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“Regardless of the consolidation outcome, rates will go up for your cooperative in the future. How much and how often are the more important questions. A Caddo- Kiwash consolidation would result in fewer and less dramatic rate increases over the next ten years. “


DENNIS KRUEGER, GENERAL MANAGER KIWASH ELECTRIC COOPERATIVE


The Future of Your Electric Rates


Without consolidation, electric rates could begin climbing as early as 2016, and are predicted to increase by 16 percent.


Consolidating co-ops would postpone the necessity of a rate increase until 2019—and lessen its impact to roughly 11 percent.


16.5% BY 2024


11% BY 2024


Consolidation Savings Cont’d from pg. 5


Will my rates change?


The two cooperatives vary slightly in rate structure and levels of commercial membership, but their base rate per kilowatt-hour (kwh) is very similar. If co


f consolidation occurs, KEC residential


accounts would see a slight increase of 2.8 percent in the cost per kwh. This rise is nominal compared to rate costs if co-ops do not consolidate. More important are the anticipated rate savings that consolidation will provide in the future as the impact of environmental regulations on power plants are fully realized. If KEC and CEC do not unite, members of both co-ops could see their rates go up as much as 16 percent in the next ten years.


Would the consolidation savings impact response times to outages?


The ability to leverage existing facilities and existing employees can actually improve our response time. Because KEC and CEC border one another, there are cases where locations in one cooperative’s service areas are closer to the other cooperative’s facilities. Our intent is to keep both facilities operating, increase our local presence in our communities and improve our services by working together.


6 | JULY 2015 | Kilowatt


What synergies exist between the two cooperatives that enable new solutions for meeting today and future challenges?


All studies show probable economic benefit and increased long- term membership value from the opportunities for economies of scale, increased financial strength, rate stability, elimination of duplicate services and additional operating efficiencies.


The extensive review included a cost of service study for the combined cooperatives, as well as a joint rate analysis performed by CH Guernsey Engineering firm. The review included operational efficiencies and cost sharing of cooperative and utility services, inventory management, equipment sharing, joint utility management and consolidation.


PLEASE CONTACT US


We welcome your questions. Please contact Dennis Krueger at 888-832-3362 or send email to dkrueger@kiwash.coop. Consolidation is a big decision. You deserve to be informed.





2016


2019 SOURCE: CH GUERNSEY ENGINEERING , OKC


2024


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