While it might have been a stormy day for an Annual Meeting, we did not let the rain dampen our activities. We were happy to have 530 members registered for our 88th Annual Member Meeting on Friday, June 6 at Wayne City School. If you were unable to attend the meeting, here is a recap of what was presented to members in attendance.
We were happy to come together not just to conduct business, but to celebrate our shared commitment to the cooperative that powers our homes, farms, and communities. Whether you have been a member for decades or just joined last year, you are part of something unique -- something that belongs to you.
At our core, we are a member-owned electric cooperative. That means we are not here to turn a profit for investors -- we are here to deliver safe, reliable, and affordable power to the communities we serve. As a rural cooperative, we serve some of the most beautiful and hardworking areas in the state: from family farms and small businesses to churches, schools, and homes off the beaten path. That sense of place and purpose, guides every decision we make.
Let's start with reliability. We know that keeping the lights on is job number one. Over the past year, we have made targeted investments in our infrastructure to strengthen our system against storms, aging equipment, and ever-growing demands.
We continue to upgrade our distribution system, replace poles, add smart devices across the system, and maintain our right-of-way with our vegetation management plan. These upgrades help us detect outages faster, restore power quicker, and even prevent problems before they happen.
The beginning of 2025 has been a challenging start to the year for our reliability. Between the ice storm in January and the spring storms that have seemed to happen every week, our distribution system has held up well. Although we have had many outages this year, none of them are to the extent that our neighboring cooperatives have faced. That is a direct result of the planning and investment you have trusted us to make. I am confident that if we would not have spent money on maintaining our system or keeping the right-of-way clear, the outages would have been more damaging.
We know times are tough for many families, and affordability remains a top priority. I want to be clear: we are doing everything we can to keep rates stable. While you may have heard other utilities are seeing rising costs, our cost of wholesale power - what we pay Hoosier Energy for the electricity we deliver to you - remains stable. Hoosier has done a great job planning and controlling costs. We continue to see some of our other costs increase, but we have been aggressive in managing these costs and streamlining our operations to absorb those increases without passing them all on to you. This past year, we held rates steady, with no general rate increase.
You may have read in our past newsletters that we are going to start implementing a Power Cost Adjustment or PCA. I know that this may sound like a way to raise rates, but it is a tool for us to use to only collect what we need to operate. If we have temporary unexpected costs, we can collect these costs through the PCA. The PCA can be used to return revenue that is not needed to operate, back to the members. That is how we plan to use it for the remainder of this year. When we raised rates last year, the projections from Hoosier were for their costs to continue to increase. With those costs stabilizing, we project that beginning on the bill due in August, we will be able to implement a negative 4.5 tenths of a cent PCA. So for every 1000 kWhs used, members will see a $4.50 credit on their bill. This will allow us to give money back to the members instead of creating excess margins that they have to wait to get back in capital credits. We will continue to use the PCA to only collect what we need.
Speaking of capital credits, as Rick announced, later this summer we will return over $2 million in capital credits to our members -- your money, coming back to you. This year we are going to return capital credits a little differently. For all active members, the capital credits will be returned as a bill credit on the August bill. This will save the cooperative the costs of printing and mailing checks, and we will not have to worry about checks getting lost in the mail. Inactive members will still receive a check. Make sure to keep a look out for capital credits on your bill.
We are also looking to the future -- because the way we use electricity is changing. More members are installing energy-efficient appliances, smart thermostats, and even solar panels. Some are exploring electric vehicles. And our job is to help you make smart, informed choices. Later this year, we will launch a new smart thermostat control program. If members have a smart thermostat and will allow us to control during peak times, we will pass our savings along to them. Look for more about this new program in our newsletter throughout the summer. We are continuing our other programs, generator load control and rebate programs. If you need any information about our existing programs, you can call the office or visit our website.
We are also keeping an eye on new technology. Last year I discussed a possible battery project. This project is still being considered, but many things have changed, including project costs, grant opportunities, and tax credits. Our team will continue evaluating opportunities that fit our unique rural environment -- all while keeping reliability and affordability front and center.
As always, our mission goes beyond power lines. We are deeply committed to supporting the people and places we serve. As Ken announced earlier, we awarded 10 $500 scholarships to local students. We also support 4-H and FFA programs, and sponsored the Youth Tour to Washington, D.C. -- giving our next generation of leaders a glimpse into the power of civic engagement.
Now, I won't sugarcoat it -- we face real challenges. The electric industry is in transition. New regulations are being proposed for our industry. I want to thank everyone that answered our call to reach out to their legislator. The proposed state legislation that would increase our costs and taken some of the local control of our cooperative from you the members, has been temporarily avoided. We believe this type of legislation will come up again. If it does, we will once again ask the membership to reach out to your representatives.
None of what we do would be possible without the people who make it happen. To our board of directors - thank you for your leadership and commitment. You are elected by the members, and you take that responsibility seriously. To our employees -- from the linemen climbing poles at 3 a.m. in an ice storm, to the folks in billing and customer service who answer every call with care -- thank you. Your dedication makes all the difference. And to you, our members -- thank you for your support, your input, and your partnership.
This is your cooperative.
We exist because of you.
