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News

Utilities Service Alliance (USA) members realized nearly $60 million in savings in 2016, an increase of more than $12 million over 2015 savings.

The total includes savings from programs and projects, supply chain savings, as well as rebates earned in 2015, but paid in 2016.

“In 2016 USA members received an average Return on Investment (ROI) of 33.75 on their membership dues and an average benefit of over $8.3 million for each utility, the highest ever in the history of USA,” said John Christensen, USA Acting President and CEO. “2016 has undeniably been the best year ever for cost savings, cost avoidance and fleet performance.”

Membership in USA helps stations operate more safely and efficiently, save money and avoid costs in a variety of ways. For example:
• USA Programs, Projects, Operational Savings and Avoided Costs are the result of initiatives like USA’s Equipment Reliability/Preventive Maintenance Project, Decay Heat Removal Project, the Valve Program, Personnel Sharing and more.
• USA’s Supply Chain agreements help stations realize First-Cost and Total Cost of Ownership savings. First-Cost savings are the difference between the price paid by a participating company on a USA agreement and the price that company would pay to the same supplier if it contracted on an individual basis. Total Cost of Ownership is supplier-furnished value that reduces the total cost of using a product or performing a service.
• USA’s Supply Chain agreements also sometimes have rebate incentives for purchase volumes, which encourage collaboration among members and promote increased utilization of Fleet agreements. The more members pool purchases, the higher the rebate tiers they reach and all participants benefit by receiving a larger percentage rebate.

“All savings are validated and accepted by the member utility before they are counted,” said Jim Kitchens, USA Director of Economic Strategies. “Not one penny of savings is counted until it has been approved by the utility through an iterative review/challenge process. Supply Chain is a team sport and all success we enjoy as a fleet is directly related to the cross-functional support and participation we receive from our member stations and management.”

USA is an alliance comprising four Full Member utilities operating nuclear power stations including Columbia, Comanche Peak, Susquehanna and South Texas, and four Efficiency Member utilities operating Fermi, Monticello, Prairie Island, Cooper and Cook nuclear stations. Combined, our Full Member stations generate more than 8,800 megawatts of energy. In addition to administering a network of more than 60 nuclear suppliers, USA helps its members leverage their combined resources, talent and expertise to serve their customers with clean, safe, reliable and cost-efficient energy. It is on the web at www.usainc.org.