Smart Grid Software: Marketing to Co-ops

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What is the smart grid? The smart grid’s the evolution of our current power distribution grid, using state of the art technology to optimize delivery of electric power. Smart grid applications will increase the efficiency of today’s electrical distribution system by saving more than 400 billion kilowatt-hours s year.

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Marketing to Co-opsMarketing to Co-opsSteps for SuccessSteps for Success

Marketing to Cooperatives

WORKSHOP MODERATORSJanine Weidow

Manager, External MarketingNRECA

janine.weidow@nreca.coop

Steve CollierVice President of Business Development

Milsoft Utility Solutionssteve.collier@milsoft.com

Marketing to CooperativesMarketing to Cooperatives

AGENDA8:00 am Welcome Remarks – Introduction/Goals8:30 Workshop Session: Electric Co-op 101

10:00 The Cooperative Perspective12:00 Working Luncheon – NRECA Resources1:00 pm Doing Business with/Selling to Co-ops 2:00 Discussion/Closing Remarks2:30 Adjourn

Workshop Goal: EducationWorkshop Goal: Education

Workshop Goal = EDUCATION

– Better understand cooperatives’ structure & operations.– Hear cooperatives discuss how they do business with vendors.– Learn about NRECA structure & operations.

• And how NRECA works with its sister organizations.• And NRECA resources for Associate Members

– Hear successful vendors discuss doing business with co-ops.– Get your questions answered.

Marketing to Co-opsMarketing to Co-ops

“The Electric Cooperatives’National Trade Association”“The Electric Cooperatives’National Trade Association”

Electric Utility Trade AssociationsElectric Utility Trade Associations

Cooperatives Municipals

-Investor-Owned

National Rural Electric Cooperative Association– www.nreca.coop

Primary Focus: Rural Electric Cooperatives– Distribution Cooperatives– Generation & Transmission (G&T) Cooperatives– Statewide / Regional Trade Associations– Products & Services Co-ops– Affiliate Members (vendors)

>99% of electric cooperatives are Members.

RE Magazine– Advertising– Editorial Content

Conferences– Flagship conference = TechAdvantage & Expo

Cooperative Research Network– Part of NRECA

• All NRECA Members benefit

Touchstone Energy

American Public Power Association– www.appanet.org

Primary Focus: Public Power Systems– Divisions of local government: municipal, county, state

• Include other utilities: water & wastewater, gas, telecomm– Joint action agencies (like co-op G&Ts)– Statewide / regional trade associations– Associate Members (vendors)– Municipal leagues & related government organizations

Less than half of public power systems are members.

Public Power magazine– Advertising– Editorial Content

Conferences– Flagship Conference = Annual National Conference.

• Relatively small, limited exhibitor space & exposure.

DEED R&D network– Voluntary, dues based.

• A minority of APPA Members participate.

Home Town Connections is a for-profit affiliate– APPA owns 64%, public power systems the remainder.– Selects an exclusive preferred vendor in each category.– Public power systems and trade associations are indirect

marketing & sales channels.– Charges a marketing fee and receives commission on

sales to any public power system.– Vendor partners discount products / services to APPA

Members.

Edison Electric Institute– www.eei.org

Primary Focus: “Shareholder-Owned” Electric Utilities,– aka Investor-Owned Utilities (IOUs).– International Affiliates– Associate Members (vendors)– Edison Institute– Institute for Energy Efficiency

>95% of IOUs are Members

Publications & Conferences are not central to membership.– Scant advertising, exhibitor opportunities or exposure

Electric Power Research Institute– Independent of EEI– Voluntary, dues supported– Also has co-op and public power members.

Marketing to Co-opsMarketing to Co-ops

More On NRECAMore On NRECA

Founded in 1942 Organized specifically to:

– Overcome World War II shortages of electric construction materials,

– Obtain insurance coverage for newly constructed rural electric cooperatives, and

– Mitigate wholesale power supply problems.

Member-Elected Board of Directors – 47 members – One from each state with an electric cooperative

Glenn English – Chief Executive Officer– Formerly U.S. Representative, Oklahoma

Headquartered in Arlington, Virginia– RS&I Division in Lincoln, Nebraska

“THE NATIONAL ORGANIZATION DEDICATED TO REPRESENTING ELECTRIC COOPERATIVES AND

THE CONSUMERS THEY SERVE”– National leadership and member representation for

legislative, regulatory, and public policy.– Education and training programs – Insurance, employee benefits and financial services– Technical expertise, advice and R&D– Electrification assistance in developing countries around the

world– National branding and services

Marketing to Co-opsMarketing to Co-ops

NRECA MembersNRECA Members

DISTRIBUTION MEMBERS“Poles, wires and meters”

– Electric distribution cooperatives and nonprofit associations, nonprofit corporations, public utility districts, and government corporations or authorities

– Located in a state, territory, possession or commonwealth of the U.S.

– Engaged in furnishing electricity at retail to consumers

GENERATION & TRANSMISSION MEMBERS– Generate and resell wholesale power to their member

utilities– Cooperatives, nonprofit associations, nonprofit

corporations and public utility districts – Located in a state, territory, possession or commonwealth

of the United States – Engaged in the marketing, generation and/or transmission

of wholesale bulk electricity for sale to others for the purpose of resale

TRADE & SERVICE ASSOCIATION MEMBERS– Related organizations that are not actually engaged in

the marketing, generation, transmission or distribution of electricity

• members are generation & transmission or distribution cooperative, associations, nonprofit corporations, public utility districts

– Located in a state, territory, possession or commonwealth of the United States

– Engaged in support of electric co-ops’ marketing, generation, transmission or distribution of electricity

TRADE & SERVICE ASSOCIATION MEMBERS (cont)– Unified advocacy to the general public, regulatory bodies

and state legislatures on behalf of their members – Voluntarily membership– Governed by member-elected representatives – Offer desired services

• Education & training• Publish newspapers or magazines for members• Group purchasing• Other

PRODUCT & SERVICE COOPERATIVE MEMBERS– Cooperatively-owned organizations – Members generally include NRECA members– Objectives are aligned with the objectives of NRECA. – Provide products and services at better price, quality,

terms, service than would be available elsewhere• Insurance - Federated• Banking - NRUCFC• Data Processing – NISC, SEDC• Telecommunications – NRTC• Transformers & Equipment - UUS

ASSOCIATE MEMBERS– Companies doing business with NRECA members– Includes:

• Utility equipment manufacturers, distributors, wholesalers • Consulting / professional services• IT & software products and services• Telecomm products and services• Financial products and services• Consumer products and services

– Many participate in TechAdvantage & Expo and advertise inRural Electric Magazine.

Marketing to Co-opsMarketing to Co-ops

Other NRECA OrganizationsOther NRECA Organizations

November 1962 - NRECA and the newly-established U.S. Agency for International Development (USAID) signed an inaugural cooperative agreement in the White House Oval Office in a ceremony witnessed by President John F. Kennedy. NRECA International, Ltd. was incorporated as a wholly owned subsidiary of NRECA in June 1972.

HELPING DEVELOPING COUNTRIES ELECTRIFYY– Original purpose: Share lessons learned from US rural

electrification with developing countries around the world.– Assisted development and deployment of rural

electrification programs in over 40 countries.– Support from USAID, U.S. Department of Agriculture, the

World Bank, the UK Department for International Development (DFID), Asian Development Bank (ADB), and host country government agencies.

“THE NATIONAL BRAND OF ELECTRIC COOPERATIVES”

– Voluntary membership for NRECA members– More than 660 Touchstone Energy® cooperatives in 46 states are

delivering electric power and energy to more than 30 million consumers.

– www.touchstoneenergy.com

“THE POWER OF HUMAN CONNECTIONS”

– National promotion & advertising• Television ads on various channels including:

• Print ads in major national publications including:

• Advertising brand and collateral for member co-ops to use.

NATIONWIDE SERVICES FOR MEMBERS’ CUSTOMERS– Bill Consolidation and Energy Management Program– Touchstone Energy® Home– Energy Saver Program– Co-op Connections– Sites Across America.com– Energy education programs

• Kids "Super Energy Saver" Program • Discovery School Program - Get Charged!

“Monitor, evaluate & apply technologies that help electric cooperative utilities control costs, increase productivity, and

enhance service to their consumer–members.” – Results are available to all NRECA voting members.

• Online and printed studies, reports, newsletters• Web conferences• Seminars and presentations at conferences

– Partners with US DOE, EPRI and other R&D organizations.– Six Member Advisory Boards & an Industry Advisory Group

NRECA

®

Principal areas of investigation include:– Clean coal and environmental-management technologies – Renewable and alternative energy – End-use solutions that help the customer make better use of

electricity – Distribution system operations best practices – Broadband communications and information technology – Transmission capacity and security

NRECA

®

Marketing to Co-opsMarketing to Co-ops

National Cooperative Business Network Organizations

National Cooperative Business Network Organizations

INSURANCE EXCHANGEFOR ELECTRIC COOPERATIVES

– Founded in 1959– Property & casualty insurance for rural electric co-ops in 40

states.– Includes coverage for water, sewer, propane and natural gas,

surge suppression, security systems and other cooperative business ventures.

– Phil Irwin, President – www.federatedrural.com

“SERVICE | INTEGRITY | EXCELLENCE”– Founded by NRECA, incorporated in 1969– Original purpose was to develop independent financing to

supplement / replace REA– Provides banking services to more than 1,050 electric

cooperative owners serving 32 million ultimate users.– Also provides banking services to rural telephone utilities.– Sheldon Petersen, Governor & CEO– www.nrucfc.org

NATIONAL INFORMATION SOLUTIONS COOPERATIVE– Merger of CADP & NCDC in 2000– 500+ electric & telco members in 47 states– Accounting & business services, customer information &

billing services, e-commerce solutions, E&O solutions.– Also provides CIS services to national retailers in cooperation

with Touchstone Energy.– Vern Dosch, CEO– www.nisc.coop

SOUTHEASTERN DATA COOPERATIVE– 200+ electric members in 33 states– Accounting & business services, customer information &

billing services, e-commerce solutions, E&O solutions.– Ron Camp, CEO– www.sedc.coop

UNITED UTILITY SUPPLY– 230 electric co-op members in 17 states– Manufactures and sells distribution transformers– Distributes electrical distribution supplies & equipment– Ron Sheets, President– www.uus.org

“YOUR TELECOMMUNICATIONS COOPERATIVE”– Founded 1986 by NRECA, NRUCFC and NTCA– To provide telecommunications for internal use and for resale

by rural electric and telephone utilities.– Bob Phillips, CEO– Original business was satellite television for members and

affiliates eventually serving >2 million retail subscribers– Also offers IPTV, satellite broadband, AMR, SCADA, voice &

data dispatch radio, MVNO mobile phone.– www.nrtc.org

Marketing to Co-opsMarketing to Co-ops

What Is a Cooperative?What Is a Cooperative?

COOPERATIVELY-OWNED BUSINESSES– A business incorporated under local state law.– 1752, Benjamin Franklin forms Philadelphia

Contributionship for the Insurance of Houses from Loss by Fire, still in operation today

– 1844, the Rochdale Equitable Pioneers Society opened a cooperative store on Toad Lane in Rochdale, England.

– Cooperatives are deemed to be not-for-profit and therefore usually tax-exempt.

THE COOPERATIVE PRINCIPLES– Voluntary & Open Membership– Democratic Member Control– Member Economic Participation– Autonomy & Independence– Education, Training & Information– Cooperation Among Cooperatives– Concern for Community

Cooperatives usually form to provide products or services with greater economy, efficiency, quality or values than would otherwise be available.– Often to achieve economies of scale or leverage of scope.

There are three kinds of cooperatives:– Consumer-owned– Producer-owned– Employee-owned

Electric cooperatives are consumer-owned

COOPERATIVES IN THE US– Over 120 million people are members of 48,000

cooperatives.– Nearly 10,000 U.S. credit unions have 84 million members

and assets in excess of $600 billion.– Well known national cooperatives include:

• USAA (customer-owned)• ACE Hardware (employee-owned)• Ocean Spray, Land O’ Lakes (producer-owned)

Marketing to Co-opsMarketing to Co-ops

More About Electric CooperativesMore About Electric Cooperatives

A Brief History of Electric CooperativesA Brief History of Electric Cooperatives

FDR learned in 1930 that 80% of the US was electrified, but only 10% of rural America had electric service.

