Central Electric Power Cooperative CEO Rob Hochstetler honored by Rose-Hulman Alumni Association

As electric cooperatives continue to adapt to what could be the most challenging and disruptive time in their 80-year history, recent national data validates what history has repeatedly shown to be true: The co-op business model is uniquely suited to thrive in times of change.

An explosion of new operational technologies, spiking demand growth, unprecedented reliability pressures, extreme weather events, unhelpful public policies and escalating cybersecurity concerns are just a handful of the strains that the electric utility industry is experiencing.

These and other challenges will test all utilities over the coming years. But new studies show that co-ops are poised to seize the opportunities these times bring because of three critical facets of the co-op business model: their member focus, their local perspective and collaboration with their fellow co-ops and their G&Ts.

“Electric cooperatives bring a community focus to the changes that we’re seeing in the energy industry,” says NRECA Chief Operating Officer Jeffrey Connor.

“Every cooperative is different, but they all leverage partnerships in strategic ways to share experiences and create value across the network. Electric co-ops are truly unique in our industry.”

In early 2024, NRECA launched the Value of the Cooperative Model initiative, a first-of-its-kind research effort aimed at quantifying the strengths and weaknesses of co-ops in managing change. An advisory group of 10 leaders at large and small co-ops and NRECA helped guide the process, which involved two separate national studies and resulted in a detailed white paper about the value of the cooperative business model in navigating industry challenges, a lexicon for how best to communicate the co-op value to members and the public, as well as a new education course for G&T directors.

The studies revealed a “robust model that has adapted to the changing needs and expectations of its members while staying true to its fundamental cooperative principles.”

“It’s really important to take a step back during this time of monumental change to look at the bigger picture and say, ‘We’ve had this business model in place for a long time, to meet the members’ needs, but how do we best communicate and explain the unique value that co-ops bring to this industry,” says advisory group member Lisa Johnson, CEO and general manager of Seminole Electric Cooperative in Tampa, Florida.

Patrick O’Loughlin, recently retired president and CEO of Buckeye Power in Columbus, Ohio, and a former member of the advisory group, noted that the co-op model has always been an industry advantage with no facet more important than member focus.

“We are still basically focused along the same principles, but what does change are the circumstances, the problems we have and the opportunities we have,” he says. “But by being able to have a singular focus on what’s in our members’ best interests and understanding our local communities, it helps co-ops make the right decisions for them. And by having that single member focus, we’re able to get it right more often.”

Four sources of value

NRECA worked with ScottMadden on the white paper and with maslansky+partners on a lexicon “playbook.” The white paper underscores four core sources of value within the co-op model:

1. Price, cost and reliability. Nationally, co-ops offer comparable or lower prices compared to investor-owned utilities despite frequently serving lower-density, higher-cost areas, the study found. About 8 in 10 co-ops work through a G&T to secure wholesale power supply, including ownership and operation of shared generation facilities and transmission infrastructure. G&T rates vary by region, but all show substantially less volatility compared to the market. Other co-ops secure power through bilateral agreements with public and private utilities, through organized wholesale markets or through developing their own local generation options.

“The co-op model allows us to take into consideration the big-picture things that are happening around the country in our state and in our local community, as well as the circumstances that each individual co-op has,” says O’Loughlin. “Then we make decisions that are in the interest of our membership, so we end up providing the people that we serve with the best service we can at the lowest cost that’s available. Our motivations are pretty clear and pretty simple.”

2. Governance. The democratic, member-owned governance structure of cooperatives provides local control and accountability. Distribution co-ops are the direct point of contact with consumer-members at the end of the line, while groups of cooperatives—such as G&Ts or statewide associations—determine common interests and develop strategies to achieve them through their member-directed governance processes. Maintaining alignment across members and making decisions that are optimized in the interest of collective needs is paramount and a hallmark of co-ops.

3. Long-term power supply agreements. Contracts between distribution co-ops and their generation partners provide stable, affordable power, enable long-term planning and financing of generation and transmission assets and help minimize risk.

