Working to Protect Your Interests
Appeared in June 2000 Country Living
With deregulation and the uncertain restructuring of the electric utility industry coming in the near future, electric Cooperatives are working to protect the interests of their consumers. For this reason, Cooperatives are not only surviving in the new competitive marketplace, but thriving as well.
At a recent annual meeting of the National Rural Electric Cooperative Association (NRECA), members talked at length about the potential effects of deregulation on Cooperatives.
According to Glenn English, chief executive officer for NRECA, average consumers face some risks in a restructured electricity marketplace, where most service providers will ignore them. Cooperatives, however, offer a mechanism to ensure the consumer's interests and needs are heard and protected. A Cooperative is a business the consumer actually owns, and so it offers members a way to secure for themselves whatever services they desire from it.
Co-ops also have a history of service and commitment to the local community, which according to research cited by English, is what 90 percent of Co-op consumers and 84 percent of non-Co-op consumers look for in a company. This quality is something English said will give Cooperatives credibility in the new open deregulated marketplace.
A bill signed by the Governor of the State of Ohio will make deregulation and customer choice a reality for Ohio on January 1, 2001. Under the new law, various parts of the electric system will be broken into separate companies and customers will be given the option to purchase some services from other providers. Hancock-Wood Electric Cooperative has been informing members about deregulation for the past three years, as well as positioning the Co-op to be successful in the new competitive environment. HWE welcomes the industry changes because of the new business opportunities it will introduce and the existing opportunities it will expand within the Ohio electric industry. These new opportunities, when coupled with expanded products and services offered by HWE subsidiaries, provide members with a complete energy solution and even better service.
NRECA represents more than 900 electric Cooperatives across the nation serving 34 million people in 46 states. The Association serves as a network for Co-ops working to provide better service and to protect consumers from monopolies. English said these qualities combined with their local ownership ensures Co-ops the great potential for success in the future marketplace.
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