For several decades, SouthEastern has been touting the fact that we are a different kind of power company, and those of you who watch TV commercials may have noticed that some advertisers are also promoting their products as different.

While I can’t comment on the amount of real difference there is in some of those advertised products, I can definitely tell you there is a difference in power companies and I’ve commented on those differences at the Cooperative’s last two Annual Meetings.

One of those differences is regulation.  SouthEastern is locally regulated by an elected Board of Trustees, who live and work at various jobs in this area.  Investor-owned power companies are regulated by a Board of Commissioners, typically known as a "Public Utility Commission" or "Commerce Commission".  Those Commissioners are typically salaried employees of the state government and are usually appointed by the governor. 

At SouthEastern all governance issues are decided locally at the Cooperative’s Eldorado, Illinois Headquarters.  This procedure is in sharp contrast to the commission type of regulatory process, where all regulatory issues are addressed at the state government level.

There’s a federal law, the Public Utility Holding Company Act (PUHCA), which regulates multi-state utility companies in order to protect the public from abuse.  This Act also requires those multi-state utility entities to register with the Securities & Exchange Commission.

In 1994, the Security & Exchange Commission granted a company known as "Enron" an exemption from certain regulations.  That exemption allowed Enron to spin-off over 5,000 subsidiary operations.  Those subsidiaries then engaged in multiple high-risk investments and other transactions outside of the scrutiny of any regulating body.

The rest of the Enron story is now history and thousands of companies and individuals have been damaged by Enron’s actions.

SouthEastern’s assets, which amount to over $100,000,000, are locally owned and controlled.  That fact places us at the opposite end of the spectrum from big players like Enron; and that’s exactly where we want to be.  We exist to provide a service to our members, not to make profits for absentee investors.

SouthEastern’s goal has always been to provide as much stability as possible in energy prices.  Companies like Enron, on the other hand, thrive and prosper when they can create volatility in the energy market. 

Unlike those big energy corporations who engage in creative accounting practices, SouthEastern wants our members to know more about their Cooperative and its operations, but we also know there are many of you who cannot attend the Cooperative’s Annual Meeting, which is always held on the first Tuesday in August.

To address that situation, your Cooperative will hold a series of "Area Member Meetings" this year. Those meetings are tentatively scheduled as follows:

· Benton, Illinois on Tuesday May 21, 7:00 p.m. at the Cooperative’s Headquarters located on State Route 34, just east of Benton.

· Golconda, Illinois on Tuesday June 4, 7:00 p.m. at the Cooperative’s Headquarters, located at the corner of Washington and Columbus Streets.

· Marion, Illinois on Tuesday June 18, 7:00 p.m. at the Cooperative’s Headquarters, located on Route 37 South of Marion near Grassy Road.

SouthEastern employees will be available to discuss Cooperative plans and operations, and we should be able to answer any general questions concerning Cooperative procedures.