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Questions and Answers A Closer Look at Consolidation U


niting with neighboring Caddo Electric Cooperative to create a new, more efficient electric cooperative is a significant decision that requires careful forethought, tremendous planning and no small


measure of fiscal courage. We want to answer your questions as thoroughly as possible. If you don’t see your question answered in these pages, please contact your co-op at 888-832-3362 or plan on attending one of our upcoming information meetings. Your questions are important to us.


Why are Caddo Electric and Kiwash Electric considering consolidation?


The energy industry is rapidly changing and cooperatives and utilities are being required to create new business models. Caddo Electric Cooperative (CEC) and Kiwash Electric Cooperative (KEC) know that working together to create a new cooperative will be more beneficial than going it alone. We believe that the future viability of cooperatives will be determined by the ability to compete in the new energy market. By honoring our roots of cooperation and collaboration, together we can meet these new challenges from a position of greater strength.


Top 4 Reasons For Consolidating 1. Maximize financial resources 2. Improve quality of services/programs 3. Achieve administrative efficiencies 4. Expand range of services/programs


What makes CEC and KEC a good match?


Both co-ops seek long-term economic stability through diversifying electric sales diversity and enhancing the efficiency of their operations. Residential and agriculture-related electric sales make up 61 percent of CEC’s electric revenues, while 67 percent of KEC sales come from commercial and industrial accounts. Bringing the two cooperatives together creates a more balanced blend of residential and commercial accounts and contributes to increased economic stability.


4 | JULY 2015 | Kilowatt


Who makes the final decision on the possible consolidation?


It is important to remember that the boards of trustees of both cooperatives have not made any decisions, other than to evaluate the economic benefits of a consolidation. The member-owners of both cooperatives will ultimately decide by individual vote at their respective annual meetings. CEC and KEC will continue to keep members informed via the website www.caddokiwashtogether.com, our monthly newsletters, and at member meetings.


Are the cooperatives in financial trouble?


No, the cooperatives are not in financial trouble. In fact, both cooperatives are currently in a strong financial position. The fact is the environmental and regulatory changes coming our way will require the electric energy industry to change rapidly. Cooperatives and other utilities are investigating new business models to address those changes. The boards and management of CEC and KEC know that working together builds a stronger entity, capable of facing challenges with the least possible impact on co-op members.


Will services still be available through my local co-op office?


Yes, the offices of Kiwash Electric and Caddo Electric Cooperative will remain open for business and will continue to serve as a vibrant component of their rural communities. As locally owned cooperatives, KEC and CEC believe strongly in the basic cooperative principles that include commitment to their rural communities. A KEC-CEC alliance would continue to function as a locally owned co-op that would uphold these cooperative principles in every way.


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