New Ads to Premiere at Annual Meeting

A TV premiere and a tribute to cooperative heroes will take center stage at the 2005 Touchstone Energy Annual Meeting Tuesday morning, March 1, in San Diego.

Held in conjunction with the NRECA Annual Meeting, the event will feature:
-the roll-out of two new television campaigns emphasizing cooperatives' investment in providing reliable service and the difference electric co-ops make in the lives of their members;
-a salute to cooperative and American heroes;
-a Co-op Connections Card update; and
-the presentation of the 2005 Touchstone Energy Distinguished Service Award.

Touchstone Energy will also be on hand at the conference expo. Members are encouraged to stop by.

Marvin and Bernard Kalb Will Set the Stage for Connect 2005

Brothers to Address Media's Role in Today's World
Veteran TV journalists Marvin Kalb and Bernard Kalb will kick off the Connect 2005 Conference on Monday, May 16, in New Orleans. Teaming up, the brothers will take on the news media and the responsibilities of the press at a time when so many talking heads have turned analysis into a shouting match, giving us vaudeville disguised as wisdom. They'll also examine the impact of the Internet and bloggers.

Marvin Kalb (at right) was chief diplomatic correspondent for CBS and later NBC News, topping an award-winning career as moderator of NBC's Meet the Press, before joining Harvard's JFK School as director of the Shorenstein Center on the Press, Politics and Public Policy.

Bernard Kalb was for many years a foreign correspondent for The New York Times and CBS News.  For a decade, he was a media critic on CNN's weekly program Reliable Sources.

Member Loyalty Expert Jill Griffin: How to Earn Loyalty, How to Keep It
Internationally recognized expert on customer loyalty Jill Griffin will be a keynote speaker in the afternoon of May 16. Her mission at Connect 2005 is to help co-ops build fiercely loyal members. Griffin's business best seller, Customer Loyalty: How to Earn It, How to Keep It, has been named to Harvard Business School's "Working Knowledge" list of recommended books.

Save the Date for Connect 2005 Program Overview
Connect 2005 boasts a battery of breakout sessions that will arm co-op professionals with cutting edge communications, marketing, and member services tools. A Web conference to review the Connect 2005 program is scheduled for 1 p.m. EST on March 11. More information, including online registration, will be e-mailed the week of Feb. 28.

To learn more about conference offerings and to register, click Connect 2005.

Customer Satisfaction: Touchstone Energy Co-ops Maintain High Score in Q4 ACSI

Touchstone Energy cooperatives maintained the top score in the combined Q3-Q4 2004 American Customer Satisfaction Index (ACSI). With an 80, Touchstone Energy cooperatives, in aggregate, were eight points better than the electric utility industry average of 72.  The closest utilities to the Touchstone Energy score were PPL Corp. and Southern Co., both of which dropped to 78.

ACSI is one of the most recognized customer satisfaction indices in the United States. It's managed by the University of Michigan Business School and sponsored by the American Society for Quality. It measures customers' satisfaction in 16 major industries and 190 leading corporations.

Individual Touchstone Energy co-ops are encouraged to conduct their own ACSI survey. The questions are on the members' section of www.touchstoneenergy.coop. There is no charge for Touchstone Energy cooperatives to participate. For more information, contact Erin Keogh at erin.keogh@nreca.coop.

2005 Touchstone Energy Board Election Results Are In

Steve Healy, president and CEO of Pierce-Pepin Cooperative Services (Ellsworth, Wis.), is the newly elected director to the Touchstone Energy board. Directors re-elected for three-year terms include:

-Alan Edwards, senior VP, external relations and communications, Basin Electric Power Cooperative (Bismarck, N.D.)
-Tom Jones, CEO, Grand Canyon State Electric Cooperative Association (Phoenix, Ariz.)
-Ken Ritchey, general manager, Tipmont REMC (Linden, Ind.)

"The 2005 elected board members will surely strengthen the brand and help to expand upon what Touchstone Energy has done for the electric cooperative network," said Roger Clark, CEO of Boone Electric Co-op (Columbia, Mo.) and current chair of the Touchstone Energy board of directors. "Their knowledge and leadership will be tremendous assets to all Touchstone Energy cooperatives," he added.

