Paulding-Putnam low-cost power co-op

Paulding-Putnam Electric news

PAULDING — Paulding-Putnam Electric Cooperative has earned the distinction of being one of the lowest cost providers of electricity in Ohio.

A recent independent survey of rates from all types and sizes of utilities across the state showed Paulding-Putnam to have lowest rates among electric cooperatives, in addition to having a rate structure competitive with large investor-owned power companies.

This is quite an achievement for a member-owned and non-profit electric co-op, serving in mainly rural areas where households per mile of line are fewer and commercial-industrial load less than in urban areas.

In fact, the survey published April 7 by The Columbus Dispatch showed Paulding-Putnam’s monthly bill for 1,000 kilowatt-hours (kWh) of electricity to be lower than Ohio Power Company, an American Electric Power (AEP) subsidiary with more than 600,000 consumers.

The Ohio Power Company bill cited in the survey was $129.38, while Paulding-Putnam’s charge for the same amount of electricity was $116.08.

According to the survey, Paulding-Putnam’s 1,000-kWh bill also was lowest among Ohio’s 24 other electric co-ops, many of them larger and with more commercial-industrial load.

The Dispatch survey ranked power companies, municipal utilities and electric co-ops.

The range of rates showed the disparity between urban service territories, where household density is high and demand for electricity is great from businesses and industries, and rural settings, where consumers and revenue per mile of line are less and operational and maintenance overheads are higher due to distance and terrain.

For example, electric co-ops in Ohio serve 40 percent of the state’s landmass, but average only seven members per mile of line. Investor-owned electric utilities average 31 consumers per mile.

“Our rates our very competitive,” said Paulding-Putnam Manager George Carter. “We have worked hard to hold the line and become as efficient as possible.”

With 13,000 co-op members spread over 1,700 miles of line in two states – and only 38 total employees to serve them – Paulding-Putnam has proven a commitment to controlling costs and pursuing efficiency at every level. This was done without sacrificing safety or service.

“For several years, we have managed to hold the line by exploiting operational savings and implementing smart fiscal policy. The co-op’s Board of Trustees challenged management and our employees to find ways to do more with less during a very difficult economic period,” Carter said.

The national recession pinched power sales and lowered revenues – while the cost of wholesale electricity increased by an average of $20 per month due to completion of $1 billion in environmental upgrades at the power plants supplying co-ops in Ohio,

Carter said Paulding-Putnam found ways to cope without adjusting distribution rates, thereby fulfilling its commitment to the membership and community. Remaining competitive, however, means reviewing the rate structure and costs of service to keep the co-op fiscally sound and able to maintain a high-level of service reliability.

“Our commitment remains unchanged. We intend to remain competitive from a rate and quality service perspective. In order to do so, some adjustment will be necessary based on detailed analyses of our current costs and strategic goals,” Carter explained.

“We will continue to look out for the best interests of our members, as Paulding-Putnam has done in the past. We accomplished our purpose of wringing out all the cost savings possible. As a result, even one of the state’s largest and most influential newspapers recognized our efforts,” he said.