Power costs are increasing
Simply said, purchased power costs have gone up. This means it costs CREC more to buy electricity these days. Three of the largest factors are:
- Fuels used to generate electricity like gas and coal are rising.
- Economic growth in the U.S. and overseas has increased the demand for energy.
- And lastly, government regulations require costly compliance changes.
We are in this together
There is good news. We’re fortunate to be member-owners of a cooperative with very competitive rates. We also buy power from one of the nation’s lowest cost providers.
Being cooperatives, CREC and Associated Electric Cooperative, our power supplier, have a strong mix of resources. We are also fortunate to live in Oklahoma where power prices are generally inexpensive.
CREC is making a difference
While purchased power costs makes up over 60 percent of the total cost of service, CREC is looking for ways to reduce overall costs. We’ve examined our rate structures, changed our collections procedures, evaluated our fleet fuel costs, eliminated the rebate program and removed the ADAPT program and rate.
CREC recently partnered with Arkansas Electric Cooperatives, Inc. , to establish a Vendor Managed Inventory program. This will allow CREC to save significant dollars annually.
Improved efficiency
Improving efficiency and increasing supply is the bottom line for CREC. We’re investing in new technology to improve efficiency and reliability. We’re working with our power supplier to increase electric supply by building modern, environmentally sound power plants that will supply our needs for the long-term.
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