Change is Just Around the Corner
Appeared in December 2000 Country Living

Some time ago a newspaper stated that in order to be successful today we could not just react to all the new knowledge, we had to "dance with change."

Such a statement could not be more appropriate as the state soon enters into a deregulated electric utility environment. But as the dance becomes more faster and more complicated, we need partners so we don't have to dance alone.

Fortunately we not only have partners, but ones in whom we have trust and confidence.

One of these partners is our statewide association, the Ohio Rural Electric Cooperatives, Inc. (OREC) in Columbus. OREC serves our cooperative in many ways. For example, they represent us, and all other 24 electric cooperatives, before the United States Congress and the Ohio General Assembly; they produce this publication, which is Ohio's largest-circulation monthly rural magazine; they conduct extensive safety and loss control programs; they oversee scholarship and youth tour programs, among many other things. Perhaps most important, they, through Buckeye Power, Inc., produce the power that is distributed to your home and business.

This point is important, and one that we've elaborated much on at our deregulation member meetings earlier this year. HWE has an agreement with Buckeye Power that provide below market cost services to our Co-op, such as transmission and capacity. If we were to participate in deregulation and sell our electricity outside our territory, Buckeye Power would still have to provide power to us, and this would result in a violation of our agreement, resulting in a loss of our capacity bank. The capacity bank is a surplus of OREC's power that has been utilized by American Electric Power (AEP) over the years. OREC has kept track of this usage, and we're now getting paid back for it through additional power during peak times. Needless to say, the capacity bank is highly beneficial to OREC and HWE.

Touchstone Energy® is another strong member of the dance, which is a national alliance of local, Cooperatively owned utilities providing high standards of service to customers and their communities. In fact, Cooperatives launched Touchstone Energy® in response to the legislative and regulatory initiatives that continue to change the landscape of the electric utility industry. Touchstone Energy® is a branding initiative to build customer loyalty and attract new consumers.

Because Co-ops and municipalities have the right to choose when and if to "opt in" to deregulation, HWE has selected a wait, watch and learn approach. Such a position is a strong one and best for our members at this time, particularly since "opting in" is irreversible.

You've no doubt seen and heard a lot about deregulation by now, but just because you're a Co-op doesn't mean that you will never get the chance to choose. Your Board of Trustees will keep an eye on this issue now more than ever. They've put every decision since the Co-op was formed in the best interest of you, and they'll continue to do so.

Sometimes it is very hard to keep up with the changes and advances. This is understandable, as it's only human nature to resist change. But as you can see, as this industry dance changes to the deregulation tune, HWE is proud and fortunate to have some excellent partners.

We have no choice but to face up to this rapid change. There's no reason we wouldn't want to, because it is exciting and historic change -- something we with which we must embrace and dance.