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.
Join the team! Let's work together to reduce the cost of power supply and
"Beat the Peak."
Cooperatively yours,
.JPG)
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.
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. 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. 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."