MEL COLEMAN CEO
Member-Owned, Service-Driven
How your cooperative works for you
“We’re here to serve you.” We’ve all heard this phrase countless times. These words may sound generic, but to us, they mean everything.
North Arkansas Electric Cooperative was created to serve our community. Back in the day, neighbors banded together and formed our coop for the common good. In our case, it was the only way the community could bring electricity to the area where there was none. In doing so, we helped the community thrive. That missionfocused heritage is the golden thread that is woven throughout our history.
We still continue to power the community. While our focus has remained steady on providing reliable energy to our members, today’s energy landscape and consumer expectations are far different than they were decades ago. That’s why we’re adapting, to keep pace with changing technology, evolving needs and new expectations.
A fundamental aspect of our commitment to service stems from our unique member-owned business model. Unlike investor-owned utilities, electric cooperatives are run by and for the members we serve. This means that your neighbors, family and friends are the ones making decisions that directly impact your community. As a member, you have a voice through your vote at the annual meeting, ensuring that your concerns and priorities are heard.
Furthermore, any profits generated by the
cooperative are returned to you, the members, in the form of capital credits. These credits represent your share of the cooperative's equity and are a tangible benefit of being a member-owner. (In the past 10 years, NAEC has retired more than $28 million in cash or bill credits to members.) This member-focused model fosters a sense of community and ensures that our focus remains squarely on providing reliable, affordable and responsible power to those we serve.
Serving as your trusted energy adviser means we want to help you save energy (and money) and provide information on a broad range of energy topics. Consider scheduling a free energy audit with one of our energy advisers to identify ways you can save energy at home. Understanding how your home uses energy can help determine the best ways to modify energy use and keep more money in your wallet.
Service is deeply ingrained into who we are. We continue to evolve with the times, and in return, we’ve found additional ways — like high-speed fiber-optic internet — to serve you and provide more options for you to power your life.
We’re member-owned and service-driven. And we’re here whenever you need us. Connect with us online at naeci.com , in person at one of our three offices, through the NAEC mobile app or via our Facebook account. However you choose to connect, please let us know how we can serve you better.
Line technicians Chase Pleasant, left, and Dylan Skaggs repair tornado damage in March.
Right-of-way Foreman Denny Tryon, left, and Dylan McBride, rightof-way laborer, remove debris so that lines can be rebuilt following a tornado in March.
NAEC facing increased expenses
Scholarship applications due April 1
Thank You to our State Legislators
From food to housing, few areas of our lives have escaped being impacted by inflation and the subsequent increased costs that began during the pandemic.
The North Arkansas Electric Cooperative (NAEC) member-funded Operation Round Up® program awards thousands of dollars in scholarships to local graduating high school seniors each year. In 2024, 15 students were awarded $1,000 scholarships, and three students were awarded $4,000 scholarships to be disbursed in $1,000 installments for up to four years.
North Arkansas Electric Cooperative is deeply appreciative of the time, effort and dedication of the 95th General Assembly members. We are especially grateful to them for championing legislation that will assure more reliable electricity and more affordable future bills. Thank you to the following legislators for their leadership.
Just like individuals, North Arkansas Electric Cooperative (NAEC) has experienced increased costs in many areas. They include contract labor, property taxes, insurance, equipment and materials as well as internal labor and benefits.
NAEC is accepting applications for the 2025-2026 scholarship program. The application is available at naeci.com or through high school counselors’ offices.
For example, right-of-way maintenance costs increased from $1.8 million in 2019 to $4.5 million in 2024. That’s a $2.7 million increase, or 153%. As for equipment, a bucket truck cost $159,000 in 2019 but $250,000 in 2024. As for materials, a transformer cost $830 in 2019 but $1,480 in 2024.
Applicants must mail or deliver the typed application to NAEC by April 1. They must include a transcript and two letters of recommendation — with at least one from a nonschool employee who is not a relative.
NAEC operates as a not-for-profit but must generate sufficient electric operating margins to maintain debt-to-income ratios set by our lenders. We must cover operating costs, investment and maintenance of our electric infrastructure, capital credit retirements to members and principal on long-term debt while maintaining sufficient equity.
The co-op's retail rates have not changed since 2021, and the adjustment at that time was based on an independently produced cost-of-service study using 2019 data. In other words, our current electric rates are based on 2019 costs. In the years since, we’ve been through a pandemic, and the U.S. cumulative inflation rate has increased approximately 23%.
