APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
Arkansas Public Service Commission
Tariff ("TF") Docket Summary Cover Sheet
Must be filed with each new TF docket filed at the Commission
STYLE OF DOCKET:
Tariff Filing to Amend Net Metering Tariff
Docket No. 12-060-R
DOCKET DESIGNATOR:
✔ TF
Does this change company name:
ORIGIN:
✔ Original Action
Y
RELATED DOCKETS:
✔ N LAST RATE CASE DOCKET:
Reopened/Reinstated
PETITIONER
Ozarks Electric Cooperative Corporation
3641 Wedington Drive
P.O. Box 848
Fayetteville, AR 72702
99-250-U
Nature of Tariff: See second sheet
ATTORNEYS' NAME, ADDRESS, PHONE, FAX, E-MAIL
Eldridge,
III
ATTORNEYS'John
NAME,
ADDRESS,
PHONE,
Counsel, Eldridge & Eldridge, P.A.
P.O. Box 580
Fayetteville, AR 72702-0580
FAX, E-MAIL
Write a brief statement, limited to the space provided herein describing the case that you are filing. Please provide
enough information to assure that the nature of your docket is clear.
Tariff filing to amend Net Metering Tariff to comply with Arkansas PSC Docket No. 12-060-R, Order No. 7 and
Order No. 8, Amendments to the Net Metering Rules.
N/A
1. Number of customers by class affected by this tariff change: ______________________________________
_________________________________________________________________________________________
N/A
2. Company's current authorized retail revenue requirement: _________________________________________
3. Estimated annual retail revenue impact if proposal is approved, both in dollars and as a percentage of
N/A
current retail revenue requirement: ____________________________________________________________
_________________________________________________________________________________________
4. Estimated monthly impact on an average residental customer in both dollars and percentage increase:
N/A
_________________________________________________________________________________________
David Hedrick
Form completed by:_______________________
Ozarks Electric Cooperative Corp
Representing___________________________
10/18/2013
Date:_____________
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
Nature of Tariff: Please Choose at least one, but not more than three
Auto Adjustment
✔
✔
Grand Gulf
Nuclear Decommissioning
Rates
Retail
Shielded Outdoor Lighting
Terms and Conditions
Weather
Wholesale
Wholesale rate adjustment
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
ARKANSAS PUBLIC SERVICE COMMISSION
Sheet No.
Sheet No.
2nd Revision
Replacing 1st Revision
44_
44_
Ozarks Electric Cooperative Corporation
Name of Company
Kind of Service: Electric
Class of Service: All Classes
Schedule No.: NET
Title: NET METERING
PSC File Mark Only
1.
NET METERING
1.1
AVAILABILITY
1.1.1
To any residential or any other customer who takes service under standard rate schedule(s) GS-1, GS3, LP<350 KVA, LP>350 KVA, LP-OFF who has installed a net metering facility and signed a Standard
Interconnection Agreement for Net Metering Facilities with the Utility. Such facilities must be located on
Customer’s premise and intended primarily to offset some or all of Customer’s energy usage.
The provisions of the customer’s standard rate schedule are modified as specified herein.
1.1.2
Net-metering customers taking service under the provisions of this tariff may not simultaneously take
service under the provisions of any other alternative source generation or cogeneration tariff except as
provided in the Net Metering Rules.
1.2
MONTHLY BILLING
1.2.1
On a monthly basis, the net metering customer shall be billed the charges applicable under the
currently effective standard rate schedule and any appropriate rider schedules. Under net metering only
the kilowatt-hour (kWh) units of a customer’s bill are affected.
1.2.2
If the kWhs supplied by the electric utility exceeds the kWhs generated by the net metering facility and
fed back to the electric utility during the billing period, the net metering customer shall be billed for the
net billable kWhs supplied by the electric utility in accordance with the rates and charges under the
customer’s standard rate schedule.
1.2.3
If the kWhs generated by the net metering facility and fed back to the electric utility during the billing
period exceeds the kWhs supplied by the electric utility to the net-metering customer during the
applicable billing period, the utility shall credit the net-metering customer with any accumulated net
excess generation in the next applicable billing period.
RT
AT
RT
AT
RT
AT
RT
RT
THIS SPACE FOR PSC USE ONLY
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
ARKANSAS PUBLIC SERVICE COMMISSION
Sheet No. 44a_
Sheet No. ___
____ Original ____
Replacing __________
Ozarks Electric Cooperative Corporation
Name of Company
Kind of Service: Electric
Class of Service: All Classes
Schedule No.: NET
Title: NET METERING
PSC File Mark Only
1.2.4
Net excess generation shall first be credited to the net-metering customer’s meter to which the netmetering facility is physically attached (designated meter).
