Questions & Answers for the 2008 CoServ Electric Annual Meeting

On our Texas Co-op Power Annual Meeting dustcover, we asked you to send in any questions or concerns that you may have had regarding CoServ. CEO Mike Dreyspring answered many of your questions at the Annual Meeting. As promised, all questions from the RSVP cards were answered. Please see the answer to your question below.

Questions about Billing

A non-fee payment system for credit card payments like CoServ had in the past. - Gianitsos, Anesti
The $3.95 fee is charged by Bill Matrix (our payment processing vendor) for payments made online (or by phone). It is passed through to our customers only to cover the cost of the payment. CoServ does not receive one penny of this fee. Because CoServ is member owned and is a not-for-profit organization, this cost is assessed only to those who use the Bill Matrix service – rather than distributing the cost of this service to all members/customers through an increase in rates or overall service fees.CoServ offers automatic bank drafting at no charge for members and customers who want the convenience of having their bill electronically drafted from their bank account each month. Once bank drafting is established, the member/customer receives the billing statement as usual indicating the date of the draft. You may also utilize your bank’s online banking software, if available, to avoid the $3.95 convenience fee.

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Why does CoServ charge a fee to pay your bill on-line? - Nichols, Steve
The $3.95 fee is charged by Bill Matrix (our payment processing vendor) for payments made online (or by phone). It is passed through to our customers only to cover the cost of the payment. CoServ does not receive one penny of this fee. Because CoServ is member owned and is a not-for-profit organization, this cost is assessed only to those who use the Bill Matrix service – rather than distributing the cost of this service to all members/customers through an increase in rates or overall service fees.CoServ offers automatic bank drafting at no charge for members and customers who want the convenience of having their bill electronically drafted from their bank account each month. Once bank drafting is established, the member/customer receives the billing statement as usual indicating the date of the draft. You may also utilize your bank’s online banking software, if available, to avoid the $3.95 convenience fee.

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Explain how to get on level pay. Good job!! - Trichka, Charles
Thanks so much for the compliment! Rolling average billing helps members even out the peaks and valleys in consumption habits. Each month, you pay an amount based on your previous 365 days of electricity usage. For example, the bill you receive for usage in March would be calculated by averaging your usage from April (of the previous year) through March. The bill you receive for usage in April would be calculated by averaging your usage from May (of the previous year) through April, and so on.

Rolling average billing is available to members who have 12 months of payment history with CoServ, have a zero balance, and enroll in automatic bank draft. Enrolling in automatic bank draft also prevents late fees and eliminates the BillMatrix charge of $3.95 to process a credit/debit card transaction. Just contact our Customer Service Team at (940) 321-7800, and we'll set you up.

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My bill is averaged. You draft my bank account. Why waste the envelope every month that I do not use? - Langley, CF
Later this year, we will be offering paperless billing options to our members along with other user-friendly features available with enrollment in an online account. Watch for news in bill stuffers, on our Web site, and in Texas Co-op Power magazine.

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Why take a deposit for every mistaken disconnect? - Mitchell, Dolletta
Deposits are intended to encourage prompt payment. Late payments result in administrative costs with additional billing, postage, etc. Disconnected service results in even higher costs for additional notices and for gasoline and labor to disconnect and reconnect the service. Ultimately, we want to protect the cooperative from uncollectible debt if a member moves from our service area, so deposits are required when service is disconnected.

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Never have understood the break down of the bill. How much is charged for Electric Energy Charge each month? What is PCRF? I Know like gas prices the rate can change each month. My concern is one month I was over charge next month had credit. Then the 3rd - Mays, Joe"Keith"
PCRF stands for “Power Cost Recovery Factor.” The PCRF fluctuates depending on the cost of CoServ Electric’s fuel supply (wholesale power). It is multiplied by the number of kWh used to determine the dollar amount charge you see next to “PCRF” on your bill. The PCRF is determined by CoServ Electric’s actual cost of wholesale power. We do not add any mark-up or profit to the PCRF. When our wholesale power provider, Brazos Electric, charges more for electricity, we pass on the additional cost to our members. In the same way, when Brazos’ cost of electricity goes down, we pass on the savings to our members by decreasing the PCRF. CoServ Electric has not increased the PCRF since April of 2007, but based on higher natural gas prices and the new forecast from Brazos, the PCRF for July will increase from $0.04 to $0.048 and should remain at $0.048 for the remainder of 2008. If the power cost forecast changes (either up or down), we will re-evaluate the $0.048 PCRF. (We did notice a reading discrepancy that you discussed with one of our Customer Service Representatives at the end of May, and it appears that the meter reading was corrected and resolved.)

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Questions about Customer Charge

Why do we have a customer charge, and what does that cover? - Ellis, Elizabeth
The Customer Charge is assessed to all members, and it’s for the cost of infrastructure such as poles, transformers, service conductors and meters available to serve you (whether you use any electricity or not).

