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Why don’t I have choice in electric providers?
You may know a
board made the decision to enter the deregulated marcoworker or friend who
ket, it’s important to understand the decision is irrevolives in a neighborhood
cable. We must be absolutely sure the decision will
that offers them a choice
result in low rates and reliable service long-term.
of electric providers. And,
I also believe there may be confusion over what
you may have asked the
“choice” really means to a consumer. Because CoServ
question, “Would my bill
owns, operates and maintains the infrastructure servbe lower if I had choice?”
ing your homes and businesses, it’s important to underYour member-elected
stand that we serve as your “wires company” as well as
board of directors disyour power provider. If CoServ were to offer choice by
cusses this topic regularly
opting in to the deregulated Texas market, you would
and since they live in the
indeed be able to decide who “sells” you electricity, but
CoServ service area (in
CoServ would continue to “deliver” your power. As a
your neighborhoods) they
result, a portion of your monthly bill would be paid to
ask themselves the very
CoServ to cover delivery costs. With separate compaMike Dreyspring,
same
question.
The
nies charging for delivery of electricity and for electricPresident/CEO
answer, however, is very
ity itself, it’s tough to determine if offering choice
complex ….and may surprise you.
would actually lower your rates in the long-term.
Our surveys consistently show that the majority of
Again, if you had choice in your neighborhood, you
members would choose CoServ if choice of providers
would be able to select the provider who “sells” you
was offered in their service area. Members also tell us
electricity. However, these Retail Electric Providers
that stable, low rates are their primary concern.We constantly moniIn fact, CoServ Electric’s scores with the American Customer
tor market conditions and the
competition to ensure that our busiSatisfaction Index show that a large majority of our members
ness decisions support rate consiswould still choose and trust CoServ as their power provider if
tency. When considering the idea of
they had a choice in REPs.
providing choice (that means “opting in” to deregulation), your board
and senior management have a responsibility to do so
(called REPs) buy their power from a small handful of
only if it is in our members’ best interest.
wholesale power generators who hold market and pricIf, through the careful decision-making process, the
ing dominance in Texas. This control over power generCoServ board were to decide to opt in, the move would
ation causes pricing to be non-competitive, and we
require a large financial outlay. Meeting regulatory
See “Why don’t I have choice?” on page 19
requirements could cost millions of dollars, and if the
CoServ Electric
18
www.coserv.com
TEXAS CO-OP POWER COSERV ELECTRIC March 2008
Built to Serve. Energizing Life.
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“Why don’t I have choice?” from page 18
believe it is one reason that deregulation has not shown positive results.
Between 2002 and 2006, electricity
rates increased 57 percent in the
deregulated Texas market (per the
Energy Information Administration)
compared to 23 percent in regulated
states. And, a number of states that
deregulated their electricity markets
have actually suspended the practice.
Given this uncertainty and dysfunction in the deregulated market, we are
hesitant to change the structure of our
business and devote significant
resources to an idea that doesn’t
appear to effectively control costs and
rates for the long run.
One thing is certain - being a
member of CoServ Electric entitles
you to receive power as close to cost as
possible. We are owned by those we
serve, and we’ve been earning our
members’ trust for more than 70
years. Today and for years to come,
CoServ will focus on delivering reliable power at a low cost. Rest assured,
your elected board of directors will
continue to explore our options in the
changing electric utility industry.
To learn more about CoServ
Electric, visit www.coserv.com, click
on CoServ Electric Service and select
the “About CoServ” tab.
WATCH YOUR
OPERATION
ROUNDUP®
DOLLARS IN
ACTION
Supporting the cooperative principle
of community involvement, the CoServ
Charitable Foundation used your
Operation Roundup dollars to invest in
public safety and healthcare. Since
inception, the Foundation has donated
$1,166,575 to 60 different projects in
27 communities.
Here are the most recent Charitable
Foundation donations:
• Oak Point Department of Public
Safety - $26,820 to purchase bunker
gear
• Southwestern Diabetic Foundation
- $10,000 for facility and equipment
upgrades and repairs at Camp Sweeney
Operation Roundup began in
November 2005 as a way for members,
customers and employees to partner
with CoServ to enrich the community.
Many employees elect to have donations payroll deducted, and participating members’ and customers’ monthly
bills are rounded up to the nearest dollar. The extra change is donated to worthy charitable causes. On average, the
donations add up to $6 a year, but the
pennies generated are making a big difference. If you are not currently
enrolled in Operation Roundup and
would like to participate, please call
Customer Service at 940-321-7800. Or,
if you’d prefer to make an individual
donation, please forward your check to
the CoServ Charitable Foundation
(Attn. Connie Seymour) at 7701 S.
