As districts constantly review options for stabilizing and/or reducing their expenses, energy costs are sometimes overlooked. As we are all aware, energy prices have become very volatile over the past few years. Even the local utilities have adopted a variable rate structure to deal with the volatility. Not that long ago, your local utility would provide you with a stabile, predictable price for the near future. However, those days are gone; most of the utilities here in Michigan (both natural gas and electric) have adopted a variable pricing structure that allows them to adjust their pricing “based upon future events”. Therefore, buying from your local utility no longer provides you with the price stability or predictability that you have enjoyed in the past.
However, energy deregulation provides schools with a choice in purchasing their energy needs. It also provides you with the ability to lock-in a price for a pre-determined timeframe, thus allowing you to “fix” your energy budget for the upcoming school year. Having a fixed, competitive energy cost can provide you with an invaluable tool in these days of ever-increasing energy prices. However, trying to make the decisions on when and where to purchase natural gas and electricity can be a daunting task and if a person is unfamiliar with the market, purchasing month to month can be risky.
Several years ago, a group of school associations came together to create a cooperative designed to take advantage of potential opportunities for schools to purchase their utilities (natural gas & electricity) from alternative suppliers at lower costs than the traditional utility companies. This cooperative organized, elected a board of directors, and hired a firm (Kimball Resources, Inc.) to manage the day to day operations required to make the cooperative successful.
“MISEC is an organization that operates for the benefit of schools and run by school personnel” says Mike Dewey, Superintendent - Bay Arenac ISD and current MISEC President. “Knowing that MISEC is working for you is an invaluable tool in today’s volatile energy marketplace.”
This cooperative, the Michigan Schools Energy Cooperative (MISEC), has become the largest energy cooperative for K-12 schools in the country. It provides districts with the opportunity to take advantage of group purchasing of utilities (natural gas & electricity), bill review, consolidated billing, consumption histories, along with many other services.
Over 430 Michigan school districts belong to MISEC, with more than 160 districts actively participating in the electric program and over 155 districts in the natural gas programs.
Since its inception MISEC has saved K-12 school districts in Michigan over $25 million and growing that savings each year.
Upon review of a district’s recent utility bills, MISEC will honestly determine whether or not there is benefit to the district participating in the Cooperative. “MISEC isn’t for every district,” says Tom White MSBO Executive Director, “but that’s also the value of the Co-op, a district can be confident it is paying the best price available for utilities.”
In addition, MISEC serves as a “clearinghouse” for energy information. You can trust MISEC to be your advocate when reviewing information provided to you by an energy supplier or utility representative. Whether or not you are actively participating with MISEC, please feel free to contact them if you have any questions regarding any information provided to you from an outside source.
Districts wanting to ensure they are having their energy charges managed correctly, along with more stable budgeting opportunities, should investigate MISEC. In addition to the services mentioned, the Cooperative also represents schools at the Legislature and the Michigan Public Service Commission to ensure that choice programs remain in place for schools.
MISEC is supported by MASA, MASB, MAISA, MSBO, and Middle Cities. The board of directors is made up of school business officials and superintendents.
For more information about MISEC please contact Ray Telman at 517-492-1380 or to find out whether or not your district can benefit from participation, please contact Jeff Clark or Jan Rogers with Kimball Resources, at 888-345-0440.