An Open Letter to the Membership

 

RE: Reducing Power Supply Cost - "Beat the Peak" Program

 

Dear Member:

Over recent years, wholesale power supply costs have become an increasingly large portion of the Cooperative’s total operating expenses. A huge part of the power supply cost is determined by the energy used and maximum level of power required during "peak" load periods, when our members are using the greatest amount of electricity. Currently, almost 74 cents out of each dollar of revenue received by the Cooperative is required to pay for wholesale power cost. By reducing the amount of power consumed during "peak" periods, we can reduce our total wholesale power supply costs and help to keep your rates low. That’s why we’ve initiated the "Beat the Peak" Program. We hope you will become familiar with the program and voluntarily participate at the level that works best for you. Details for "Beating the Peak" are provided below and on the back pages.

Join the team! Let’s work together to reduce the cost of power supply and "Beat the Peak."

Cooperatively yours,

President
................................................................................................................

Power-Supply Cost

Energy is a precious resource that should be conserved. By being energy aware we can reduce our greenhouse gas emissions, conserve fossil fuels and reduce power supply cost. The most effective way to achieve this is to minimize the demand (energy usage) on the system during peak-use periods.

What is “peak” demand? Peak demand is the greatest amount of electricity that must be supplied to our members at any given time, in any one month. Unfortunately, your Cooperative does not know actually when the peak demand will occur. We can, however, forecast peak-demand periods by analyzing anticipated unusually high or low temperatures, current weather conditions, member-usage patterns and known seasonal trends.

The goal of your Cooperative is to provide every member with cost-effective, reliable energy whenever it is needed. Therefore, we must be prepared to supply the maximum amount of electrical power necessary to meet our members’ requirements. During the lower (normal) load periods, your Cooperative pays only pennies per kilowatt-hour for power. However, during peak-demand or energy-usage periods, your Cooperative may pay up to one dollar per kilowatt-hour.

Your Cooperative exists to serve you, its member/consumers, and to provide electric power at cost. Whatever power-supply costs are saved ultimately accrue to the benefit of the Cooperative’s members in the form of lower rates and/or increased capital credits. So why not help your Cooperative by becoming more aware of your energy usage, by operating your major appliances outside the peak periods and “Beat the Peak”?
.........................................................................................................

"Beat the Peak" Program

CEC is launching “Beat the Peak” as a way to help take control of higher power-supply costs. This voluntary program encourages members to conserve or limit energy usage during “peak” periods. During summer months peak periods occur between the hours of 3 p.m. and 6 p.m. By limiting the amount of power purchased during these peak, high-priced energy periods, the Cooperative can reduce its total power-supply costs and minimize the power cost borne by you, the member. Because we do not know on which day the peak will occur, weather conditions may cause us to issue a peak alert on several days during the month.

When the Cooperative determines that a peak situation exists, participating members will be notified by e-mail either the day prior to, or the morning of, a predicted peak event. Members will be asked to help conserve energy during the forecasted peak by adjusting their thermostats a few degrees, delaying the use of major appliances such as dishwashers, washing machines, clothes dryers and postponing hot water usage.

The more participating members we have, the better for the Cooperative in general. Energy prices are very high during peak periods and that impacts the power-supply cost to every member. If we all become more energy aware and make a few modifications in the way and when we use energy, we can make a difference. Please take a few moments to complete the attached form. Join the team and "Beat the Peak."