To be eligible for the scholarship, high school seniors must graduate at the end of the 2025 school year, and their parents or legal guardians must be NAEC members. Applicants also must have a grade-point average of 3.0 or higher on a 4.0 scale through the first semester of senior year. The scholarship must be used to attend an accredited institute of higher learning on a full-time basis. For more information, please contact Tori Moss, NAEC marketing and communications director, at (870) 895-6210 or tmoss@naeci.com.
Members can help fund future scholarships by enrolling their accounts in Operation Round Up. Volunteers allow their electric bills to be "rounded up" to the next dollar each month. Call (870) 895-3221 to join today!
Auto bank draft: Members' easiest payment option
Because of limited membership growth and increased costs due to this historic inflation, NAEC submitted a proposed retail rate adjustment to the Arkansas Public Service Commission (APSC) in January. As outlined in Arkansas Living’s January issue, NAEC is seeking a rate adjustment to increase system revenue by 9.4%. (To see the January center pages, visit naeci.com/arkansas-living-magazine.)
In addition, Arkansas Electric Cooperative Corporation (AECC), our wholesale power provider, is seeking an additional 3% in wholesale revenue. AECC's reason for the rate adjustment is due to the need to recover the increased cost of providing wholesale generation and transmission service to NAEC and the other Arkansas electric distribution co-ops. A major driver of the increased cost is the need to build additional natural gas plants to replace baseload generation that will be lost due to the forced premature closure of two coal plants co-
Automatic bank draft is the most convenient payment method NAEC offers. Enrolling in this free service ensures the bill is paid on time each month. It also eliminates the cost of
home is going to be part of a planned outage two of the many reasons why NAEC might need to contact you. It's important to keep a current mailing address and at least one phone number and email on file. To update or check your contact information, call (870) 895-3221, visit an NAEC office or submit a form available
Twitter.com/NorthARElectric Facebook.com/NorthARElectric
The country's electric co-ops mark Lineworker Appreciation Day on April 14 this year. Please join NAEC in recognizing those who keep the lights on year-round.
NAEC’s offices will be closed May 26 in observance of Memorial Day. We honor those who died serving our country. A dispatcher will be on duty, and personnel will be on call in the event of an outage.
High school juniors have until March 5 to submit an application for Youth Tour, an all-expenses-paid trip to Washington, D.C., and Philadelphia June 14-20. Download the application at naeci.com.
Sen. John Payton, District 22
Rep. Stetson Painter, District 3
Sen. Scott Flippo, District 23
Rep. Jason Nazarenko, District 4
Sen. Missy Irvin, District 24
Rep. Steven Walker, District 27
Rep. Trey Steimel, District 2
Rep. Bart Schulz, District 28
Ballots to be sent in May
North Arkansas Electric Cooperative (NAEC) will conduct the election for one board of director position in Izard County. The position is at-large voting, so all NAEC members regardless of location are eligible to vote.
Members will receive an envelope with the NAEC logo from Survey & Ballot Systems around the third week of May. The Minnesota company is handling the election and tabulation of votes on behalf of NAEC. Along with the ballot, the envelope will include the 2024 Annual Report, candidate biographies and a prepaid postage return envelope to mail the ballot to Survey & Ballot Systems. Ballots cannot be given to NAEC. They must be mailed to Survey & Ballot Systems and received by June 17 to be considered valid.
Members on the nominating committee (Joe Dillard, system-at-large; James Elbert, Izard County; Richard Hanson, Baxter County; Stuart Smart, Sharp County; and Jeremy Stone, Fulton County) met April 3. After consideration, they nominated Sonya Wiles of Izard County. No petitions were received as of the magazine’s publication deadline.
Results will be published in The Messenger and at naeci.com.
The 2025 Annual Meeting will entail only a business session at 10 a.m. June 19. The location is expected to be at the co-op’s Salem headquarters as long as work has finished following flood damage. Please call NAEC at (870) 895-3221 or check the Annual Report to verify meeting location. Members can watch the meeting live at naeci.com; a recording also will be available.
The Arkansas General Assembly passed a resolution April 9 proclaiming it Lineworker Appreciation Day. Representing North Arkansas Electric Cooperative line personnel at the event were, from left, Gary Tanner, line foreman; Chase Pleasant, line technician; and Dennis Reynolds, line technician.