Local People. Serving You.

April 2017 - 1st Quarter GM Report

I apologize for not updating this since December 2016. It always seems like time gets away faster as I get older. I still have a hard time believing that I have been your General Manager for five years or that my sons are finishing their sophomore year at Texas A&M. Fortunately, my wife is still as wonderful and beautiful as she was when we met thirty years ago. She remains my rock as the years fly by.

Here's the news from the corner office of your Cooperative:

1.  In January your Board of Directors:

a)  Approved our Affirmative Action Plan. The Cooperative maintains an Affirmative Action Plan to ensure that no one is the victim of discrimination at Rusk County Electric Cooperative.

b)  Completed reviewing the 2016 Cost of Service Study (COSS). Utilities normally perform an analysis on their rates every 3 to 4 years to ensure that we aren't over-charging or undercharging members. Our COSS recommended some revenue-neutral adjustments to certain rate classes (see the April Texas Co-op Power magazine for details). Throughout, average usage member rates stay the same, low usage members will see their rates increase and high usage members will see their rates decrease. This is tied directly to the way we buy electricity. Higher efficiency (kWh/kW, power factors, etc.) gets cheaper rates. Low efficiency meters (like the one at my barn) simply cost the co-op more overall and therefore need to be charged more.

c)  Approved updating amendments to the Tariff for Electric Service including:

>  A revenue-neutral rate adjustment as recommended by the Cost of Service Study.

>  Distributed Generation conditions and rates of purchase

>  A revision to Line Extension Credit policy. This brought the Line Extension Credit in line with a 20-year depreciation of poles and wires.

d)  Reviewed the End of Year operating and financial statistics of the Cooperative.

2.    February was a quiet month as the Board attended to their normal duties of reviewing the budget, operations, and monthly performance of the Cooperative. Also, discussed was the new Lakeport Office which is under construction. We are excited about this new facility that will help us better serve the entire northern portion of the RCEC service area.

3.  March was another busy meeting. Along with their regular duties, the Board:

a)  Reviewed and approved the Staff's recommendations for the 2017 Right of Way and Substation, Yard, and Tower spraying contracts.

b)  Approved sending two area students to the 2018 NRECA Youth Tour in Washington, DC.

c)  Approved the distribution of escheated funds for local scholarships.

If you have been by the Henderson Office since April 1, then you know that we have begun our front office remodel. We are sorry for the inconvenience but the construction is necessary for safety and security purposes. During construction, the drive-thru and front office are closed. We have converted our meeting and training room into a Member Service area if you need to make a payment or speak to a representative. Just follow the signs around to the back of the building. The night deposit remains available but you need to walk up to it.

Thanks again for the honor of letting us serve you. I firmly believe that your cooperative is blessed with the best employees and Board members in the country and I appreciate your support of them.