New directors' terms begin in March at the next meeting of the Touchstone Energy board. Healy replaces Clark, whose term expires in March.

Web Conference: Learn How to Gauge Member Satisfaction With the ACSI

Touchstone Energy invites member cooperatives to a free Web conference, "A Treasure of a Measure -- Using the American Customer Satisfaction Index (ACSI) to Drive Cooperative Performance." This Web conference--scheduled for Wednesday, March 30 at 1 p.m. EST--will help co-ops learn how to use the ACSI to uncover the true feelings members have about their electric cooperatives and how to utilize the information to improve their views.

Attendees will learn how to benchmark their co-op's performance against other cooperatives, utilities and Fortune 500 businesses; motivate and energize boards of directors, management and employees; and improve cooperative programs and operations.

Visit the Web conferences section on Cooperative.com for more information and to register.

Web Sites That Wow

The Web Sites That Wow monthly feature is intended to demonstrate how a Touchstone Energy cooperative effectively uses its Web site in its brand-building efforts. This month's visually appealing site (http://www.butlerrec.coop/) belongs to Butler County REC (Allison, Iowa), which--in addition to doing an effective job with color schemes and complementing its images with selections from the Touchstone Energy image portfolio--features online bill payment, community news, a Kids Korner, trivia questions, and outage information.

Butler's site also links to http://www.useelectric.com/, a new Web site developed by Iowa's electric cooperatives that features electricity and its products, provides fuel cost comparisons and promotes qualified contractors.

Search is on for Touchstone Energy Brand Champion Award Nominees

Nominations are currently being accepted for the Touchstone Energy Brand Champion Award. Created by the Touchstone Energy board of directors this year, the Brand Champion Award will recognize outstanding contributions and effectiveness by electric co-op CEOs, employees and directors in promoting the Touchstone Energy brand.
Nominees will be judged on:

- Leadership
- Effectiveness
- Innovation
- Consistency

The 2005 Brand Champions will be selected by the Touchstone Energy Cooperative Relations Advisory Committee made up of representatives from member cooperatives across the country. Up to 10 Brand Champion Awards will be presented this year.

Brand Champion Awards will be presented on Wednesday, May 18, at the Connect 2005 Conference in New Orleans, La. For more information and nomination forms, contact Erin Keogh at erin.keogh@nreca.coop. Nominations should be submitted by March 11, 2005.

Brand Managers' Tip of the Month: Local Sponsorships Benefit Co-ops and Members

Skiers Get a Lift From Indiana Co-op
Orange County REMC (Orleans, Ind.) found a cool way to combine a relationship-building activity with both residential members and one of its largest commercial power accounts. During February, the cooperative teamed with Paoli Peaks ski resort to offer REMC consumers special discount pricing on ski packages, as well as some gifts.
 
"As a Touchstone Energy cooperative, Orange County REMC is always interested in building our relationships with customers, whether they're residential homeowners or commercial and industrial accounts," said Dan Arnold, the cooperative's general manager.
 
"Working with Paoli Peaks was a natural fit for us. During the winter, they are our largest electric user and they're located right in the heart of our service territory," Arnold added. "Sponsoring a discount for our consumers helped introduce some local people to skiing and gave our cooperative and the Touchstone Energy brand some exposure at a popular regional recreation destination. Paoli Peaks attracts skiers from the Indianapolis, Cincinnati and Louisville metro areas as well as other places in Indiana and the Midwest."

In addition to special prices on ski packages, Orange County REMC consumers received free bottles of water and kids' sunglasses--all marked with the co-op and brand labels. Touchstone Energy banners were conspicuously placed at the Paoli Peaks entrance and refreshment area, a popular gathering place.
 
The Touchstone Energy sponsorship was promoted to members through the statewide cooperative publication Electric Consumer as well as Paoli Peaks' local newspaper and radio spots.
 
