By Ken Schlimgen

The summer seems to be rushing by quickly. Dakotafest is just getting over, State Fair is around the corner and we will soon be hosting the cooperative’s Annual Meeting. The event will once again be held in the Corn Palace in Mitchell on Monday, Sept. 26. 

The Annual Meeting is an opportunity for the cooperative to show their appreciation to our membership and allow the membership to ask questions and get updates regarding their cooperative. You will receive the Annual Report next month with information on the work completed by the cooperative in 2021 as well as how the cooperative ended the year financially. I hope to see each of you at the Annual Meeting. 

Three years ago, Central Electric began a more aggressive plan of work with a goal to replace 60 to 70 miles of older overhead power lines annually. This year is no exception. We have installed about 20 miles of new underground cable in the Canova area. Our crews are connecting this new line to the system and then will begin removing the older overhead lines. So far, we have built about 13 new services, have 8 more to complete and 14 requests for new services that we are following up on. We continue to receive requests for services and are scheduling contractors to help us replace another 40 miles of overhead line before frost becomes an issue. 

The plan for replacement of our metering system is behind schedule due to delays in receiving the new meters. We are about 60 percent complete with enough meters on hand to get to 85 percent completion. The remaining meters are not expected to arrive until late summer 2023. 

The service department, which provides home appliances, electrical wiring and heating and cooling services, has nearly 80 jobs to complete with new requests each week. Members and non-members can utilize the service department for appliance upgrades, new heating and cooling systems, agricultural wiring, trenching projects and emergency generator installations. 

Getting materials has been a major concern, and I believe that will continue for the next several years. Our material suppliers have done a very good job of identifying and communicating where problems in the supply chain exist. This has helped avoid delays in getting electricity to new projects. 

Last year at this time your cooperative had $3.8 million invested in on-the-shelf inventory; Currently, our on-the-shelf inventory is $5.8 million. Part of the increase is due to inflation, but most of the increase is a result of supply chain issues requiring us to hold more inventory. 

Unfortunately, higher inventory levels, fuel costs, labor and interest rates also increase our cost of doing business. Through July 1, our operating expenses are up about $200,000 or 4 percent over the same time period in 2021. Despite the increases in costs, our financials look good and there is a lot of year left. All things considered, I feel your cooperative is doing very well. 

In closing, I would ask you to include your electric cooperative early in your plans for adding equipment, construction, improvements or anything that will change your electrical usage. If we work together, we are more likely to avoid unexpected inconveniences with your new project.

Until next month, stay safe!