Svec Newsletter May 2016

Suwannee Valley Electric Cooperative Lighting the way since 1937

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Suwannee Valley

currents May 2016

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800-752-0025 SERVING RURAL AND URBAN SUWANNEE VALLEY OWNED BY THOSE WE SERVE 11340 100th Street • Live Oak, FL 32060

Annual meeting highlights cooperative’s strengths, celebrates progress

CEO’S COR NER

You’re more than just a customer at SVEC Michael S. McWaters Executive V.P./CEO

Each year I look forward to our Annual Meeting. It reminds me of a big family reunion where we get to spend quality time with people you care about. This year, we held our meeting on April 23, and I personally was thankful for the opportunity to spend time with more than 500 of our members coming together and discussing the future of our cooperative.

One thing we discussed at the meeting was this year’s return of capital credits. Electric cooperatives are notfor-profit organizations, and we’re owned completely by our members. And any income beyond what it takes to keep our system running is returned to our members after a time and in proportion to how much they spent with the cooperative that year. We’re happy to be continuing in that tradition as the board has authorized $800,662 in capital credits for 2016.

These credits are just one of the ways cooperatives operate differently than traditional power companies. We aren’t interested in driving up revenue. We use only the resources necessary to provide our members with reliable electric service.

At the end of the day, this is your cooperative. At our annual meeting we also voted on trustees. As a memberowner, you have a direct say in who helps govern the cooperative. What other companies do you do business with each day that you can say that about? Not many I can think of.

Thank you for reading. 

Suwannee Valley Electric Cooperative held its annual meeting on April 23 in Live Oak, Florida. The cooperative was excited to meet with over 500 members from across its service area.

“Each year, SVEC’s members get the chance to have their say in who represents them on the board,” said Michael McWaters, executive vice president and CEO at SVEC. “It’s one of the most important ways a cooperative is different from other, investorowned utilities.”

This year, representatives for three districts were up for re-election. Hugh Hunter was re-elected to District 7, Tim Steichen to District 8 and Bill Hart to District 9, confirming the strong leadership they have shown for our system.

“As a cooperative, we’re not here to make a profit for some investor that may live a

thousand miles away,” Hunter told members in his welcome speech. “We live here and we work here as part of this community. We’re here for our members — and that’s all of you.”

McWaters also spoke, informing members that SVEC continually strives to improve their experience with the cooperative. “A key part of that goal is making sure our electric service remains reliable,” said McWaters. “In 2015, we achieved a system reliability of 99.94 percent.”

This year, SVEC is in the process of upgrading its distribution system as part of a three-year construction work plan (CWP).

This is the second year of that plan, during which we are investing approximately $5.3 million per year in system improvements.

Continued on Page 4, see MEETING

A HIS T O RY O F SV EC

Powering our community and serving members for almost 80 years Suwannee Valley Electric Cooperative has served this region for nearly 80 years, making it one of the oldest cooperatives in the State of Florida.

The REA (Rural Electrification Administration) was created by Executive Order 7037 signed by President Roosevelt on May 11, 1935. The very next year, the cooperative was established and incorporated. Seven local residents came together to form the first Charter Board of Trustees: C.F. Hart, Madison L. Smith, Eula Fletcher, Louis D. Howell, Perry Davis, S.B. Blackmon and Luther Atkins.

The system’s first electric line was energized in 1940, stretching over 50 miles and bringing power to nearly 70 members, one of whom even rode his mule to the cooperative each month to pay his bill. Members would gather in a tobacco warehouse each year for the annual meeting, and in 1948 SVEC built its first offices on U.S. 90 East.

The cooperative, and the community it serves, has grown tremendously since those early days. SVEC now serves over 18,000 members across over 4,300 miles of electric line, providing access to reliable, afford-

able electricity across Columbia, Hamilton, Lafayette and Suwannee counties.

To put that number into perspective, that’s enough mileage to drive from the cooperative office in Live Oak to Alaska.

Waking up with a purpose

The years of growth have not changed SVEC’s mission. The cooperative still exists to serve its members while bettering its service area.

Everyone at the cooperative, from the member service representatives helping members understand their bill to the linemen climbing power poles, knows their efforts make a difference to their neighbors each time they go to work.

For James Black, that’s one of the biggest perks of the job.

An SVEC employee for 43 years, Black is a second-generation cooperative employee, following in his father’s footsteps when he took a job on the right of way team shortly after graduating high school.

Since then, he’s enjoyed a long career at SVEC serving as an apprentice lineman, journeyman lineman, construction

foreman and serviceman. Now 61, he continues his work in the service department, supervising line maintenance and installation of services like security lights.

“I just love doing line work; it’s an important job the way I look at it,” says Black. “We’re member-owned, so one of the main things is the service we provide them and the way we provide it. Electricity isn’t a luxury anymore; it’s a necessity, and to be able to help provide that on a reliable basis is a good thing.”

Always improving

SVEC continually strives to make sure electric service is available to members when they need it. Programs like regular tree trimming and constant maintenance on all parts of SVEC’s distribution system help prevent outages before they occur.

That mission, to continually improve the 4,300 miles of electric wire, makes every day special and each job at SVEC important. It’s also why SVEC continually provides educational training to its employees.

In addition to regular safety training, last year SVEC part-

nered with the Suwannee County Health Department on an informational workshop for line workers about the importance of a healthy diet and the risks associated with high blood pressure, making sure that all SVEC employees lead happy and healthy lives, whether at work or at home.

Building a better future

Providing reliable, affordable electricity is the primary way SVEC serves its members and betters its community. However, electric cooperatives can do more than serve electricity.

SVEC also continually finds other ways to make life better for its members.

One of the most important ways SVEC does this is by promoting economic development in the Suwannee Valley region.

