Case Study: People's Electric Cooperative

People's Electric Cooperative (PEC), an electric cooperative serving rural areas in south-central Oklahoma, joined forces with Evergy Energy Partners (EEP) to facilitate their transition from being a full-requirements customer with another entity to becoming their own customer (independence) in the Southwest Power Pool (SPP) market. This partnership not only allowed PEC to tap into EEP's expertise but also enabled them to effectively manage energy costs through personalized procurement strategies, market monitoring, and risk mitigation techniques.

About People's Electric Cooperative

PEC, headquartered in Ada, Oklahoma, is a rural electric cooperative that plays a vital role in providing electric generation, transmission, and distribution services to approximately 16,000 members across 11 south-central Oklahoma counties.

With a strong commitment to providing reliable and economical power, PEC works tirelessly to improve the lives of its members through teamwork and exceptional service in order to meet the growing demand for electricity at their more than 23,000 locations.

About People's Partnership with Evergy Energy Partners

PEC partnered with EEP in 2015 seeking energy management expertise and market insights. Through collaboration, EEP delivered efficient energy solutions, risk mitigation strategies, and ongoing support, enabling PEC to optimize its power portfolio and achieve significant cost savings.

With the goal of gaining more autonomy, PEC, previously a full-requirements customer, aimed to have improved predictability with energy management and its assets.

• Reduce cost volatility: Minimize exposure to market swings and stabilize energy expenses.
• Diversify energy portfolio: Secure access to a wider range of energy sources for increased resiliency.
• Gain expert guidance: Partner with a knowledgeable and experienced energy management provider.

“We are thankful for the continued partnership with EEP. Through EEP’s careful research and evaluation of the most economical sources of power and innovative uses of technology, we are better able to secure our entire membership’s cost of power.” - Kevin Wood, Executive Vice-President and CEO, People's Electric Cooperative

Our Goal: Offer a seamless transition from being a full-requirements customer to becoming their own market participant

We partnered with PEC to address their needs with a comprehensive solution:

• On-boarding to Become SPP Customer:  developed a timeline and sequence of events of the steps necessary to transition from a full requirement customer to their own entity. 
• Customized Energy Procurement: Developed a diversified portfolio tailored to PEC's consumption patterns and risk tolerance, leveraging various market instruments and hedging strategies.
• Real-time Market Monitoring: Provided continuous market analysis and proactive adjustments to optimize energy purchases and capitalize on favorable pricing opportunities.
• Risk Management Strategies: Employed financial instruments and hedging strategies to mitigate price volatility and protect PEC from market downturns.
• Dedicated Account Support: Assigned a market expert to serve as PEC's single point of contact, offering ongoing support and strategic guidance.

Highlights:

Through EEP's expertise and collaborative approach, PEC achieved impactful results:

• Diversification: By diversifying its energy portfolio and employing strategic procurement strategies, PEC significantly lowered its annual energy expenditures.
• Enhanced Market Resilience: Proactive risk management measures protected PEC from price volatility and unforeseen market fluctuations, promoting financial stability.
• Increased Market Transparency: Real-time market monitoring and personalized reports empowered PEC with actionable insights for informed decision-making.
• Strengthened Partnership: Over 10 years of collaboration, EEP has fostered a trusted partnership with PEC, building mutual trust and open communication.
  
  

Conclusion

People's Electric Cooperative's success story showcases the power of collaborative energy management. By choosing EEP as their partner, PEC gained access to expert guidance, diverse energy solutions, and proactive risk mitigation strategies, ultimately achieving significant cost savings and enhanced market resilience. This case study underscores EEP's commitment to empowering energy consumers with the tools and expertise they need to navigate the dynamic energy landscape and secure a more stable, cost-effective future.