AT
AT
1.2.5
After application of 1.2.4 and upon request of the net-metering customer pursuant to 1.2.8, any
remaining net excess generation shall be credited to one or more of the net-metering customer’s
meters (additional meters) in the rank order provided by the customer.
AT
AT
AT
1.2.6
Net excess generation shall be credited as described in 1.2.4 and 1.2.5 during subsequent billing
periods; net excess generation credit remaining in the net-metering customer’s account at the close of
an annual billing cycle, up to an amount equal to four (4) months’ average usage during the annual
billing cycle that is closing, shall be credited to the net-metering customer’s account for use during the
next annual billing cycle.
AT
AT
AT
AT
1.2.7
Except as provided in 1.2.6, any net excess generation credit remaining in a net-metering customer’s
account at the close of any annual billing cycle shall expire.
AT
1.2.8
Upon request from a net-metering customer, an electric utility must apply net excess generation to the
net-metering customer’s additional meters provided that:
AT
AT
(a) The net-metering customer must give at least 30 days’ notice to the utility,
AT
(b) The additional meter(s) must be identified at the time of the request and must be in the net-metering
customer’s name, in the same utility service territory, and be used to measure only electricity used for
the net-metering customer’s requirements.
AT
AT
AT
(c) In the event that more than one of the net-metering customer’s meters is identified, the net-metering
customer must designate the rank order for the additional meters to which excess kWhs are to be
applied. The net-metering customer cannot designate the rank order more than once during the annual
billing cycle.
AT
AT
AT
AT
(d) The net-metering customer’s identified additional meters do not have to be used for the same class
of service.
AT
AT
Any renewable energy credit created as a result of electricity supplied by a net-metering customer is the
property of the net-metering customer that generated the renewable credit.
CT
1.2.9
THIS SPACE FOR PSC USE ONLY
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
BEFORE THE
ARKANSAS PUBLIC SERVICE COMMISSION
DOCKET NO. 12-060-R
DIRECT TESTIMONY
OF
DAVID HEDRICK
ON BEHALF OF
OZARKS ELECTRIC COOPERATIVE CORPORATION
1
Q.
Please state your name and business address.
2
A.
My name is David Hedrick. My business address is 5555 North Grand Boulevard, Oklahoma
3
City, Oklahoma 73112-5507.
4
Q.
By whom are you employed and what is your position?
5
A.
I am employed by Guernsey & Company, Oklahoma City, Oklahoma. I am a Sr. Vice-President
6
and work primarily in the area of Rate Analysis and Cost of Service Studies for rural electric
7
cooperatives.
8
Q.
Please summarize your educational and professional background.
9
A.
I have earned a Bachelor of Science degree in Mathematics from the University of Central
10
Oklahoma and a Master of Business Administration degree from Oklahoma City University. A
11
copy of my resume and experience is attached to this testimony.
12
Q.
Have you testified before this Commission?
13
A.
Yes. I have also testified before or provided testimony to regulatory commissions in the states of
14
Arizona, Colorado, Kansas, Oklahoma, Texas, and Wyoming. Attached to my resume is a list of
15
some of the rate cases in which I have been involved.
16
Q.
Whom do you represent in this proceeding?
17
A.
I represent Ozarks Electric Cooperative Corporation (OECC).
18
Q.
What is the purpose of your testimony?
19
A.
My testimony is to support changes to OECC’s Net Metering tariff.
20
Q.
Why is OECC changing its Net Metering tariff?
1
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
1
A.
The changes incorporate Amendments to Net Metering Rules (Amendments) adopted by the
2
Commission in Docket No. 12-060-R, Order No. 7. Only those changes necessary to conform to
3
the revisions filed by Commission staff in response to Order No. 8 have been made.
4
Q.
5
As revised, does OECC’s Net Metering Tariff conform to rules adopted by the commission in
Docket No. 12-060-R as set forth by Commission staff?
6
A.
Yes, it does.
7
Q.
Does this conclude your testimony?
8
A.
Yes it does.