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Please address what the PCRF actually is and how it is calculated. - Morgan, Cindy
PCRF stands for “Power Cost Recovery Factor.” This fluctuates depending on the cost of CoServ Electric’s fuel supply (wholesale power). It is multiplied by the number of kWh used to determine the dollar amount charge you see next to “PCRF” on your bill. The PCRF is determined by CoServ Electric’s actual cost of wholesale power. We do not add any mark-up or profit to the PCRF. When our wholesale power provider, Brazos Electric, charges more for electricity, we pass on the additional cost to our members. In the same way, when Brazos’ cost of electricity goes down, we pass on the savings to our members by decreasing the PCRF.

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When CoServ shows rates compared to other electric and gas providers, are the Customer Charges included? If they aren't, they should be in order to have a fair comparison. - Alm, Robert
When comparing rates with other providers, customer charges are included - taxes and franchise fees are not.

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Why is there a $10 Customer charge? Is it true that it will go to $20 soon? - Lewis, Rae and Jimmy
The customer charge is assessed to all members, and it’s for the cost of infrastructure such as poles, transformers, service conductors and meters available to serve you (whether you use any electricity or not). While we don't see the charge increasing to $20 anytime soon, we do know that federal legislation may require that we amend our billing structure to provide a clearer picture of fixed costs versus power costs. Keep in mind that the current $10 customer charge does not cover all of the costs associated with delivery of power, and we are doing our best not to raise this fee.

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The base Customer Charge to each electric and gas charge should be only one charge. It costs the same on the bill. TXU charges one. - Juckem, Marshall
A separate infrastructure supports gas service and electric service, and this is why two fees apply. CoServ Electric and CoServ Gas are also two separate companies.

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Questions about Alternative Energy Sources

Why doesn't CoServ invest in wind generators of 10 or less households with the thousands of members who have land. - Fortenberry, Byron
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported.

Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The option for homeowners; however, is the install distributed generation systems that comply with CoServ Electric's Interconnection Agreement which is referenced on our Tariff and found on our Web site under Billing and Payments. CoServ supports net metering and will work with the vendor you select in ensuring regulatory compliance.

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Denmark and Germany are examples of countries that are making great strides in adopting Solar Energy and energy independence. Why don't you as a power utility, offer us the best solar systems in the world for our homes or for your power plants? - Poppe, Fritz
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported.

Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The option for homeowners; however, is the install distributed generation systems that comply with CoServ Electric's Interconnection Agreement which is referenced on our Tariff and found on our Web site under Billing and Payments. CoServ supports net metering and will work with the vendor you select in ensuring regulatory compliance.

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Does the co-op help customers with planning and installing alternative energy sources on owner members property such as wind/solar alternatives? - Woosley, Linda
CoServ will work with the vendor you select to ensure that your system is in compliance with the regulatory standards described in our Tariff, which is found on our Web site under Billing and Payments. Under Member Info, you'll also find a Distributed Generation Manual that offers details on net metering and other associated information.

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Do you have any information (or opinion) or solar system? - McClenny, David
CoServ does not recommend specific vendors or manufacturers of solar panels and systems, but we will work with the vendor you select to ensure that your system is in compliance with the regulatory standards described in our Tariff, which is found on our Web site under Billing and Payments. Under Member Info, you'll also find a Distributed Generation Manual that offers details on net metering and other associated information.

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I cannot attend, but I would like him to talk about renewable energy options. We must have a choice during this critical time. - Fisher, Stephanie
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported.

Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The option for homeowners; however, is the install distributed generation systems that comply with CoServ Electric's Interconnection Agreement which is referenced on our Tariff and found on our Web site under Billing and Payments. CoServ supports net metering and will work with the vendor you select in ensuring regulatory compliance.

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Why isn't CoServ investing more in nuclear? - Leaman, Kendall
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. And, the technology needed to forge ahead is still, in our opinion, in its infancy, and the financing for the developmenmt of nuclear power is hard to come by. We understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade.

Brazos Electric is receptive to investing in cost effective renewable energy, and they published a request for proposal for construction of renewable power resources, but received no proposals in response. Brazos has also explored agreements for purchasing power from existing renewable resources and found that the cost of this power would increase the cost of power from Brazos to its members. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Does CoServ plan to get into the natural gas business with the natural gas play in our area? - Keeling, James and Barbara
CoServ Gas currently receives a portion of its natural gas supply from the Barnett Shale. In the coming months, CoServ Gas will greatly increase the amount taken from this prolific natural gas field.

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How about more gas-fired generation plants to capture the excess natural gas that is available? - Haney, Charles
Two of Texas' most abundant natural resources are natural gas and coal. Coal remains the less expensive resource to use in generating electricity; however, greenhouse gases are generated during production, and the technology to capture the carbon isn’t developed. Burning natural gas is a cleaner way of generating electricity; however, prices of gas continue to rise. With this in mind, our wholesale power generator, Brazos Electric Cooperative, will continue to balance their portfolio with a mix of coal, natural gas, and renewable generation.

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Why not add cheap nuclear power? - Memmer, Mitsue
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. And, the technology needed to forge ahead is still, in our opinion, in its infancy, and the financing for the developmenmt of nuclear power is hard to come by. We understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade.

