Notice is hereby given that Upshur Rural Electric Cooperative, Inc., (the “Cooperative”) intends to change rates for electric service. Pursuant to Texas Utilities Code section 41.061 the Cooperative has adopted a resolution approving the rate changes.

The Cooperative intends to change its rates for electric service in three phases. It is anticipated that the total proposed rate changes from all phases will increase adjusted test year 12/31/2015 revenues from $91,499,500 to $95,280,142 which is an increase of $3,780,642 or 4.13%.

Phase One changes will be effective for bills rendered on or after June 1, 2017, or as soon as may be allowed by law. It is anticipated that the proposed Phase One rate changes will increase adjusted test year 12/31/2015 revenues from $91,499,500 to $94,234,814 or 2.99%.

Phase Two increases will be effective for bills rendered on or after June 1, 2018, or as soon as may be allowed by law. It is anticipated that the proposed Phase Two rate changes will increase adjusted test year 12/31/2015 revenues including Phase One increases from $94,234,814 to $94,757,478 or 0.55%.

Phase Three increases will be effective for bills rendered on or after June 1, 2019, or as soon as may be allowed by law. It is anticipated that the proposed Phase Three rate changes will increase adjusted test year 12/31/2015 revenues including Phase One and Phase Two increases from $94,757,478 to $95,280,142, or 0.55%.

The classes of utility customers affected by the proposed rate changes are as follows:

Incremental Percent Change Over Previous Phase

Rate Schedule Phase 1 Phase 2

Phase 3

Residential 3.46% 0.73%

0.72%

Small Commercial 2.70% 0.73% 0.72%
Commercial-Industrial 5.49% 0.00% 0.00%
Large Power-Industrial 0.01% 0.00% 0.00%
Contract 0.00% 0.00% 0.00%
Lights 3.03% 0.00% 0.00%

Further information concerning the proposed rate change can be found by calling the Cooperative at 903.843.2536 or 800.259.2536.

A meeting to discuss the proposed rate changes will be held at the Upshur Rural Electric Cooperative auditorium, 1200 W. Tyler Street in Gilmer, Texas on May 19, 2017 from 4:00 to 6:00 P.M.