THE VALUE OF LOCAL OWNERSHIP

On numerous prior occasions, this newsletter has addressed the value of local ownership and control.  However, a series of recent events involving one of the nation’s largest communication providers has served to reinforce our belief in those two values.

In late April, your Cooperative installed a new phone system to allow us to serve you better.  That project required the aforementioned company to reassign some fifteen phone lines, which seemed like a simple enough task, but despite numerous pleas from us to expedite the work, that huge corporation moved like molasses over a glacier, resulting in a situation where only eight incoming phone lines were available for use by our members for a period of about three weeks.  Furthermore there were times during the period of late April through late May when none of our 23 lines were available.  Needless to say, that situation resulted in a number of problems for the Cooperative and its members.  Since this large communication company has no local office, employees or direct interest in our area, their general attitude left a lot to be desired.  There is value to local ownership and control.

BUSINESS OWNER UPDATE

Periodically, we update our members on the status of the business they own and since we have new owners sign up daily, it is beneficial from time to time to review certain facts and figures pertinent to your Cooperative.  Most members are already aware of the fact that SouthEastern is one of the largest Cooperatives in the State with energy sales approaching eight hundred million kilowatt-hours per year.  At the end of 2003, SouthEastern’s total plant investment per consumer was $4,632 compared to the State median value of $4,170; however, that extra investment in electric plant is the primary reason that SouthEastern’s line loss (the difference between the number of kilowatt-hours purchased and sold each year) is one of the nation’s lowest at 3.7%.  The State median value for line loss in the State of Illinois is 7% and dollar wise that differential equates to a savings of over $1,000,000 per year.

ELECTRIC RATES

Currently there are twenty-five electric cooperatives operating in Illinois.  Based on an average usage of 1,000 kilowatt-hours per month, SouthEastern has the second lowest residential rate in the State, a rate which is some 37% less than the State’s highest cost provider. 

PATRONAGE CAPITAL REFUND

SouthEastern’s bylaws allow the Cooperative’s Board of Trustees to retire capital credited to patrons’ accounts in full or part, provided the financial condition of the Cooperative will not be impaired by such action.  After careful consideration of the Cooperative’s financial condition and Equity Management Plan, SouthEastern’s Board of Trustees has tentatively approved the return of almost $2,000,000 in the last quarter of 2005.