Brazos Electric is receptive to investing in cost effective renewable energy, and they published a request for proposal for construction of renewable power resources, but received no proposals in response. Brazos has also explored agreements for purchasing power from existing renewable resources and found that the cost of this power would increase the cost of power from Brazos to its members. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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How serious is CoServ about wind energy? With all the research done so far, when if ever will wind energy be undertaken by CoServ? - Veal, Zoetina
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported.

Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The option for homeowners; however, is the install distributed generation systems that comply with CoServ Electric's Interconnection Agreement which is referenced on our Tariff and found on our Web site under Billing and Payments. CoServ supports net metering and will work with the vendor you select in ensuring regulatory compliance.

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Please discuss existing & future plans/methods for CoServ power generation. - Stevens, Fred
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported. Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons).

In regard to nuclear power, we understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Any plans for encouraging solar energy usage... - Joseph, Anil
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent (with very little of that solar), and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported. Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons).

In regard to nuclear power, we understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans. The option available to CoServ members who want to pursue solar power is for individual interconnected generation that covered in our tariff. We offer net metering as well and encourage members to review the tariff and Distributed Generation Manual on the Web site if they have an interest in installing a solar power system in their home or business.

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Is nuclear power in the picture for the future? - Memmer, James
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. And, the technology needed to forge ahead is still, in our opinion, in its infancy, and the financing for the developmenmt of nuclear power is hard to come by. We understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade.

Brazos Electric is receptive to investing in cost effective renewable energy, and they published a request for proposal for construction of renewable power resources, but received no proposals in response. Brazos has also explored agreements for purchasing power from existing renewable resources and found that the cost of this power would increase the cost of power from Brazos to its members. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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What headway has CoServ made in keeping our planet green? I am concerned with global changes with the masses and consumption of energy. - Gollaher, Patricia and Alex
What is CoServ doing to advance the generation of green power? From a legislative perspective, our electric cooperative supports a national organization called Rural Friends/ACRE, a nonpartisan political action committee that lobbies for legislation benefiting cooperative consumers. CoServ Electric also supports the Cooperative Research Network, an organization that focuses on clean coal and environmental-management technologies, renewable and alternative energy and other factors that affect co-op members.
What is CoServ doing as a company to reduce its carbon footprint?
In addition to keeping a cautious eye on renewable energy breakthroughs and complying with environmental regulations, CoServ protects the environment through the following:

  • CoServ uses three hybrid vehicles, and we are determining the feasibility of using hybrids for much more of our fleet.
  • We recycle much of the paper used in our headquarters, along with batteries, cell phones, oil and cardboard.
  • CoServ is creating a comprehensive energy conservation plan for our offices.
  • We have implemented fleet management software that determines the optimum routes for our field personnel, resulting in fuel and time savings.
What can members do to reduce energy consumption and minimize carbon footprint? A significant amount of pollution can be prevented (and global warming slowed) through consumers using energy wisely. Here is how CoServ encourages our members to conserve energy:
  • CoServ conducts free energy audits for both residential and commercial members.
  • We provide the “Energy Line” newsletter containing conservation resources for our commercial and industrial members.
  • CoServ participates in the Energy Star® Change a Light Pledge.
  • We offer free energy conservation resources on our Web site at www.coserv.com. Select CoServ Electric Service and click on Energy Conservation.
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Please provide an update on your evaluation of renewable energy sources. - Ramseyer, Douglas
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported. Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons).

In regard to nuclear power, we understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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How viable is wind energy and is it cost effective? - Townsend, Donnie R.
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported.Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Is there any assistance--technical or monetary- for wind or solar power form CoServ? - DeFoor, Ron
CoServ does not recommend specific vendors or manufacturers of solar panels and systems, but we will work with the vendor you select to ensure that your system is in compliance with the regulatory standards described in our Tariff, which is found on our Web site under Billing and Payments. Under Member Info, you'll also find a Distributed Generation Manual that offers details on net metering and other associated information.

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When do we get energy from wind power? - Reynolds, Eldon
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported. Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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What is the possibility of getting a wind turbine on our property? - Pockrus, Larry
CoServ does not recommend specific vendors or manufacturers of wind systems, but we will work with the vendor you select to ensure that your system is in compliance with the regulatory standards described in our Tariff, which is found on our Web site under Billing and Payments. Under Member Info, you'll also find a Distributed Generation Manual that offers details on net metering and other associated information.

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Has anyone looked into wind conservation toward electric usage for our area? - Dear, Kathy
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported .Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Why are there no other electric providers available in this area? - Palmier, Paul
Your member-elected board of directors discusses the issue of choice regularly. CoServ believes that members want stable rates, and we monitor market conditions to ensure that our decisions support rate consistency. When considering the idea of providing choice (that means opting in to deregulation), your board and senior management have a responsibility to do so only if it is the right thing for the members.

If, through the careful decision-making process, the board were to decide to opt in, the move would require a large financial outlay. Meeting regulatory requirements could cost several million dollars. And, if CoServ entered the deregulated market, the decision is irrevocable. We must be absolutely sure the decision will result in low rates and reliable service long-term.

