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Kenergy:
A Customer-Owned, Not-For-Profit
Electric Cooperative

Kenergy Logo: Link to Kenergy Case Study

Summary

Kenergy, a Touchstone Energy Cooperative, is a customer-owned, not-for-profit electric company that purchases electric power at wholesale and distributes it to its customers, which include nearly 55,000 households, commercial enterprises and industries in 14 rural western Kentucky counties.

Prior to October 2005, Kenergy maintained a rolling fleet of approximately 125 vehicles (bucket trucks, tractors, trailers, diggers, backhoes and cars), plus another 85 pieces of equipment including generators and engines at four Kenergy-owned facilities. For a variety of reasons, maintenance issues became more common and the resulting repair costs were increasing beyond acceptable levels.

In October 2005, Kenergy decided to outsource their fleet maintenance to Penske.
Kenergy Case Study
Page 1 | 2 | 3
Print version (pdf)



  Challenges   Solutions / Results
  • Reduce spending on hard-cost items such as parts, tires and fluids.

  • Control rapidly increasing fleet maintenance costs.

  • Make maintenance training and education a priority.

  • Maintain rolling stock and other stationary motors.
  • Penske-leveraged buying power helps control costs on parts and other items.

  • 27-month savings goal could be realized in as little as 12 months.

  • Penske’s knowledge base improved technical skills through training and continuing education.


While many companies pay retail, Penske is able to help Kenergy control costs by leveraging its buying power. Since Penske buys items such as tires, parts, fluids and filters in large quantities, it can buy at substantially discounted rates and pass the savings onto its customers.

  
Next: Under New Management
Kenergy Case Study
Page 1 | 2 | 3
Print version (pdf)