June 2006
Membership Continues Upward Climb
Touchstone Energy Cooperatives Notch Industry-High Satisfaction Score
Why We Became a Touchstone Energy Cooperative
Wal-Mart Web Event Draws Record Participation
“Straight Talk” Campaign Airs Nationwide
New Cooperative Difference Materials Available on AdvancingtheBrand.coop
Texas Co-ops to Host Touchstone Energy Training
Co-op Connections Card Rolls out New Hotel Discounts, Announces Print Schedule
Share your Power and Hope Recognition Stories
Charities Offer Great Brand-Building Opportunities
Share Your Brand-Building Success Stories
Touchstone Energy Cooperatives, Lawrence Berkeley National Lab Offer Member Co-ops FREE Online Energy Audit
Touchstone Energy Cooperatives last month took a giant step toward helping members manage their energy use. In cooperation with Lawrence Berkeley National Laboratory (LBNL), Touchstone Energy co-ops now can offer their members the Home Energy Saver, a robust online energy audit that helps consumers identify the best ways to manage their home energy consumption.
There is no cost for Touchstone Energy co-ops to offer the Home Energy Saver. Member cooperatives can link directly to the online energy audit located here on www.touchstoneenergy.coop.
This new resource quickly calculates home energy use based on a detailed description of a home, its appliances and geographic location. Plus, all energy applications (heating, cooling, lighting, etc.) are included in the calculation. Armed with the findings, co-op members are able to estimate how much energy and money they can save by implementing energy efficiency improvements. As part of the collaboration, Touchstone Energy has customized a frame for the site to ensure that members know this resource is offered by a Touchstone Energy cooperative.
The Home Energy Saver was the first Web-based tool to compute energy use in residential buildings, according to LBNL. The Web resource is sponsored by the U.S. Department of Energy (DOE) as part of the national ENERGY STAR Program for improving energy efficiency in homes.
“One of the primary reasons we collaborated with Lawrence Berkeley National Laboratory to bring the Home Energy Saver solution to Touchstone Energy cooperatives was that the technology outclassed other options,” said Jim Bausell, COO of Touchstone Energy Cooperatives. “The Home Energy Saver is a great way for co-ops to show that they’re looking out for their members and trying to help them manage their energy use,” he added.
Using a building simulation program developed by DOE (called the DOE-2 version 2.1), the Home Energy Saver calculates heating and cooling consumption for numerous climate zones across the country, drawing data from 350 weather stations nationwide. Based on zip code information, the program performs a full annual simulation for a typical weather year after the user assembles the necessary information describing their home.
“DOE-2 performs a very sophisticated series of calculations, but the Web-based user interface is relatively simple and results are distilled into a useful form,” according to LBNL.
A future element specifically for Touchstone Energy cooperatives will be the ability to input a co-op’s individual rate information for those electing to do so.
Public Images
By Ken Silverstein, Editor-in-Chief, EnergyBiz Insider
The downfall of Enron and the upswing in the economy may lead more utilities to enhance their public images. "Brand" names are important. They signify how companies are viewed both internally and externally -- and the commitment they make to deliver their goods and services on a daily basis.
In a world where industry boundaries are in constant flux, branding can distinguish companies by giving them strong identities and improving shareholder value. By branding, an enterprise is making both an implicit and explicit promise -- a contract with the marketplace to cement a relationship. When it comes to branding, utilities generally get a stamp of approval. And that goodwill could be better used to increase revenues or create a better standing with regulators.
"Corporate cultures that self govern based upon the highest standards of ethical behavior help businesses outperform their peers," says Dov Seidmean, CEO of Los Angeles-based LRN, a firm that helps other companies develop ethical standards and brand images. "We've seen evidence of this. Ethical cultures create trust within and outside corporations. Trust encourages appropriate risk taking, which leads to innovation, which propels progress -- and ultimately profitability."
Corporate character has a profound effect on purchasing and investment decisions. But ethical lapses in the workplace put a reputation at risk, he says. Seidman's firm sponsored a survey of 2,000 adults, which suggest organizations have a strong incentive to safeguard their standing among all constituencies and to strengthen their corporate cultures for business advantage.