I also believe there may be confusion over what “choice” really means to a consumer. Because CoServ owns, operates and maintains the infrastructure serving your homes and businesses, it’s important to understand that we serve as your “wires company” as well as your power provider. If CoServ were to offer choice by opting in to the deregulation, you would indeed be able to decide who “sells” you electricity, but CoServ would continue to “deliver” your power. With separate companies charging for delivery of electricity and for electricity itself, it’s tough to determine if offering choice would actually lower your rates in the long-term.

Again, if you had choice in your neighborhood, you would be able to select the provider who “sells” you electricity. However, these Retail Electric Providers (called REPs) buy their power from a small handful of wholesale power generators who hold market and pricing dominance in Texas. This control over power generation causes pricing to be non-competitive, and we believe it is the reason that deregulation has not shown positive results.

Between 2002 and 2006, electricity rates increased 57 percent in the deregulated Texas market (per the Energy Information Administration) compared to 23 percent in regulated states. And, a number of states that deregulated their electricity markets have actually suspended the practice. And, given the dysfunction and destabilization that has occurred this summer with a number of REPs defaulting and the remaining providers raising rates significantly, we are hesitant to change the structure of our business and devote significant resources to an idea that doesn’t appear to effectively control costs and rates for the long run. For more information about deregulation, visit coserv.com and click on "Why don't I have choice in electric providers?"

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Will there be wind farms in the Denton, Wise county vicinity? - George, Georgia B.
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported. Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Do you have credits for wind turbines? What about reverse meters? - Osborn, Johnny and Toni
CoServ does offer net metering for members who wish to install their own distributed generation; however, we do not recommend specific vendors or manufacturers of wind systems. We do work with the vendor you select to ensure that your system is in compliance with the regulatory standards described in our Tariff, which is found on our Web site under Billing and Payments. Under Member Info, you'll also find a Distributed Generation Manual that offers details on net metering and other associated information. Currently, we do not offer rebates through CoServ for member-owned distributed generation, but you can check for qualifying rebates at the Department of Energy Web site at www.doe.gov.

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How do we get Congress to 1) open up more drilling and 2) build more nuclear plants and refineries. We allowing far left environmentalists to drive our standard of living backward. Yes, clean air and water, but at what cost? - Comunale, Larry A
CoServ’s board and senior staff recognize that climate change legislation must be carefully balanced with sound energy policy. We encourage our members to visit www.ourenergy.coop to contact their legislators in a grassroots effort to maintain affordable power costs when considering climate change legislation.

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Future, if any, of nuclear power in USA and Texas in particular. - Cowan, Paul
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. And, the technology needed to forge ahead is still, in our opinion, in its infancy, and the financing for the developmenmt of nuclear power is hard to come by. We understand that permit requests have recently been filed by Luminant and a few other conglomerates to build several nuclear plants in the Lone Star state; however, the regulatory and construction process will take a decade.

Brazos Electric is receptive to investing in cost effective renewable energy, and they published a request for proposal for construction of renewable power resources, but received no proposals in response. Brazos has also explored agreements for purchasing power from existing renewable resources and found that the cost of this power would increase the cost of power from Brazos to its members. The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Coop's position on wind generation. Do you encourage members to pursue it? Do you have suggestions on practicality? "contribution to the grid" - Wolf, Robert
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is also only two percent. The Electric Reliability Council of Texas (ERCOT) Web site shows that Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported.

Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The option for business owners and homeowners, however, is the install distributed generation systems that comply with CoServ Electric's Interconnection Agreement which is referenced on our Tariff and found on our Web site under Billing and Payments. CoServ supports net metering and will work with the vendor you select in ensuring regulatory compliance. For more information, please click on Member Info and select the Distributed Generation Manual.

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What is the CoServ position on the proposed "coal" fueled electric plants? - Waco, Linda
Two of Texas' most abundant natural resources are natural gas and coal. Coal is a low cost resource to use for generating electricity; however, greenhouse gases are generated during production and the technology to capture the carbon isn’t fully developed. Burning natural gas is a cleaner way of generating electricity; however, prices of gas continue to rise. With this in mind, our wholesale power generator, Brazos Electric Cooperative, will continue to balance their portfolio with a mix of coal, natural gas, and renewable generation.

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Questions about Rates

Will we be looking at any rate increases for next year? - Arrant, Sandy
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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With natural gas prices increasing, what percentage should we expect our electric rates to increase this summer? - GRAHAM, ALLEN
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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Will rates go up this summer or stay the same ? - izzo, james
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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PCRF charge? - Elliott, suretha
PCRF stands for “Power Cost Recovery Factor.” The PCRF fluctuates depending on the cost of CoServ Electric’s fuel supply (wholesale power). It is multiplied by the number of kWh used to determine the dollar amount charge you see next to “PCRF” on your bill. The PCRF is determined by CoServ Electric’s actual cost of wholesale power. We do not add any mark-up or profit to the PCRF. When our wholesale power provider, Brazos Electric, charges more for electricity, we pass on the additional cost to our members. In the same way, when Brazos’ cost of electricity goes down, we pass on the savings to our members by decreasing the PCRF. CoServ Electric has not increased the PCRF since April of 2007, but based on higher natural gas prices and the new forecast from Brazos, the PCRF for July will increase from $0.04 to $0.048 and should remain at $0.048 for the remainder of 2008. If the power cost forecast changes (either up or down), we will re-evaluate the $0.048 PCRF.

