The BOARD of DIRECTORS of Concho Valley Electric Cooperative, Inc. have explored the advantages and disadvantages of participating in retail electric competition as provided for in Senate Bill 7 signed into legislation June 18, 1999.

The advantages for competition are:

1. The promise of lower rates through competition.

2. The promise of greater diversity of service offerings.

3. Provides Choice.

The disadvantages for opting into competition are:

1. Decision to opt into competition is non-reversible. Should competition prove to be less than desirable for the membership, the Cooperative cannot return to a non-competitive market.

2. Loss of load will dilute buying power for members. Purchasing power individually will be more expensive than an aggregate load. The Cooperative has been an aggregator for our members for over 60 years.

3. The Cooperative's operation costs could increase $2-6 million annually (13% to 20%) to opt into competition (requires increase in staff to preform new deregulation functions).

4. Competition has not been greatly successful in other states such as California where only 3% of the market has switched power suppliers and prices have doubled and tripled, and only 4-6% of the customers have switched in Pennsylvania.

The Board of Directors have determined that the advantages of not participating in retail electrical competition far outweigh the advantages of participating in competition at this time.

The Board of Directors have decided to refrain from opting into retail electric competition at this time and shall delay the decision to opt into retail electric competition until the advantages and disadvantages become clearer and when the advantages outweigh the disadvantages. The Board of Directors will continue to monitor the competitive market place to determine when and if the advantages of a competitive market outweigh the disadvantages.

For more information, please contact your Cooperative at 325-655-6957.