– FDR formed Rural Electrification Agency in 1934.• Congress formed Rural Electrification Administration under USDA

in 1935.• Offered loan guarantees / low interest loans to qualified borrowers

(not just cooperatives).• Provided financial and engineering standards.• USDA reorganized in 1994 and replace the REA

with the Rural Utilities Service (RUS).

A Brief History of Electric CooperativesA Brief History of Electric Cooperatives

RURAL ELECTRIC COOPERATIVES– Most IOUs were not interested in the risks and low rate of return

for extending rural electric service.– Consumers banded together to form cooperative (consumer-

owned) corporations to qualify for REA loans and loan guarantees.

– Within ten years of the REA being formed, 90% of rural Americans had electric service.

864 distribution cooperatives and 66+ generation and transmission cooperatives serve:– Over 40 million people across 47 states

• 15.5 million+ residences• 1.8 million commercial accounts• 138,792 industrial (less than 1% of the total)+ industrial accounts

– 17.5 million meters – 2,500 of 3,141 counties in the U.S.

Electric Co-op FactsElectric Co-op Facts

– Assets worth $100 billion– Own and maintain 2.5 million line miles

• 42% of the nation’s electric distribution lines• covering ¾ of the nation's landmass

– Deliver 10% of total kilowatt hrs sold in the U.S. each year– generate nearly 5% of total electricity produced in the U.S.

each year – Spend nearly $9 billion annually on products and services

needed to operate their systems– Employ nearly 67,000 people

Electric Co-op FactsElectric Co-op Facts

Rural Electric Cooperatives– Only 16 of 47 states with electric regulatory authorities

regulate some aspects of electric co-ops' operations– Rates are reviewed and approved by local Board of Directors– Rate Objectives of Utility: covering costs/expenses

Electric Co-op FactsElectric Co-op Facts

DISTRIBUTION COOPERATIVES RESELL POWER– Purchase wholesale power

• A handful of distribution cooperatives generate some power– G&Ts provide about 40% of power purchased by

distribution cooperatives• Full and partial requirements contracts

– Distribution cooperatives obtain the remainder of their wholesale power from a variety of other sources

Electric Co-op FactsElectric Co-op Facts

SOME ELECTRIC COOPERATIVES ALSO OFFER

– Community development & revitalization projects• Improvement of rural water and sewer systems

– Assist in delivery of health care and education– Internet service provider (ISP)– Propane– Natural gas– Premises security monitoring & control– HVAC equipment & service

Electric Co-op FactsElectric Co-op Facts

COOPERATIVE COMPARISONS

– Pedernales (TX) is largest with 230,000 meters.– Alaska Village serves the largest land area of any electric

utility in the world with only 7,400 meters.– Gila River Community Utility Authority is the smallest with 26

meters.• I-N-N (AK) is the next smallest with 296 meters.

– Average size = 19,000 meters– Median size = 12,500 meters– Rio Grande (TX) is the sparsest with <2 meters / line mile

(national average = 7 meters / line mile)

Electric Co-op FactsElectric Co-op Facts

Marketing to Co-opsMarketing to Co-ops

Comparing Electric Co-ops to Other Electric Utilities

Comparing Electric Co-ops to Other Electric Utilities

Division of Activities – America’s Electric UtilitiesDivision of Activities – America’s Electric Utilities

Utility ComparisonUtility ComparisonElectric Utility Comparisons

Number of Utilities

Size (median)

Residential Customers, % of total

Residential Revenues, % of total

Residential kWh sales, % of total

Investor Owned 220 400,000 73% 76% 74%Publicly Owned 2,000 2,000 15% 14% 16%

Cooperatives* 930 12,500 12% 10% 10%

*864 Distribution, 66 Generation & Transmission CooperativesSource: Department of EnergyYear of Data: 2006

Cooperatives Compared With Other Electric Utilities:

Cooperatives Compared With Other Electric Utilities:

Co-op sales grew twice as fast as the totalelectric industry average in 2000.

Customers Per Mile of Line

Revenues Per Mile of Line

Cooperatives 6.6 $8,500Investor-Owned 34 $59,000Municipals 44 $72,000

Who Sells America’s Electricity?Who Sells America’s Electricity?

