On behalf of Ozarks Electric Cooperative Corporation, I respectfully submit the following documents for electronic filing in this matter:

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1 APSC FILED Time: 2/19/ :00:04 AM: Recvd 2/19/2015 9:51:40 AM: Docket tf-Doc. 1 February 19, 2015 Mr. Dallas Heltz Secretary of the Commission Arkansas Public Service Commission 1000 Center St. Little Rock, AR Re: Request to revise the Pre Pay Electric Service Program Tariff Sheet Dear Mr. Heltz, On behalf of Ozarks Electric Cooperative Corporation, I respectfully submit the following documents for electronic filing in this matter: 1) Required cover sheet 2) Existing tariff sheet 3) Revised tariff sheet 4) Direct Testimony of David Hedrick Sincerely, David Hedrick Sr. Vice-President Enc.

2 Arkansas Public Service Commission Tariff ("TF") Docket Summary Cover Sheet Must be filed with each new TF docket filed at the Commission APSC FILED Time: 2/19/ :00:04 AM: Recvd 2/19/2015 9:51:40 AM: Docket tf-Doc. 1 STYLE OF DOCKET: (Style may be changed by Secretary of Commission) In the matter of: Request for approval of revisions to the Pre Pay Electric Service Program Tariff Sheet Docket Number: DOCKET DESIGNATOR: TF LAST RATE CASE DOCKET: Ozarks last docketed rate case was U Does this change company name: Yes No RELATED DOCKETS: Ozarks has utilized the streamlined rate process for rate changes. The most recent rate change occurred in PETITIONER: Ozarks Electric Cooperative Corporation 3641 Wedington Drive P.O. Box 848 Fayetteville, AR ATTORNERY(S;)NAME, ADDRESS,PHONE,FAX AND 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. Ozarks Electric Cooperative Corporation is seeking approval to change the Pre Pay Electric Service Program Tariff Sheet by removing the administration fee of $6.50 per month. Ozarks no longer incurs any third-party administration fee for provision of pre pay service and therefore no longer requires the charge to members. Pursuant to Rule 2.03(b), of the Commission's Rules of Practice and Procedure, please provide name, address, phone, fax, of at least one person, but not more than two, to appear on the Service List for this docket Todd Townsend, CFO David Hedrick Ozarks Electric Cooperative C.H. Guernsey and Company P.O. Box 848, Fayetteville, AR N. Grand Blvd, Oklahoma City, OK (479) , ttownsend@ozarksecc.com (405) , david.hedrick@guernsey.us 1. Number of customers by class affected by this tariff change: All Arkansas Members 2. Company's current authorized retail revenue requirement: $83,862, Estimated annual retail revenue impact if proposal is approved, both in dollars and as a percentage of current retail revenue requirement: ($147,654), 0.001% Reduction 4. Estimated monthly impact on an average residential customer in both dollars and percentage increase: Reduction of $6.50 for pre-pay customers, 7.7% 5. Proposed effective date: April 1, 2015 Form completed by: David Hedrick Date: 2/19/2015 Representing: Ozarks Electric Cooperative Corporation

3 APSC FILED Time: 11/21/ :33:53 AM: Recvd 11/21/ :28:36 AM: Docket tf-Doc. 1 APSC FILED Time: 2/19/ :00:04 AM: Recvd 2/19/2015 9:51:40 AM: Docket tf-Doc. 1 ARKANSAS PUBLIC SERVICE COMMISSION Original Sheet No Replacing Sheet No. Ozarks Electric Cooperative Corporation Name of Company Kind of Service: Electric Class of Service: All Classes Schedule No.: PREPAY Title: PRE-PAY ELECTRIC SERVICE PROGRAM PSC File Mark Only PROVISIONS: Power may be purchased at any time in any increments equal to or exceeding a $20.00 minimum purchase amount. Consumers may purchase power by internet, telephone, payment kiosk, or during normal business hours at any Cooperative office. Standard provisions of the Cold Weather rule and Elderly and Handicapped rules are applicable under this service. Medical certification will be honored per the provisions of Arkansas Public Service Commission s General Service Rules Rule 6.17 Consumers will not be disconnected on weekends, Cooperative holidays, or after normal business hours. Consumer must purchase power by 10:00 a.m. on the following business day to avoid disconnection. Consumers will not receive a paper bill. The Cooperative will monitor usage of participating pre-pay consumers and send purchase requirement notifications when their balance reaches the credit balance of $ 10.00, unless modified by the Consumer. Participating consumers can choose to receive purchase requirement notifications by electronic mail, text message or phone calls (or a combination of the three options). All notifications will be generated from the automated system. Consumers will be charged an additional $6.50 per month to cover the cost of their pre-pay service administration, equipment and messaging via electronic options. OTHER: Except as modified herein, all other provisions of General Service Single-Phase shall apply. THIS SPACE FOR PSC USE ONLY

