As I write this column, the outside temperature is -10 degrees with a wind chill factor of -27. It is not the coldest temperature we have ever experienced, but it is brutal. Fortunately, our electric system is performing well with no interruptions in electric service to our members.

You expect reliable and affordable electricity from your electric cooperative. You depend on electricity for so many things including lights, heat, water supply, entertainment and life safety for you and your livestock.

It is easy for you to gauge the reliability of your electric service, because you are the first to know when and how often it is interrupted. A recent survey of Central Electric’s members showed that 93 percent of the respondents believe they receive reliable electric service.

Your cooperative tracks reliability through the use of data, and we know that electric service was available to our membership 99.96 percent of the time in 2020. This means that, on average, our members were without power for about 3.5 hours. Sometimes these interruptions are planned as we make system improvements, and sometimes they are from weather events, public accidents or equipment failure.

I believe your cooperative does a very good job providing reliable electric service, and that is supported by the statistics we gather. In addition, I believe your cooperative does a very good job delivering affordable electric service. Bear with me as I explain why I feel that way.

We all desire to spend less money on the things we purchase, including our electricity. I think that is just human nature. The same survey I referenced above shows that 60 percent of our members believe their electric cooperative charges reasonable rates, leaving 40 percent who don’t share the same sentiment.

Every electric cooperative across the U.S. is required to annually report information on performance, electricity sales, operations and maintenance practices. That data is shared and summarized to help cooperatives compare their operations to other cooperatives in their state and across the nation. 

I have taken the information from these reports and created a couple graphs to summarize my point about affordable electric rates. As you can see in the graph, since 2016, the revenue that Central Electric receives per kilowatt hour from residential and farm accounts has been below the average revenue received by other cooperatives in South Dakota and across the U.S. 

Some credit for the lower than average numbers must go to East River Electric Cooperative and Basin Electric Cooperative for providing affordable wholesale power, but credit should also go to your local board and your employees. 

I think it is also important to note that our members purchase more kilowatt hours of power each month as compared to other cooperatives. This does influence the average revenue per kilowatt hour, as your cooperative is able to spread costs across more sales.

I am not entirely sure why our members purchase more kilowatt hours of energy when compared to others. It could be because we are largely ag-based, or because we provide a discounted rate for electric heating or because our members trust their cooperative just a little bit more. 

The survey also shows that 95 percent of our members believe their employees to be knowledgeable, friendly and courteous. I believe that to be the best measure of our success. 
I trust you feel the same. 

Until next month, stay warm and be safe!