I’ve talked a lot about Tipmont’s mission of empowering the communities we serve. To empower is a recognition that you, our customers, are the engine of success. Our role is to simply provide the necessary raw materials like electric energy and very soon, broadband. When you have better tools at your disposal, more options with your local power supply, or integrated energy management systems in your home, you will have the capabilities to be more efficient and productive. We believe you shouldn’t be limited in how you utilize those tools.
To fulfill this commitment to you, Tipmont must evaluate the terms of our power supply contract and carefully review any amendments proposed. Over the last year, Tipmont’s board and management have been discussing the terms of our wholesale power supply contract with our power supplier, Wabash Valley Power. Today, there are several provisions within Wabash Valley’s proposed contract that we don’t believe are in the best interest of Tipmont and our customers.
In our current contract, customers are limited in how much energy they can generate and at what rate they can sell excess generation back to the utility, a process known as net metering. Tipmont is also limited in how much renewable energy we can purchase as part of our energy portfolio. We don’t believe this positions us well for the future as the energy distribution business model evolves.
As a result, we began exploring wholesale power market alternatives. We found that purchasing power from one of many reliable alternatives is the best way to provide the flexibility you deserve, while positioning Tipmont to meet your future energy needs and to manage wholesale power supply costs. Therefore, we are evaluating where we purchase our power to give you the flexibility we believe is needed for the future.
There are many emerging technologies on the horizon that will offer a range of solutions to manage your energy consumption without forfeiting comfort. Renewable energy and battery storage are the first examples that come to mind. As these technologies materialize, you need the flexibility to adopt them as best fits your needs. We recognize that change is often a necessity when it comes to adapting to our customers’ energy needs. Our business model must have the flexibility to adapt to changes in the market, while continuing to add value for you.