Specifically, the poll showed that half of Americans who own stocks independent of a company-sponsored pension have at some point decided not to invest in those enterprises that they thought had questionable ethics. It also found that 70 percent of those asked have at some point decided not to purchase products or services from companies that they believed had dubious business practices.
The branding process starts with the inculcation of ethical standards -- instructing workers at all levels to do the right thing. Once employees are imbued with a sense of "team spirit," the enthusiasm carries outside the companies' four walls. It's about practicing what is preached. It involves a commitment to ideals, and to customers and to the betterment of communities.
In the case of utilities, it can translate into customers giving them some slack and even to weather the most severe storms. A utility may get hit with a lawsuit centering on its level of emissions. And while the public may be quick to buy into the notion that utilities generally are more concerned with profits than cleaning the air, it may also think that its own provider has been proven to be a good corporate citizen.
Corporate Missions
Marketing experts say that branding is built through good public relations and advertising campaigns that are backed by real promises. The most powerful brands create freeze frames in the minds of consumers. According to branding expert Corebrand, utilities are often distracted by such things as logos or packaging. Instead, they should focus on embracing the brand as a valuable corporate asset that should be measured and managed.
A company's brand name is important no matter what business model it may follow. Consolidated Edison and Duke Energy have strong corporate brands, Corebrand says. If a utility operates in an unregulated environment and is competing for business, then it will place more emphasis on communicating its message than if it is tightly regulated and only delivers electricity to customers' homes and businesses.
Branding, of course, is easier when the product or service available is the first of its kind or when firms have to compete head-on for business. A crowded marketplace necessitates that all companies pursue perfection, a strategy that continually raises expectations.
Steve Rosa, an advertising exec from Providence, R.I., says that without such commitment, most companies are doomed to mediocrity -- a losing formula over time, given that the dynamics of the economic landscape are constantly shifting. Regulated utilities, meanwhile, must "provide a warm blanket" and be prepared to adapt to a competitive environment.
The philosophy and the purpose of a company begin with its mission statement. It is the main covenant by which everyone in an enterprise must live. If workers have questions, they must look first to guiding principles. And those values must be communicated and understood not just by employees but also by vendors, consumers and communities.
Meaningful principles have stood the test of time. Consider PSEG, which spent $500,000 on its 100-year anniversary campaign. CEO James Ferland was dubious of spending the money but he changed his mind when he saw how the outreach effort affected employees, regulators and consumers.
In fact, 77 percent of PSEG employees said the celebration helped them to understand fully the company's core values that center on safety, blue-collar roots and dedication to the home state of New Jersey. At the same time, the campaign assisted the utility in winning a major rate case as well as shareholder approval for its pending merger with Exelon.
Markets are continually evolving and as such customers are demanding newer and better services. Likewise, branding campaigns must also change over time. The public, in fact, has awakened to the notion that companies and their products -- even those in the business of selling commodities -- can be differentiated. Green energy, for example, is making a big splash in certain corners.
"Companies that sell directly to consumers have to be incredibly interested in branding," says Adam Turteltaub, corporate relations exec for LRN. "It's about their reputations and anything that could improve or impugn that identity must be addressed."
Brands can make or break companies. The marketplace has witnessed it many times. Examples abound in the energy sector and particularly among unregulated enterprises in the marketing and trading area. But, the pain has been felt among all utilities. In this time of change and reflection, power and gas providers are debating their choices. No matter what, those decisions must be embraced internally and then methodically relayed to consumers and investors. That's the secret behind branding.
Republished with permission from CyberTech, Inc. EnergyBiz Insider is published three days a week by Energy Central. For more information about Energy Central, or to subscribe to EnergyBiz Insider, other e-newsletters and EnergyBiz magazine, please go to http://www.energycentral.com/.
Membership Continues Upward Climb
Since the beginning of 2006, 12 new cooperatives have signed on for membership in Touchstone Energy Cooperatives, including four in the month of June alone:
- Wells REC (Wells, Nev.)
- Citizens Electric Corp. (Sainte Genevieve, Mo.)
- Joe Wheeler EMC (Trinity, Ala.)
- Southwestern Electric Cooperative, Inc. (Greenville, Ill.)
