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KAEC Announces Reorganization to Align Business Model with Needs of Electric Cooperatives

DECEMBER 29, 2015

The Kentucky Association of Electric Cooperatives (KAEC) and United Utility Supply (UUS) announced today that they are reorganizing their business to better serve their members in the Commonwealth and around the country. In a deal that is expected to bring UUS members transformer cost savings while ensuring the uninterrupted supply and availability of essential electrical products, KAEC has reached an agreement with Electric Research and Manufacturing Cooperative Inc. (ERMCO) for KAEC’s affiliate, UUS, to become a distributor of ERMCO transformers. The shift to a distribution-only model will result in KAEC no longer manufacturing transformers.

“Making this transition has been a difficult decision, but it comes after a careful analysis of KAEC’s position and a realistic assessment of the challenges we face in the marketplace,” said Chris Perry, KAEC president and CEO. “This distributorship brings greater value and stability for our members and puts the Kentucky Association of Electric Cooperatives and United Utility Supply in a strong position for the future,” Perry continued. “We are proud of KAEC’s 58 years of manufacturing excellence, but we recognize our responsibility to our members to adapt and adjust our business model to meet the challenges of today. We move forward committed to the same cooperative principles upon which we were founded: to serve and support members of KAEC and UUS.”

About KAEC
Kentucky Association of Electric Cooperatives is the statewide association that provides services for the 24 local, consumer-owned electric distribution utilities in the state, as well as two generation and transmission cooperatives that produce power. Electric co-ops in Kentucky serve 843,000 member-owners, providing power to one-third of Kentucky’s population. KAEC services include representation before the Legislature, Congress, and regulatory bodies; safety training; coordination of management training; and public relations support including publication of Kentucky Living magazine, the largest circulation publication in the state with nearly 480,000 copies mailed monthly, with a readership of 1.2 million.

 

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