Tag: CEO Column

CEO Column: Pricing Options to Meet Members’ Needs

Written by mlitwicki on August 4, 2022. Posted in Livewire.

CEO Column: We are developing more pricing options to meet our Members’ Needs

August 4, 2022

There was a time when the bill from Trico was simply called “the light bill”. This is because lighting was the primary thing for which people needed electricity. But this behind‑the-meter world underwent a technological revolution, and electricity became the lifeblood of homes, businesses, farms and ranches.

A similar shift is occurring today. A technological revolution is creating new forms of energy generation, storage and other grid-enabling services that are changing the operation of the grid from a simple “generate-transmit-distribute” model into something more complex that, if properly leveraged, can deliver huge amounts of value to Members.

In most respects, energy has always been sold as a service. Members don’t buy electrons as much as they buy lighting, heating, cooling and now charging services, that are provided by equipment that uses electricity. Electricity consumption in effect is the consumption of energy services.

The Trico electricity system on which our Members depend is changing, powered by technological innovations, increased use of distributed energy resources (DER) on what has traditionally been a centralized power system, and changing Member needs and preferences in an increasingly connected world.

The increasing demand for system reliability and carbon reduction, coupled with the increasing capabilities of DERs to contribute to these goals, means new price signals are necessary. Rate designs need to follow suit to encourage the beneficial adoption of new technologies, like electric vehicles and DER. In other words, rate design is a significant component of the changes needed to modernize our gird. Fred Butler, former National Association of Regulatory Utility Commissioners (NARUC) President, once said, “You can’t have a smart grid with dumb rates.”

Your cooperative has established a strategic initiative, along with corresponding strategic projects, to design prices to provide options that meet Member’s needs. Over the course of the next few years, Trico will be developing and seeking approval – from the Arizona Corporation Commission (ACC) – to introduce several pricing options that Members have indicated an interest in. Examples include more time-of-day pricing options, critical peak pricing options (with low off-peak rates), and electric vehicle rates. We are also developing optional programs and pricing for when Trico can benefit by buying energy and capacity from Members who have on-site generation or storage technologies.

Ultimately, we want to meet the individual and collective needs of the membership. Offering a portfolio of pricing options is just one way we intend to do that. Watch my column for more information as these are rolled out.

OUR LATEST NEWS

[post-carousel-pro id=”983″]

We are working to enhance our Member’s experience

Written by Monica Pugno on July 6, 2022. Posted in Livewire.

A couple of months ago, I mentioned that Trico has established six strategic priorities that will help us innovate and provide a great value, not just today but in the future. The backdrop is that many changes are occurring in the industry and within our membership.

As an organization formed many years ago to meet the needs of homeowners, farmers, ranchers and business owners who it served, and one still owned by those it serves, if we cannot offer value to you, then why do we still exist?

Obviously, that is a rhetorical question, but one that is important, nevertheless. Thus, the need to re-imagine how your cooperative adds value to you and how we can add value in the future.

The first of our six priorities is named “Member Loyalty”. Spelled out, we will be developing products, options, services and events that meet the individual and collective needs of the Members. We have a number of initiatives and projects we are and will be working on that will address this priority.

For example, we want to take advantage of touchpoints to promote Trico’s products, services and programs. This entails reviewing some of our processes related to working with housing developers, and especially when new Members call Trico for the first time.

We will also be looking at our Capital Credit payment process, including likely changing the name from “Capital Credits” to something that better describes what we do, return profits to you, our Members.

We will be taking steps to personalize our Member’s experience with Trico. To accomplish this, we will be revamping our new construction service process, our solar review process, and expanding how and what we communicate to Members during and after outages.

We will also be introducing rate options to Members, assuming the Arizona Corporation Commission (ACC) agrees. We have filed an off-peak electric vehicle (EV) charging rate and are awaiting approval. This rate will save considerable money for those who own EVs and benefit the entire system. We are also expanding our pay in advance option and filing an optional rate that allows Members to increase the amount of renewables they buy monthly from Trico to 50% or even 100% (stay tuned for more information after the ACC takes action).

And lastly, we will be taking steps to better communicate with Members via social media and at our current and maybe even some new events.

We are excited to get to work on all of the above and know that many Members will see enhanced value as we make progress on these initiatives. As a Member-owned organization, and one that operates on a not-for-profit basis, you can trust that serving you is foremost on our minds.

You have the power with Pay As You Go – a prepaid energy solution

Written by Monica Pugno on June 3, 2022. Posted in Livewire.

This month I’d like to talk about one of our rate options. Trico’s Pay As You Go program is as simple as it sounds: Members pay for electricity before it is used, then use the electricity until the credit expires.

A terrific analogy for Pay As You Go is putting gas in your car. Say you only have $30 for the week to pay for gasoline. You drive down to the station, pump in $30 and drive off. As you drive during the week, what happens? You monitor the gauge and make sure each trip is necessary. If you drive too much, you burn up your $30 before the week is out. Literally. By checking the gauge throughout the week, you became more prudent with your gas use and made informed decisions on when and how much to use.