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Plans in tackling raising energy costs. - Viswanath, Anoop
PCRF stands for “Power Cost Recovery Factor.” The PCRF fluctuates depending on the cost of CoServ Electric’s fuel supply (wholesale power). It is multiplied by the number of kWh used to determine the dollar amount charge you see next to “PCRF” on your bill. The PCRF is determined by CoServ Electric’s actual cost of wholesale power. We do not add any mark-up or profit to the PCRF. When our wholesale power provider, Brazos Electric, charges more for electricity, we pass on the additional cost to our members. In the same way, when Brazos’ cost of electricity goes down, we pass on the savings to our members by decreasing the PCRF. CoServ Electric has not increased the PCRF since April of 2007, but based on higher natural gas prices and the new forecast from Brazos, the PCRF for July will increase from $0.04 to $0.048 and should remain at $0.048 for the remainder of 2008. If the power cost forecast changes (either up or down), we will re-evaluate the $0.048 PCRF.

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What will CoServ do to help its customers with the rising cost of living? - Giron, David
CoServ Electric maintains consistently low rates for you, our member-owners. Over the last two years, your rates have remained lower than TXU and Reliant Energy, the two largest retail electric providers in Texas, and even with an adjustment to the Power Cost Recovery Factor (PCRF), we believe that CoServ Electric’s value will remain competitive with other providers in North Texas. In fact, according to www.powertochoose.org, our rates remain among the lowest of all electric providers in the North Texas area. Watch for your August issue of Texas Co-op Power magazine for important information about the wholesale cost of power and what’s happened to consumers of electric providers that defaulted when wholesale prices spiked this summer in Texas. The full story will appear on page 18 of your August issue and will be posted on our Web site at www.coserv.com.

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With May gas purchase price of 10.3 cents, please explain the 16.9 cents/CCF and $1.885 per CCF (PGF rate at $1.1598/CCF) - Kahl, Ted
CoServ Gas contacted Mr. Kahl to discuss his bills and helped him to understand the details of his monthly gas bill. And our Web site (www.coservgas.com) offers a detailed explanation of the items on the bill.

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How do CoServ's rates compare to others? - Gramly, Jerry and Anita
CoServ Electric maintains consistently low rates for you, our member-owners. Over the last two years, your rates have remained lower than TXU and Reliant Energy, the two largest retail electric providers in Texas, and even with an adjustment to the Power Cost Recovery Factor (PCRF), we believe that CoServ Electric’s value will remain competitive with other providers in North Texas. In fact, according to www.powertochoose.org, our rates remain among the lowest of all electric providers in the North Texas area. Watch for your August issue of Texas Co-op Power magazine for important information about the wholesale cost of power and what’s happened to consumers of electric providers that defaulted when wholesale prices spiked this summer in Texas. The full story will appear on page 18 of your August issue and will be posted on our Web site at www.coserv.com.

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Why are Denton's utility rates cheaper than CoServ? - Murillo, Felipa
In a recent Denton Record Chronicle article, DME announced that they had recovered revenues through the energy cost adjustment in their rates in excess over their actual costs.  Because of this over recovery of the energy cost adjustment, DME began refunding the over collection by lowering the adjustment and the overall electric rate to DME consumers. (you should be able to find a DRC article about this).  DME has subsequently zeroed out the over recovery and has raised the energy cost adjustment twice in 2008.  The energy cost adjustment increase in May 2008 was from $0.038 per kWh to $0.06 per kWh.  We believe the DME rate advantage was temporary and was due to the refund of an over collection and a lull in natural gas costs for a short period of time.  CoServ’s power supplier, Brazos Electric, has a strategy to provide rate stability through its gas hedging program.  With the Brazos rate stability program, CoServ members are protected from wide swings in the cost of electricity due to volatile natural gas prices.

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Keeping utility pricing down - with cost of gas, increases in groceries we can't handle much more. - Golden, Maryanne
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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What is CoServ doing to keep the cost of electric low? Now and in the future, we retired people to not get raises. - Shelton, Joe and Patricia
Though we understand that many seniors are on fixed incomes, all American consumers have seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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Congratulations on persisting on lower energy rates for your members. - Barber, Charles and Joan
You're very welcome, and we appreciate your acknowledgment! CoServ Electric maintains consistently low rates for you, our member-owners. Over the last two years, your rates have remained lower than TXU and Reliant Energy, the two largest retail electric providers in Texas, and even with an adjustment to the Power Cost Recovery Factor (PCRF), we believe that CoServ Electric’s value will remain competitive with other providers in North Texas. In fact, according to www.powertochoose.org, our rates remain among the lowest of all electric providers in the North Texas area. Watch for your August issue of Texas Co-op Power magazine for important information about the wholesale cost of power and what’s happened to consumers of electric providers that defaulted when wholesale prices spiked this summer in Texas. The full story will appear on page 18 of your August issue and will be posted on our Web site at www.coserv.com.

