 2009
  • Fourth Revision: March 26, 2010
  • Fifth Revision: December 22, 2011
  • Sixth Revision: January 28, 2021
Section 803: Service to a Residential Subdivision

I. Objective:

To provide a basis for construction of electric service extensions to residential subdivisions.

II. Policy Content:

To establish deposit requirements and contract terms when a developer requests that an electrical system be installed to serve a residential subdivision.

III. Provision:

  1. PEC may require the developer to pay a sum equal to the estimated cost of the project under the terms of a ten (10) year Agreement for Permanent Electric Service. Such deposit shall be paid to PEC before construction is started on the extension to serve the subdivision. No interest shall be paid on the sum of money deposited with PEC.
  2. Subject to Provision A., once each year for a period of ten (10) years, PEC shall refund to the developer, for each house constructed and actively receiving service from PEC during the year, a sum equal to the total cost of service divided by the total number of platted and developed lots in the subdivision. Application for such refund shall be the responsibility of the developer. In no case will the amount refunded exceed the amount paid to PEC. At the end of the ten (10) year period, any portion of the original deposit that has not been refunded to the developer shall become the property of PEC.
  3. PEC may enter into a contract with a developer for a guarantee of revenues in lieu of the construction deposit.
  4. Prior to actual construction of PEC electric service facilities to the subdivision, the developer shall furnish PEC with a copy of the platted subdivision showing streets, sewer and utility layout and easements, along with any other information needed in the design and location of PEC's facilities.
  5. Underground services shall be provided in accordance with the following:
    1. PEC shall install an underground distribution and/or secondary electric system in platted additions, development areas or subdivisions when five (5) or more contiguous lots are scheduled for immediate development, provided:
      1. The soil conditions are suitable.
      2. The developer pays the cost of trenching and backfilling.
      3. The developer has an approved water and sewer system and improved roads.
      4. The development or subdivision is not unduly speculative and will be developed in a step-by-step manner.
      5. At its option, PEC may install either a front or rear lot system. Front lot construction is the design standard for PEC. Rear lot construction design will be accomplished only where dedicated alley ways are provided.
      6. The developer provides:
        1. Rights-of-way easements and covenants satisfactory to PEC.
        2. A plot of the development showing easements, roads, all underground facilities, finished grades, etc.
        3. The cost of any necessary boring under streets, obstacles or obstructions.
      7. PEC shall provide:
        1. The meter base, which shall be installed by the member on the building, pole or pedestal to which underground service is extended.
        2. PEC shall furnish, install and maintain the underground primary and secondary distribution system up to point of delivery to the member.
  6. Each residence shall be served through an individual meter on the exterior of the residence at a location acceptable to PEC and the developer. In addition, each residence shall be billed under the applicable residential rate schedule.
  7. Where the development or subdivision is not unduly speculative and will be developed in a step-by-step manner, PEC may, for gains in efficiency of construction, waive the above deposit requirement and install the entire electrical distribution system at one time.
  8. Service to a mobile home park will be by special contract only.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery and the Sr. VP – Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: April 25, 1997
  • Second Revision: August 28, 2009
  • Third Revision: January 28, 2021
Section 802: Residential Service Extensions

I. Objective:

To provide a system which outlines PEC's requirements for making residential service extensions. In addition, a consistent basis to operate for the overall benefit of all PEC members.

II. Policy Content:

To establish PEC's requirements to be a permanent residence and obligation of PEC to the member and vice versa for making electric service extensions.

