How does PPEC control costs for members?

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Posted on May 27 2024 in Paulding-Putnam Electric Cooperative

Your cooperative board and staff do an exceptional job holding down controllable expenses. Here are a few of the ways we make your membership dollar go further:

  • Our wholesale power supply comes from Buckeye Power, a not-for-profit cooperative. We own our own power-generating assets, instead of relying on an unpredictable market. And our fuel generating source is primarily coal — the most economical source.
  • Shared services: We share marketing and communications employees, as well as energy advising and other services with area co-ops. Sharing these employees saves PPEC more than $30,000 a year!
  • Competitive bid process: We use a bidding process for tree trimming, pole testing, and other major projects.
  • Load control: Water heater and air conditioner control switches and commercial account off-peak programs help us save thousands in avoided demand charges. Members also keep rates down when they conserve energy during peak alerts.
  • Grassroots lobbying: Through our PAC group, we fight for fair legislation and regulations.
  • Outsourcing: Just a few examples include billing and member information software, as well as dispatching after-hours. This is why we also have an automated phone line to handle bill payments, outages, etc.
  • Purchasing: Our transformers, conductors, etc., are mostly purchased from not-for-profit cooperative-owned supply companies. This keeps costs low. We also have a dedicated material coordinator who researches the best prices and monitors market conditions to pre-buy when possible.
  • We partner with a non-profit insurance provider for employee benefits through the National Rural Electric Cooperative Association (NRECA). It does not receive commissions, pay taxes, etc., unlike other insurance companies that pay margins and need to increase rates to increase their bottom line. We are solely paying for coverage and getting the best price.
  • Electronic and digital efficiencies provide greater member convenience and reduce employee costs. For example, over 70% of our members pay their bill electronically or automatically, and 20% are enrolled in paperless billing, saving us mail and paper costs. Many of our office/field technologies and work processes are electronic or automated. Our SmartHub site and automated 24/7 phone line provide our members access to everything they need regarding the self-management of their accounts.