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All Costs Considered How Much Will We Really Save?


five to seven years. As employees retire, job duplication will be eliminated, which will provide an increased savings in administrative and general expenses. All expenses combined, a Caddo-Kiwash consolidation could net a savings of $20 to $30 million dollars over the next 10 years. Without consolidating, KEC, CEC, and our cooperative members will be forced to absorb these costs.


S How would shared services through consolidation reduce co-op expenses?


Consolidating the two cooperatives into one enables us to spread operational costs across a larger meter base. Together, we would serve nearly 25,000 meters across approximately 7,600 miles of electric distribution line while still maintaining local control. A service area that large offers increased opportunities for bulk purchasing of materials and supplies that would further decrease costs and allow both systems to operate more efficiently.


tudies by C.H. Guernsey Engineering of Oklahoma City show a consolidation would save each co-op up to $9 million dollars in operations and maintenance expense alone over the next


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For more information on the Caddo-Kiwash consolidation, visit www.caddokiwashtogether.com. Be sure to sign up for updates and news on the consolidation question. We also encourage you to engage with fellow co-op about the consolidation on you Kiwash Electric Facebook page.


“Savings” cont’d on pg 6 


Reduction In Operating Expenses Scenario 2


Scenario 1


Scenarios 1 and 2 are based on an estimated consolidation savings analysis performed by CH Guernsey Engineering. Scenarios take into consideration savings gleaned from reduced administrative expenses, labor costs, operations and maintenance and plant investment over the next ten years. Scenario 1, which co-op officials feel is both achievable and realistic, nets a savings of $30 million. Even the most conservative estimate, Scenario 2, shows a savings of $20 million.


$10 $15 $20 $25 $30 $35


$10 $15 $20 $25 $30 $35


$5 $5 0


0 YEAR 2016 2020 SOURCE: CH GUERNSEY ENGINEERING , OKC 2024


Kilowatt | JULY 2015 | 5


Savings in Millions


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