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With the continuing rise in fuel costs, what do you see in the future for CoServ subscribers? - Wells, Jim and Lynn
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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Will rising fuel cause increases in my electric bill? - Echols, Toy E.
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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PCRF --for seniors on a fixed income seems very high! - Hill, Sr., Richard
Though we understand that many seniors are on fixed incomes, all American consumers have seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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Explain the PCRF charge on our bills and how it is calculated please. - Hudson, John
PCRF stands for “Power Cost Recovery Factor.” This fluctuates depending on the cost of CoServ Electric’s fuel supply (wholesale power). It is multiplied by the number of kWh used to determine the dollar amount charge you see next to “PCRF” on your bill. The PCRF is determined by CoServ Electric’s actual cost of wholesale power. We do not add any mark-up or profit to the PCRF. When our wholesale power provider, Brazos Electric, charges more for electricity, we pass on the additional cost to our members. In the same way, when Brazos’ cost of electricity goes down, we pass on the savings to our members by decreasing the PCRF. CoServ Electric has not increased the PCRF since April of 2007, but based on higher natural gas prices and the new forecast from Brazos, the PCRF for July will increase from $0.04 to $0.048 and should remain at $0.048 for the remainder of 2008. If the power cost forecast changes (either up or down), we will re-evaluate the $0.048 PCRF.

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How are you helping us with fuel cost? My bill is double what it was last year. - Taylor, Dorothea Land
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and in fact, the PRCF (nor your rate) was raised since last year. Your consumption must have increased with the hotter than normal temperatures we're experiencing, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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Why is the PCRF over half of the total bill? This is every month. We understood at the 2007 annual meeting this would not be so - Vriezen, Gary and Lynne
PCRF stands for “Power Cost Recovery Factor.” The PCRF fluctuates depending on the cost of CoServ Electric’s fuel supply (wholesale power). It is multiplied by the number of kWh used to determine the dollar amount charge you see next to “PCRF” on your bill. The PCRF is determined by CoServ Electric’s actual cost of wholesale power. We do not add any mark-up or profit to the PCRF. When our wholesale power provider, Brazos Electric, charges more for electricity, we pass on the additional cost to our members. In the same way, when Brazos’ cost of electricity goes down, we pass on the savings to our members by decreasing the PCRF. CoServ Electric has not increased the PCRF since April of 2007, but based on higher natural gas prices and the new forecast from Brazos, the PCRF for July will increase from $0.04 to $0.048 and should remain at $0.048 for the remainder of 2008. If the power cost forecast changes (either up or down), we will re-evaluate the $0.048 PCRF.

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Future cost of power versus increases in natural gas and coal. - Elwood, Joseph
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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How does CoServ plan to keep prices affordable? - Farguson, Joe
The American consumer has seen the cost of living rise significantly in 2008. From gasoline and diesel to insurance premiums and ice cream, it seems that everything we buy today costs a little more than it did last week, last month, or last year. Since you, our members, look to CoServ as the cooperative you trust, we consistently communicate with you about industry conditions and the volatility of the Texas energy market. As a member, you receive power from CoServ as close to cost as possible, but as mentioned many times in the Dallas Morning News, in the Star Telegram, and in CoServ’s marketing materials, the wholesale cost of power is rising. A large percentage of electricity in Texas is generated from natural gas, and the cost of this resource has risen dramatically (along with the price of oil). CoServ’s rates, on average over the last three years, have remained lower than most retail electric providers. However, with the rise in wholesale power costs, your July statement reflects an increase in the Power Cost Recovery Factor (PCRF), from $.04 to $.048. The increase in wholesale costs is minimal, and energy conservation is the key to keeping a handle on your consumption. Visit our Web site at coserv.com and click on Energy Conservation to find cost-saving resources.

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Questions about Capital Credits

Please explain notice of Capital Credits allocation. What is it? - Rubalcava, Angel
When Capital Credits are allocated and/or retired, we notify our membership – that is why you received the allocation notice in the mail. Capital Credits represent a member’s allocated share of CoServ Electric’s profits (i.e., margins) during the period of time in which he/she is a member of the cooperative. Yearly profits are allocated to members based on their amount billed for electric purchases. This allocation is credited to a Capital Credit or patronage capital account and maintained for each member until the credits are retired (paid).
Allocation is assigning Capital Credits to each member's account based on the amount billed - no money is paid out at this time. Profits generated by these allocations are re-invested in the cooperative or held to meet financial and operational requirements. Capital Credit retirement refers to “paying out” on the allocations (i.e., issuing checks or account credits).
Capital Credits are retired at the discretion of the CoServ Board of Directors when the cooperative has met certain financial requirements. Our policy is to pay 100% of the oldest year outstanding (using a first-in, first-out method), and we pay the “net present value” of each member’s Capital Credits, as opposed to paying the face value at the end of the normal cycle. CoServ Electric wants our members to glean the benefits of Capital Credits today, and net discounting is a way to accomplish that goal – to pay Capital Credits to newer members but still be fair to those who have waited a longer period to receive their Capital Credits.

