I don’t write many Executive Director’s Message columns. My philosophy is, if I have something important to communicate to the members, I’ll do it. Otherwise, let TSSA’s events and benefits speak for themselves, and let folks wiser than I share their expert opinions and research by writing articles and columns that educate.
 

When it comes to endorsing programs, you may have noticed that TSSA, as an organization, doesn’t do much of that either. In fact, for almost 10 years, we have had only one endorsed program, a workers compensation insurance plan through Wortham Insurance and Risk Management.

It’s not because we don’t have the opportunity to offer what the association world calls “affinity programs.” I am regularly approached by companies offering member benefit programs that promise savings, convenience, or a source of revenue for the Association. Unfortunately, when we really analyze these programs, they rarely live up to the hype. In short, we don’t believe they are programs about which we can be proud.

Electricity Aggregation Program
So, I am truly excited to roll out a program that has the potential to be a real cost-saving benefit for our members in all deregulated cities in Texas—an electricity aggregation program with Tradition Energy, one of the nation’s largest energy procurement firms. After considering various proposals for almost a year, a dedicated group of volunteers recommended this program to our board. The TSSA Board of Directors believes that the program, with the credentials of the energy broker and the potential savings for eligible members, is worthy of TSSA’s coveted endorsement.

How Will the Program Work?
Only members in cities that are deregulated (generally, those whose electricity is not provided by a municipality or cooperative) are eligible to participate. If your facility is in a deregulated market, you should be receiving materials in the mail asking you to complete a simple form providing the facility’s location, meter number, and your current electricity billing statements to establish usage history. At the same time, you will sign an agreement with TSSA authorizing the Association to negotiate the best possible rates and terms on your behalf.

Participants become part of a pool, meaning that no matter the size of your energy consumption, you will receive the benefit of volume pricing because of the total kilowatt hours our group represents. Once the number of participants is established, Tradition will be in the favorable position of being able to obtain some of the best rates the market has to offer, based on the pool’s total kilowatt usage.

If you’ve researched the issue of electricity aggregation programs, you understand that volume reigns supreme when getting the most favorable rates and terms. (The more kilowatt hours, the more desirable the pool, and the better the rates we will be offered.) If you haven’t researched this topic, but just want the assurance that you’ll be able to hold the line on your electricity rates and lock them in for a one or three-year term, this program is for you as well. Keep in mind that electricity rates have historically continued to rise over time, and can also jump dramatically after weather catastrophes such as Hurricane Katrina.

Choice of Contract Term and Rate Type
When you participate in this program, you will have the opportunity to choose either a one-year or three-year contract term, and to choose whether you want a fixed rate or an variable rate that fluctuates with the market.

Act by May 23 to Participate
You will need to act quickly when you receive this material from Tradition, responding no later than May 23, 2008. If you miss this deadline, you may be allowed to join the aggregation pool at a later date, but only for the length of time left in the initial contract term. As we approach the end of the contract terms, we’ll begin shopping the provider market again six months out before renewal to find the best deal at that time. Participants will have the opportunity at that time to either stay in the pool or leave to return to general market pricing.

How Will I Know What My Rates Will Be?
Once we know you want to participate in the program, we will keep you informed of the rates and terms we are negotiating. The key will be communication from Tradition (with TSSA monitoring) regarding the negotiations and rates before the final contract is signed. We want our members to know everything about the terms being negotiated. When Tradition proposes what TSSA considers the best deal for members, the organization will act on members’ behalf and execute binding contracts for both one-year and three-year pool participants. The goal is to execute the contracts no later than mid-to-late June.

Take advantage of this exciting opportunity to control electricity rates. As part of the inaugural group of participants, you’ll be able to look back and be proud of the fact that you didn’t let this opportunity to hold the line on electricity costs slip by you.

Find out more about this exciting opportunity here!