Arnold and the REMC are well acquainted with Paoli Peaks. Last year, the cooperative worked with an Indiana University class to devise a plan for reducing the facility's winter energy costs. Paoli Peaks revised its schedule to operate snow-making machinery more efficiently during off-peak hours.
 
"That project also fit well with the Touchstone Energy values including innovation, accountability and integrity," Arnold said. "With about 8,000 members, Orange County REMC is a small distribution system, but we've been able to do some things that I think really demonstrate the cooperative difference."

Quotable Quotes

"Utilities should practice the art of branding whether they are a competitive enterprise or a monopoly operating in their domain. Customers are used to purchasing branded products, even if they are buying an intangible such as electricity. In other words, consumers still need to know they are purchasing this resource from a company that respects their community and quality of life-and that they are buying it at a fair price."
- UtiliPoint - Jan. 17, 2005

Member Satisfaction Survey Gives Something for Co-op Employees to Rally Around

The following perspective appeared in the Feb. 18 Electric Co-op Today

By Tom Upshaw, President and CEO, Palmetto Electric Cooperative

When we implemented the American Customer Satisfaction Index (ACSI) in 2002 as part of our member survey, we thought it was simply one more component of customer research. What we've discovered, however, is that the ACSI is much more than a measurement of consumer satisfaction. For Palmetto Electric Cooperative (Hilton Head, S.C.), it has become a tool that helps inspire all of our employees to be excellent in their respective jobs and to take pride in being part of our cooperative.

The ACSI is a survey managed by the University of Michigan Business School and sponsored by the American Society for Quality. ACSI measures customers' satisfaction in 16 major industries and 190 leading corporations, including Fed Ex, Southwest Airlines, Nike, etc. The index is a weighted average of four questions on a 0 to 100 scale. Up until 2002, the first year Palmetto Electric implemented the ACSI, we weren't able to compare our member satisfaction levels with other electric utility providers, nor with some of the nation's leading corporations.

We have used the ACSI each year to benchmark our effectiveness in serving our members. In fact, it's part of our annual strategic plan. In 2002, our score was 79, which gave us a good starting point on which to improve. At that time, we were thrilled with our score because it was right in line with the industry leaders--like Southern Company--in customer satisfaction. The score was shared with co-op employees, who were challenged to take it to an even higher level.  We just weren't prepared for how high they would take it.

In 2003, Palmetto Electric employees worked together to strengthen our service across the entire organization and to let our members know the distinct advantages of being part of our electric co-op. They were extremely successful, lifting our score to an 86. In both years we were above the electric utility industry average of 73, but the employees--now armed with a measurement guideline--continued to seek higher scores.

So, we gave them a challenge heading into 2004, a year in which we were to increase electric rates. Emphasizing the important roles they play at Palmetto Electric, and their significant responsibility to our members that comes with being a co-op employee, we challenged them to help Palmetto Electric attain another stellar ACSI score.

And oh, how our employees responded.

They introduced a new outage response tool, revamped our Web site to make it more user-friendly (and sophisticated), launched a new electronic bill payment service, and heavily promoted the Touchstone Energy brand, which made our co-op much more visible to the members. We also expanded our community involvement and became much more involved with our schools, distributing child ID kits and Get Charged electricity education tools.

Months later, after the rate increase, the ACSI was implemented again. Fingers crossed, we waited for our results. We were not disappointed--actually improving our score to an 87. While a seemingly insignificant increase, raising our score in such a challenging year validated all of our efforts, especially in communicating the cooperative advantages to our members.

All of the Palmetto Electric employees, rallying together to improve our electric co-op, were recognized in a special celebration. Closing the offices early one afternoon for what the employees thought was an all-employee group photo, we held a party to honor them for their contributions in improving our score. Each of the 150 employees was given a $50 bill for their role in obtaining an 87.

The ACSI provided us with the evidence that, as a Touchstone Energy cooperative, we are building strong consumer loyalty through our first-rate service. Touchstone Energy cooperatives have a unique and exciting opportunity to show why they are considered elite utility service providers in the United States. I encourage all of them to implement the ACSI to strengthen the bond cooperatives have with their members.

Editor, Marty Haught
marty.haught@nreca.coop
703-907-5986