4 ARKANSAS PUBLIC SERVICE COMMISSION APSC FILED Time: 2/19/ :00:04 AM: Recvd 2/19/2015 9:51:40 AM: Docket tf-Doc. 1 1 st Revision Sheet No Replacing Original Sheet No Ozarks Electric Cooperative Corporation Name of Company Kind of Service: Electric Class of Service: All Classes Schedule No.: PREPAY PSC File Mark Only Title: PRE-PAY ELECTRIC SERVICE PROGRAM PROVISIONS: Power may be purchased at any time in any increments equal to or exceeding a $20.00 minimum purchase amount. Consumers may purchase power by internet, telephone, payment kiosk, or during normal business hours at any Cooperative office. Standard provisions of the Cold Weather rule and Elderly and Handicapped rules are applicable under this service. Medical certification will be honored per the provisions of Arkansas Public Service Commission s General Service Rules Rule 6.17 Consumers will not be disconnected on weekends, Cooperative holidays, or after normal business hours. Consumer must purchase power by 10:00 a.m. on the following business day to avoid disconnection. Consumers will not receive a paper bill. The Cooperative will monitor usage of participating pre-pay consumers and send purchase requirement notifications when their balance reaches the credit balance of $ 10.00, unless modified by the Consumer. Participating consumers can choose to receive purchase requirement notifications by electronic mail, text message or phone calls (or a combination of the three options). All notifications will be generated from the automated system. OTHER: CT/CR Except as modified herein, all other provisions of General Service Single-Phase shall apply. THIS SPACE FOR PSC USE ONLY

5 APSC FILED Time: 2/19/ :00:04 AM: Recvd 2/19/2015 9:51:40 AM: Docket tf-Doc BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION DOCKET NO. DIRECT TESTIMONY OF DAVID W. HEDRICK FILING ON BEHALF OF OZARKS ELECTRIC COOPERATIVE CORPORATION Q. Please state your name and business address. A. My name is David Hedrick. My business address is 5555 North Grand Boulevard, Oklahoma City, Oklahoma Q. By whom are you employed and what is your position? A. I am employed by Guernsey & Company, Oklahoma City, Oklahoma. I am a Sr. Vice-President and work primarily in the area of Rate Analysis and Cost of Service Studies for rural electric cooperatives. Q. Please summarize your educational and professional background. A. I have earned a Bachelor of Science degree in Mathematics from the University of Central Oklahoma and a Master of Business Administration degree from Oklahoma City University. Q. Have you testified before this Commission? A. Yes. I have also testified before or provided testimony to regulatory commissions in the states of Arizona, Colorado, Kansas, Oklahoma, Texas, and Wyoming. Q. Whom do you represent in this proceeding? A. I represent Ozarks Electric Cooperative Corporation (OECC). Q. Why is Ozarks requesting to revise the Pre Pay Electric Service Program Tariff? A. The existing Pre Pay Electric Service Program Tariff includes a provision to charge the member $6.50 per month for administration fees. This fee was a pass through of the costs charged to Ozarks by a third-party provider. Ozarks is changing billing providers and no longer will be 1

6 APSC FILED Time: 2/19/ :00:04 AM: Recvd 2/19/2015 9:51:40 AM: Docket tf-Doc charged a fee for the administration of the pre pay program. Therefore there is no need to continue charging its members this fee. Q. What is the impact of this change on Ozarks? A. There is no financial impact on Ozarks with this change. There are 1,893 customers participating in the pre pay program. There will be an annual reduction in revenue of $147,654 with the elimination of the $6.50 per month charge. There will be a corresponding reduction of $147,654 in administrative expenses with the elimination of the charge to Ozarks. The result is no impact on the cooperative s margins. Q. What is the impact on the Pre-Pay customer? A. The pre pay customer will see a reduction of $6.50 per month. The average bill for a pre pay customer is $ The percentage reduction is 7.7%. Q. Does this conclude your testimony? A. Yes it does. Respectfully submitted, DAVID W. HEDRICK GUERNSEY BY: /s/ David W.Hedrick David W. Hedrick Sr. Vice-President 5555 N. Grand Blvd. Oklahoma City, OK (405) CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing has been served on all parties of record by forwarding the same by postage prepaid first class mail, hand delivery, or electronic mail on BY: /s/ David W. Hedrick David W. Hedrick 2