General Manager’s Message

Dear Customer Owners:
2008 was a year we will remember for some time to come. High energy costs and the downturn of the economy and the market challenged all businesses in America and abroad. In the utility industry, in particular, we faced a perfect storm in the power supply market as various negative issues came together to drive up costs. Fuel prices alone spiked 200% in a matter of months.

Despite the volatility last year, TMLP remained a sustainable, financially-healthy public power utility. The foundation on which the TMLP was built, namely our customers, remained steadfast and loyal during the turbulence. Although our power cost charges had to be adjusted several times during the course of the year, TMLP and its customers weathered the onslaught and managed to retain competitive rates. Diversity in our power supply portfolio helped to limit increases, and we were able to help many customers use their power more efficiently through conservation measures.

...the utility industry, in particular, we faced a perfect storm in the power supply market as various negative issues came together to drive up costs. Fuel prices alone spiked 200% in a matter of months.

The increased costs didn’t begin and end with the fuel…it continued with the capacity market costs, the reliability out-of-merit charges of the Mirant Canal Plant, excessive costs of the hydro-power from New York, and increased transmission service fees from the Independent System Operator. Higher prices on basic necessities like food, home heating oil and gasoline, forced many families to make tough decisions on which bills to pay and which rooms to heat in their homes. And then in September 2008, the market crashed … hard. Yet, through it all, we responded and our customers remained loyal.

Our customer satisfaction survey was conducted in October 2008, and the feedback was that our customers are loyal and continue to provide strong overall ratings (92% favorable) despite the tough economic times. During 2008, TMLP focused on its exceptional reliability (99.9% reliable) by investing $6.2 million in its infrastructure, without incurring debt. Our customers recognized our efforts in the survey by rating our reliable service with high marks.

Environmentally speaking, TMLP is among the leaders in the industry with respect to environmental stewardship. For decades, a healthy portion of our energy supply has been earmarked “green” and we take pride in sharing with our customer-owners that we are well ahead of the government’s requirements looking five years out. On the topic of looking forward, the TMLP management has embarked on an extensive strategic planning review for 2009; financial health, business goals and customers’ needs and expectations will be at the forefront of every decision we make in the coming years.

We strive to minimize our price volatility with our power supply and improve our quality of service and efficiency. We went out to bid for up to 30% of our system load with renewable energy and look forward to developing power supply contracts with those who provide value. TMLP continued to develop a combined-cycle generation plant, along with other public power entities, to provide an efficient power supply for the future. TMLP also continued with system improvements and upgrades to enhance our efficiencies and reliability.

We thank you, our customers, for your continued loyalty and support; we look forward to sharing our successes with you in the coming years.

Michael J. Horrigan
General Manager

 

Message from the TMLP Board of Commissioners

2008 proved a challenging year from an operational standpoint. Tough decisions were made with respect to operating costs and expenses and the need to pass along the increases to our loyal customers. From an operational standpoint, the Board worked closely with the management team to fund only the highest priority projects that were inherent to the continuity and sustainability of the TMLP. We are in the fortunate position to work with a utility and management team who have focused, over the decades, to put its customers’ interests first; that has made our job, as a Board, much easier.

Without question, the concept of the municipal cooperative to build a new Unit 10 has occupied the front burner for a better part of 2008. Again, because the customers are at the forefront of this decision, every angle, every aspect of this new unit has been geared toward making the product more efficient, less costly, environmentally-sensitive and available when customers flick the switch. During the upcoming year, we will work closely with our local government officials and communities to make sure that everyone has an opportunity to participate in the outcome of the new Unit 10; the strategy of inclusion will make the final outcome that much more successful.

From an operational standpoint, the Board worked closely with the management team to fund only the highest priority projects that were inherent to the continuity and sustainability of the TMLP.
Peter H. Corr, Chairman

Tremendous credit goes to the relatively new General Manager, Mike Horrigan, and his management team. Mike has proved to be a respected leader committed to serving the community; our business is stronger and well positioned to handle the challenges and opportunities that await us in the coming years as a result of his experience. Under Mike’s tenure, the payment-in-lieu-of-tax payment was increased to $2.9 million (an increase of $75,000) to assist with the financial burdens placed on the city as a result of the economic recession. TMLP continued to support the towns with the lighting of ball fields, assisting the local school systems and local government with the computer and phone support, the mentoring of high school students and the participation and support in a myriad of community not-for-profit agencies, Chamber of Commerce and other economic development organizations.

We thank you for your continued support and loyalty and look forward to enjoying a more robust and financially-secure economy during the coming year.

 

Sincerely,
TMLP Commissioners

Peter H. Corr, Chairman

Investing in a reliable distribution and transmission infrastructure.

High Marks for TMLP Customer Satisfaction Survey.