4. Joint services beyond wholesale power supply. Co-ops pool resources on generation and transmission, but also in other areas, including safety training, IT, marketing and communications, external and government relations and operations support.

“The co-op model is the most democratic, efficient and socially responsible way to provide essential services,” says Hood River Electric Co-op General Manager and advisory group member Libby Calnon. “Co-ops are built on collaboration, local control and local economic participation. We exist specifically to provide value to our members. And in my view, there’s just no better way to provide an essential service to a community than that.”

‘A community-minded attitude’

The ability of the co-op model to succeed amid challenges is getting noticed.

Then-RUS Administrator Andrew Berke recently noted: “I’ve visited co-ops all over the country, have been to member meetings, and have had so many conversations with rural electric co-op executives and board members. Every co-op, of course, is different, but at the same time you see consistencies across the industry—focus on reliability, resilience and affordability and a community-minded attitude—that are the foundation of what makes them successful.”

That foundation is one of the reasons that federal infrastructure funding has been directed toward hundreds of electric co-ops.

Arizona G&T Cooperative CEO and Executive Vice President Patrick Ledger says his G&T’s close relationships with its member co-ops was a deciding factor in their recent successful bids for three federal grants, totaling $550 million.

“We could bring the needs of smaller utilities together into larger-scale flexible resources,” he says.

This deep G&T/member co-op partnership is a key focus throughout the lexicon and white paper projects. The messaging research found “a capability gap” exists with consumer-members when they are asked about their cooperative’s ability to deliver reliable, affordable energy.

“Many don’t know about G&Ts,” the playbook says, adding that “one in two consumer-members don’t know where their co-op gets power from.”

To address that gap, the playbook recommends explaining that G&Ts are part of a larger co-op network, positioning the relationship “as a community of co-ops to suggest the scale, resources and strength that result from the co-op model—while staying true to the heart of the larger co-op story.”

“When co-ops cooperate, it allows them to gain scope and scale to compete with much larger organizations and yet stay grounded in their local community,” says Rob Hochstetler, advisory committee member and president and CEO of Central Electric Power Cooperative in Columbia, South Carolina.

Committing to a common language when talking about the co-op/G&T relationship is particularly useful when delivering the message about co-op capabilities to lawmakers.

“The nation just went through an election, and there’s a whole new group of policymakers in Washington who may not be versed in the value of the cooperative model, and it is critical to explain our model as they prepare to set energy policy for the country,” says NRECA Senior Vice President for Communications Ken Lisaius. “This playbook is a resource available to our members to help them communicate the value that cooperatives bring to their consumer-members.”

The final project from the NRECA initiative is a new Board Leadership Certificate (BLC) course for directors about G&Ts. The Value of the Generation, Transmission and Distribution Relationship (BLC 960.1) reviews the financial, legal and operational challenges currently facing G&Ts as well as the complexity of directors’ oversight responsibilities.

NRECA designed the course to help distribution co-op directors refocus on “the value of their relationship with their G&T and how it’s expressed,” especially during this period of turmoil in the industry, says Pat Mangan, NRECA’s senior director of governance education.

“It’s been a very popular offering,” says Mangan.

The course, which is capped at 35 participants per delivery to ensure a high level of conversation, interaction and discussion, was delivered 17 times in 2024, with more slated for this year.

“It’s important that distribution co-ops and G&Ts understand and appreciate the challenges faced by one another,” says Mangan. “It re-emphasizes the strength of what it means to be part of an electric cooperative working with like-minded individuals all pulling in the same direction.”

This article was originally published on the Rural Electric (RE) Magazine by Victoria A. Rocha.

Cryptocurrency mining presents electric cooperatives with large, near-continuous loads that can come with challenges when demand peaks. With recent forecasts predicting significant load growth nationally over the next five years, the need to manage large peak loads is only expected to grow.

Central Electric Power Cooperative, a generation and transmission co-op based in Columbia, South Carolina, has designed a pass-through wholesale rate for its 19 member distribution co-ops intended to incentivize crypto-miners to shut down during peak load periods.

