Q and A with John Twitty

What are the top three issues facing CU in 2004?

Our overriding focus at CU is to provide services to our customers as cost-effectively and reliably as possible. To that end, we see the community's need for additional power supply as our foremost issue. How the community supports our recommendations through a bond election will have long-lasting effects on our community's quality of life and the local economy.

Another key issue for us is the attraction and retention of the employees needed to keep CU a low-cost service provider. ... We know we will have significant turnover in the not too distant future, as the work force ages, and we need to be ready by training people today to step into positions of increased responsibilities.

The third issue is cost containment. We work to convey the message to all of our employees that every process improvement, every cost saving, every new idea translates to better bottom-line performance. Better financial performance means lower overall costs for our customers and enables us to spend the funds necessary to keep our reliability among the best in the nation.

How has regional growth changed the way CU does business?

(It has) required that we communicate to the area that our service territory is substantially larger than Springfield's city limits. We have franchise service agreements with other communities adjacent to Springfield and (we) supply wholesale electricity to Nixa. Regional growth has required that we become more aware of the utility needs of the surrounding communities and how we can help meet those needs.

What is CU's strategy for handling future growth in the region?

We want to be an agent for positive growth in the region. This is why we are an active member of Springfield's Partnership for Economic Development. It is also a key reason why our power supply efforts are so critical. By continuing to offer low-cost and reliable services, we can play a positive role in the decisions of business and industry to stay and/or expand in the Springfield area. Growing businesses mean employment opportunities, and that adds to the quality of life for people and their families. This also means a growing tax base.

What are the biggest challenges facing the electric industry in 2004?

We've heard much about Congress's efforts to pass an energy bill. What the bill contains, should it be passed, will give the industry direction on how best to progress. Setting this aside, transmission issues will continue to take the forefront, and the industry will have to work to avoid blackouts, meet growing energy demands and focus on customer service on a growing scale. ... It is a growing challenge for the (eletric) industry across the country.

What, if any, changes can ratepayers expect in CU services or rates in 2004?

A 3 percent water rate increase will take effect in December 2004, and there will be an electric rate increase with the passage of the power supply bond issue. The American Chamber of Commerce Research Associates, an independent research organization, ranks Springfield's overall utilities cost as the second lowest of more than 300 metropolitan areas in its most recent quarterly report, and we value this ranking. That's why, even though rate increases are needed, over time our customers' bills rise at a rate much below that of general inflation. It's also why cost containment is so important to us.

How will CU address its power generation needs?

For the last several years, we've been studying the best ways to meet growing electricity demand. During this period we've installed new generating capacity, entered into long-term power supply agreements with other utility companies, and engaged the services of expert consulting firms to help us make good decisions. The next generation needed on our system is one that provides base-load energy provided 24 hours every day. The best way for us to meet that need is through a coal-fired unit, and we are currently studying the options available to us that best meet our customers' needs. Ultimately, the citizens of Springfield will have the opportunity to approve a bond issue to provide the funds to construct such a facility.