CONSUMER UPDATE

July 2008 Consumer Newsletter

INSIDE THIS ISSUE:

• Customer Service Survey
• GEUS to Purchase Former Post Office Building
• GM NOTES
• Digital TV is On It's Way
• New Substation
• emPOWER: Self-Managed Electronic Metering
• Board Member Retires
• GEUS Scholarship Recipient

Customer Service Survey

Here at GEUS we strive to make our services better for our customers. So during the past winter months we made preparations to help GEUS reach new levels. SDS Research was hired to conduct a consumer service survey and provide unbiased results. These results were then used to evaluate how we were doing. According to Cory Hogan, Consumer Marketing Specialist, "We wanted to establish a baseline of how our consumer/owners perceive us and to help us discover ways to provide better service.”

The survey was broken into two parts. One was based on electric services, and the other on the cable & Internet services combined. Based on SDS Research's experience, it was determined a phone survey would provide the best results for the information desired. A statistically valid number of calls were made on both surveys and efforts were made to ensure no consumer was called twice. These calls were made between the Thanksgiving and Christmas holidays, since people are more likely to be at home during this time of year. The electric survey was composed of 24 questions. 94.8 % of the people surveyed gave an excellent or good rating on how they rated the electric service provided by GEUS. 92.2 % of the consumer/owners felt the courtesy skills of the customer service representatives were good or excellent.

The cable and internet survey included 18 questions. On the high-speed Internet service, 89.6% of those surveyed gave the service an excellent or good rating. The cable TV portion resulted in 92% of the consumers giving a rating of excellent or good. Some of the questions provided valuable information which would allow GEUS to know exactly what subscribers wanted. With the baseline established by the survey, goals were established to make positive improvements to our services. With the determination of the employees, GEUS looks forward to the new and positive ways we can energize the community.

Thanks to Everyone Participating in the Survey!

GEUS To Purchase Former Post Office Building

The GEUS Board has authorized General Manager, David McCalla, to execute an agreement with an intent to purchase the former Post Office at 2810 Wesley for $550,000. This facility will combine customer service employees that are currently spread between three other facilities. Customer service facilities will eventually be closed at 2821 Washington and 6000 Joe Ramsey once renovations are complete at the new location. The drop box location at 6000 Joe Ramsey will remain active with payments processed daily.

Environmental studies leading up to the purchase estimated the asbestos abatement costs to be approximately $169,000. “GEUS’ total cost of the building, including asbestos abatement will be less than what it would cost to build a new one and will put a very structurally-sound building back in use in the downtown region,” said McCalla.

Moving employees from the current locations will free up space for GEUS and avoid lease payments at two facilities. GEUS also leases space at 3011 St. John to house the metering vehicles.

Several buildings were evaluated for the Consumer Service Center. Evaluation factors included: size, location, accessibility, parking for customers, employees and GEUS vehicles, suitability to include a drive through, initial cost, and renovation cost. Since most of GEUS’ customer transactions take place at the existing downtown facility, a location near the downtown area was preferred. The former Post Office facility met the evaluation criteria better than other alternatives.

“The goal is to improve customer service by developing a facility that better utilizes our staff while increasing privacy and security for our customers,” said Jimmy Dickey, GEUS Consumer Services Manager.

GM Notes

Power supply management is critical in maintaining competitive electric rates. Since
January 1, 2007, GEUS has been directly managing local power supply purchases. During the first year, this locally controlled operation has saved GEUS consumers about $1.9 million dollars in purchased power costs.

During the first half of 2008, natural gas prices have increased dramatically from around $7 per mmBTU to current prices of about $11 per mmBTU. These increased natural gas prices have directly impacted purchased power costs. Grid power costs have increased from $60/MWh a year ago to current costs of over $90/MWh.

Because of these significant increases in purchased power costs related to the run-up in natural gas prices, it has unfortunately been necessary to increase the FAC/PCRF over the last couple of months.

The good news is that our consumers continue to benefit greatly from having a significant portion of our energy derived from coal which is a more stable fuel source than volatile natural gas. GEUS is one of four member cities of the Texas Municipal Power Agency ("TMPA"). About 60% of our energy needs come from the TMPA Gibbons Creek coal plant located near Carlos, Texas. TMPA recently completed a turbine replacement project that has resulted in additional energy output for the same fuel input.