2
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
DAVID W. HEDRICK
SENIOR VICE PRESIDENT /
MANAGER, ANALYTICAL SOLUTIONS
Page 1 of 6
EDUCATION:
M.B.A., Oklahoma City University, 1993
B.S., Mathematics, University of Central Oklahoma, 1986
PERTINENT EXPERIENCE FOR THE PROJECT:
Mr. Hedrick specializes in the development of revenue requirements, cost of service, rate design, line
extension analysis, special contract development, pole attachment rates, valuation analysis and other
financial analysis for electric, water, and wastewater utility systems. He is also responsible for the
preparation of rate filings and has presented expert testimony before state regulators, including Arizona,
Arkansas, Colorado, Oklahoma, Texas and Wyoming. Mr. Hedrick’s clients include both distribution
providers and wholesale providers. He was instrumental in the development of the CoOPTIONS: family of
computer software for use in unbundled utility cost of service studies and financial forecasting.
As Manager of the Analytical Solutions Group, Mr. Hedrick has oversight of all studies, analyses and
filings that are developed by the group. He continues to represent clients before the appropriate
regulatory authority and is responsible for the preparation of rate filings and other analytical studies.
SPECIFIC CONSULTING EXPERIENCE:
Acquisitions, Consolidations & Valuation Analysis
Mr. Hedrick has provided analytical support for consolidation studies in Texas and Wyoming. In addition,
he has been involved in the valuation analysis of utility assets for purposes of acquisition and
determination of fair market value for clients in Oklahoma and Kansas.
Retail Rate Analysis, Cost of Service Studies, and Line Extension Analysis
Mr. Hedrick’s rate analysis and cost of service experience includes the following:
Arizona
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Navopache Electric Cooperative, Inc. – Regulated by Arizona Corporation Commission
Sulphur Springs Valley Electric Cooperative, Inc. – Regulated by Arizona Corporation Comm.
Trico Electric Cooperative, Inc. – Regulated by Arizona Corporation Commission
Arkansas
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Arkansas Valley Electric Cooperative Corporation – Regulated by Arkansas PSC and
Oklahoma Corporation Commission
Ouachita Electric Cooperative Corporation – Regulated by Arkansas PSC
Ozarks Electric Cooperative Corporation – Regulated by Arkansas PSC
Colorado
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Colorado Rural Electric Association
Delta-Montrose Electric Association
Empire Electric Association, Inc.
Grand Valley Rural Power Lines
Holy Cross Electric Association, Inc.
Corporate Office:
5555 N. Grand Boulevard
Oklahoma City, OK 73112-5507
405.416.8100
www.guernsey.us
Direct Contact:
405.416.8157
Cell: 405.623.4380
[email protected]
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
DAVID W. HEDRICK
SENIOR VICE PRESIDENT /
MANAGER, ANALYTICAL SOLUTIONS
Page 2 of 6
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Mountain Parks Electric, Inc.
Poudre Valley REA, Inc.
San Luis Valley Rural Electric Cooperative, Inc.
Yampa Valley Electric Association, Inc.
Iowa
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Corn Belt Power Cooperative
Iowa Lakes Electric Cooperative, Inc.
Midland Power Cooperative, Inc.
Kansas
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Ark Valley Electric Cooperative Association
Caney Valley Electric Cooperative Association
CMS Electric Cooperative, Inc.
Flint Hills Rural Electric Cooperative Association
Kansas Electric Power Cooperative
Lyon-Coffey Electric Cooperative, Inc.
City of Meade
Ninnescah Rural Electric Cooperative Association, Inc.
Pioneer Electric Cooperative, Inc.
Sedgwick County Electric Cooperative Association, Inc.
Western Cooperative Electric Association, Inc.
Louisiana
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Claiborne Electric Cooperative
Mississippi
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Southern Pine EPA
Yazoo Valley EPA
Nebraska
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Dawson County Public Power District
New Mexico
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Farmers Electric Cooperative, Inc.
Lea County Electric Cooperative, Inc.
Oklahoma
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City of Blackwell
Caddo Electric Cooperative
Central Rural Electric Cooperative, Inc.
Choctaw Electric Cooperative, Inc.
Cimarron Electric Cooperative, Inc.
Cookson Hills Electric Cooperative, Inc.
Cotton Electric Cooperative, Inc.
City of Duncan
East Central Oklahoma Electric Cooperative
Indian Electric Cooperative, Inc.
Kay Electric Cooperative, Inc.
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
DAVID W. HEDRICK
SENIOR VICE PRESIDENT /
MANAGER, ANALYTICAL SOLUTIONS
Page 3 of 6
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Kiwash Electric Cooperative, Inc.
Lake Region Electric Cooperative, Inc.
