Electric Co-op Today

MINNEAPOLIS—You can prepay a cell phone or a gift card, so why not prepay electricity? At Oklahoma Electric Cooperative, it’s an option that about 2,600 consumer-members are taking advantage of.

CRN’s Bob Gibson (seated) chats with Randy Harnsberger of Oklahoma Electric Cooperative about prepaid rates. (Photo By: Michael W. Kahn)

“The prepaid folks are typically the ones who have trouble paying their electric bills on time,” said Randy Harnsberger, commercial marketing representative at the Norman-based co-op.

“A prepaid rate gives them an option that helps them to avoid a disconnect [and] a reconnect charge.”

The co-op’s standard digital meters do the work. An electronic mechanism is added to each applicable location to allow a remote connect/disconnect capability. Members receive e-mails, text messages or phone calls when it’s time to replenish their accounts, which they can do online, by phone, at the co-op office or through kiosks at local supermarkets.

“Consumers are very happy with the system,” Harnsberger said, pointing to a recent survey in which 85 percent of respondents were satisfied or very satisfied. “A lot of those folks prefer to make several small payments rather than one large payment. And if they do end up having their account shut off there’s no penalty, no reconnect charge, no deposit required to reconnect service.”

There’s also an efficiency dividend. On average, Harnsberger said, a member uses 13 percent less energy after switching from a standard rate to a prepaid account.

Bob Gibson, senior program manager at NRECA’s Cooperative Research Network, noted that a handful of other co-ops offer a prepaid option for members. Gibson said their experiences reveal similar levels of energy savings and member satisfaction.

Tags: Business and Finance, Efficiency and Conservation, Power Rates