Stemmons, Corinth, Texas 76210.
CoServ Electric sponsors trip to nation’s
capitol for juniors and seniors
Each year, CoServ Electric sponsors the Government-in-Action
Youth Tour Contest. High school juniors and seniors whose residences
CoServ Electric serves have a chance
to win an all-expenses-paid trip to
Washington D.C.
The education-study program
allows our state’s future leaders in
government, business and communities to join other teens from across
the nation in open discussions with
federal government and professional
association officials regarding current events. Students will learn how
a cooperatively-structured business
is distinguished from other forms of
business enterprises, and how co-ops
impact our lives on a daily basis. The
National Rural Electric Cooperative
Association (NRECA) hosts the
Youth Tour activities.
The trip includes a visit to the student’s Congressman’s office as well as
tours of historic monuments, memorials and the Smithsonian
Institution. The tour group travels to
Arlington National Cemetery,
Washington National Cathedral and
to Mount Vernon, home of George
Washington. The students will witness a wreath-laying ceremony at the
Tomb of the Unknown Soldier.
Students are asked to submit an
application which contains five short
essay questions:
• In terms of personal development, what is your greatest strength
and how has it enhanced your life?
• What issue interests you most
about our government process and
why?
• Of all the political leaders in our
nation, past or present, who has
influenced you most and why?
CoServ Electric
• Explain the difference between
an electric cooperative and an
investor-owned electric utility.
• Provide a brief explanation of
why you would like to be chosen as
CoServ Electric’s representative on
the 2008 Government-in-Action
Youth Tour.
Applications are judged on creSee “CoServ Electric Sponsors Trip” on page 21
www.coserv.com
Built to Serve. Energizing Life.
March 2008 COSERV ELECTRIC TEXAS CO-OP POWER
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COSERV MEASURES UP: HIGH SATISFACTION, LOW RATES
Texas. And, we’re lower than Direct Energy, Cirro,
Commerce, First Choice and Green Mountain.
In our view, the significant difference reflects that
CoServ members trust us to provide low-cost, reliable
electric service with outstanding Customer Service. Our
mission is to continue to earn our members’ confidence for
years to come.
For more information directly from our CEO/President,
Mike Dreyspring, about choice and the cooperative perspective on the deregulated Texas utility market, please
visit www.coserv.com, click on “Conversations with the
CEO” and select the corresponding video.
* Satisfaction scores are measured by the American Customer Satisfaction Index.
Established in 1994, this index provides a uniform, independent measure of consumer experience with 190 of the leading corporations in America.
CoServ Electric’s customer satisfaction scores consistently beat the two largest electric retail providers in
Texas - TXU Energy and Reliant Energy. In 2007, CoServ
earned a score of 74 from the American Consumer
Satisfaction Index (ACSI), while TXU and Reliant received
scores of only 63 and 65, respectively. Since CoServ
began participating in the ACSI four years ago, we have
maintained a solid average lead over both TXU and Reliant.
Over the last 2 years, our rates have been consistently lower than the two largest electric providers in
CoServ Gas
Safe, secure and dependable
CoServ Gas is a young company, our
system is modern, and we designed it
with safety as first, second, and third
priorities. The number of customers in
the CoServ Gas system continues to
grow, as does the gas distribution industry nationwide. Though more and more
people are using natural gas in their
homes and business, the occurrence of
serious incidents pertaining to natural
gas safety have fallen dramatically.
Still, it is critical to be aware of hazards and take precautions. CoServ’s gas
distribution system adheres to the highest standards of safety to protect you
CoServ Electric
20
and your family. To prevent potential
problems, CoServ Gas conducts regular
leakage surveys to patrol the pipeline
systems and observe surface conditions.
However, damage by outside forces and
changes in soil conditions could cause a
pipeline to leak and allow gas to escape.
Remember, gas leaks are hazardous
and should be reported right away.
CoServ Gas has a “zero tolerance” policy
when it comes to gas leaks. We give top
priority to all reported leaks and repair
them immediately.
Here’s how to recognize a possible
gas leak: One of many signs of a natural
www.coserv.com
TEXAS CO-OP POWER COSERV ELECTRIC March 2008
Built to Serve. Energizing Life.