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Questions about Deregulation

Being trapped in a co-op thus not having the right to choose providers (additional charges). - Baker, Melonie
Your member-elected board of directors discusses the issue of choice regularly. CoServ believes that members want stable rates, and we monitor market conditions to ensure that our decisions support rate consistency. When considering the idea of providing choice (that means opting in to deregulation), your board and senior management have a responsibility to do so only if it is the right thing for the members.

If, through the careful decision-making process, the board were to decide to opt in, the move would require a large financial outlay. Meeting regulatory requirements could cost several million dollars. And, if CoServ entered the deregulated market, the decision is irrevocable. We must be absolutely sure the decision will result in low rates and reliable service long-term.

I also believe there may be confusion over what “choice” really means to a consumer. Because CoServ owns, operates and maintains the infrastructure serving your homes and businesses, it’s important to understand that we serve as your “wires company” as well as your power provider. If CoServ were to offer choice by opting in to the deregulation, you would indeed be able to decide who “sells” you electricity, but CoServ would continue to “deliver” your power. With separate companies charging for delivery of electricity and for electricity itself, it’s tough to determine if offering choice would actually lower your rates in the long-term.

Again, if you had choice in your neighborhood, you would be able to select the provider who “sells” you electricity. However, these Retail Electric Providers (called REPs) buy their power from a small handful of wholesale power generators who hold market and pricing dominance in Texas. This control over power generation causes pricing to be non-competitive, and we believe it is the reason that deregulation has not shown positive results.

Between 2002 and 2006, electricity rates increased 57 percent in the deregulated Texas market (per the Energy Information Administration) compared to 23 percent in regulated states. And, a number of states that deregulated their electricity markets have actually suspended the practice. And, given the dysfunction and destabilization that has occurred this summer with a number of REPs defaulting and the remaining providers raising rates significantly, we are hesitant to change the structure of our business and devote significant resources to an idea that doesn’t appear to effectively control costs and rates for the long run. For more information about deregulation, visit coserv.com and click on "Why don't I have choice in electric providers?"

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How is deregulation currently affecting CoServ? How about the future? - Wooley, Gary
Your member-elected board of directors discusses the issue of choice regularly. CoServ believes that members want stable rates, and we monitor market conditions to ensure that our decisions support rate consistency. When considering the idea of providing choice (that means opting in to deregulation), your board and senior management have a responsibility to do so only if it is the right thing for the members.

If, through the careful decision-making process, the board were to decide to opt in, the move would require a large financial outlay. Meeting regulatory requirements could cost several million dollars. And, if CoServ entered the deregulated market, the decision is irrevocable. We must be absolutely sure the decision will result in low rates and reliable service long-term.

I also believe there may be confusion over what “choice” really means to a consumer. Because CoServ owns, operates and maintains the infrastructure serving your homes and businesses, it’s important to understand that we serve as your “wires company” as well as your power provider. If CoServ were to offer choice by opting in to the deregulation, you would indeed be able to decide who “sells” you electricity, but CoServ would continue to “deliver” your power. With separate companies charging for delivery of electricity and for electricity itself, it’s tough to determine if offering choice would actually lower your rates in the long-term.

Again, if you had choice in your neighborhood, you would be able to select the provider who “sells” you electricity. However, these Retail Electric Providers (called REPs) buy their power from a small handful of wholesale power generators who hold market and pricing dominance in Texas. This control over power generation causes pricing to be non-competitive, and we believe it is the reason that deregulation has not shown positive results.

Between 2002 and 2006, electricity rates increased 57 percent in the deregulated Texas market (per the Energy Information Administration) compared to 23 percent in regulated states. And, a number of states that deregulated their electricity markets have actually suspended the practice. And, given the dysfunction and destabilization that has occurred this summer with a number of REPs defaulting and the remaining providers raising rates significantly, we are hesitant to change the structure of our business and devote significant resources to an idea that doesn’t appear to effectively control costs and rates for the long run. For more information about deregulation, visit coserv.com and click on "Why don't I have choice in electric providers?

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Questions about Energy Conservation

Ways to trim your monthly bill? Thanks to all who help us have electricity!! - Corbell, Annie
You're very welcome, and we thank you for your kind words. Energy conservation is the key to keeping a handle on your consumption. Visit our Web site and click on Energy Conservation to find these cost-saving resources:

  • Energy Calculators – lower your bill with our interactive calculators.
  • Self-Help Home Audit – use this checklist to pinpoint energy-wasters.
  • Temperature Charts – see how the weather affects your consumption.
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Has CoServ considered implementing an incentive rebate program for customers who purchase a HE appliance? And if not, why not? - white, cheryl
CoServ is currently doing the research to implement an energy-efficiency rebate program for replacement HVAC units. We believe that conservation is the key to helping our members hold down their energy costs, and we are excited about introducing this program. You’ll see more about this in the coming months on www.coserv.com, in Texas Co-op Power magazine, in bill stuffers, and in E-Notice, our monthly balance alert that offers conservation tips, CoServ news and industry updates.

