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SSVEC still aims to save money with "partial" plan
By Carol Broeder/Arizona Range News
Officials with the Sulphur Springs Valley Electric Cooperative (SSVEC) believe that "going partial" could go a long way in saving money for its members.
The status of the plan was discussed at the cooperative's annual community luncheon at the Plaza Restaurant on Oct. 17.
In 2003, the board of directors of SSVEC voted to become a "partial requirements member" of Arizona Electric Power Cooperative (AEPCO).
Three years later, SSVEC is still waiting for the contracts to be finalized, said Jack Blair, chief member services officer for SSVEC.
"There is nothing not correct about that statement," said Dennis Criswell, vice president of marketing and strategic ventures. "The AEPCO board approved that sometime back. We are awaiting final approval from Rural Utilities Service (formerly REA), which is part of the United States Department of Agriculture. We continue to wait."
"It has been three years, and at a million dollars a year, our members have lost out already on $3 million," Creden Huber, the organization's CEO, said recently at its annual community leader luncheon in Willcox.
Once the process is completed, SSVEC will no longer be required to buy all of its electricity needs from its one supplier, AEPCO, Blair said.
SSVEC must still buy a certain amount of power from AEPCO based on previous agreements, but can also sell any excess electric capacity to others and can buy any shortage in power from other sources to ensure the lowest price to its members, he said.
The management and board of directors of SSVEC believe that being a partial requirements member of AEPCO is in the best interests of its members, Blair said.
Mojave Electric Cooperative in northern Arizona "went partial" in 2001, and their management and board are very happy with their results, namely smaller electric cost increases, he said.
Several analyses, both internal and by outside consultants, showed that in the next few years, SSVEC can sell between $750,000 and $1,000,000 in excess electricity and this number will grow significantly in 2011, said Kirby Chapman, the organization's chief financial officer.
"We estimate, based on the numbers supplied to us by AEPCO, that from 2011 to 2020 we can sell $49 million of excess electricity to other areas resulting in financial significant benefits to our members," Chapman said.
"For our electric shortfalls, we can bid out contracts for supply of the shortfall," Blair told the Range News. "We believe this will save our members money."
"If a new plant in the vicinity of SSVEC is built, SSVEC could possibly become a part owner of the plant thus being able to buy electricity at a bargain price, but could also share in any profits," said Blair, adding that the profits would then go to the members.
"And finally, with the changes in the electric market, it makes sense not to have only one supplier for all electric needs so we don't put 'all your eggs in one basket,'" he said.
The SSVEC management and board believe that "being a partial requirements member of AEPCO and selling our excess capacity and bidding out our shortfalls will save our members money on their electric bill," Blair said.
The status of the plan was discussed at the cooperative's annual community luncheon at the Plaza Restaurant on Oct. 17.
In 2003, the board of directors of SSVEC voted to become a "partial requirements member" of Arizona Electric Power Cooperative (AEPCO).
Three years later, SSVEC is still waiting for the contracts to be finalized, said Jack Blair, chief member services officer for SSVEC.
"There is nothing not correct about that statement," said Dennis Criswell, vice president of marketing and strategic ventures. "The AEPCO board approved that sometime back. We are awaiting final approval from Rural Utilities Service (formerly REA), which is part of the United States Department of Agriculture. We continue to wait."
"It has been three years, and at a million dollars a year, our members have lost out already on $3 million," Creden Huber, the organization's CEO, said recently at its annual community leader luncheon in Willcox.
Once the process is completed, SSVEC will no longer be required to buy all of its electricity needs from its one supplier, AEPCO, Blair said.
SSVEC must still buy a certain amount of power from AEPCO based on previous agreements, but can also sell any excess electric capacity to others and can buy any shortage in power from other sources to ensure the lowest price to its members, he said.
The management and board of directors of SSVEC believe that being a partial requirements member of AEPCO is in the best interests of its members, Blair said.
Mojave Electric Cooperative in northern Arizona "went partial" in 2001, and their management and board are very happy with their results, namely smaller electric cost increases, he said.
Several analyses, both internal and by outside consultants, showed that in the next few years, SSVEC can sell between $750,000 and $1,000,000 in excess electricity and this number will grow significantly in 2011, said Kirby Chapman, the organization's chief financial officer.
"We estimate, based on the numbers supplied to us by AEPCO, that from 2011 to 2020 we can sell $49 million of excess electricity to other areas resulting in financial significant benefits to our members," Chapman said.
"For our electric shortfalls, we can bid out contracts for supply of the shortfall," Blair told the Range News. "We believe this will save our members money."
"If a new plant in the vicinity of SSVEC is built, SSVEC could possibly become a part owner of the plant thus being able to buy electricity at a bargain price, but could also share in any profits," said Blair, adding that the profits would then go to the members.
"And finally, with the changes in the electric market, it makes sense not to have only one supplier for all electric needs so we don't put 'all your eggs in one basket,'" he said.
The SSVEC management and board believe that "being a partial requirements member of AEPCO and selling our excess capacity and bidding out our shortfalls will save our members money on their electric bill," Blair said.
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