energy cooperative association of pennsylvania
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Energy Cooperative Association of Pennsylvania. Exploring Cooperatives: Economic Democracy and Community Development in Pennsylvania and Wisconsin June 13, 2012. The Energy Co-op Mission. To provide energy cost savings, education and advocacy on behalf of its members - PowerPoint PPT PresentationTRANSCRIPT
ENERGY COOPERATIVE ASSOCIATION OF PENNSYLVANIA
Exploring Cooperatives: Economic Democracy and Community Development in Pennsylvania and Wisconsin
June 13, 2012
The Energy Co-op Mission
• To provide energy cost savings, education and advocacy on behalf of its members
• To promote the efficient use of energy and the use of renewable energy
• To support cooperative concepts and participate in the cooperative movement
ECAP History & ProgramsHistory• Est. 1979 as a heating oil
cooperative• Founded by Weavers Way Food
Cooperative members• Located in Center City
Philadelphia• Serves members in a five county
region of Southeast PA
Programs• Heating Oil• Electricity• Biodiesel Distribution
Service Area – Delaware Valley Region
Heating Oil Program• Group buying program for heating oil consumers• Owner-members in five counties• Partners with 10 suppliers
• Most locally owned• 5 provide Bioheat/combinations of bioheat and conventional heating oil
• Floating daily rate – varies by supplier• Set by ECAP• Based on the daily wholesale market price and marked up for each supplier based
on contracted fixed margins
• Average cost savings of up to
$.20/gallon
Energy Program
• Electricity Generation Customer Choice and Competition Act of 1996
• ECAP licensed Electric Generation Supplier• 2012 Electricity Composition
• EcoChoice100 = 99% wind; 1% solar • EcoChoice20 = 20% wind
Biodiesel Distribution Program
• ECAP is a a full-service, licensed Class I Distributor in Pennsylvania supplying biodiesel at any blend level• Sustainably sourced, produced and distributed• Grant application and administration support• Quality ASTM-grade fuel
Categorizing ECAP• Type – determined by
ownership structure and function
• Consumption OR production
• ECAP incorporates elements of both
• Sector – industry in which the cooperative operates
• Utility sector• Distribution OR generation
and transmission (G&T)• Federated co-ops form
purchasing co-ops to generate or purchase the power they distribute
ECAP = Hybrid Consumer-Producer Federated Energy Distribution-G&T Cooperative
Board of Directors
• Elected by and (largely) from within ECAP’s membership
• Administrative and managing agent of the cooperative
• Composition (according to bylaws)• 5 – 11 directors solicited from all classes of membership
• ≥ 50% of directors need to be active members
• ≤ 6 at-large, non-member directors
• 2 year staggered terms with a 4 term limit
Co-Director of
Programs
Co-Directorof
Operations
Biodiesel Distribution
Program Manager
Electricity Program Manager
Manager of Membership & Administration
Outreach Associate
Marketing Coordinator
• Oversees the Electricity and Biodiesel Distribution programs (and ultimately the Heating Oil Distribution Program)
• Direct research and development of existing and new energy programs
• Manage the implementation of strategic goals
• Manage and report on the financial conditions of the organization
.
• Oversee the Membership, Marketing, and Outreach departments
• Manage the implementation of strategic goals and strategic management process
• Oversee HR, IT and infrastructure• Report on organization’s
operational conditions
• Coordinating all marketing efforts
• Oversee Heating Oil membership services
• Managing and growing the Electricity Program
• Identifying and obtaining for local energy sources
• Maintaining inventories of biodiesel
• Ensuring quality control• Arranges and processes
deliveries• Reports on grant deliverables
• Focuses on meeting the needs of the co-op’s growing membership base
• Manages website and IT needs
• Engages members through the co-op’s social media sites
• Serves as the face of the co-op at local events
Staff
Members• Membership Classes
• Class A – any cooperative organization, credit union, unincorporated association, community association or nonprofit organization
• Class B – any residential household or residential energy consumer• Class C – any businesses or for-profit enterprise
• Membership Status• Active – members using ECAP services/products who are current with dues
or have applied for/received a dues waiver; only active members can vote at the AMM
• Inactive – members using ECAP services who are not current with dues and have not requested a dues waiver
• Supporting – organizations, households and businesses unable to use ECAP services/products due to unavailability who are eligible for limited member benefits
7,606 members as of February, 2012
Reasons for Originally Joinging ECAP0
10
20
30
40
50
60
Member Motivation for Joining ECAP
To save money on energy
To receive a fair price on energy
To support a locally-based organization
To support a variety of renewable elec-tricity sources
To support in-state renewable electricity sources
Member Age Distribution 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Member Age Distribution
Prefer Not to Answer65 and older55 -6445 - 5435 - 4425 - 3418 - 24
Educational Attainment0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Highest Level of Education Received
Prefer Not to Answer
Graduate
College
High School
Household Income Range0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Household Income Range
Less than $25,000
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,000
$150,000 or more
Prefer Not to Answer
What would make you feel more engaged as a member of The Energy Coopera-tive?
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Member Engagement
Nothing. I like my current level of en-gagement.
Participate in an online forum for members.
Attend the annual membership meeting.
Present information about The Energy Co-op to neighbors or civil/professional associa-tions.
Serve on a committee.
Volunteer at community events.
Serve on the board.
Volunteer at the office.
ECAP & Strategic Management
• 2012 Strategic Planning Initiative
• Lack of best practices
• Unique organizational structure
• Mixed urban, suburban and rural membership/service area
• Cooperative and ECAP-specific values
• Innovative, young and expert leadership
Big Hairy Audacious Goal (BHAG)
• By 2020, The Energy Coop
• Has 20% market share,
• Sources 100% of its renewable energy from within the region, and
• Reduces overall greenhouse gas emissions by more than 20% compared to conventional energy usage.
Strategic Issues
Expansion
• Patronage rebates distributed in proportion to use
• How to distribute patronage rebates to new members?
• New users may receive benefits that are disproportional to their share of the equity investment
• Existing members may be reluctant for the cooperative to use the equity created through their patronage to fund operations benefiting new users
Diversification
• ECAP’s weak position in the renewable energy market
• ECAP’s competitive edge dependent on innovation and diversification
• Investment in R&D will yield uneven/irregular program diversification
• Uneven diversification will result in disproportionate patronage rebates
Conclusions• Importance of mission and values
• Identification of strategic issues and best practices consistent with cooperative principles
• ECAP’s innovative products and unconventional business structure pose specific challenges • Profit distribution system • Equity structure
• Realization of the BHAG requires balancing ECAP’s• Progressive business structure• Organizational values• Universal cooperative principles