III. Provision:

  1. PEC may provide for a credit toward the cost of construction based upon the estimated usage and job type of the proposed extension, at PEC's sole discretion. PEC may also require that certain facilities be in place p1ior to construction before any potential credit will be considered. Such requirements include but are not limited to the following: floor plans or other evidence that a permanent residence will be built at the proposed location; immediately accessible water from a source deemed appropriate by PEC; sewage facilities installed accompanied by approval from the Oklahoma State Department of Environmental Quality; a completed, stationary foundation; evidence that the location will be lived in as the member's primary residence upon completion of construction. Applicant must provide proof of ownership to the property where electric service extension is being constructed.
  2. A permanent residence is defined to mean a residential dwelling containing complete kitchen facilities, an immediately accessible water source deemed appropriate by PEC; an Oklahoma State Department of Environmental Quality accepted sewage facility and occupancy of the dwelling on the permanent year-round basis. Not included in the term permanent residence are motels, rooming houses, tiny homes, RV's and mobile homes with no reliable support or attachment to the earth.
  3. When a member requests a line extension to a mobile home or tiny home prior to installation of water facilities, sewage facilities and/or the completion of a stationary foundation or permanent attachment to the ground, PEC may require a refundable deposit equal to the construction credit, plus a non-refundable deposit for extension cost in excess of the construction credit in advance of construction. The refundable deposit will be refunded to the member, with interest, when all requirements listed above are installed on property.
  4. Determination of Cost
    In determining the amount of payment which shall be required of the applicant for an extension to be made under this section, the total construction cost of the extension shall be based on the estimated cost of construction as determined by PEC. In addition, PEC may provide for a credit toward the cost of construction based upon a formula that contemplates the estimated usage and job type of the proposed extension, at PEC's sole discretion.
  5. The extension of underground facilities to permanent residences are subject to the above provisions plus:
    1. The meter base will be furnished by PEC and installed by the member on the building, pole or pedestal to which underground service is extended.
    2. PEC will also furnish, install and maintain the underground service conductors extending from its facilities to the point of attachment to the line terminal lugs of the meter base. In the event the meter is placed on a pole, member will be required to install a disconnect meeting PEC specifications.
  6. Any exception or deviation to this policy must be approved by the Exec. VP/CEO, Sr. VP - Administrative Services, or the Sr. Manager of Engineering & Power Delivery.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering & Power Delivery and the Sr. VP - Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: September 27, 1996
  • First Revision: April 25, 1997
  • Second Revision: January 23, 2009
  • Third Revision: August 28, 2009
  • Fourth Revision: March 26, 2010
  • Fifth Revision: December 22, 2011
  • Sixth Revision: March 29, 2013
  • Seventh Revision: January 28, 2021
Section 801: General Application – Line Extensions

I. Objective:

To provide guidelines for construction of electric lines to serve our members on an equitable basis.

II. Policy Content:

To establish standards for types of service, construction, contract terms, right-of-way, three-phase service and other line extension costs.

III. Provision:

A. Type of Service

  1. Single-phase service is standard for all members.
  2. Service will be furnished at standard PEC voltages.
  3. Three-phase service, where available and economically feasible, may be furnished upon written application by the consumer.

B. Type of Construction

PEC's line extension policies are based on overhead and underground construction.

C. Contract Terms

  1. Standard contract term for electric service under PEC's rate schedules shall be as follows:
    1. Connecting to preexisting services where only a meter and service drop are required: 12 Months.
    2. Members requiring an extension of PEC's secondary or primary line to provide service shall sign a ten (10) year contract.
    3. At the completion of the initial contract term for electric service, the member's minimum bill shall be based upon the applicable rate schedule, and the contract shall automatically be renewed on a month-to-month basis.
  2. At PEC's discretion, based on the estimated usage and job requirements, contract terms may be different than noted above.
  3. The minimum bill shall be the greater of those amounts as specified in the applicable line extension term & condition, the Agreement for Permanent Electric Service or the applicable rate schedule.
  4. Upon disconnection of service for any reason prior to the end of the term of the contract, the member may be responsible for the greater of the minimum bill or the amount specified in the Agreement for Permanent Electric Service for the remaining term of this Agreement.