The cooperative works with local chambers of commerce and state and local governments to make Columbia, Hamilton, Lafayette and Suwannee counties attractive locations for new businesses.

Creating a better Suwannee Valley also means building leaders for tomorrow. To that end, SVEC sponsors eight local area

students each year to attend the annual FECA Youth Tour in Tallahassee, where they learn how state government works and about the part cooperatives play in providing access to vital utilities across the country. SVEC is also proud to have a scholarship fund that helps students across all four counties it services pay for college.

“We want to do everything we can to make sure the Suwannee Valley continues to develop as a vibrant community,” says Executive VP and CEO Mike McWaters. “That starts with bringing more jobs to the area right now, but it also means making sure our children have the opportunities that will help them to lead going forward.”

Planning for the future also requires handling members’ money responsibly and acting as good stewards of our resources. SVEC members elect a board of trustees with representatives from each of the cooperative’s nine districts to guide financial decisions. Today, SVEC stands on solid financial ground through years of planning and diligence.

A winning team

At the end of last year, SVEC received a score of 85 out of a possible 100 points for overall satisfaction from the results of a member satisfaction survey. That score is above average in any industry, and it shows that members feel their expectations are being met.

Janice Goodman has been working in member services for more than 43 years and has seen membership grow immensely since 1972.

Even so, her passion for meeting members and making their experience the best it can be has never wavered.

“I love being able to solve problems for our members,” she says. “It’s great getting them connected and handling any concerns that they might have about their accounts.”

The cooperative was also able to close 2015 with a fantastic safety milestone: 433 days worked without a lost time injury. That number has now grown to over 500 days and is an accomplishment that shows the constant focus and willingness to communicate with each other that SVEC employees exhibit every day, thanks to dedicated employees just like Goodman.

But now isn’t a time for resting on our laurels.

“For all that we’ve done together so far, SVEC can always provide better service to our members and be an even better home for our employees,” says McWaters. “It’s exciting to celebrate everything we have built, but even more encouraging to look forward to what’s still to come.” 

SCENES FROM THE PAST

One of SVEC’s earliest members rode his mule to town to pay his electric bill.

In 1948, SVEC built its first home on U.S. 90 East.

Employees pictured with SVEC’s first substation.

Members pack a tobacco warehouse during a 1940s annual meeting.

MEETING, continued from front

“These improvements will help us be ready to meet the needs of our distribution system as it grows,” said McWaters, “as well as help us better meet the needs of our members today.”

McWaters underscored that the cooperative is in strong financial shape and that the board has authorized a return of about $800 thousand in capital credits for 2016. Since it was founded in 1937, SVEC has returned around $12 million in capital credits to its members.

The cooperative also strives to keep the cost of electric service down for its members. “Over the last two years, we are happy to say those efforts have been successful,” said McWaters. “In 2014, 1,000 kWh of electricity cost $130.30, but just $122 in 2016.”

Members were also reminded that they will have the chance to vote on Amendment 1 this fall, which could lower the cost of solar panels and equipment by making them exempt from some state taxes. Our state has been the leader in renewable energy in the U.S. among those with no energy mandates from the government, and Amendment 1 is another chance for voters to expand solar development across the state.

After the meeting finished, the board held a separate reorganization meeting, where they elected their officers for the coming year. Hugh Hunter was re-elected as president, Jerry Goff as vice president, Tyler Putnal as secretary and Timothy A. Steichen as treasurer.

“Every year, the annual meeting showcases how much of a group effort a cooperative like SVEC is,” said McWaters. “We’re glad to see the work of the board being appreciated and are thankful for their leadership.

We also know SVEC wouldn’t be successful without the support of our members, or without the efforts of our employees every day to ensure those members have the power they need to light their homes and businesses.”

For more information on your cooperative’s annual finances, check out the March 2016 newsletter. Anyone who doesn’t have a copy and would like one can call 386-362-2226 or email info@svec-coop.com. 

MEMBERSHIP

PAY $ There is an important message SVEC tries to impart to our members through this newsletter, our website and in our day-to-day contact with members: SVEC is a cooperative, and that means it’s different. A cooperative doesn’t act like most of the companies you come into contact with every day. The cooperative is owned by its members and strives every day to make its member-owners live a better life.

One area where cooperatives are the most different from other, investor-owned utilities is capital credits. Because SVEC is member-owned, the money it makes beyond the cost of doing business is considered “margins,” not profit, and members share these margins based on the amount of business they do with the cooperative. When SVEC returns these margins to our members, they are called “capital credits.”

This year, SVEC is happy to retire $800,662 of capital credits, which will be distributed to its members.

Each year the SVEC Board of Trustees, which is elected by our members, evaluates the cooperative’s financial status and makes decisions on what monies will be needed in the coming year. SVEC has to purchase its electricity to distribute to mem-

SVEC retires $800,662 in capital credits this year

bers, while maintaining thousands of miles of electric line, substations and more.

SVEC also keeps track of how much electricity a member has purchased each year. This is that member’s contribution toward the annual expenses of the cooperative. Sometimes, there is a small margin of unspent funds at the end of the fiscal year. These margins are re-invested into the cooperative for a set amount of time to make sure that SVEC is able to continue to operate and provide electricity at an affordable rate.

After a set amount of time, these monies are issued as capital credits. To date, SVEC has retired $12 million in these credits since our founding in 1937.

“Capital credits are an important part of who we are as a cooperative,” says Michael McWaters, executive vice president and CEO at SVEC. “When you pay your electric bill to SVEC, you’re investing in this cooperative and its mission. You are a part owner of every power line you see. Capital credits help remind members of that. We’re not a for-profit company. We’re a member-owned cooperative, and I’m very proud of that fact, as is everyone who works here.” 