How Deseret's Structure Contributes to Keeping Power Prices Low

Two factors set Deseret apart from many other power companies:

     (1) Vertical integration
     (2) Ownership structure

First, many companies are not vertically integrated, that is, they rely on outside sources for raw materials and transportation. Deseret is different. Deseret is vertically integrated, meaning that we own and operate the primary assets and services necessary for the entire process of electrical generation and transmission from the mine where coal is extracted to power lines that transmit the electricity.

There's little reliance on outside companies, and everything is done at cost. The result is stable operating costs, which translate into price stability, regardless of changes in the market. Proof is seen in the price Deseret customers have paid for power in the last fifteen years. In inflation adjusted terms, members are actually paying less for their power now than they did in 1985.

Second, Deseret is organized as a cooperative that is a nonprofit corporation owned by its members. As a cooperative, Deseret avoids the pressure to provide profits for shareholders as is the case with investor-owned utilities do. All profits are kept within the Deseret member system. The result is a strong financial platform that ensures reliable and member-responsive performance while producing electricity at low, competitive prices. It also allows Deseret to forecast stable, competitive power rates to members and nonmembers alike.