D. Right-of-Way

  1. In addition to the access permission provided for within the contract, the member shall, upon request, furnish a written easement for the location of PEC's service facilities upon the member's premises.
  2. In the event the member is not the owner of the premises occupied by him/her, such member shall obtain or assist in obtaining from the property owner(s) the necessary easement for the installation, maintenance and operation of PEC's service facilities on or under said premises.
  3. In any real estate development wherein PEC is requested or desires to install underground distribution facilities for service to existing and future members located therein and the dedicated utility easements are found to be insufficient for such installation, the owner (developer) shall, upon request, furnish any additional easements required for such installation by PEC.
  4. PEC's obligation to render service to a member is contingent upon its ability to secure the necessary right-of-way for its facilities across intervening properties. Since PEC's rate schedules do not provide for the cost of paying for right-of-way for the construction of its distribution system facilities to provide service, it must,therefore, rely upon the property owner to provide such right-of-way easements at no cost to PEC. Should PEC be required to pay for right-of-way across intervening property owner, the applicant shall be required to reimburse PEC the actual cost of the right-of-way acquisition prior to the construction of the extension.

E. Three-Phase Electric Service

  1. Three-phase service, when available and economically feasible, may be furnished upon written application by the member. Feasibility may be established by a contribution to construction by the applicant or special extension contract.
  2. The member shall arrange its wiring so that all single-phase and three-phase service shall be taken through one meter.
  3. Protective Control Equipment Required on Three-Phase Services
    Reverse phase relays and circuit breakers, or similar devices, are required for all polyphase services to protect the installation in case of phase reversal or phase failure. Should special cases seem to warrant an exception to the above rules, PEC member should install and maintain the devices necessary to adequately protect his/her equipment and process during periods of abnormal service conditions or the failure of part or all of the service supply.

F. Line Extension Deductions

PEC may reduce line extension costs for extensions PEC deems to improve its overall system for current or future system expansions and/or upgrades.

G. Determination of Length and Cost of An Extension

For purposes of measuring extensions, the distance shall be measured along lines of probable construction from the nearest feasible point of connection to the point of delivery. Cost of delivery will be based off load data supplied to PEC by the applicant.

H. Line Extension Ownership

Every extension shall at all times be the property of PEC regardless of whether a deposit or contribution is made in aid of its construction. At the end of ten ( 10) years, any unrebated portion of deposit shall become a contribution in aid of construction and remain the property of PEC.

I. Meter Deposit and Contributions in Aid of Construction

Any required meter deposit or contribution in aid of construction shall be paid by the applicant prior to the construction of the line extension.

IV. Responsibility

It will be the responsibility of the Sr. Manager of Engineering and Power Delivery and the Sr. VP - Administrative Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: April 25, 1997
  • Second Revised Date: August 28, 2009
  • Third Revised Date: December 22, 2011 Fourth Revision: January 28, 2021
Section 201: Application for Electric Service Requirements

I. Objective:

To develop a policy for applicants to satisfy certain requirements prior to obtaining electric service in consistency with the provisions of PEC’s Bylaws and Terms & Conditions of Service.

II. Policy Content:

Definitions, rules, and regulations setting forth the necessary requirements for furnishing electric service to members.

III. Provisions:

A. Definitions:

  1. Applicant: Any person, firm, corporation, church, or public body requesting electric service from PEC.
  2. Electricity: Electric power and energy produced, transmitted, distributed, or furnished by a utility.
  3. Legal Holiday(s): Day(s) declared to be legal holiday(s) by the Chief Executive of the State of Oklahoma or the federal government where financial institutions and/or other business entities are not open for business.
  4. Member: Any person, firm, corporation, church, or public body that has met the requirements for membership as provided for in PEC’s Bylaws and Terms & Conditions of Service and is being or will be supplied electric service by PEC.
  5. Member in Good Standing: One whose account has been active for at least twenty-four (24) months, all payments received prior to the 20th of each month, no returned checks and no collection trips.
  6. Meter: Any device(s) used to measure or register the use of electric power and energy.
  7. Normal Business Hours: The hours from 8:00 a.m. – 5:00 p.m., Monday through Friday.
  8. PEC: People’s Electric Cooperative.
  9. Premises: Any piece of land or real estate, building or other structure or portion thereof or any facility where electric service is furnished to a member.
  10. Residence: The dwelling unit located in the county in which the member is legally registered to vote.
  11. Special Contract: A written agreement between PEC and a member providing for the furnishing of electric service on terms different from those described in these policies.

