Cooperatives: The Competitive Difference
The electric utility industry is going through a period of radical and historic
change. State by state, and now in Ohio, initiatives have passed that will bring
forces of competition to what has been for decades, one of the most government regulated
businesses our country has ever known. Your cooperative is being swept up in that
change. In a few short years, the entire complexion of how you do business with
an energy provider will change dramatically.
The electric utility industry has three main components:
Generation
The cost of generating electricity at the power plant represents about 60 percent
of your bill. Presently, your power is produced by Buckeye Power, Inc., a generation
cooperative owned by Ohio's 24 distribution cooperatives.
Transmission
A long distance high voltage "grid" moves large volumes of bulk power to your local
area substation. Transmission costs are about 5 percent of your electric bill.
Distribution
The local lines you see in your neighborhood distribute power from substations to
the meter on your house. This cost represents about 35 percent of your bill.