Total U.S. Electric Utility Comparison by Sector

Total U.S. Electric Utility Comparison by Sector

Co-op Retail SalesCo-op Retail Sales

Co-op Power GenerationCo-op Power Generation

Co-op Fuels Used in Power GenerationCo-op Fuels Used in Power Generation

Marketing to Co-opsMarketing to Co-ops

Understanding Electric CooperativesUnderstanding Electric Cooperatives

Understanding Electric Co-opsUnderstanding Electric Co-ops

ELECTRIC CO-OP CHARACTERISTICS– They are customer-owned, not-for-profit, principle-based.– Their primary focus is cost, not profit.– They are extremely sensitive to individual customers.– Staff roles are broader & duties overlap.– Their have distinctive practices & vocabulary.

Understanding Electric Co-opsUnderstanding Electric Co-ops

ELECTRIC CO-OP CHARACTERISTICS– Business is very relationship based, more personal, less formal.– Cooperatives nationwide are a tight knit community.– Individual cooperatives are locally controlled, operate like a

family, are very independent.– Co-ops prefer that you already work well with other co-ops.

Understanding Electric Co-opsUnderstanding Electric Co-ops

ELECTRIC CO-OP CHARACTERISTICS (cont.)– Most electric cooperatives share many characteristics– But, no two electric cooperatives are just alike.– What most impacts a co-op’s view of planning & operations?

• Size• Growth• Load factor• Wholesale power cost• C&I customers• Community demographics• Leadership

Marketing to Co-opsMarketing to Co-ops

The Cooperative PerspectivePanel Discussion

The Cooperative PerspectivePanel Discussion

The Cooperative Perspective

Panel Discussion

Moderator: Steve Collier, Milsoft

Panelists: Final list to come ASAP

The Cooperative PerspectiveThe Cooperative Perspective

Purchasing Technology

Operations

How Co-ops Buy Products & ServicesHow Co-ops Buy Products & Services

Cooperatives vs. Municipals– RUS procurement rules (CFR 1726)

– Government procurement rules

– RUS borrowers must purchase from approved materials list

How Co-ops Buy Products & ServicesHow Co-ops Buy Products & Services

Common purchasing practices– 5 vendors or less (few suppliers)

– 3 bids – orally requested

– 90% of purchasing activities are manual transactions

– Public bid opening not required unless a large power plant

– Supply chain management decisions by committee, OR

– Purchasing responsibilities are split among several functions

So find the “center of influence” for your product or service

How Co-ops Buy Products & ServicesHow Co-ops Buy Products & Services

Advantages for the supplier:– Co-ops are easy to work with – less bureaucratic

– Co-ops are dependable and pay on time

– Co-ops are usually willing to pay for JIT deliveries and other value added services

– Co-ops are known to be honest and loyal

The Co-op Supply ChainThe Co-op Supply Chain

Purchaseneed

WarehouseReview

Engineeringplanning

Supplierscontacted

Quotesreceived

Price &Delivery

Supplierselected

Order typed& transmitted

Order shippedor backorder

released

Warehousereceives

Receiving copy issent to purchasing

&/or A/P

Invoicereceived

SupplierPaid

How Co-ops Buy Products & ServicesHow Co-ops Buy Products & Services

What Co-ops Buy– Line transformers (20%)

– Conductor (18%)

– Poles, towers, etc (13%)

– Station equipment (11%)The big 4 account for @ 2/3 of the spend!

How Co-ops Buy Products & ServicesHow Co-ops Buy Products & Services

The Supplier’s role– Long standing relationships – mutual trust

– Products priced on a case-by-case basis

– Stocking/Consignment/JIT programs

– Little long-term planning

Areas of Potential ImprovementAreas of Potential Improvement Some co-ops manage their supply chain, some don’t

Growing focus on supply chain cost performance and measurement

Group buying, standardization, etc. can reduce costs– Almost ½ of all co-ops are unwilling to join with other co-ops in

the purchase or storage of materials

Normally utilize short-term forecasting

3 bids and a cloud of dust – preferred method

Inventory turnover varies based on vendor alliances vs. self management

Decision InfluencesDecision Influences

Having other co-ops as customers

Understanding what a co-op is and how co-ops operate

Successful track record

Appearances at NRECA conferences/shows

Customer Support/Tech Support

Panel recommendations:Panel recommendations:

Show success with other co-ops (if not a co-op, then a similar sized electric utility)

Understand what a co-op IS and what a co-op is ABOUT

Demonstrate a willingness to work with the co-op, even if they’re not huge

Create a relationship

Customer Service

How do co-ops find information?How do co-ops find information?

