CEO’s Message – February 2025

Finding the Right Balance

When it comes to keeping the lights on, reliability and affordability can sometimes feel like a tug-of-war. Every member wants electric service they can count on, but rising costs — from equipment to wholesale power — make it tougher to hold the line on rates. At Wiregrass Electric Cooperative, that balancing act is top of mind every day.

3 years ago, we had 67 employees. Today, we’re down to 57. As retirements take place, we are strategic in the decisions we make about employee positions. We carefully review the payroll dollars and determine the best course of action: Can we do without a position or can we make better use of those dollars in another type of job position? As we take advantage of improving technology, some jobs simply aren’t as necessary as they once were in this industry. Our goal is simple – operate as effectively and cost-efficiently as possible with the job positions needed to maintain reliability and affordability.

We believe we’re accomplishing that goal. We provide the same reliable service without compromising on quality or safety. That’s because our team members sharpened their processes, embraced new technology, and honed their skills. We’re proud of how adaptable they’ve been. By staying lean, we keep overhead costs lower, savings that ultimately benefit our members.

You’ve probably noticed it at the grocery store when you’re getting milk and eggs. Prices for just about everything are higher than they were several years ago. We see it in electric distribution operations, too. Equipment, like transformers, is more expensive than ever, and so are the materials we need to maintain lines, substations, and service vehicles. Salaries, insurance, interest rates, and especially wholesale power costs have all gone up, as well. These increases aren’t unique to our corner of Alabama — electric utilities across the nation are in the same boat, feeling the effects of supply chain challenges and market shifts.

Still, we can’t afford to compromise on reliability or safety. Our system must be prepared for peak demand periods, like cold winter mornings when all our members use a lot of energy at once. That’s why we keep investing in quality equipment and supplies, even when prices go up.

Despite these rising costs, we’ve managed our finances in a way that lets us hold rates steady for the time being. No increases. We watch every penny and consider where costs can be contained without sacrificing service.

That said, we’re still keeping a close eye on our peak demand. We’ll know our exact numbers for winter at the beginning of next month. For now, though, we’re in a good position, and we hope you, our members, are continuing to be mindful of your household’s demand through February so we can hold the line on your power costs.

Peek at Your Bill

We encourage you to flip to Page 42 in this month’s magazine for a detailed breakdown of the residential demand charge you’ll find on your March bill. Simply put, demand is a measure of the maximum amount of electricity you use at 1 time. Even if it happens just once a year, meeting that peak requires us to have enough capacity ready to serve you 24 hours a day, 7 days a week. That preparedness comes with costs, which we are distributing more fairly among members. Taking a moment to understand how demand charges work can help you manage your monthly bill. Small changes, like running your dishwasher outside of peak hours, can make a big difference.

By keeping a lean team, continually finding efficiencies, leveraging new technologies, and being transparent about how rising costs affect us, we believe we can maintain the right balance. We’re grateful to our members who stay informed, make small changes where they can, and support the co-op approach of working together for the good of all.

With your help, we’re weathering these changing times and coming out stronger on the other side. If you have any questions, don’t hesitate to contact us. We’re always happy to help.