B. General Requirements for Service

  1. All applicants are required to post a $5.00 membership with PEC.
  2. Application must be completed in PEC’s office, by Internet at www.peopleselectric.coop, by telephone, or by United States mail.
  3. Service will be connected after Credit/Deposit Requirements are met (see Section C.). Contract(s) and other documents not executed immediately must be returned within ten (10) business days. If it is not returned to PEC with ten (10) business days, a 48 hour notice will be delivered and service will be subject to disconnection.
  4. A contract is required for each different service location. One contract may not be used to cover more than one meter at the same location to be used by the same member.
  5. Every application shall be made in the true name of the applicant desiring or using service. Positive identification is required by PEC when processing the application. In case of a violation of this provision, PEC may disconnect electric service.
  6. The contract for service is not transferable. Any new occupant of the premises must make a new and separate application for electric service in writing before service is initiated.
  7. Except for new construction, unexpired contracts, landlord’s leave-on agreements and temporary service, the standard contract term is twelve (12) months. Failure to fulfill the 12-month contract may result in a $50.00 Balance of Contract fee.
  8. Contracts longer than twelve (12) months, shall require the following:
    1. Signature of the landowner on the contract, which authorizes construction and acknowledges landowner is responsible for any unfulfilled contract term.
    2. Proof of land ownership by landowner.
    3. A current application for electric service or similar data requisition form completed by the landowner.
  9. In order to avoid liability for payment of subsequent service, it shall be the responsibility of the member to notify PEC of their intent to discontinue receiving electric service at such location. PEC shall discontinue service within five (5) working days following such a request by the member.

C. Credit/Deposit Requirements

Each applicant can establish credit with PEC by meeting one of the following criteria:

  1. New Residential Service Applicants
    1. PEC will obtain an application completed by the new member and may obtain a credit report to verify the payment and credit history of the applicant unless the applicant is currently a member in good standing. Applicants who provide sufficient credit information which is determined to be satisfactory and who own the property where electric service will be supplied will not be required to post a security deposit. If the credit report or other information provided is determined to be unsatisfactory, a security deposit will be required.
    2. Post a security deposit equal to two months average bill, or if historical data is not available, a minimum security deposit of $300.00. (These minimums do not apply to Commercial Members.)
      Security deposit for members applying for new construction should be calculated based upon twice the estimated monthly bill based upon member’s proposed load, or, if this data is unavailable or insufficient, a minimum-security deposit will be $300.00.
      Security deposits are subject to change once historical data is available or upon change of load or usage.
    3. A cosigner/guarantor may be used in lieu of a security deposit. Cosigners must currently be members of PEC for at least the previous two (2) years, own the property where their electric service is located (as recorded in the member’s file at time of application) and be a member in good standing.
    4. PEC will waive the deposit requirements for an applicant who is a current or previous member receiving the same type of service for twelve (12) consecutive months with service not being terminated for non-payment and no payments made after the 20th during the previous twelve (12) month period. The twelve-month period must have been within the previous two years.
    5. If eligible, enroll in PEC’s Prepaid Meter Program in accordance with PEC Terms & Conditions of Service 307.0.
  2. New Commercial/General Service Applicants
    Commercial or general service applicants may furnish PEC with an irrevocable letter of credit from a financial institution in an amount determined by the Director of Member Services, Sr. VP - Administrative Services, or the Exec. VP/CEO.
    Security deposits are subject to change once historical data is available or upon change of load or usage.
  3. Additional Deposit Required as Condition of Continued Service
    If a member fails to pay all or any part of his/her electric bill and service is discontinued in accordance with No. 401 of PEC’s Terms and Conditions of Service, a deposit equivalent to 1/6 of the annual bill or estimated annual bill (when 12 months is not available) may be required to be paid by the member as a condition of continued service. If the member has a deposit being held by PEC, the difference between the full amount required and the deposit already paid will be billed.
    The member will be notified in writing prior to receiving the monthly statement from PEC showing the deposit being billed.