Shows/Conferences (mostly NRECA)

Trade Magazines (RE, T&D,…)

Web sites

GOSSIP– Talking with counterparts at other co-op shows,

meetings, schools

Staying InformedStaying Informed

Reading publications such as:– Rural Electric Magazine– Transmission & Distribution– Electrical World– Utility Automation– Energy IT– PC Magazine

Networking with other cooperatives.

Keeping informed on technology projects ongoing at cooperatives.

Staying InformedStaying Informed

Attending trade shows– Distributech– NRECA TechAdvantage® Conference & Expo– IEEE Rural Electric Power Conference– IEEE Transmission & Distribution– Other specialty conferences and shows (GITA

Autovation, CS Week)

Leveraging NRECA ResourcesLeveraging NRECA Resources

Publications Conferences/Trade Shows Associate Membership

Rural Electric MagazineRural Electric Magazine

Mission is to help readers become more informed participants in the electric utility industry and in the business life of their co-ops and local communities.

– With nearly 26,000 subscribers, RE Magazine has the widest circulation among employees of electric co-ops of any utility industry magazine.

– Two-thirds of those readers make or affect purchasing decisions.

NRECA PublicationsNRECA Publications

Two major publications inform and educate members, decision makers and the interested public:

1. Rural Electric Magazine, published monthly2. Electric Co-op TODAY, a weekly newspaper

Rural Electric MagazineRural Electric Magazine

Help readers become more informed about new technologies, products and services through monthly technical articles and special issues and sections.

Technical Articles– Co-op Tech– Solutions– Utility Marketplace

Rural Electric MagazineRural Electric Magazine

Special Issues/Sections– TechAdvantage® and Expo Preview (usually

February)– “Connections” Supplement (April and

October)– Buyers Guide (May)– Directory of Electric Co-ops (July)– Advertiser’s Study (September)

Rural Electric MagazineRural Electric Magazine

Associate Members can help by supplying REwith examples how they work with co-ops to improve their utility operations and enhance customer service.

Check for upcoming topics in the printed media kit or at the RE Magazine Web site: www.remagazine.coop

Contact us three months ahead of the issue date.

Rural Electric Magazine: NRECA Contacts

Rural Electric Magazine: NRECA Contacts

Co-op Tech and Utility Marketplace: Bill Koch, (206) 772-0283, specrep@earthlink.net

Solutions: John Lowrey, (217) 529-5561, lowrey@aiec.org

“CONNECTIONS”: Nancy McMahen, (800) 230-2601, nancy.mcmahen@nreca.coop

Editor: Perry Stambaugh, (703) 907-5712, perry.stambaugh@nreca.coop

Advertising: Danielle Burton, (301) 829-6333, dburton@remagazine.org

Contact us anytime to discuss how your product or service helps electric co-ops do a better job for their consumers

NRECA Conferences and ExposNRECA Conferences and Expos

Overview of NRECA’s Conferences and Expos

Overview of ConferencesOverview of ConferencesMonth Conference Expo Sponsorship Attend

CEO Conference Platinum YES YES

Touchstone Energy New & Emerging Technologies Conf. YESTechAdvantage Conference & Expo (Engineering & Operations; Supply Management, Information Technology)

YES YES YES

NRECA Annual Meeting YESMarch Directors' Conference YESApril Legal Seminar & Workplace Law

Human Resource Management & Benefit Update Conferences

YES YES

Legislative ConferenceJune Legal Seminar & Workplace Law

Connect Conference YES YES YESTax, Accounting and Finance Conference YES YES

Aug Cooperative Supervisors Institute YES YESOct Executive and Administrative Assistants Conference YES YES

G+T Legal Seminar

Dec

July

Nov

Jan.

Feb.

May

Identifying Conference Topicsand Speakers

Identifying Conference Topicsand Speakers

Electric Cooperative Business Network – Access e-communities of electric cooperative

employees to identify key issues, objectives, and potential speakers for conferences

NRECA input Year-round input welcome, especially on hot topics

and new technologies Call for Presentations-6-9 months before each

conference

Participants Have Told Us:Participants Have Told Us:

They like to hear co-op success stories

They like to hear directly from the co-ops – Case studies

They do NOT prefer to hear sales talks

They want practical information to take home. This is the way they can sell ideas to management.

BOTTOM LINE:The more success stories you have with co-ops, the higher your

chances are to get the word out about your products.

Associate MembershipAssociate Membership

Marketing OpportunitiesMarketing Opportunities

Sponsorships

Program Advertising

Golf Tournament

Exhibits

Presentation Opportunities

Networking

Associate Member BenefitsAssociate Member Benefits

Increased exposure to electric utility decision-makers

Access to electric utility industry information

Valuable networking opportunitiesPotential for sales, partnering and other business

alliances

Types of MembershipsTypes of Memberships

NRECA offers you a choice of three associate membership levels designed to fit the needs of your company and your business: – Silver Associate Member

– Gold Associate Member

– Platinum Associate Member

Exposure Benefitsfor Associate Members

Exposure Benefitsfor Associate Members

Subscription to Rural Electric Magazine Annual Subscription to Electric Co-op Today Designation in the Annual Network Services/Associate Membership Directory Designation in our Annual Buyer's Guide Access to NRECA Conferences and Seminars Associate Member Logo for Print Advertising Certificate of Associate Membership Link to NRECA's Home Page I&FS Benefits Access to NRECA member database Listing In NRECA’s Buyers Guide 2010 Network Services/Associate Membership Directory Rural Electric Magazine — Utility Marketplace section CONNECTIONS: RE Magazine Supplement Listing in NRECA’s Membership Directory – Published in July issue of RE Magazine

Exposure Benefits forGold and Platinum Associate Members

Exposure Benefits forGold and Platinum Associate Members

All Silver Associate Member benefits, plus:– Discounts on Space at TechAdvantage® Expo:

– VIP Suite at TechAdvantage® Expo

– Discounts on Full-Page, Four-Color Ads in RE Magazine

– One complimentary registration to the CEO Leadership Conference

– One complimentary registration to the Marketing to Co-ops Workshop

Exposure Benefits forPlatinum Associate Members

Exposure Benefits forPlatinum Associate Members

All Silver Associate Member Benefits, plus:– Complimentary Space and Discounts on Space at TechAdvantage®

Expo

– VIP Suite at TechAdvantage® Expo

– One Free Full-Page, Four-Color Ad in RE Magazine

– One Free ½-Page, Black & White Ad in RE Magazine

– Platinum Associate Membership Plaque

– $12,000 Annual Dues

Leveraging NRECA Resources

Questions?

Marketing to Co-opsMarketing to Co-ops

Doing Business With CooperativesPanel Discussion

Doing Business With CooperativesPanel Discussion

Vendor PanelVendor Panel

Members of panel have spent years working with co-opsAre Platinum Associate Members and

Affiliate Members of NRECAAll have extensive knowledge of co-op

business practices, sales cycles and business needs

Final Points: Selling to Co-opsFinal Points: Selling to Co-ops

Assist - don’t pesterUnderstand position and perspectiveDo homework for the co-opBe available - not underfootPrice to co-op pocketbookProduce what you promiseProvide Excellent Customer Service

Appendix: Resource InformationAppendix: Resource Information 2007/2008 NRECA Annual Report

About NRECA Brochure

Associate Member Brochure and web site on nreca.coop

Touchstone Energy® web site on www.touchstoneenergy.com

2010 TechAdvantage Exhibitor Prospectus

2009 Connect Exhibitor Prospectus

2009 New and Emerging Technologies Exhibitor Prospectus (for information only)

CONNECTIONS Supplement Information

Rural Electric Magazine Media Kit

Final Points - Selling To Co-ops Final Points - Selling To Co-ops

Final Questions?