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Does/will CoServ begin using solar/wind power? - Zvonar, Patricia
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but the entire state of Texas’ current capacity for renewable power is also only two percent, and per the Electric Reliability Council of Texas (ERCOT), Texas’ power is largely generated by using natural gas and coal. Though Texas leads the nation in wind power generation, renewable sources continue to play a very small role in meeting our state’s power demand. Wind generation is growing in Coastal and West Texas, but generation is just one part of the equation. Utilities must find ways to transmit this wind power to urban areas, as the wind blows in areas of Texas on open plains—not in urban areas with large populations. Regulatory hurdles affect the location of transmission lines, and the public typically opposes placing these lines near their homes or property. Though a large wind farm, planned for Briscoe County, is in the development stages, it will be interesting to observe that power is transported. Lastly, wind generation remains sporadic, and reliable sources of power (such as natural gas and coal) must be used to fill the huge gaps that renewable sources leave to meet demand for power. Wind power, with a capacity factor of 8.7 percent, is unavailable during our summer peak times (i.e., the wind does not blow consistently on very hot afternoons). The situation (and the truth in the lack of renewable availability in the state’s grid) invariably ties CoServ’s hands in the ability to offer members renewable options.

Though green power is incredibly popular in "theory," its actual production is costly. The majority of CoServ members have told us (through detailed surveys) that their most important focus is on the affordability of power. While we agree that reducing carbon footprint is a priority, legislation enforcing standards must be balanced to keep the price of electricity affordable for Americans.

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Thermal blankets effectiveness? - Mynar, Linda
Thermal attic blankets aren't as effective as radiant barrier since they are installed by laying it across the attic floor rather than applying it to the underside of the roof. Thermal blankets are intended to keep warm air inside the house from rising into the attic in the winter and to keep hot air from escaping into the house from the attic in summer. Radiant barrier, however, prevents the attic air from warming in the first place. Hot water heater blankets, however, are quite effective at reducing heat loss.

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Does CoServ contract the installation of residential solar panels? - chapman, sheri
CoServ does not recommend specific vendors or manufacturers of solar panels and systems, but we will work with the vendor you select to ensure that your system is in compliance with the regulatory standards described in our Tariff, which is found on our Web site under Billing and Payments. Under Member Info, you'll also find a Distributed Generation Manual that offers details on net metering and other associated information.

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Miscellaneous Questions

Why a 2004 truck instead of a 2008 or 2009? - Montgomery, Weldon
The 2004 Ford F-150 is a truck from our fleet that was being retired. Purchasing a new truck as a prize would have been quite costly.

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Why can't natural gas be provided for my area? Why not take advantage of the Barnett Shell!! - Correa, Javier
We contacted Mr. Correa and informed him that CoServ Gas had gas mains close to his residence and would be able to supply gas. CoServ Gas currently receives a portion of its natural gas supply from the Barnett Shale. In the coming months, CoServ Gas will greatly increase the amount taken from this prolific natural gas field.

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We had the radiant barrier system installed in our attic. Is there a credit benefit on our electric service and with IRS? I haven't seen a benefit yet in lower electric usage. - Mehaffey, Delores & Maurice
Properly installed radiant barrier should increase the energy efficiency of your home. A difference in consumption should be noticed if your thermostat settings remain the same as last year and if the temperatures were the same. Unfortunately, our 2008 summer has been warmer, and got hot quicker than summer of 2007. We’ve also experience “record-high lows” - meaning that the temperatures just are not cooling down as much at night, which makes your HVAC work harder to keep your home cool while your family sleeps. Given these hotter temperatures, the fact that your consumption hasn’t risen is a good sign and it could be due to the benefit of the radiant barrier.

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Is there a way to get any more of the light bulbs free from CoServ that you gave away at last year's annual meeting? Thanks, R Davis - Davis, R
CoServ Electric gave away CFLs at last year’s annual meeting. This year, we are using our CFL giveaways at Expos and other CoServ sponsored events to highlight energy efficiency.

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How can we get a member list so we can run next time? - Bell, Larry
CoServ’s privacy policy prevents us from releasing confidential member information. Candidates (including incumbents) are not provided with member information. However, we are aware that one of the candidates in our recent election contacted members by e-mail and/or telephone. Since CoServ is not authorized to release this information to the candidate, we can only surmise that an outside marketing agency may have provided information to the candidate based on zip code or city.

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1. How much effect will oil/natural gas pricing have on CoServ operations? 2. Will CoServ ever get involved in Wind Turbine Energy? - Meek, William
A number of members asked questions about renewable power and why CoServ wasn’t involved in wind, solar, nuclear power generation. The short answer is that we are a distributor of power rather than a generator. Our wholesale power provider is Brazos Electric Cooperative. Because Brazos is a generator of power, they are also referred to as a Generation and Transmission Cooperative—meaning they produce power and transmit it to other cooperatives who distribute the power to their consumer members. As a cooperative, Brazos sells power to CoServ and its other member cooperative at wholesale cost.

Brazos’ energy portfolio (which is also a cooperative rather than a for-profit entity) currently consists of about two percent renewable, but I also want to point out that the entire state of Texas’ current capacity for renewable power is