“We developed a rate for crypto loads, a highly dynamic speculative load rate,” says Cole Price, Central’s executive vice president for member services. “Speculative” refers to the transitory nature of crypto-miners, who move often. The rate reflects energy, demand and operational/transmission costs and can as much as double the crypto-member’s costs during a peak.

Cryptocurrency miners mint bitcoin and similar currencies by solving complex math problems that require powerful computer processing that draws large amounts of power. Central currently has about 60 to 70 megawatts of cryptocurrency mining load on the lines of its member cooperatives, Price says.

Central’s dynamic rate “covers our energy and variable costs, and yet it happens to be affordable for them,” Price notes.

If the crypto-miners continue to operate during a one-hour-a-month peak, he adds, they will pay a “hefty” dynamic demand charge. Signaling the crypto-operations when peaks are approaching, Price says, “gives them the opportunity to avoid our power demand charge.”

The rate has shifted crypto-mining operations away from peak, Price says, benefiting the G&T and its members while saving the crypto-operations money.

“They’re scaling back to zero almost every month,” he says.

Crypto-mining is expected to play a role in national load growth that could average 3% annually over the next five years, according to an analysis by Gridstrategies. Price believes a dynamic load rate could move crypto-miners off peak at other cooperatives.

“I think you would see that around the country,” he says.

This article was originally published on the Rural Electric (RE) Magazine by Reed Karaim

Central Electric Power Cooperative, Inc. is pleased to announce the promotion of Leslie Maley to Vice President of Power Supply and Planning. Maley brings a wealth of experience and dedication to her new role, having been a key contributor to Central’s strategic projects in recent years.

Maley joined Central in March 2020 as a Senior Financial Analyst in the Power Supply Contracts and Audit Department and quickly advanced to the position of Manager. Throughout her time at Central, the Lexington, S.C., resident has demonstrated exceptional leadership and expertise in managing complex power supply agreements, resource planning and contract negotiations.

In this new position, Maley will oversee Central’s power supply operations. Her responsibilities will include resource planning, power supply contract negotiations, fuel purchasing and generation development to ensure that Central meets its 19 Member cooperatives’ need for reliable, cost competitive power.

“Leslie’s promotion is a testament to her hard work, strategic thinking, and commitment to Central’s mission,” said Rob Hochstetler, CEO of Central Electric Power Cooperative. “Her contributions to major projects have been invaluable. We are confident that in her new role, Leslie will continue to drive our strategic initiatives forward and strengthen our relationships with Members and key stakeholders.”

Maley’s career has been marked by her proactive approach to building relationships and industry knowledge. As she begins her new role, she remains committed to leveraging her experience and insights to further Central’s goals.

“I am honored and excited to take on the role of Vice President of Power Supply and Planning,” Maley said. “My time at Central has been incredibly rewarding. I look forward to leading our efforts in power supply contract negotiation, management, and resource development, ensuring we meet the goals set by our Board and continue to serve our Members effectively.”

Maley earned a bachelor’s degree in mathematics from Auburn University and a Master of Accountancy from Georgia Southern University. She is also a Certified Public Accountant accredited by the South Carolina Board of Accountancy. In addition to her professional accomplishments, Leslie is actively involved in serving her community, including as a board member of her church and as a co-founder of Play it Forward, an organization that provides sports equipment to underserved youth to promote equal access to sports.

A native of Columbus, Georgia, Maley currently resides in Lexington with her husband Kyle and their two children.

About Central Electric Power Cooperative, Inc.

Central is a Columbia-based not-for-profit generation and transmission cooperative that serves South Carolina’s 19 electric distribution cooperatives. These independent, member-owned cooperatives formed Central in 1948 to pool their resources and purchase wholesale power more efficiently and effectively. Central and its member cooperatives together serve more than 70% of the state’s land mass, including consumer-members in all 46 counties.

Central Electric Power Cooperative, Inc. is proud to announce that its board of directors has appointed A Berl Davis as board chair to succeed Paul Basha. Berl has served on the Central board since 2014.

As the President and CEO of Palmetto Electric Cooperative, Inc. since 2014, Berl has led significant initiatives that have driven progress and innovation in South Carolina’s energy sector. Prior to his current role, he served in various key positions at Palmetto Electric and South Carolina Electric & Gas Company (SCE&G).

