Member Regulation for Your Cooperative
Notice to Members of HomeWorks Tri-County Electric Cooperative
The HomeWorks Tri-County board took action on the proposal to become member-regulated in accordance with P.A. 167 of 2008, at its meeting on January 6, 2010, held at the cooperative office at 3681 Costabella Avenue, Blanchard, MI.
What is Member Regulation?
As a cooperative, owned by and operated for the benefit of those we serve, HomeWorks Tri-County Electric is regulated by a seven-member board of directors, who are in turn regulated by their neighbors, who vote them into office.
In Michigan, however, we have a double layer of regulation, because the Michigan Public Service Commission must also review and approve any decisions made by the board of directors in the areas of rates and charges, billing practices, and accounting standards. This adds time and distance to any operating decision the board makes, as the final decisions are made in Lansing and may be delayed due to the Commission’s large regulatory workload.
We believe you, and the directors you elect to represent you, can keep those decisions right here at home. Member regulation removes that layer of bureaucracy between you and your cooperative.
As a historical note, electric cooperatives in Michigan were not regulated by anyone but their members from their beginnings in the late 1930s until the early 1960s, when we asked the Commission for help with service area issues to avoid costly duplication of power lines. If we return to member regulation, the Commission would retain jurisdiction over safety, performance standards, code of conduct, and service area issues.
Two of Michigan’s nine electric cooperatives have returned to member regulation under Public Act 167 of 2008. Across the nation, the majority of electric cooperatives have always been member-regulated or have returned to member regulation under recent changes in their state laws.
Why should HomeWorks move to Member Regulation?
We believe that we know our members and our communities better than a state agency in Lansing, because we work and live here, too. We visit with many of you every day at Blanchard or Portland, at your home, or on the telephone.
We also believe that our lines of communication and member support, strong already, will be strengthened once that layer of bureaucracy is moved out of the way. We welcome your questions, suggestions, criticisms, and praise every day, because we want to be the best electric cooperative for you.
Who sets the rates and rules under Member Regulation?
Your board of directors will adopt policies that state our rates, fees, and billing rules. These will be posted on our website at www.homeworks.org, and as always, you can request a copy at either office or ask for a copy to be mailed to you.
As we get started, the board will most likely adopt the rates and rules we currently use under state regulation, giving us time to review them and see if any changes are needed to suit our members in our communities. Remember, the current rules were set to regulate the state’s largest utilities, with millions of customers in heavily populated areas, and those rules may not fit as well in more rural and less-populated situations.
Ultimately, you will have the final say under member regulation, because you can talk to your local director and make sure your opinions are heard.
When and how would HomeWorks change to Member Regulation?
The change to member regulation was proposed at the regular board meeting on September 28. A minimum 90-day notice period follows before a special board meeting to consider the proposal, which has been set for January 6. This board meeting is open to the public, and other times and methods for commenting are listed on the back of this folder.
If the board votes on January 6 to move forward with member regulation, we will notify the Michigan Public Service Commission in writing immediately afterward, and after 90 days the change is official.
The member regulation law also includes provisions for reversing this change, if needed.
How do I have my say?
You can ask questions or comment on the issue in any of the following ways:
Attend a meeting
A special open meeting will be held on Wednesday, January 6, set for 1 p.m. at our Blanchard office.
Send an email
Email addresses for your directors and General Manager are listed here.
Mail a letter
Mailing addresses for your directors and General Manager are listed here.
Make a telephone call
Call the General Manager at 517-647-1281 or 800-562-8232, or call your director at the phone number listed here.
Make a personal visit
We’ve designated two days where we’ll keep the office open later to accommodate your schedule: December 8 at Portland or December 9 at Blanchard, from 3:30 to 6:30.