City of Mangum
Northeast Oklahoma Electric Cooperative, Inc.
Northfork Electric Cooperative
Northwestern Electric Cooperative, Inc.
Oklahoma Electric Cooperative, Inc.
City of Ponca City
Rural Electric Cooperative, Inc.
Southeastern Electric Cooperative, Inc.
Southwest Rural Electric Association
Tri-County Electric Cooperative, Inc.
Verdigris Valley Electric Cooperative
Texas
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Bailey County ECA
Bandera Electric Cooperative, Inc.
Big Country Electric Cooperative, Inc.
Bluebonnet Electric Cooperative, Inc.
Central Texas Electric Cooperative, Inc.
Concho Valley Electric Cooperative, Inc.
Cooke County Electric Cooperative Assn.
CoServ Electric
Deaf Smith Electric Cooperative, Inc.
Fannin County Electric Cooperative, Inc.
Farmers Electric Cooperative, Inc.
Fort Belknap Electric Cooperative, Inc.
Grayson-Collin Electric Cooperative, Inc.
Greenbelt Electric Cooperative, Inc.
HILCO Electric Cooperative, Inc.
Jackson Electric Cooperative, Inc.
Lamar County Electric Cooperative, Inc.
Lighthouse Electric Cooperative, Inc.
Lyntegar Electric Cooperative, Inc.
Magic Valley Electric Cooperative, Inc.
Medina Electric Cooperative, Inc.
Navarro County Electric Cooperative, Inc.
Navasota Valley Electric Cooperative, Inc.
North Plains Electric Cooperative, Inc.
Nueces Electric Cooperative, Inc.
Pedernales Electric Cooperative, Inc.
Rita Blanca Electric Cooperative, Inc.
San Bernard Electric Cooperative, Inc.
South Plains Electric Cooperative, Inc.
Southwest Rural Electric Association, Inc., Okla.
Southwest Texas Electric Cooperative, Inc.
Swisher Electric Cooperative, Inc.
Taylor Electric Cooperative, Inc.
Texas Electric Cooperatives, Inc., Statewide Association
Tri-County Electric Cooperative, Inc.
Trinity Valley Electric Cooperative, Inc.
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
DAVID W. HEDRICK
SENIOR VICE PRESIDENT /
MANAGER, ANALYTICAL SOLUTIONS
Page 4 of 6
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United Cooperative Services
Wharton County Electric Cooperative, Inc.
Wise Electric Cooperative, Inc.
Wyoming
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Big Horn REC – Regulated by Wyoming Public Service Commission until 2007
Carbon Power & Light, Inc. – Regulated by Wyoming Public Service Commission until 2007
High Plains Power, Inc. – Regulated by Wyoming Public Service Commission until 2007
Powder River Energy Corporation – Regulated by Wyoming Public Service Commission
Wyrulec Company – Regulated by Wyoming Public Service Commission until 2007
Wholesale Rate Analysis and Cost of Service Studies
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Corn Belt Power Cooperative, Humboldt, Iowa
Kansas Electric Power Cooperative, Topeka, Kansas
Grand River Dam Authority, Vinita, Oklahoma
Oklahoma Municipal Power Authority, Edmond, Oklahoma
Western Farmers Electric Cooperative, Anadarko, Oklahoma
Central Electric Power Cooperative, Columbia, South Carolina
Piedmont Municipal Power Authority, Greer, South Carolina
Brazos Electric Cooperative, Waco, Texas
Golden Spread Electric Cooperative, Amarillo, Texas
Old Dominion Electric Cooperative, Richmond, Virginia
Allegheny Electric Cooperative, Harrisburg, Pennsylvania
South Mississippi Electric Power Association, Hattiesburg, Mississippi
Minnkota Power Cooperative, Grand Forks, North Dakota
Rayburn Country Electric Cooperative, Rockwall, Texas
Special Projects
Development of Distributed Generation Procedures and Guidelines Manual:
 Western Farmers Electric Cooperative, Anadarko, Oklahoma
 KAMO Electric, Vinita, Oklahoma
 Texas Electric Cooperatives, Austin, Texas
Energy Policy Act of 2005 / EISA 2007 - Testimony in Support of Cooperative Staff’s Position in
Consideration of new PURPA Standards:
 Central Rural Electric Cooperative, Stillwater, Oklahoma
 Cotton Electric Cooperative, Walters, Oklahoma
 Farmers Electric Cooperative, Greenville, Texas
 Grand River Dam Authority, Vinita, Oklahoma
 Grayson-Collin Electric Cooperative, Van Alstyne, Texas
 HILCO Electric Cooperative, Itasca, Texas
 Lake Region Electric Cooperative, Hulbert, Oklahoma
 Lyntegar Electric Cooperative, Tahoka, Texas
 Magic Valley Electric Cooperative, Mercedes, Texas
 Northwestern Electric Cooperative, Woodward, Oklahoma
 Oklahoma Electric Cooperative, Norman, Oklahoma
 Tri-County Electric Cooperative, Azle, Texas
 Tri-County Electric Cooperative, Hooker, Oklahoma
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
DAVID W. HEDRICK
SENIOR VICE PRESIDENT /
MANAGER, ANALYTICAL SOLUTIONS
Page 5 of 6
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United Electric Co-op Services, Cleburne, Texas
Testimony before Colorado State House and Senate Committees in support of the Colorado Rural
Electrification Association with regard to HB1169, Mandating Net Metering for Electric Cooperatives.
