Last month, we looked at Tipmont’s borrowing strategy and how it helps maintain stable rates. We also showed how good borrowing decisions have kept Tipmont’s interest rates well below the median for cooperatives across the country.
A smart borrowing strategy lays the foundation for creating operating efficiencies – which ultimately leads to a better value for your investment in Tipmont. This month, I’m going to share some insights into Tipmont’s efficient operations.
Operating expenses are the costs Tipmont incurs in delivering electricity to you, including line maintenance, labor and technology. More importantly, it represents expenses we directly control.
One metric we use to benchmark how well we’re managing our operating expenses is “Total Operating Expenses per Member,” or how much is spent each year per member to operate Tipmont.
I like to compare Tipmont to cooperatives with similar growth because we face similar cost challenges. In 2014, Tipmont’s operating expenses per member was $392. Cooperatives with similar growth spent $531 per member, nearly 30% higher (see nearby chart).
Tipmont’s exceptional workforce enables it to aggressively adapt and integrate proven technologies and efficiencies. A few examples stand out: