Pioneer
and Buckeye Power: The Price is Right
In a deregulated market, consumers can choose a power supplier
based on a variety of factors. But there's one factor that
probably always takes priority: price.
As
deregulation allows for competition, we believe price will
be the most likely reason consumers would choose to switch
to another electric power supplier.
Providing
Power At Cost
Pioneer Electric Cooperative's electric production, or generation
rates, are going to be difficult for investor-owned utilities
(IOUs) and out-of-state marketers to compete with for many
reasons.
First,
as a not-for-profit entity, Pioneer is able to sell and
deliver energy at cost. As such, it will be difficult for
IOUs to save you as much money in the long run.
Secondly,
we have a significant advantage owning our own cooperative
power supply-Buckeye Power. As we have discussed, Buckeye
Power gives us control over both power supply availability
and cost.
Finally,
we are constantly working with Buckeye Power on strategies
to increase efficiency and keep costs down. And that means
lower rates for you.
Keeping
Rates Low
One of the major efforts toward keeping costs in line is
the load management system first tested by Pioneer in 1970.
Load management reduces peak demand loads and has saved
Ohio cooperative members more than $60 million.
Another
strategy for improved efficiency is increased consumer diversity.
Commercial and industrial customers improve the "load
profile," and that results in better rates for all
parties.
Pioneer
also has banked capacity arrangements with American Electric
Power. These agreements contribute to cost containment by
providing added power when needed, without building additional
power plants.