News > Manager’s Message: A Look Ahead – Plans for 2018

Manager’s Message: A Look Ahead – Plans for 2018

The word 2018 written in vintage metal letterpress type on a soft backlit background.

As we close the books on 2017 and kick off the New Year, we have been busy taking inventory, meeting with auditors, soliciting bids for new capital purchases, and putting the final touches on our 2018 work plan. With so much happening, I thought it would be an opportunity to share with you some information on the Cooperative’s 2018 goals and how we are living out our mission: providing competitively priced and reliable electric service, together with innovative energy solutions and an excellent member experience.
 
As we close the books on 2017 and kick off the New Year, we have been busy taking inventory, meeting with auditors, soliciting bids for new capital purchases, and putting the final touches on our 2018 work plan. With so much happening, I thought it would be an opportunity to share with you some information on the Cooperative’s 2018 goals and how we are living out our mission: providing competitively priced and reliable electric service, together with innovative energy solutions and an excellent member experience.
 
Stearns Electric is committed to providing dependable and reliable electric service and that means we invest time and money into restoring power quickly. But it also means maintaining and planning for the future of the entire distribution system. In 2018, the Cooperative will start year two of ACRT’s recommended four-year vegetation management plan by continuing to focus on maintaining, clearing, and addressing tree issues along the right-of-way in our service territory. We will also continue our plan to reduce outages by replacing approximately 20 miles of three phase underground cable that is known to fail prematurely.  Additionally, the Cooperative will complete a four-year construction work plan, environmental review, and carry out evaluations of our aging distribution plant in order to stay ahead of issues that might threaten reliability. By prioritizing these projects, Stearns Electric is investing in enhanced safety, outage reduction, rate stabilization and increased dependability. Wins for the Cooperative and our members.

In addition to providing reliable service, it is always our goal to provide affordable energy. In 2018, the Cooperative will kick off the year by completing a long-range financial forecast. Projections for energy sales, power costs, plant investment, maintenance and operating expenses, along with depreciation and interest expenses, will be developed. Those projections will allow us to forecast the revenue required from energy sales to cover costs and provide for adequate margins over the next several years. The Cooperative will also undertake a Cost of Service Study heading into the New Year. This study will provide detailed information necessary for designing and modifying rates and ensuring costs are allocated appropriately among the different rate classes. Our finance department will also create an equity management plan dependent on the results of the forecasting activities.
 
What does this all mean for you as a member? The Cooperative’s budget is tight and we anticipate a rate adjustment sometime in 2018. The last time Stearns Electric increased our distribution rates was 2013. With costs increasing, minimal growth experienced over the past several years, and minimal growth projected in the next several years, a rate review is necessary. All of the planning above will help the Cooperative determine our financial needs well into the future so that we can set rates that not only provide revenue to cover our operating expenses, but also are affordable and fair to all our members. We will keep you informed as we continue this process in upcoming issues of the Power Connection.
 
In regards to technology, in 2018 the Cooperative plans to explore next generation equipment for load control, increase utilization of our outage software for targeting feeder outages, and enhance our IT system security and our member data security. It will also be the first full year that all of our lineman are equipped with iPads in the field, allowing quicker access to information while working away from the office.

In addition, we are not just thinking about technology that helps us do business and connect with members better. We are also paying attention to changing technology in the energy industry like electric vehicles and distributed generation. We will offer an off-peak charging program for electric vehicles on our system and will explore the development of a new electric vehicle-charging rate. We are also focusing on making sure our employees are educated to assist members interested in installing their own solar panels or wind towers. We are your energy experts, here to help you navigate your energy options.
 
2018 will continue with a planning trend as our board of directors and executive team create a new strategic plan for the Cooperative this fall. To prepare for this process, the Cooperative will complete an external member survey to collect your thoughts and opinions about Cooperative priorities. Then we will look at our internal strengths and weaknesses as well as external opportunities and threats and from there we will determine the key issues facing the Co-op. The strategic plan will outline strategies to accomplish our new goals. The strategic plan is a very important planning tool to help assure we are adequately meeting our members’ needs.
 
Lastly, we will continue to place a high priority on continuous safety training so that our employees and their work environment are safe. We look forward to a productive year serving you, our members.