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2007 Annual Meeting
The 69th edition of South Kentucky RECCs Annual
Membership Meeting held on June 7 was a hot one and not just because the
temperatures soared into the 90s. There were about 15,000 people in attendance
and nearly 4,000 members registered.
As in years' past, there were more than 50 educational
and informative exhibits for those in attendance to visit, including health
booths, civic organizations, local industry and businesses; car displays; and
many others. In addition, members were treated to some wonderful entertainment
this year with opening act Southern Harmony and the featured entertainment
Chris Cagle, who has had a several hits including Chicks Dig It,
Miss Me Baby, What a Beautiful Day, and
Wal-Mart® Parking Lot. The primary purpose for the Annual
Meeting is the business meeting, which started around 7 p.m.
The cooperatives bylaws provide that each year
there shall be an Annual Membership Meeting for the presentation of reports
from SKRECC officers and leadership. Re-elected to four year terms on the co-op
board were Charles Gore, District 2, Jerry Purcell, District 3, and Richard
Stephens, District 6.
Allen Anderson, CEO of South KY RECC, reported to the
membership that the coop has been working toward the acquisition of the
Monticello Electric Plant Board. On January 12 MEPBs board voted
unanimously for the sale of its assets to the co-op. Then on January 23, the
city council voted in favor of the proposed sale, and it will now appear on the
November 6 general election ballot for the citizens of Monticello to vote their
preference. Anderson said there are many positives for the merger,
including:
The MEPB System would create an
immediate revenue stream to South Kentucky RECC at a cost per member that is
nearly ½ the cost for us to build to a new member
The City of Monticello, its
Citizens, and Wayne County would benefit from the revenue received from the
sell over a 30 year period.
MEPB System is in the city
having more customers per mile of line (higher density than SKRECC)
MEPB has more commercial
industrial customers per mile of line
MEPB has a higher load
factor
MEPB has a new office
facility& SKRECC needs a new office in Monticello
The two systems jointly would
have stronger buying power
The two systems would gain
efficiency from eliminating duplication of services
The two systems would have
improved reliability and service restoration in time of emergencies
Anderson also told members that South Kentucky
RECCs building program is well underway and the first new facility in
McCreary County is open, with the Russell County office slated to open in
September. The Albany office will be next and should open by the end of the
year. The new Somerset office is in the planning stages and is expected in
2009.
Anderson spoke of the many positive things that have been
taking place including South Kentucky RECCs involvement with Somerset
Community College, Somerset/Pulaski County Development Foundation, Pulaski
County Fiscal Court, Lake Cumberland Area Development District, All Kentucky
Electric Cooperatives, Utility Contractors, and all other Utilities on the new
Regional High Growth Training Center. This facility will be located behind the
technology park off hwy 461 in Pulaski County. The facility will cost
approximately 3.5 Million Dollars which has been funded primarily
through Federal, State, and Local Grants, and 0% Interest Loans. Anderson said
South Kentucky RECCs contribution to this effort has only been in
providing labor assistance in helping to pull all the resources together, but
we feel very proud to be part of this group effort. He said this facility will
provide career opportunities for our young people in Kentucky that have
interest in a career in the utility business, and another purpose of this
facility is to support the needs of all utilities across the nation are faced
with an aging work force with no experienced replacement. SKRECC could lose up
to 40% of its skilled employees in the next five years to retirement added
Anderson. This facility is projected to be operational in late 2008.
Another area Anderson touched on was reliability of
service at an affordable cost. He said SKRECC visually inspects 3,000 plus
miles of line each year which allows us to cover the entire system every 2
years. This allows for the correction of possible problems before they occur.
According to Anderson, the co-op continues placing a lot of resources into
improving reliability. Due to these efforts, in 2006 reliability was 99.9%.
This is extremely good for a system the size of South Kentucky RECC, which
manages 6,540 miles of line.
Finally, Anderson reported that South Kentucky RECC had
its first rate increase in 17 years in October 2006. It was an 8.2% average
increase. He stated that this increase along with expected growth in the future
should make the necessary improvements to SKRECC margins and allow the co-op to
meet its obligations. He said he was pleased to report that Kentucky has the
LOWEST rates in the nation combining all categories, and Kentucky still has the
4th lowest residential rates in the nation. He added that South Kentucky RECC
continues to closely monitor all costs, while not sacrificing quality of
service and/or reliability to do so.
After the Business Meeting, South KY RECC recognized the
Washington Rural Electric Youth Tour recipients and also awarded $12,000 in
scholarships to 12 high school seniors in the service area as part of the
Senior Scholarship Program.
South KY RECC believes that investing in our youth has a
profound effect on the improvement of the quality of life in the communities we
serve, which fulfills our mission. South KY RECCs Mission Statement reads
South Kentucky RECC was formed for people not profit. Its mission is to
reliably provide electricity and related services to its members at a
competitive price, and to improve the quality of life in their
communities.

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