Transcript Slide 1

EAGLE FORD CONSORTIUM
Presented by Robert D. (Bobby) Waid
Manager of Special Projects
April 22, 2014
About Medina Electric Co-op
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Established 1938
Non-profit, owned by those we serve
Distribution only, no transmission or substations
127 employees
30,700 meters in 17 TX counties
9,168 miles of line (Tallahassee, FL to Anchorage,
AK and back)
• Offices in Hondo, Uvalde, Dilley, Bruni and Rio
Grande City
MEC’s 12,0002 Mile Service Area
MEC Application Process Overview
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Call 1-866-MEC-ELEC (1-866-632-3532)
Pay $100 CIAC for engineering
Complete & return load data form
MEC evaluates project scope (load & location)
If significant in load and/or location, require
additional CIAC before field design
• Project designed, final estimated CIAC
calculated, easements drafted, etc.
Process Overview Con’t.
• Applicant executes MPPA, secures easements,
pays final estimated CIAC, provides deposit or
acceptable payment history from other
electric utility
– Oil & gas contract & letter of credit required if
over 500 kVA
• Project built & close out cost determined
– If actual more than estimate, payment required
– If actual is less than estimate, refund made
Process Overview Con’t.
• If estimated CIAC exceeds $250,000, eligible
for pro-rata refund if other oil/gas loads tie on
(3-year window)
Challenges
• Lack of adequate infrastructure to serve
significant additional load
• Multiple projects requiring miles of line
construction & long lead-time on materials
• Lack of reasonably firm multi-year load
projections from oil companies
• New substations take 1-2 years to build
– 4 to 5 years if transmission lines are required
• Oil fields situated in service areas of multiple
utilities
Challenges Con’t.
• Attracting/retaining quality employees, oil
companies average pay is higher
– Feb. 23, 2013 Express-News article: 19 year old
Kenedy HS grad makes $8k to $10k per month
– Significantly higher than MEC journeyman
linemen
– Difficult defending pay to Member-Owners
outside of Eagle Ford area
Challenges Con’t.
• Time required to train new line workers
– 4 years or more to become journeyman lineman
• Employee Safety
– Deteriorating road
conditions and increased
traffic make driving and
working on lines in highway
ROW more dangerous
– MEC employees drove
almost 1.1 million miles in
2013, many of these in Eagle
Ford area
Challenges Con’t.
• Reasonable housing costs for employees and
contractors
• Competition for utility contractors
– Among utilities and with oil companies
• Changes in mindset of MEC’s Member-Owners
– Those in Eagle Ford expect $$$ for granting
easements, or object to anything else being
built on property
• Establishing rates and tariffs that are fair to
all
MEC Economic Development
• MEC’s economic development efforts center
around the communities it serves, not the
Eagle Ford industries
• Thirty $1,000 scholarships awarded annually
• Government in Action Youth Tour – 3 students
to Washington DC for a week
• Support local chambers of commerce
• Operation Round Up – $55,000 to date
MEC Economic Development, Con’t.
• Co-op Connections Card
– Discounts to participating local businesses and
national retailers
– Discounts on prescriptions and certain health care
providers
• Area food drives
• Employee volunteers in community events
• Donate drinking water for community events
and fundraisers
In Closing…
• MEC is striving to meet the needs of the oil &
gas related loads in the Eagle Ford region
• MEC recently created a Business Development
department with 4 personnel
• BD personnel act as a liaison between MEC
and the larger oil & gas loads, freeing up
engineering to design lines
• 1-866-MEC-ELEC (1-866-632-3532)
Thank You!