Engineering studies have determined that the Gibbons Creek plant has a useful life expectancy until at least 2035. In the years ahead, TMPA will continue to play a major role in our ability to offer stable and competitive rates.

In addition, we are evaluating other long-term resource alternatives in our efforts to plan for growth and to provide the lowest possible rates to our consumers.

Digital TV is On It’s Way

On February 17, 2009 the television industry will be required to stop broadcasting an analogue signal and broadcast only in digital format. So, what does this mean to you?

If you subscribe to any GEUS cable package, you will not have to do anything. Cable equipment at GEUS has been upgraded to allow your service to continue as normal.

If you are receiving your TV service through an antenna, you may need to purchase a digital-to-analog converter box. The converter boxes will cost approximately $40 to $70, but programs are in place to help cover the cost of these converter boxes. Each U.S. household can receive up to two coupons worth $40 each to use towards the cost of the boxes.

For more information on the coupon program go to www.dtv2009.gov or call 1-888-DTV-2009.

New Substation Ensures Access to Low Cost Gibbons Creek Energy

Greenville will soon have a third bulk power transformer in service to ensure electric reliability for years to come. This new installation will double the existing transformer capacity in the Greenville area, firm up the local GEUS transmission system and allow for a new GEUS distribution substation which will provide energy for anticipated future load growth in the Greenville area.

Greenville is one of four member cities including Garland, Bryan and Denton that receive electric energy from the Texas Municipal Power Agency (TMPA). TMPA produces electric energy at its coal-fired Gibbons Creek generation plant near Bryan, Texas. This plant is very important to the member cities since electricity from natural gas-fired generation plants has grown to four to five times the cost of that produced from coal.

GEUS has two transmission lines connecting Greenville to the Electric Reliability Council of Texas (ERCOT) grid. GEUS' connection to this grid allows Greenville to receive outside power and to transmit power produced at the Steam Plant in North Greenville.

The coal-fired Gibbons Creek plant is a base load plant which runs continuously producing low cost energy night and day. This plant currently provides the majority of Greenville's needs. During peak demand conditions in the summer and winter, GEUS must either buy additional energy on the open Texas market or produce it from its natural gas-fired plant here locally.

"We are very fortunate here in Greenville to have access to both coal-fired generation and a local plant that often operates as a hedge against market price spikes,” said GEUS General Manager, David McCalla. "We either buy the additional energy or produce it depending on which is the cheapest,” added McCalla.

The new substation being built to handle the transmission of energy is located at Shelby and Wellington and is expected to be completed in July.

Board Member Retires

James Adams recently left the GEUS Board after completion of his second term. Mr. Adams brought wisdom and leadership to the Board and was instrumental in the development of GEUS' renewable energy program.

Thank you for your dedicated service to the GEUS Consumer Owners.

emPOWER

. . .is a self-managed electric purchasing system that allows you to "pay as you go.” You buy electricity on your schedule, whenever you wish. emPOWER allows you to manage your budget by purchasing electricity when you need it.

What are the advantages?

• Allows you to see your home's electric usage on a daily basis.
• Lower or no deposits required
• Does not charge late fees or disconnect fees
• Never receive another monthly electric bill
• Eliminate high bills by purchasing electricity daily, weekly, or monthly.
• 24 hour per day 7 days a week access to purchase power
  

TAKE CHARGE OF YOUR ELECTRIC USAGE TODAY WITH emPOWER!!!

Get more information online or call GEUS at 903.457.2800.

GEUS Scholarship Recipient

This Year’s $500 GEUS scholarship has been awarded to CodiJo Jackson. CodiJo is a senior at Greenville Christian School. CodiJo plans on attending a community college to take basic college classes while deciding which school to pursue a major in Public Relations. CodiJo states, "I hope to be an ambassador for a major corporation one day.”

To win the scholarship, CodiJo wrote an essay on electricity produced by natural resources (green power).

Read the essay, “Green Power for a Better Greenville!”

More Variety & More Video on GEUS Cable TV