D. Security and Refundable Construction Deposits

  1. PEC will pay interest on all deposits held longer than ninety (90) days, said interest to accrue from the date of posting. No interest shall accrue after discontinuance of service and deposit shall cease to draw interest on the date it is credited to the member’s account or returned.
  2. The rate of interest to accrue shall be as established by PEC’s Board of Trustees on an annual basis beginning on January 1 of each calendar year. The rate paid on all deposits shall be based upon the average paid on passbook savings accounts offered through Ada’s financial institutions.
  3. In the month of December of each year, PEC shall compute the amount of accrued interest and shall pay to the member the amount of accrued interest through a credit on such member’s then current bill.

E. Refund of Deposits

  1. PEC will automatically refund the deposit for residential service, with accrued interest, after twelve consecutive months’ satisfactory payment of undisputed charges. Payments of charges shall be deemed satisfactory if received in PEC’s office on or before 5:00 pm of the due date on the bill.
  2. The amount of the deposit and membership, with accrued interest, shall be applied to any unpaid charges at the time of a discontinuance of service. The balance will be returned to the member within thirty (30) days either in person or by mail to the member’s forwarding address or the last known address if such forwarding address is not supplied by the member at the time a disconnect is requested.
  3. Should the member move to another location where electric service is supplied by PEC, the deposit and membership may be transferred, provided the member’s account is current at the time the transfer is requested. To be considered current for purposes of transfer, the account must have no past due balances owed.
  4. The member may be required to pay an additional deposit upon a request to transfer service if the amount of deposit required is higher than for the previous location. These additional deposit requirements should be reviewed on an individual basis, relevant to the credit history of the member.
  5. Deposits may be transferred to another member upon written authorization of the member in whose name the deposit is posted, provided that all other credit requirements for both parties are met. Accrued interest and membership fees are not applicable in this situation.

F. Exceptions to Standard Contracts

  1. Landlord Leave-On Agreements
    PEC offers leave-on agreements to owners of rental properties that are frequently vacant between tenants. Landlords desiring this service must enter into a written agreement specifically for the purpose of clarifying the responsibilities of PEC and the landlord.
  2. Chickasaw Housing Authority
    The housing units of the Chickasaw Housing Authority (Authority) are automatically transferred into the Authority’s name when a tenant asks for a disconnect unless the Authority informs PEC otherwise. This is in accordance with a long-standing agreement with the Authority.
  3. Temporary Service
    Temporary Service shall be offered to landowners, realtors and others for the purpose of repairs, cleaning or showing the property. A temporary connect fee of $50.00 should be paid in advance of the connect or may be billed, at the discretion of the Director of Member Services. Temporary connect should be for not more than one month’s duration. Temporary service longer than one month shall be subject to the approval of Director of Member Services and may be subject to deposit requirements. Any usage will be billed at the general service rate and payable upon receipt of the bill. The contract for temporary service shall be the same as for regular service with notations to identify it as a temporary connect. A $50.00 disconnect fee will be added to the final bill, if applicable.

G. Any exception or deviation to this policy must be approved by the Exec. VP/CEO, Sr. VP - Administrative Services, or Director of Member Services.

IV. Responsibility:

It will be the responsibility of the Sr. VP - Administrative Services and Director of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: January 28, 1994
  • Second Revision: September 25, 1998
  • Third Revision: April 26, 2002
  • Fourth Revision: April 24, 2009
  • Fifth Revision: June 30, 2009
  • Sixth Revision: March 29, 2013
  • Seventh Revision: February 28, 2014
  • Eighth Revision: November 24, 2014
  • Ninth Revision: April 27, 2017
  • Tenth Revision: May 27, 2021