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MEMBERS ELECT DIRECTORS, PASS BYLAW AMENDMENT AT 73RD ANNUAL MEETING |
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Friday, 10 August 2012 13:51 |
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Record numbers of members turned out for West Central Electric’s 73rd annual meeting, with an official registration of 1,023 members and more than 2,500 in attendance.
During the business meeting, members considered and passed 554-398 a bylaw amendment brought forth by member petition which redraws the cooperative district boundaries. Under the bylaw change, the cooperative will be divided into four physical districts, with two directors from each district. A fifth “at-large” district, will allow for one director from anywhere in the service area.
Members also participted in the election of directors. Incumbents Paul Nolte, Clark Bredehoeft and Dale Jarman were  (L-r) Paul Nolte, Clark Bredehoeft, Dale Jarmanelected to serve three-year terms.
In his annual report to the members, General Manager Mike Gray updated members on operations and maintenance as well as the financial state of the cooperative. He reported that only 97 new services were added to the system in 2011, down from 115 in 2010. To date, the cooperative has added 50 new services in 2012.
“These numbers tell us that the economy, or at least the housing market, is still sluggish,” he said.
Gray told members that maintenance and system upgrades have been the top priority of construction crews over the past year, and that a new Construction Work Plan, as well as long-range plans to outline system improvements will begin in the coming months.
On the financial side, Gray told members that while revenues were less than expected, expenses were also down. He mentioned that the cooperative finished 2011 in good shape with margins just over $1 million. He addressed the April rate increase to cover an increase in wholesale power costs, and said at this time, he doesn’t feel that a rate increase will be necessary in 2013 as long as the weather cooperates and the EPA does not do anything that would cause wholesale power costs to go up.
Members also heard from Board President Clark Bredehoeft, who told them that cooperatives are helping to build a better world. He outlined youth progrms such as the Rural Electric Youth Tour, the Cooperative Youth Conference and Leadership Experience and scholarship programs as ways the cooperative supports the youth of our communities. He also informed members that while some of the cooperative's competitors have recently applied for as much as a 14 percent increase in rates, WCE is remaining stable with only a 7 percent increase. Bredehoeft told members that a recent survey shows WCE rates as the second lowest in the NW Electric group, and slightly lower than the closest competitor, KCPL.
“Not only is it the goal of your board of directors to make the cooperative the very best it can be for every one of our members, it is also our desire to build a better world around us,” said Bredehoeft, drawing reference to the 2012 International Year of Cooperatives’ theme. |
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NEW RATES TAKE EFFECT APRIL 1 |
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Wednesday, 28 March 2012 12:35 |
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West Central Electric’s new rate schedule will take effect April 1, and will be reflected on bills due by May 15.
The overall increase amounts to 7 percent. The new residential rate will see charges for the first 800 kWh set at $0.0951 and over 800 kWh at a reduced rate of $0.0712. The service availablity charge will remain at $25.
The monthly rental fee for dusk-to-dawn lights will increase to $9.20. For that fee, West Central Electric will install a dusk-to-dawn light on our existing meter or transformer pole. Maintenance and energy costs of the light are included in the rental fee. |
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WEST CENTRAL BOARD SAYS RATE INCREASE IS MINIMAL BUT NECESSARY |
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Thursday, 08 March 2012 14:48 |
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After dodging the proverbial bullet the past two years, West Central Electric’s board of directors has determined that a minimal rate increase is necessary to insure stability of the cooperative’s finances into the near future.
The last rate increase was in April 2009, and since that time, the industry has seen a jump in wholesale power costs increased operational expenses (fuel, materials, labor) and flat kWh sales, all of which have contributed to the necessity of an increase.
“Keep in mind, we are not a profit-driven company -- we are a cooperative, and any margins we do make are returned to you, our members,” General Manager Mike Gray said. “We do everything we can to control expenses and still maintain quality service to you.”
The overall increase amounts to 7 percent, and will take effect April 1, 2012, with the new rates reflected on the bill due by May 15, 2012. The new residential rate will see charges for the first 800 kWh set at $0.0951 and over 800 kWh at a reduced rate of $0.0712. The service availablity charge will remain at $25.
“The board and management take a rate increase very seriously, and we are constantly looking for ways to be more efficient and keep expenses down,” Gray said.
Members who use 1,500 kWh per month can expect a monthly increase of $9.77. Members whose usage is 3,000 kWh per month can expect a monthly increase of $16.82.
Stagnant new service growth partly to blame
Historically, WCE has seen growth in new services of 1 percent to 3 percent each year. That growth was enough to increase revenues enough to help keep up with the rising costs of fuel, materials and labor.
“That changed with the recesssion and housing bust of 2008,” Gray said. “Since 2008, WCE has actually seen a decrease in connected meters, which has led to a decrease in yearly revenues.”
Gray said kWh sales projections for 2012 are similar to those posted in 2009. In addition, wholesale power costs have risen nearly $800,000 since 2009 from $15, 288,277 per year to an estimated $16,087,836 for 2012. |
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Rising costs create pressure on stability of electric rates |
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Thursday, 26 January 2012 11:07 |
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For the past several months, West Central Electric Cooperative’s board of directors and management staff has been crunching numbers concerning operations, service and electric rates. Although cost-saving measures have been implemented where possible, directors and management have determined it will not be possible to get through 2012 without an increase in electric rates.
“We were able to make it through 2010 and 2011 without raising rates, but unfortunately, that will not be the case in 2012,” General Manager Mike Gray said. “Our board of directors is continuing to look very carefully at the numbers in order to implement the smallest possible increase while still allowing the cooperative to maintain our system and the level of service our members deserve and are accustomed to.”
Gray said the main factors driving the need for a rate adjustment are an increase over the past two years in the costs to supply electricity to members without an increase in revenue.
“With environmental regulations, increases in fuel costs, increases in materials used to maintain our system -- it is just too much to absorb,” he said.
Cooperatives all across the state are in the same boat, with many looking to increase rates in early 2012. West Central’s increase, although the amount is yet to be determined, is set to take effect in April.
“The good news is that this will be one of the most minimal rate increases we have experienced,” Gray said.
Members can watch the March issue of West Central Electric News for details on the final numbers. |
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2012 IS INTERNATIONAL YEAR OF COOPERATIVES |
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Friday, 30 December 2011 09:36 |
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Did you know that 2012 is the International Year of Cooperatives?
Did you know there are more than 900 electric cooperatives like West Central Electric serving 42 million people across 47 states?
That covers a lot of ground! And that's just the electric co-ops. Add in credit unions, housing, food, health, agricultural co-ops and more, and you'll discover more than 29,000 cooperative businesses nationwide. To learn more about how cooperative enterprises build a better world, visit www.go.coop. |
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