How are my dollars spent?

HERE IS A PERCENTAGE BREAKDOWN
OF WHAT MAKES UP THE FIXED
COSTS IN THE MONTHLY CHARGE:
Operation and Maintenance (32.8%). This ensures
our power line system is properly distributing electricity
to members.
Typical operating expenses include inspecting and
monitoring lines, poles, meters and other distribution
equipment; dispatching and engineering services,
radio communications, and property taxes on lines
and equipment.
Maintenance refers to upkeep of our power line
distribution system, and repairs due to storms and
other damage.
Support Services (25%). This pays for support
services necessary to operate an electric co-op,
including office staff, member services, accounting, IT
and communications.
What Your Bill Pays For
G
reat Lakes Energy is a cooperative.
That means your electric rates are
based on the cooperative’s actual
costs to serve you. What are those costs? The
simplest way to explain what you pay for
is to split your bill into two parts—variable
costs and fixed costs.
The electricity you use is a variable cost, paid for
through the energy and PSCR charges on your bill.
For the average year-round member, these purchased
power costs account for well over half of their bill.
The fixed costs are not related to the amount of
energy you use. They exist whether you use a great
deal or little, if any, electricity.
96936.indd 1
Capital Costs (34%). We have annual expenses
on capital equipment. Costs for new poles, wires,
transformers, computers and office equipment are spread
over their useful life.
Also included is interest owed on long-term debt. Our
large capital expenditures, such as new power lines, are
partially funded with low-interest loans from the federal
Rural Utilities Service and other lenders.
Margins (8.2%). When financial conditions allow,
any profits earned by your cooperative are shared with
members as capital credit refunds. Since 2003, Great
Lakes Energy has issued over $41 million in capital credit
refunds to members.
1323 Boyne Avenue, P.O. Box 70
Boyne City, MI 49712
WEB: gtlakes.com/monthlycharge
TEL: 888-GT-LAKES
HOW ARE MY GLE
DOLLARS
?
Spent
Looking Out for You
Visit gtlakes.com or
Updated June 2015.
Great Lakes Energy is an equal opportunity provider and employer.
call 888-GT-LAKES
9/4/15 1:08 PM
Pole
$80 – $370
Overhead and Underground
Distribution Lines
Here’s a look at the
cost components.
$55,400 – $229,600 per mile
Transformer
$750 – $1,500
Illustration–DennisPreston.com
E
ach year money is budgeted
to continue providing
reliable electric service.
Lineworker Gear
$3,500
Substation
$50,000 in equipment
installed in each
sub station for our
automated meter
reading system.
Total Employee
Wages per
Member
GLE: $145
Electric Co-ops
Nationally: $237
(median)
Learn more!
96936.indd 2
Tree
Trimming
$2,747 per mile
Bucket Truck and
Providing
Attachments
Reliable Electricity to
Residential
Meter
Great Lakes Energy
Members:
$250,000
$165
priceless
Michigan
Country
Lines
49 cents/issue
Watch a short video on the monthly charge. Visit gtlakes.com/monthlycharge
9/4/15 1:08 PM
Spotlight on Excellence Entry Form
NRECA Voting Member Classification *
Distribution Cooperative: more than 90,001 meters
Category *
6. Best Special Publication
Entry Title *
S-How are my dollars spent?
I wish to receive Judges' comments on
this entry
No
Contact's Name *
Shari Culver
Cooperative *
Great Lakes Energy
Mailing Address
PO Box 70
Boyne City, MI 49712
Contact's Email *
[email protected]
Contact's Phone Number *
(231) 487-1313
Name of entrant as it should appear on
the award (if given)
Great Lakes Energy
Is this the first time you've entered the
No
#184
Spotlight competition?
Entrant's Email
[email protected]
Names of others (freelancers or
organizations) involved in the project, if
applicable
Mitchell Graphics, Dennis Preston
Describe your/the co-op's role in the
project *
Our communications staff wrote the copy for this brochure, developed
the concept and directed the designer on size, layout and overall look
of the piece. We also implemented the process to mail these out to
members that express a high billing or rate concern (explained in
objective section).
Describe others’ role in the project
(Reference outside sources of material,
including templates; pre-existing Web
tools and apps; information from outside
groups, such as Straight Talk or
Touchstone Energy; stock photos and
music, etc.) *
We utilized a print and design firm, Mitchell Graphics, for the design
and layout of this brochure. We utilized an illustration by Dennis
Preston that was originally produced and printed in our cooperative
magazine. Stock graphics were used.
Circulation or Number of People Reached * 3,000
Number of Attendees *
Project’s Budget *
$1,270
Target Audience(s) *
members with rate concerns
Project's Objective *
The brochure is intended to communicate value and the cost components that go into providing electricity that a
member may not think about. It also communicates the difference between what the fixed monthly charge covers
versus the energy charge. This was produced in response to a full cost-of-service rate restructuring we implemented
that increased our monthly charge from $18.78 to $32.21 and lowered our energy charge. When speaking to a
member with a billing concern, our call center staff will flag the account with a "Send Rate Brochure" note. A weekly
report shows all of these flagged accounts and generates a custom letter that is sent to the member with this
brochure. We also give these brochures to all members that attend our nine member luncheons. These are also
available in our eight service centers in our literature displays.
Restrictions/Limitations *
Describe why you chose this type of social
media and how you used it *
Provide a brief summary that states the
purpose of the event, how the program
was implemented, and results and how
they were measured *
Provide a brief summary that states the
purpose, how the program was
implemented, and results and how they
were measured using the RACE
framework. Each component has its own
word limit noted below.
There were no restrictions to this project.