Joining the ranks in January was Tri-County Electric Cooperative (Saint Matthews, S.C.). Total membership now stands at 633 co-ops in 45 states.
“There’s been quite a bit of momentum over the past six months with our membership numbers, which I attribute to co-ops’ recognition of the value of Touchstone Energy,” said Jim Bausell, COO of Touchstone Energy Cooperatives. “We offer more than 25 programs and services that help our members leverage the strength of the brand and communicate the cooperative difference. There’s never been a better time to be a member,” he added.
Touchstone Energy Cooperatives Notch Industry-High Satisfaction Score
Touchstone Energy co-ops distinguish themselves from their industry counterparts in many ways, and the American Customer Satisfaction Index (ACSI) continues to be an effective tool to measure that distinction.
Touchstone Energy Cooperatives’ first quarter 2006 ACSI score of 82, out of a possible 100, places them well ahead of the utility industry average, which fell to a 72. The Touchstone Energy score was also significantly higher than all of the investor-owned utilities included in the average, including Florida Power & Light (68), DTU Energy Company (65), and Excel Energy (70). The Touchstone Energy score is based on telephone interviews with a random sample of more than 7,700 co-op members nationwide.
The ACSI is one of the most recognized customer satisfaction indices in the United States and is a uniform measurement of customer satisfaction across 16 major industries and 190 leading corporations. The index measures satisfaction using four standard questions. Responses to those questions are averaged and plugged into a formula that produces the overall score.
“Touchstone Energy cooperatives have always been dedicated to providing the best and most reliable service to their members,” said Jim Bausell, COO of Touchstone Energy. “Getting the highest ACSI customer satisfaction score in the industry validates the constant hard work put forth by the employees at our co-ops and is a testament to the unique relationships they share with their members.”
In addition to receiving an aggregate national score every quarter, Touchstone Energy has offered ACSI scoring to all member co-ops as part of their national investment.
“We are always seeking tools to help co-ops communicate the cooperative difference,” said Bausell. “The ACSI does that very effectively—a number is a very powerful indicator,” he added.
For more information on how to implement the ACSI locally, contact Erin Keogh at 703.907.5572 or erin.keogh@nreca.coop. All necessary documents and instructions can also be found at www.touchstoneenergy.coop in the member resources section.
Why We Became a Touchstone Energy Cooperative
by Joe Richardson, Director of Communications, Southwestern Electric Cooperative
At Southwestern Electric Cooperative (Greenville, Ill.), member education is a top priority. We dedicate a lot of time and resources to ensuring that our members are well informed. We want them to know how to use our services efficiently and safely, and we want them to have an opportunity to assume a leadership role in the organization. Touchstone Energy has done an exceptional job of developing materials that effectively communicate the cooperative difference. Being a part of Touchstone Energy will help us reach our members, and in turn, help our members make well-informed decisions regarding the future of their cooperative.
Second, Touchstone Energy has emerged as a leader in the field of rural development. Southwestern is blessed by geography. We’re in a high-growth area with rail and interstate access, and a skilled workforce. Touchstone Energy’s SitesAcrossAmerica program will help us leverage that position and attract new business, new industry, and new jobs for our members.
Finally, people judge you by the company you keep. Many of the cooperatives for whom we harbor the deepest respect are Touchstone Energy members, and have been for a while. They’re finding value in the organization, so there’s every reason to be confident that we will as well.
Southwestern is a progressive cooperative. I suspect we’ll assume an active role with Touchstone Energy. We look forward to getting involved in the organization.
Wal-Mart Web Event Draws Record Participation
A recent Web conference hosted by Touchstone Energy Cooperatives and NRECA’s commercial & industrial business development team broke attendance records, as nearly 300 cooperative professionals joined Wal-Mart executives June 7 in an online discussion of Wal-Mart’s unique energy needs; specifically, environmental and energy efficiency goals announced by Wal-Mart headquarters in October 2005.
With 180 co-ops providing service to at least one Wal-Mart store, the electric cooperative network shares a unique relationship with the retailer and will be called on to help Wal-Mart facilities meet their goals. Some of these goals include reducing their energy consumption by 25 to 30 percent and eventually converting to renewable energy to power their stores. James Stanway, Wal-Mart’s director of energy services, told co-op participants that, while no firm time-line has been established for conversion to renewable energy sources, the company is committed to aggressively reducing energy consumption.
