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Formula Rate Plan – Rider Schedule FRP

1. General

Formula Rate Plan Rider Schedule FRP (“Rider FRP”) defines the procedure by which the rates contained in the Jefferson Davis Electric Cooperative, Inc., (“JDEC” or “Company”) rate schedules designated in Attachment A to the Rider FRP (“Rate Schedules”) may be periodically adjusted. Rider FRP shall apply in accordance with the provisions of Section 2.A below to all electric service billed under the Rate Schedules, whether metered or unmetered, subject to the jurisdiction of the Louisiana Public Services Commission (“LPSC” or “Commission”).

2. Application and Annual Redeterminiation Procedure

2.A. RATE ADJUSTMENTS

Adjustments to the Company’s rates set forth in Attachment A to this Rider FRP shall be added to the Net Monthly bill section in the Company’s Rate Schedules. Determined per Sections 2.B and 2.C.

2.B. ANNUAL FILING AND REVIEW

2.B.1. FILING DATE

JDEC must file an FRP Annual Report with the Commission by May 15 of each year (2026, 2027, and 2028), based on the 12-month period ending the prior December 31.

2.B.2. REVIEW PERIOD

  • Parties (Commission Staff, intervenors, etc.) have until August 7 to review the report.

  • Any errors or disagreements must be submitted in writing with supporting documentation.

  • JDEC has 15 days to respond and file a revised Attachment A if needed.

  • The approved changes take effect for bills rendered on or after the first October billing cycle and remain until further adjustment.

2.B.3. RESOLUTION OF DISPUTED ISSUES

  • Disputes not resolved within the review window will be submitted to the Commission.

  • The Commission’s final ruling requires JDEC to file revised Attachment A within 15 days.

  • Refunds or surcharges (with interest) apply as needed and must be calculated and implemented within 60 days.

2.C. ANNUAL REDETERMINATION OF RATE ADJUSTMENTS

2.C.1. DEFINITION OF TERMS

  • Test Year: 12 months ending December 31 before the filing year.

  • MDSC: Modified Debt Service Coverage Ratio, calculated from company books and adjusted per Attachments B and C.

  • Bandwidth for MDSC: Lower Band = 1.80; Upper Band = 2.00

  • Midpoint: 1.90

2.C.2. RIDER FRP REVENUE LEVEL

  • a. No Change: If MDSC is between Lower and Upper Bands.

  • b. Increase: If MDSC < Lower Band → Increase by 100% of difference between MDSC and Midpoint.

  • c. Decrease: If MDSC > Upper Band → Decrease by 100% of difference between MDSC and Midpoint.

2.C.3. RIDER FRP REVENUE ALLOCATION

  • Allocated equally to each applicable rate schedule based on percentage of base revenue (excluding fuel and power cost recovery).

2.C.4. RIDER FRP RATE CHANGES BY TARIFF

  • All applicable tariffs are adjusted by equal percentage of base revenue of all bills.

3. Provisions for Other Rate Changes

3.A. NO BASE RATE CHANGE

JDEC will not file for a base rate change and the Commission will not reduce base rates, except as otherwise provided. Monthly bill adjustments for fuel and power cost recovery are allowed.

3.B. EXTRAORDINARY COST CHANGES

  • If extraordinary changes cause a net revenue requirement impact > $1M/year, either JDEC or the Commission may initiate separate proceedings outside the FRP.

  • Must be due to events beyond JDEC’s control (e.g., natural disasters, orders from regulators, etc.).

  • Can also apply in support of new generation or transmission infrastructure needs.

3.C. SPECIAL RATE FILINGS

JDEC may propose revisions to rate schedules (e.g., experimental or alternative tariffs) and file them with the Commission, which will review under applicable procedures.

4. Effective Date and Term

  • Rider FRP is in effect for 3 years with filings due by May 15 of 2026, 2027, and 2028 (for test years 2025–2027).

  • If not extended, the most recent tariff from 2021 (based on 2020 test year) remains in effect until replaced.

  • If terminated by Commission order, the last effective Total FRP Revenue will stay in place until new base rates are approved.

  • No provision limits the right to appeal.