Navigating with CMPAS
The project-based joint action approach permits members to retain ownership of their own power portfolio and hold contractual rights to specific quantities of power from specific resources. CMPAS works hard to help utilities achieve competively priced, individualized portfolios that optimizes locally-owned resources and unique load factors.
WHOLESALE CONTRIBUTION TO TOTAL COSTS
Since wholesale energy costs make up more than 50 percent of retail customer’s rates, it is extremely important that utilities effectively manage costs and minimize associated price risks.
Wholesale energy consists of power supply and transmission portfolio purchases and typically represents 60-70 percent of each member utility’s costs. As their agency and service organization, CMPAS provides members with consultative advice to help manage those costs so that they can focus on local infrastructure needs.
CMPAS MEMBERS WHOLESALE COSTS ARE COMPETITIVE
CMPAS’s resource planning and procurement efforts over the last 10 years have produced some of the lowest public power costs in the region. As the Agency built significant diversity into its portfolio, it successfully reduced wholesale costs from the upper 25 percentile in the region to the lower 25.
CMPAS helps position utilities to handle future uncertainty with a well-planned power portfolio, and they value the direction offered by CMPAS. As Wendy Meyer, Mountain Lake City Administrator and CMPAS Board President explains, “Our greatest challenges are dealing with complexity in the electric industry and making it affordable. If we had to hire this expertise alone, it would be cost prohibitive.”
CMPAS Administrative Costs are Competitive
CMPAS delivers the necessary critical information for making well-informed decisions. Its project-oriented business model allows for collaboration that positions participants in a mutually beneficial way.
Through successful management, CMPAS’s administrative costs represent less than ten percent of a utility members’ wholesale power costs and less than five percent of their retail customer rates.