Winter arrived over the holidays with a vengeance this year! On a recent trip, I was conversing with a couple from eastern Montana. While talking about the recent cold spell, they indicated that in their area, the low had reached -46 degrees (air temperature not including wind chill). I guess the -15 to -20 degree temperatures experienced in our area could be considered a mini heat wave in comparison.

I mention the cold weather because it positively impacted year-end results. In last month’s message, we mentioned the board of directors authorized using surplus net operating margins for 2017 to decrease future wholesale energy purchase costs from Prairie Power Inc., our power provider. Mainly due to the year-end cold weather, EIEC net operating margins were approximately $200,000 better than expected, which will allow additional flexibility with the future cost of PPI power purchases.

Member/owners can expect to see the benefit of the 2017 surplus margins in a lower Power Cost Adjustment (PCA), compared to the original 2018 budget. This will be in lieu of a year-end margin rebate.

The PCA reduction may amount to nearly $3 per 1000 kWh of usage, or nearly 3.6% total reduction in the wholesale power cost paid to PPI. This is a tangible current benefit to member/owners. We strive to balance the return of member equity both in the short and long term.

During 2018, we will initiate a cost of service study (COSS). This study will:

1) Verify that the cooperative’s total revenue needs for the near future will cover financial obligations and debt service requirements;

2) Ensure that the collection of member/owner revenues among the various rate classes is allocated fairly;

3) Evaluate data and determine if the fixed charge to provide electric service needs to be increased.

Stay safe and warm as we endure the rest of winter and be on the lookout for robins and cardinals – a sure sign of approaching springtime.

Another fail proof sign of spring is when the pitchers and catchers report to baseball training camps in early to mid-February.

Sincerely,

Bob Hunzinger