editorial GIVING BACK - THE COOPERATIVE DIFFERENCE
Marshal Albright, President/CEO
budget forecast. As a not-for-profit member-owned cooperative, that is governed by a nine-member board of directors; we have the flexibility to limit year-end margins by lowering the rate you pay for electricity.
2018 was a record year for the sales of electricity to the members of Cass County Electric Cooperative. In addition to stable growth, the weather had a significant impact on electricity sales. Over the past eleven months, we had favorable weather for the sales of electricity. Winter temperatures were about 11 percent colder than average, we had a slightly warmer summer, and a spring and fall that were short-lived. This combination of stable growth and favorable weather resulted in higher than budgeted sales and revenue. Although year-end numbers were not available when this editorial went to print, our sales and revenue will exceed our year-end
Your Board of Directors approved a plan to lower the variable cost component on member’s bills called the Purchased Power Adjustment (PPA) in November by $250,000. For the December bills that will be mailed out in January, we are forecasting the reduction to be a similar amount or even higher if sales in December remain strong. This is in addition to $6 million in wholesale power cost increases the cooperative absorbed in 2018. With year-end financial performance projected to be better than anticipated, the forecasted payout of capital credits to the members of the cooperative could exceed a record $1.7 million in 2019. Over the past five years, CCEC has paid out more than $6 million in capital credits to the membership. According to Chief Financial Officer, Chad Sapa, if growth and financial performance remain strong, up to $8 million is budgeted to be paid out to the membership in capital credits over the next five years. Your Board of Directors and management team are committed
2 Highline Notes January 2019
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to sound financial management of the cooperative to provide the best value for our member’s investment in the cooperative. The year-end rate relief and potential record capital credit payout forecasted for 2019 is excellent news for the members of Cass County Electric Cooperative.
