Page 16 - ES&G report 2021 final
P. 16

Power reliability, a key social responsibility, is the result of

                                                                                                                                      generation balance and a strong transmission system
                                      SocialCommunity                                                                                 A key to Associated’s reliability is its balanced generation mix, providing options for electricity in a wide variety



                                                                                                                                      of circumstances. The balanced mix strategy proved itself during an intense February 2021 winter storm, when
                                                                                                                                      rolling blackouts were implemented by utilities all around Associated, but our diversity of generation sources
                                                                                                                                      and strong transmission system continued to deliver power reliably.
            Member-consumers: The ‘Why’ behind all we do
                                                                                                                                      The integrated transmission system owned by Associated and its member systems consists of more than 10,000
            Following Associated’s core values, the cooperative works for the sustainable development of communities                  miles of line, as well as the related substations. This transmission system enables Associated to reliably serve
            through policies supported by members, partnering with them to improve quality of life. This begins with pro-             members and transact power purchases and sales for the benefit of its owner systems.
            viding reliable and economical power, a strategy supported by our membership, that is typically an older pop-
            ulation of modest income-earners. The profile of Associated’s members makes affordable and reliable power                 Power affordability provides economic advantages
            among the most important results we can deliver:
                                                                                                                                      The Associated membership needs affordable pow-
            • 59% are older than age 55                                                                                               er, and we deliver it through a balanced generation    Average member cost per MWh
            • 29% have household income less than $50,000; 10% less than $25,000                                                      mix and strategies and tactics designed to prioritize
            • 52% are employed; 35% are retired                                                                                       affordability along with reliability and a responsibili-     52  $/MWh

                                                                                                                                      ty to the communities we serve. We serve working                    51.57  52.03
            Based on recent surveys, members strongly (72%) support their cooperatives taking a balanced approach to                  families in rural areas to ensure their electricity is                        50.93
            meeting their energy needs through a diverse portfolio, including coal, natural gas, hydro and wind power and             cost-competitive. By maintaining wholesale power             50  50.32
            other future renewables.                                                                                                  rates among the lowest in the nation, Associated’s                                 49.95

                                                                                                                                      member systems and members at the end of the line
                                                                                                                                      benefit.                                                     48                         48.42
                                                      Member satisfaction
                                                                                                                                      Average member cost shows Associ ated continues              46
                                84                                                                                                    to provide members a competitive power supply –
                                84
                                                                                                                                      one of the strengths listed by the three bond rating
                                                                                                                                      agencies.                                                    44  2015  2016  2017  2018  2019  2020





                                                                                                                                                  Associated’s commitment to members • Third lowest G&T rates
                                                    73
                                                    73                 72                                                                Source: G&T Accounting and          85  $/MWh
                                                                       72
                                                                                           71
                                                                                           71
                                                                                                                                         Finance Association’s June 2021
                                                                                                                                         directory.                          80
                                                                                                                                                                             75
                                                                                                                                                                             70
                                                                                         Municipal
                                                       o
                                                        -
                                                  A
                                                    ll c
                                                         ops
                             AECI sy st em        All co-ops             IOU             Municipal
                                                                         IOU
                             AECI system
                                  er
                                 v
                                average            a v er age*        a v er age*         a v er age*                                                                        65
                                a
                                                                      average*
                                                                                          average*
                                                   average*
                                    age
                                                                                                                                                                             60
            Collective responses from a member survey gave the three-tiered system served by Associated one of
                                                                                                                                                                             55
            the highest American Customer Satisfaction Index (ACSI) scores among energy providers in the nation.
                                                                                                                                                                             50
            The ACSI is considered the gold standard of consumer satisfaction measurement. Associated conducts its                                                                 Associated
            member survey every three years, just another way to ensure it’s in touch with members’ needs.                                                                   45
                                                                                                                                                                             40
                                         Source: American Customer Satisfaction Index, 2021 sector report                                                                    35
                                                                                                                                                                                                    Member revenue per MWh
                                                         SOCIAL 15                                                                                                                 SOCIAL 16
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