As the passenger train pulls up to the station, people will check their tickets making sure they get on the right train for the remainder of their trip. Getting on the wrong train results in serious consequences. Once on board the right train, travel resumes with a locomotive pulling the cars, which travel in the same direction and the same speed. Eventually, the new train arrives at the desired destination. Mission accomplished!

Now imagine with me as I apply this word picture to EnerStar. Over the last five years, EnerStar has been focused on a series of priorities. These priorities are all part of one train, all traveling in the same direction, at the same speed. These priorities include:

• Maintaining the lowest rates possible. Please consider the fact residential electricity rates are less than 7% more than they were 10 years ago for an average residential user. Compare this to the fact that inflation is up 30% during the same period.
• Reducing long-term debt, thereby taking pressure off future rates. One of the benefits of lower debt is that our long-term interest expense is declining in an era when other utilities are facing escalating interest costs.
• Upgrading our electrical infrastructure to improve service quality. Our outage statistics bear proof of improving service reliability — significantly in most areas. We trust you are experiencing the same.
• Redesigning fee structures for new or upgraded electric services. This change has meant that those asking for a change pay the cost and existing rate payers are no longer helping to subsidize these changes through higher electricity rates.
• Upgrading our fleet of trucks and other equipment. This has helped to improve safety, promotes operating efficiency and improves vegetation management (which reduces outages).
• Identifying the true cost to serve each member group, then designing rates that best match these true costs.

I could keep writing, but the above captures the essence of our focus for the last five years. These pieces were part of my imaginary train headed toward a destination called: “Achieve lowest possible long-term rates and best service quality.”

But there is more to the story. I added “confirm your next destination” to symbolize the need to pause and reflect on all that we have accomplished and on what challenges lie ahead. So much progress has been made in all areas over the last five years; it is now time to confirm where we go next. This comes in two parts:

Part 1: At a staff level, we have mapped out near-term plans for the board of directors’ consideration and have shared with all employees.

Part 2: At the board level, a Strategic Planning session will occur in February. This will deal with the highest level of issues facing EnerStar. More about that later following the meeting.

Now, going back to my imaginary train station, which hereafter is called “EnerStar Planning Station.” The train will then leave this station with new plans guiding the locomotive. We, the staff, and the board of directors will then be pulling in the same direction toward new and better ways to serve you, our owners. A few years from now, we will say “mission accomplished,” and new plans will be developed.

Admittedly, using a train to illustrate my points may be oversimplified, even corny. But if it helps to illustrate how the EnerStar team (board and staff) are all pulling in the same direction, at the same speed, then good. If it helps to illustrate how the EnerStar team is wise enough to recognize the need to pause from time to time to assess where we have come from, where we are and where we go from here, then great. If it helps to illustrate how a new “mission” is under development and will be implemented soon, all the better!

Just remember, you own EnerStar and we as the board of directors/staff are simply working to serve your best interests. In many ways you are the passengers on this imaginary train. We are simply helping you to your destination, which we call: “Lowest long-term rates and best service quality.”

As always, I would love to hear from you directly!

Dave Clinton
EnerStar CEO/CFO
dclinton@enerstar.com