He has held numerous chairmanships including at the Cooperative Electric Energy Utility Supply, Inc. (CEEUS), Line Equipment Sales Company (LE), and The Electric Cooperatives of South Carolina, Inc. (ECSC). He is also the current Chairman of the Don Ryan Center for Innovation, a board member of the Hilton Head Island-Bluffton Chamber of Commerce, and past chair of NRECA’s Cooperative Research Network Distribution Best Practices Membership Advisory Group and its Transmission and Distribution Underground Subcommittee. Most recently, Berl was appointed to the South Carolina Power Team Board of Trustees, which is comprised of electric cooperative CEOs and Trustees representing individual cooperatives across the state.

His past contributions also include roles with the United Way of the Lowcountry, Beaufort County Economic Development Corporation Board, and advisory positions for Junior Achievement and the Boy Scout Explorer program.

Berl received a Bachelor of Science in Electrical Engineering from Clemson University and is a graduate of the National Rural Electric Cooperative Association Management Internship Program from the University of Nebraska-Lincoln. He is a native of Ridgeland, SC and current resident of Bluffton, SC.

Central Electric Power Cooperative, Inc. CEO Rob Hochstetler has been recognized with the highest honor bestowed by the alumni association of the prestigious Rose-Hulman Institute of Technology.

Hochstetler is the 2024 recipient of the Rose-Hulman Alumni Association’s Honor Alumni Award, reserved for graduates who have achieved and maintained extraordinarily high standards in their professional fields and have made significant contributions to their communities.

Founded in 1874, Rose-Hulman has been ranked the No. 1 undergraduate engineering college in the country for more than two decades, according to U.S. News and World Report.

Hochstetler graduated from the Indiana-based school in 1991 with a degree in electrical engineering and started his career shortly thereafter as a plant engineer. After stops at several major utilities, he joined Central as CEO in 2014.

“Rob Hochstetler embodies the values and aspirations of Rose-Hulman Institute of Technology. His exceptional career and dedication to community service are truly inspiring,” said Rose-Hulman President Robert A. Coons. “Rob’s achievements not only highlight his professional excellence but also his commitment to making a positive impact on society.”

Under Hochstetler’s leadership, Central has grown to become the second-largest generation and transmission electric cooperative in the nation by purchases for their consumers. Central manages the power supply portfolio of South Carolina’s 19 electric distribution cooperatives, purchasing and distributing electricity across 800 miles of transmission line.

“I feel privileged to receive this honor and to be counted among the many Rose-Hulman graduates who have pushed the boundaries of innovation and service. This recognition will only deepen my commitment to the values instilled in me by this great university.” says Hochstetler.

In addition to his professional accomplishments, Hochstetler has earned master’s degrees in business administration, statistics, strategic management, and public administration. He is currently pursuing a doctorate degree in organizational leadership.

Hochstetler also is actively involved in the South Carolina State Guard, where he serves as a lieutenant colonel.

“We are proud to honor Rob Hochstetler with the Honor Alumni Award. His outstanding achievements and the integrity with which he conducts himself are exemplary of the kind of leaders Rose-Hulman strives to produce,” stated Steve Brady, Vice President for Institutional Advancement.

For more details about the Rose-Hulman Alumni Association’s Alumni Awards and this year’s recipients, please visit www.rose-hulman.edu/alumni.

About Rose-Hulman Institute of Technology

Rose-Hulman Institute of Technology, located in Terre Haute, Indiana, is a leader in engineering, science, and mathematics education. It offers a collaborative learning environment with a student-to-faculty ratio that ensures personalized attention, providing its students with the best possible educational experience.

About Central Electric Power Cooperative

Central is a Columbia-based not-for-profit generation and transmission cooperative that serves South Carolina’s 19 electric distribution cooperatives. These independent, member-owned cooperatives formed Central in 1948 to pool their resources and purchase wholesale power more efficiently and effectively. Central and its member cooperatives together serve more than 70% of the state’s land mass, including consumer-members in all 46 counties.