Arkansas Electric Cooperative – 19th Member-Owner of ACES
Carmel, Indiana and Little Rock, Arkansas
Arkansas Electric Cooperative Corporation (AECC), a generation and transmission cooperative serving local distribution cooperatives in the state of Arkansas, has joined as the 19th member of ACES, effective November 1st, 2011. ACES is a 200-employee national energy risk management and trading services company headquartered in Carmel, Indiana.
ACES will provide AECC with a suite of energy risk management services related to credit analysis and monitoring, contract administration, trading controls, risk management policy development, regulatory coverage, portfolio modeling, and transmission and pricing analysis. AECC selected the specific services it initially needs from ACES, but will have the opportunity to select other services as its resource portfolio, energy markets and fuel risks change.
“We are facing a major change in the way we do business primarily driven by the Southwest Power Pool’s developing market and Entergy’s stated intention to join MISO (the Midwest Independent System Operator) in late 2012 or early 2013,” said Ricky Bittle, Vice President of Planning, Rates and Dispatching for AECC. “ACES has broad experience helping G&T cooperatives manage their resources in structured power markets. We will be looking to ACES to augment the capabilities of our existing staff so that we can successfully make that transition.”
David J. Tudor, President & CEO of ACES, added “We are very pleased to have
AECC as our second member in the Southeast U.S. We have a good understanding of the risks and challenges AECC is facing because of Entergy’s decision. Our flexible business model will allow them to decide exactly what kind of assistance their staff needs from us – both now and in the future.”
ACES will station a trading control expert at AECC’s headquarters in Little Rock, according to Jeff Hume, the ACES Director of Business Development who negotiated the membership agreement. “One of the things we emphasized with AECC is the importance of identifying power supply risks so that the board can develop policies and establish limits around those risks. Trading control personnel make sure those limits are maintained.”
Arkansas Electric Cooperative Corporation (AECC), based in Little Rock, provides power for about 490,000 members of Arkansas’ 17 electric distribution cooperatives. AECC has annual energy sales of about $669 million and assets of about $1.1 billion which include three hydropower plants, three natural gas/oil-fired plants and two natural gas-fired-only plants. AECC also co-owns portions of three low-cost coal-fired plants. AECC is an active participant in wholesale power markets to take advantage of economical power purchase and sales opportunities.
Questions for Arkansas Electric Cooperative Corporation can be directed to Douglas White, Vice President, Electric Cooperatives of Arkansas, at (501) 570-2291 or firstname.lastname@example.org.