Now let’s transfer that analogy to your account with Trico. Normally, you would get a bill after you have used the electricity. Sometimes it comes as a shock. “How could I possibly have used so much electricity?” Pay As You Go is designed to ease – and hopefully eliminate – that shock. Let’s take a look at how it works.

Pay As You Go is a self-managed program. You purchase electricity before you use it. Payments can be made when you want – online, over the phone, on the SmartHub app or in person at Trico’s office. When your account runs low, you will get an alert by email, text or phone call.

With Pay As You Go, Members will be able to avoid deposits, due dates and reconnect fees.

Members are responsible for keeping up to date on their account and should ensure that it always has a credit balance. Members can access their prepay account balances and monitor their usage online at trico.smarthub.com.

Is Pay As You Go the right choice for you?

While Pay As You Go is a great program, it may not be suitable to all Members and is not available to non‑residential, time‑of-use, net metering, Distributed Generation (DG) Energy Export, or critical load (medical necessity) customers or for those participating in the Budget Billing program. Pay As You Go works best for Members who want to take control of their electric account and energy usage. By monitoring your consumption on a regular basis, you will notice patterns in your day-to-day usage and learn how to conserve energy. Monitoring and controlling daily usage can help keep those electric costs down.

Statistics indicate prepay electricity programs help lower electric consumption due to Member’s awareness of usage patterns.

Pay As You Go teaches the value of electricity, what uses kilowatts in your home, provides absolute control over how much you pay and helps you reduce your energy use. It is a tremendous way to power your life.

To join Pay As You Go, contact a Trico representative at 520-744-2944 or click here to sign up online.

We are focused on these six priorities

Written by Monica Pugno on June 3, 2022. Posted in Livewire.

Like every industry, the energy business is changing. I am excited to be able to say that Trico is constantly ‘working on the business’ so that we can not only deliver a great value today, but even greater value tomorrow.

Your Board and management met for a couple days late in 2021 to discuss trends affecting our members and industry. This included an examination of our strengths, weaknesses, opportunities, and threats. It was an exhausting, and at the same time exhilarating couple of days because the outcome was a set of strategic priorities which will guide us the next few years.

These priorities are:

Member Loyalty We will be developing products, options, services and events that meet the individual and collective needs of the membership.

Advanced Grid We will be pursuing advanced grid technology to increase reliability and to meet member’s needs.

Power Supply We will be securing reliable and cost-effective power supply.

Competitive Mindset We will be enhancing the value Trico provides in the marketplace.

Strategic Partners We will be developing and enhancing relationships with strategic partners.

Workforce We know that we need to attract, develop, and retain a high-achieving and diverse workforce.

We are in the midst of an energy transition where instead of forecasting demand and building an operating centralized power plants to match these load requirements, we are gradually shifting to forecasting available generation (dependent on the weather) and helping the cooperative and our members manage their load by offering load management products/services and time varying price signals. And, generation technologies are becoming more distributed, sometimes even behind our meters in member’s homes and businesses.

As we go forward, we will be reporting on many projects that will work on helping us accomplish one of the above-mentioned priorities. It’s all in an effort to increase the satisfaction levels you have with your cooperative. Good things are continuing to happen at Trico Electric Cooperative.

We are preparing for future growth by investing in our infrastructure

Written by Monica Pugno on February 2, 2022. Posted in Livewire.

Trico is growing, along with many of the communities we serve. To keep up with that growth and maintain an excellent standard of reliability, we are investing in the facilities that deliver power to our Members’ homes and businesses.

I am happy to share with the membership that Trico will be investing almost $70,000,000 over the next four years to continue improving our electric infrastructure.

Our recently approved four-year construction work plan includes:

Connecting 4,120 new homes and businesses.
Increasing service capacity to many existing Members.
Increasing the capacity of 49 miles of existing overhead and underground distribution lines.
Constructing almost 34 miles of new lines between substations (this allows us to route power from different directions to reduce and limit outages).
Replacing 440 older distribution poles.
Replacing almost 15 miles of aging underground conductor.
Installing one new substation delivery point (Adonis Substation, which will be north of Tangerine Road and east of I-10 in Marana) and rebuilding/upgrading two existing substations (Green Valley Substation and Marana Substation)
Rebuilding 69 kV transmission lines.

Compared to the more than 900 electric cooperatives across the United States, we are proud that Trico is in the top 25% for offering strong reliable service. To maintain our high standard we make prudent, planned investments that benefit Members now and in the future.

To explain, in the electric distribution business, where many miles of poles, lines, and facilities are required, a cooperative like Trico must decide, do we pay now or do we pay later? It can be tempting to neglect or skimp on maintaining our lines and/or upgrading our system. That would save on short-term costs, but reliability would suffer. Members would have to hold their breath during bad weather or high winds, and costly repairs would be unplanned and likely more expensive when needed.

Don’t get me wrong, we know costs are important, and we work hard to keep down our costs and the amount of our monthly bills. The way to do that over the long run is with a steady and continuous preventative maintenance and investment approach where we annually address the needs of our system and prepare for projected growth.

Investing $70,000,000 over the next four years is an investment in our communities and a significant commitment to providing you the cost-effective energy you need, when you need it.