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Pedernales ElectricCooperativePEC Empower LoansMember ManualPEC attempts to comply with federal and state laws regarding extensions of credit to its members.Members eligible for this financing program must meet creditworthiness standards including evaluationof payment history and other criteria as described herein.In addition, Members will be subject to loan application and credit score checks.1
Loan RequirementsTerms No more than 20,000 for grid-tied Distributed Energy Resource (DER) systems, includingdistributed renewable solar photovoltaic systems and grid-tied battery storage systems installedby a participating vendor.Repayment of loan is ten (10) years or less.There will be no penalty for loans paid in full before 10 years.Program offered to PEC residential and commercial members only.Program CriteriaTo participate in the PEC Empower Loans program, members must meet the following criteria: Must be a PEC member with a minimum 12 month billing history.For residential service, during the most recent 12 consecutive months of electric service:o the member is not late in paying a bill more than once;o the member does not have service disconnected for nonpayment; ando the member does not have more than one returned check. For commercial service, during the most recent 24 consecutive months of electric service:o the member is not late in paying a bill more than once;o the member does not have service disconnected for nonpayment; ando the member does not have more than one returned check. Member must meet one of the following credit scores criteria:Credit Score600 - 649650 - 699 700 Billing History with no more thanone late payment (Months)241812Member must own the property where the system will be installed.Member’s annual income must be three times the loan amount.Member must use a PEC Empower Loans program participating vendor.The DER must meet all PEC interconnection standards.Financing of all grid-tied DER systems is contingent on final approval of installation andapproved interconnection with PEC.2
All joint members must authorize appropriate loan documentation.Only one loan per account until expiration of any existing loan with PEC.Credit report fee will be collected upon submission of application.Application fee will be collected upon billing history review and credit check review; applicationfee will be retained regardless of the decision on the application.A tax monitoring fee will be collected after review of tax history.A filing fee and a document preparation fee will be collected upon execution of the loandocumentation and closing of the loan.The interest rate of the loan shall be the cost of funds plus an additional one (1) percent foradministration costs.PEC Empower Loans Program FeesA PEC representative will contact the participating member throughout the application process tocollect the fees listed below. All fees must be paid prior to final loan approval. Application Fee: 45.00Credit Check: 25.00Filing fee: 15.00Document Preparation: 45.00Tax Review: 20.00Late fee will follow PEC Tariff for Electric Service, section 200.12, for non-payment or delinquentpayment.Interest Rate:Interest rates may vary from month to month so please check PEC’s website for the current interestrate. PEC Empower Loans interest rates will include an additional one (1) percent for administrativecosts.Collection and Repayment GuidelinesRepayment GuidelineAfter approval of installation by PEC and closing the loan, member's bill will include a line item forrepayment of the loan through monthly installments. Monthly payments by member go first to the costof interest and principal of the loan, then to the electric service bills.3
Collection StandardsIn case of delinquencies, any payment by member goes first to the costs of interest and principal of theloan, then to the electric service bills.Participation ProcessStep 1: Sign up for Energy Audit and site assessmentStep 2: Verify that billing history meets programrequirementsStep 3: Fill out the online applicationStep 4: PEC will send out approval or denial letterbased on the program criteria and elegibilityStep 5: Follow interconnection process by submittingapplication and uploading supporting documentsStep 6: PEC representative will verify installation andcomplete any additional paperwork that is neededStep 7: Repay the loan on your monthly electric billStep 1: PEC Energy Service will perform an energy audit and site assessment evaluating the following: Energy Audito Review consumption historyo Evaluate appliances and other equipment on the propertyo Evaluate envelope of the buildingSite Assessmento Discuss location of desired solar PV systemo Assess shading concernso Determine appropriate orientationo If desired location is on the roof, the advisor will review the roof condition4
Following the energy audit and site assessment, the energy service advisor will provide a report withsuggested energy-efficiency upgrades and advice on whether to pursue energy-efficient upgrades firstor pursue solar PV system installation.Step 2: Review billing history To proceed, the participant will contact PEC to verify that billing history meets programrequirements.Step 3: Fill out application Revisit PEC Empower Loans program web page to find the link that will direct participant to asecured third-party website to fill out and submit the application.Step 4: PEC will send out approval or denial letter based on the program criteria and eligibility. PEC Administrator will review the following:o Credit scoreo PEC membershipo Billing historyo Property ownershipo Confirm member is using a participating vendor.If any of the program criteria are not met, a letter of denial will be sent out notifying the participant ofthe denial. If the program criteria are met, a letter of approval will be sent out to proceed and notifyingthe participant that final approval is contingent on final approval for interconnection.Step 5: Follow interconnection process, submit application and upload supporting documents. Visit PEC’s website (System Interconnection page)Step 6: PEC representative will verify installation and complete any additional paperwork that isneeded. Participant will notify PEC after installation is complete. PEC Energy Service Advisor will schedulea date and time to meet with participant to review to following:o System sizeo Labelingo Disconnect switcheso Perform simulated grid failureo Answer any additional questions the member might have about the interconnection.Step 7: Repay loan on the monthly electric billIf participant meets all the program requirements and passes final verification of theinstallation, the participant will receive funding. Loan repayment will be a line item on themember’s monthly electric bill.5
Program Contact InformationAny questions about PEC’s Empower Loans program? Please contact PEC’s Energy ServicesDepartment.Email: conservation.loans@peci.comPhone: 1-888-554-4732 (ask for Energy Services)6
Late fee will follow PEC Tariff for Electric Service, section 200.12, for non-payment or delinquent payment. Interest Rate: Interest rates may vary from month to month so please check PEC’s website for the current interest rate. PEC Empower Loans interest rates will includ
