CEO Note - Another year comes to a close

The end of another year

Once again the holiday season is approaching and with it, the end of another year. 2011 has been a very busy time for your staff here at Tipmont. I’m glad to be able to share some very positive news with all of you concerning the progress we are making on the electric distribution system and technology projects designed to improve service for years to come.

Where we are headed in 2012

Before we recap the year and talk a little about where we are headed in 2012, let us start with a few items of good news. In December, we will distribute $600,000 in capital credits to the membership. These capital credits will be distributed in conjunction with your billing date. So, if you have any capital credits coming your way, expect to see a check or a bill credit starting with bill’s mailed out on November 22.

WVPA rates

Along with this, the board of directors of Wabash Valley Power Association (WVPA) voted in September to lower their rates. Some of you may have noticed that your power cost adjustment went down with the bills that went out on October 22. The power cost adjustment is scheduled to be reviewed by the board again this month but you have received the benefit of this change over your last couple of billings.

Substations and the distribution system

We have focused heavily this year on the maintenance and build out of the electric distribution system. In the spring we brought a new substation on-line on the east side of Lafayette. We are scheduled to have our second substation completed and running by the end of the year. It is located on the south side of the Lafayette area. Along with the two new substations, we have upgraded equipment in several other substations and on many of our primary feeder lines in areas in which we were beginning to see reliability concerns in late 2009 and early 2010.

Technology

From a technology perspective, we have completed the installation of the advanced mapping system. By the end of the year, we will also have our new metering system in place. The outage management system, which you have heard mentioned in the past, is being implemented right now as well. These three core technological components will allow us to manage electric outages in a much more proactive manner as we move forward. Along with these items, a host of smaller technology and work process projects aimed at streamlining work and improving overall operating efficiency have been completed in various functional areas of the organization.

Tipmont rates

Throughout the year, you have heard me discuss our rates structures in this article, in one on one member conversations, and with member groups at various community gatherings and the annual meeting. The capabilities of the new metering system will help us in our current project to redesign our rate structures to allow us to offer the membership options such as a “time of use” rate slated to be implemented at some point in 2012. Keep an eye out for announcements and other communications as we will hold regional member meetings to discuss these new rate designs when they are completed.

Community involvement

Finally, I hope sometime this last year you have run into and had a chance to speak with members of your cooperative staff while they have been out in the communities we serve. Tipmont supports many local groups, charities, and events. While we can provide some funding, the bigger contribution is made with our human capital. As an organization, we donate our employees’ time and many of our staff members contribute further by giving of their personal time. This investment in our communities is part of our vision statement and supports our mission of doing what is right for our membership.

Looking forward to a happy New Year

As for 2012, we will continue to focus heavily on system improvements. We have another substation slated for construction in the West Lafayette area. We hope to break ground on this project in the spring. Beyond this, we will continue to look for ways to improve and to do what is right for you, our member. We have many other projects to complete in the final year of our current three year plan. I don’t have the editorial space to list them all here but I encourage you to watch in the Electric Consumer and on our website (www.tipmont.org) for updates on various items as we move forward. We value and appreciate all the feedback we receive and consider your input when making decisions and plans. Please stay involved and continue to offer your thoughts. We look forward to serving you in the New Year!