“This Web conference follows a long line of forums, workshops and events dedicated to finding common ground between business goals and strategies of Wal-Mart and the electric cooperatives that serve them,” said Jim Bausell, COO of Touchstone Energy and V.P. of C & I business development for NRECA. “Wal-Mart has presented some very ambitious energy goals, and the record participation in this Web conference and active efforts by co-ops to get informed show they are not standing idly by,” he added.
Forum to be held Aug. 1-2 near Wal-Mart Headquarters
Co-ops will be able to continue their dialogue with Wal-Mart at the Wal-Mart Energy Forum Aug. 1-2, 2006, in Bentonville, Ark. The forum will provide insights about Wal-Mart's new corporate sustainability program and their renewable energy goals. Co-op officials will have a chance to meet with regional Wal-Mart energy representatives to discuss in detail the relationship between their co-op and the area Wal-Mart facilities.
The event will be held at the Bentonville Clarion Hotel and Conference Center, Bentonville, Ark. Additional details and online registration are available at cooperative.com.
For more information about the forum, contact Jerry Bingold, NRECA western regional manager, at 281.360.9116 or jerry.bingold@nreca.coop.
“Straight Talk” Campaign Airs Nationwide
After making its debut at the Connect 2006 Conference last month, Touchstone Energy Cooperatives' new advertising campaign, "Straight Talk," hit the airwaves on June 5 and will air nationally on cable and satellite networks until July 9.
The national media buy for "Straight Talk" includes four spots that communicate the cooperative difference and underscore themes identified through the 2005 National Survey on the Cooperative Difference. The spots present timely messages on topics such as energy efficiency, investing in technologies that will ensure a brighter future for America, and the strength of the co-op network.
Catch the spots on The Weather Channel, USA, HGTV, the Discovery Channel, Lifetime and ESPN, as well as various satellite networks.
To view all of the spots, visit the Touchstone Energy Web site.
New Cooperative Difference Materials Available on AdvancingtheBrand.coop
Touchstone Energy co-ops have a great tool available to them to promote the cooperative difference. The most recent Cooperative Difference poster and counter card is available on www.advancingthebrand.coop. The theme, “Advocacy,” promotes the message, “Looking Out For You, That’s the Cooperative Difference.” The “Looking Out For You” message was identified in the 2005 National Survey on the Cooperative Difference as a key driver of member satisfaction and loyalty.
Advancingthebrand.coop houses Touchstone Energy posters, counter cards, print ads and bill stuffers that help co-ops communicate the unique advantages of being a member of a local electric cooperative. The materials are perfect for bill payment offices.
In the past, Touchstone Energy has mailed a copy of the posters and counter cards to each co-op. However, with the release of the new elements, member cooperatives will have more flexibility in the design. There are three poster and counter card options, as shown below. Each cooperative can receive one complimentary poster and counter card by accessing www.advancingthebrand.coop and filling out the appropriate information.
Texas Co-ops to Host Touchstone Energy Training
Register by July 24
Texas’ Touchstone Energy co-ops will hold a “Train-the-Trainer” workshop in Fort Worth on Tuesday, August 15. Ann Maggard of East Kentucky Power Cooperative (Winchester, Ky.) will facilitate the workshop and teach brand managers how to communicate and build excitement about the Touchstone Energy brand among co-op employees.
The “Train-the-Trainer” concept is part of Touchstone Energy’s “Living the Brand” employee learning program, geared toward teaching employees how to use Touchstone Energy’s core values of integrity, accountability, innovation and commitment to community as a basis for offering superior customer service to co-op members. Attendees will take home a facilitator’s kit with all the necessary materials to make effective presentations at their co-ops.
Date: Tuesday, Aug. 15, 2006
9 a.m. – 4 p.m.
Location: Best Western InnSuites, 2000 Beach Street, Ft. Worth, Texas, 817.534.4801
Room Rate: $69; Reference Group Name “Touchstone Energy Cooperatives” to receive this special rate
Cost: Nominal fees to cover the cost of refreshments and meeting space will be billed to each participant separately. Participants can expect the fee to be approximately $70.
