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EAGLE FORD CONSORTIUM Presented by Robert D. (Bobby) Waid Manager of Special Projects April 22,...
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Transcript of EAGLE FORD CONSORTIUM Presented by Robert D. (Bobby) Waid Manager of Special Projects April 22,...
EAGLE FORD CONSORTIUM
Presented by Robert D. (Bobby) WaidManager of Special Projects
April 22, 2014
About Medina Electric Co-op• 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
• 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!