Survey Shows Co-op Members Prefer Local Control
11/9/99

Over the course of this summer Kentucky’s 25 local electric utilities held their annual meetings. The annual meetings aren’t like a lot of other annual meetings of shareholders. At a co-op, the customers are the owners. And since most everyone in a co-op service territory uses electricity, everyone in the community is invited to the annual meeting.

At this year’s annual meetings members filled out a seven-question survey asking their opinions on the future of the electric utility industry.

They weren’t idle or irrelevant questions. Several states have restructured their electric utility industry, and in Kentucky a task force is studying the issue in order to make recommendations to the legislature when it convenes in January.

Here are the results, based on a random sampling of the more than 10,000 people who filled out the surveys:

Question 1
Our Cooperative is small compared to investor-owned utilities like LG&E.  While this results in obvious challenges, it also provides opportunities such as local ownership and control, a community focus, and non-profit status.  This also gives us an opportunity to focus on our mission of providing a better quality of life and the lowest possible electric rates. But, we want to know how you feel.

Question 2
Many industries, such as airlines, telephone, and banking, have already been restructured.  This resulted in fewer but larger survivors.  What's your opinion of this?

Question 3
Some members of Congress from states with high electric rates are proposing a plan to lessen the disparity that exists for the cost of electricity throughout the country.  For instance, current electric rates in northern Illinois are twice as high as rates in Kentucky.  The notion is to lower rates in high-cost states and possibly increase rates in low-cost states like Kentucky.  What is your opinion?

Question 4
Your elected officials in Frankfort are studying the possibility of restructuring the electric utilities in our state.  This could lead to your choosing of the utility that generates your electricity while you remain a member of your local distribution co-op that brings electricity to your home.  Some believe this will lower rates, while others believe rates will increase particularly for residential consumers.  What do you think?

Question 5
Do you realize, if the electric utility industry were restructured and you could select the utility of your choice that the utility you choose has the right to refuse your application should they deem your service as unprofitable?

Question 6
If the law were changed and you were offered $3 per month reduction in your electric bill to switch to another company to generate your electricity, what would you do?

Question 7
In some states, where the laws have already been changed, those customers who don't voluntarily choose an alternative power supplier are forced to switch, so they can be forced to experience services from other utilities. What is your opinion?

Kentucky Association of Electric Cooperatives, Inc. 4515 Bishop Lane * Louisville, KY  40218 502-451-2430 * FAX: 502-459-3209 Terms of Use