Registration: Please contact Lynn Simmons at 806.775.7826 or e-mail at lsimmons@spec.coop for questions and registration information. The registration deadline is Monday, July 24.
Co-op Connections Card Rolls out New Hotel Discounts, Announces Print Schedule
Just in time for summer vacation, Co-op Connections cardholders can enjoy savings at two leading hotel chains. Members can save 10 percent on Marriott’s VacationCard, a prepaid gift card redeemable at any Marriott Hotels and Resorts, Renaissance Hotels and Resorts, JW Marriott, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill suites and Marriott Vacation Club International location. Marriott is a leading worldwide hospitality company with over 2,700 lodging properties in the United States.
Cardholders can also take advantage of a 10 percent discount at La Quinta Inns and La Quinta Inns & Suites. Additional benefits for the Co-op Connections members includes free enrollment in the Returns frequent traveler program, where members can redeem points for certificates to major retailers, airline partners, plus golf, ski, amusement, entertainment and rental car coupons. La Quinta has 500 properties nationwide.
To access these and the 32 other Co-op Connections national discount deals, go to www.connections.coop.
Logos and Commitments due Oct. 3 for Third Quarter Print Run
The growing tally of national discount deals makes this a perfect time to join the 79 Touchstone Energy co-ops building member loyalty and demonstrating the cooperative difference with the Co-op Connections member benefit card. With more than 5 million cards and key fobs in circulation, Co-op Connections is delivering savings to co-ops and members nationwide.
To participate in the next print run, register by Oct. 13 on www.advancingthebrand.coop.
For more information on the next print run and Co-op Connections, contact Cynthia Henthorn at cynthia.henthorn@nreca.coop, 703.907.5575, or Scott Bialick at scott.bialick@nreca.coop, 703.907.5627.
Share your Power and Hope Recognition Stories
The Brand News is eager to share stories about Touchstone Energy co-ops who have honored employees with the Power & Hope Employee Recognition Program, a brand-new Touchstone Energy initiative. If an employee at your co-op has received the award, the Brand News wants to recognize that individual and encourage other co-ops to consider recognizing employees who are good candidates for the award. To share your stories, please use the submission form by clicking on the link to the left.
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The Power & Hope Program recognizes co-op employees who have gone above and beyond to help fellow cooperatives in times of challenge. Power & Hope recognition is not limited to aid provided during a natural disaster, and all co-op employees, not just linemen, are eligible for the award. The program is administered by individual Touchstone Energy co-ops, and the co-op management selects recipients of the award.
The program is flexible. Several different design options for the awards can be downloaded and implemented however cooperatives see fit. Designs can be used in a lapel pin, patch, truck decal, plaque, certificate or any other element and are available for download at www.touchstoneenergy.coop, under the programs tab in the member resources section.
For questions on implementation of the program, contact Marty Haught at 703.907.5968, marty.haught@nreca.coop, or Erin Keogh at 703.907.5572, erin.keogh@nreca.coop.
Charities Offer Great Brand-Building Opportunities
An effective way to build the Touchstone Energy brand over the last eight years has been electric 
cooperatives’ sponsorship of various charities. These events allow co-ops to demonstrate commitment to community, but also serve as a great way to show cooperative members that electric co-ops truly look out for their members.
Recently, the Leukemia & Lymphoma Society approached Touchstone Energy Cooperatives to investigate partnership opportunities within the co-op network. The Society hosts Light the Night Walks to raise funds for cancer research.
Light the Night walkers carry illuminated balloons--white for survivors and red for supporters--to celebrate and commemorate lives touched by cancer. Anyone can take part-children, adults and seniors are all welcome. If your cooperative is interested in participating in this charity, more information can be obtained at the Society’s Web site.
Quotable Quote
“The goal is and must be brand engagement—durably and measurably strong marriages between companies and their customers. This goal must be zealously and passionately pursued, not just in the boardroom, but also by everyone who stocks a shelf, answers a phone, redesigns a package, services a car, or creates a commercial.”
-from Married to the Brand by William J. McEwen
Editor, Erin Keogh
erin.keogh@nreca.coop
703.907.5572