The “Fresh Look” review of East Kentucky Power Cooperative on behalf of the cooperative’s distribution
members as required by the Kentucky Corporation Commission. 2011 - 2012
Development of Pole Attachment Rental Rates for Cable and Communication Providers
 Texas Electric Cooperative Association
 Cookson Hills Electric Cooperative
 City of Bridgeport, Texas
 City of Burnet, Texas
 City of Cuero, Texas
 City of Estes Park, Colorado
 City of Gonzales, Texas
 City of Llano, Texas
 City of Riviera, Texas
 City of Shiner, Texas
 City of Yoakum, Texas
Education and Training
Mr. Hedrick provides educational seminars and training for cooperative staff and boards of directors,
statewide associations, and professional organizations on the topics of Rate Analysis, Cost of Service,
Rate Design, Line Extension Policy, and related issues.
Expert Witness
Mr. Hedrick has provided expert testimony related to the development of revenue requirements, cost of
service, rate design, and special contract issues in Arizona, Arkansas, Oklahoma, Texas, and Wyoming.
Financial Forecasting & Analysis
Mr. Hedrick prepares and provides training in the development of financial forecast models for electric
cooperatives and municipal utility systems.
Software Sales & Support
Mr. Hedrick provided assistance in the development of software for GUERNSEY’s 10-year Financial
Forecast, Cost of Service, and Financial Performance Analysis programs. Mr. Hedrick is proficient in the
use of these software packages and provides support to client users.
Strategic Planning & Analysis
Mr. Hedrick has provided assistance to electric cooperative boards of directors in the development of
strategic goals and objectives.
APSC FILED Time: 10/21/2013 8:10:52 AM: Recvd 10/18/2013 4:32:04 PM: Docket 12-060-R-Doc. 94
DAVID W. HEDRICK
SENIOR VICE PRESIDENT /
MANAGER, ANALYTICAL SOLUTIONS
Page 6 of 6
Publications and Presentations:
Articles:
Hedrick, David W. “Retail Rate Development: The Role of the Cooperative Board.” Management
Quarterly, published by NRECA’s Education and Training Department. (Spring 2005): 20-35.
Presentations Made by Mr. Hedrick:
“Knowledge is Power: Financial Forecasting.” Seminar written and presented by Guernsey personnel
annually since 2006 in Oklahoma City, Okla. Mr. Hedrick has been a presenter for this seminar
numerous times.
“Knowledge is Power: Understanding Rates and Cost of Service.” Seminar written and presented by
Guernsey personnel annually since 2005, in Oklahoma City, Okla., as well as other locations. Mr.
Hedrick has been a presenter numerous times.
“Distributed Generation Net Metering Issues.” Written for and presented at TEC Engineers Association
Annual Meeting. September 2006.
“Net Metering Issues.” Written for and presented at G&T Planners Association Meeting, Tucson. Arizona,
September 2006.
“Development of Distributed Generation Policies and Procedures.” Written and presented for Texas
Electric Cooperatives’ Managers Meeting. San Antonio, Texas, December 2, 2004.
“Rate Design in a Restructured Environment.” Written and presented for Texas Electric Cooperatives
Accountants Association. Austin, Texas, April 19, 2000.
EXPERIENCE RECORD:
1981-Present – C. H. Guernsey & Company, Oklahoma City, Oklahoma
2013 – Senior Vice President, Board of Directors
2008-2013 – Vice President for Guernsey
2000-Present – Manager, Analytical Solutions Group