OUR RELATIONSHIP WITH BUCKEYE POWER + THE WHOLESALE POWER AGREEMENT

Butler Rural Electric Cooperative was founded in 1936. Other distribution cooperatives around the state started around this same time, give or take a few years. In the early years, the cooperatives received their power through purchased power contracts, often with the local investor-owned utilities. It soon became apparent to cooperative leaders in the state that in order to maintain stable and affordable rates, we needed to have our own power supply.

This goal led to the formation of Buckeye Power in 1959. Buckeye Power, a not-for-profit generation and transmission cooperative, or G&T, was organized and owned jointly by the distribution cooperatives of Ohio. Buckeye Power’s purpose is to provide reliable, affordable electricity to member co-ops, who then distribute it to nearly 400,000 homes and businesses in Ohio. Each distribution cooperative gets to have one director on the governing board of the G&T. Butler Rural Electric Cooperative has one of 25 votes for any issues brought before Buckeye Power's Board of Directors.

The new G&T cooperative quickly began work to acquire the cooperatives' own generation assets. Through an agreement with Ohio Power and funding from the Rural Electrification Administration, or REA, the Cardinal Generation Station was born in the 1960s. In order to grant funding, the REA needed assurances that Buckeye Power would be able to pay its debts. Buckeye Power provided these assurances through agreements with all of its distribution cooperative owners, collectively called the Consolidated Wholesale Power Agreement, or WPA. This agreement essentially states, “the purchaser shall purchase and receive from the seller all electric power and energy which the purchaser shall require…” This meant the REA saw a guaranteed load and revenue to pay for the generation investment. The Wholesale Power Agreement has undergone extensions and modifications over the years. But, the 100% power rule has essentially remained the same. The current Wholesale Power Agreement has a term which extends to 2057 Except by vote of all members, the Wholesale Power Agreement does not have an “out” clause during its term. Once the term is completed, termination can occur with a three-year notice.

Why does this matter?

The Wholesale Power Agreement impacts how we operate as we march into an everchanging power supply future. As it stands, any power supply must come from, or through, Buckeye Power.

What about roof top solar or wind?

Every individual member has the right to produce its own power. However, if the entity produces more than what they need at any given time and power flows back onto the grid, it becomes power supply to someone else. Therefore, due to the wholesale power agreement, Buckeye Power purchases this power and it becomes a part of the total Buckeye power supply. Given the terms of the Wholesale Power Agreement, Butler Rural Electric Cooperative can not act as its own G&T. Therefore, our role in home solar or wind is to educate and assist our members in the interconnection of their own systems when it makes sense for them. Contractually, we can not participate in a way which violates the WPA.

The WPA and Community Solar

For example, Butler Rural Electric Cooperative cannot choose to install solar panels in our field across from our office without doing so in agreement with Buckeye Power, like through our Community Solar arrays. Installing solar panels on our own would violate the WPA.