As we begin the New Year, I would like to take this time to briefly reflect on the year 2011 and describe your Cooperative's plans for the year 2012.

The Cooperative did encounter one major storm in 2011.  On the evening of April 19th severe weather moved through the area producing wind gusts from 65 to 95 mph causing extensive damage throughout the Cooperative's service area leaving approximately 8,300 members without service. Following the restoration of service, the rain began to fall. Southern Illinois experienced record rainfall totals in April causing significant flooding along the Ohio River and many communities in our service area.

In 2011, the Cooperative continued to make the necessary investment in the new vegetation management program.  In fact, the Cooperative completed trimming/clearing in the Braden Valley, Carter, Johnston City, Pittsburg, West End and West City substations.  As we have certainly experienced in the past with major storms in 2008, 2009 and 2011, a sound vegetation management program is crucial to your Cooperative's ability to reduce risks and outages associated with major weather events and to maintain a reliable electric supply for members.

The HomE Energy Efficiency program was completed in 2011.  This program concluded with the Cooperative distributing over $160,000 in grants to members for qualified home energy efficiency improvements.  This program will assist members in using energy more efficiently and save money in the future.

The Cooperative ended the year 2011 in sound financial condition and returned $1.7 million in capital credits in December 2011 to you as Cooperative members.

As previously announced, in 2012 your Cooperative will be experiencing a significant increase in the cost of wholesale power delivered by Southern Illinois Power Cooperative (SIPC) located at the Lake of Egypt near Marion.  This increase in the cost of power is primarily driven by SIPC's acquisition of 125 MW of the new Prairie State Generation Campus (PSGC) located near Lively Grove.  This new generation capacity was required to ensure all members with sufficient energy capacity. 

The U.S. Environmental Protection Agency's new Cross-State Air Pollution Rule (CSAPR) will go into effect this month.  Your Cooperative's wholesale power provider, SIPC, is taking steps and implementing new strategies in an attempt to reduce emissions even further.  While the precise impact of this new rule is not known at this time, it is expected to increase the cost of generating electricity in the eastern half of the United States.  I will update members sometime later in 2012 regarding this issue.

In 2012, your Cooperative is planning to continue making necessary investments in the distribution facilities that serve your energy by rebuilding aging infrastructure, replacing degraded poles and performing other maintenance activities including pole testing, regulator maintenance, breaker maintenance, sectionalizing, etc. in order to help ensure a safe and reliable electric supply.

In 2012, your Cooperative remains committed to finding new and better ways to serve its members. Your Cooperative will continue to work diligently to improve and enhance the level of service and reliability that you receive.

       

See you next month and as always, "We'll keep the lights on for you."