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gas leak is dead vegetation around a gas
meter or other infrastructure which is
caused by the displacement of oxygen.
Because natural gas is lighter than air,
as it rises into the atmosphere it will
again displace oxygen, which may cause
a mirage-like movement that can be
seen with the naked eye. Another possible sign of a gas leak can be bubbles
upon the ground during (or soon thereafter) a rain event. The most likely
warning is the “rotten egg” smell that is
added to otherwise odorless natural gas.
If you suspect a gas leak, contact us
See “Safe, secure and dependable” on page 21
“Safe, secure and dependable” from page 20
immediately at our 24-Hour Emergency
Number: 940-321-7800 or 1-800-2744014.
Since a vast majority of pipelines are
buried underground, we use curb markers to show their approximate location.
These markers are an important warning of the presence of pipelines in the
area. Federal law mandates the protection of these markers and forbid the
removal of them. Also, if you or your
contractor plans to dig deeper than 16
inches, state law requires you to call a
notification center (1-800-DIG-TESS or
dial 811 on your cell) at least two business days before your dig. When you
call, a representative will notify companies who have facilities in the area. An
exception to this would be municipal
lines. You will need to contact municipalities directly. Once the companies
are notified of your intent to excavate,
they will send a representative to the
excavation location to mark the approximate location of the underground facilities using paint and flags.
Adding another margin of safety,
CoServ installs “excess flow valves” on
all service lines to residential meters.
These devices are designed to limit gas
flow if the service line is damaged. We
are one of the few gas companies in the
country to voluntarily install excess flow
valves. Federal regulations will soon
require all companies to use the devices
on new installations or when repairing
existing facilities.
Rest assured, CoServ Gas stays on
top of all regulatory requirements and
meets and often exceeds compliance
standards. For additional natural gas
safety information, visit us at
www.coserv.com, select CoServ Gas
Service, and click on “Safety.”
Sign up for E-Notice
“CoServ Electric Sponsors Trip” from page 19
ativity, knowledge of the topic and
writing skills. Finalists selected from
the entries may be asked to participate in an interview about their
application.
The deadline for applications is
March 28, 2008. For more information on the program, visit
www.coserv.com, select CoServ
Electric Service and click on
Community and “Government-InAction Youth Tour.” The essay questions are listed in this section, along
with the history of the program and
details about the trip. Download the
application from the “GovernmentIn-Action Youth Tour Contest Entry
Form” link at the bottom of the page.
If you would like to learn more
about entering the CoServ
Government-in-Action Youth Tour
Contest, please call Dennis Engelke
at (940) 321-7828 or e-mail him at
dengelke@coserv.com.
To sign up for E-Notice, visit
www.coserv.com. On the front page
of the Web site, there is a blue box
labeled “Account Information,” select
“Enter My Account” (if you already
have a CoServ online account) or
“First Time User” (to establish a new
online account). The next screen to
appear offers the option of subscribing to E-Notice. Click the check box
next to the account(s), and a
monthly E-Notice will be sent to the
e-mail address associated with your
account’s login.
E-Notice is the first in a series of
online enhancements for coserv.com.
Thank you for your patience as we
improve your online options.
Built to Serve. Energizing Life.
Contact Information
www.coserv.com
940-321-7800
1-800-274-4014
Open Monday Through Friday
8 a.m. to 5 p.m.
Telephones answered 24 hours a day
Board of Directors
Jerry Cobb
Leon Pelzel
Chairman
Frisco, District 4
Pilot Point, District 2
Mark Glover
Vice Chairman
Flower Mound,
District 6
CoServ’s online account users can
now sign up for E-Notice – an
advanced monthly e-mail alert that
your account balance has been
updated. The update allows you to
view/pay your account balance
online in advance of receiving your
paper bill in the mail.
Vaughn Andrus
Advantages of E-Notice:
Secretary/Treasurer
Krum, District 1
• Enjoy convenient, automated
billing notification
• Learn about bill payment
options
• Prevent late payments
• Access past bills
CoServ Electric
Clyde Geer
McKinney, District 3
Anne Vaden
Copper Canyon,
District 5
Curtis Tally
Justin, District 7
CoServ Vision Statement
To be trusted to consistently exceed
members' and customers’ expectations
for safety, reliability, service, value and
community support.
www.coserv.com
Built to Serve. Energizing Life.
March 2008 COSERV ELECTRIC TEXAS CO-OP POWER
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