



There is strength in numbers.
We see it throughout our own history, in society, politics, and even our daily lives. As a cooperative, Wiregrass Electric is an example of how people came together to pool resources and light the way for rural America.
PowerSouth Energy Cooperative, a generation and transmission cooperative based in Andalusia, recently added to its number of members, welcoming Black Warrior Electric Membership Corporation in Demopolis and Tombigbee Electric Cooperative in Hamilton. The expansion brings PowerSouth’s membership to 22 distribution members. PowerSouth’s members — including Wiregrass Electric — provide power to more than 500,000 end-users across 51 Alabama counties and 10 counties in the Florida Panhandle.
This is the first time PowerSouth has added new members since 1979. As a member of PowerSouth, this expansion is exciting. But what does this mean for our members here in the Wiregrass?
The relationship between PowerSouth and Wiregrass Electric has a tremendous impact on what our members pay each month for electricity.
Just like Wiregrass Electric has fixed costs to distribute electricity to our members, PowerSouth has its own fixed costs on the generation and transmission side of this partnership. These fixed costs are the brick-and-mortar facilities needed to create power and the transmission lines that deliver that power. These costs have to be covered before even a megawatt of energy is generated. PowerSouth’s members share in these costs. More members for Power- South means those fixed costs can be spread out even more.
Wiregrass Electric does not generate the electricity used by our members. Instead, we buy power from PowerSouth, as do other cooperatives and municipal electric systems that are PowerSouth distribution members. PowerSouth generates energy with facilities it owns, but also buys power from other sources.
Demand for electricity in Alabama and across the rest of the country continues to grow. There are already plans for PowerSouth to build an additional power plant to keep pace with demand. Adding 2 more members puts PowerSouth in a better position to use its resources more efficiently, which holds down costs for PowerSouth and its members.
Ultimately, that means holding down electricity costs for Wiregrass members. As at-cost providers, both PowerSouth and Wiregrass Electric Cooperative exist to serve members.
Wiregrass Electric continually invests in equipment and infrastructure improvements. As an at-cost provider, any margin or capital credits are eventually retired and returned to cooperative members.
When the PowerSouth expansion was announced, PowerSouth President and CEO Gary Smith said the move illustrates the cooperative’s commitment to its core values: “Everything we do is focused on safely providing reliable, competitively-priced wholesale power that supports the development and vitality of the communities our members serve,” he said.
I couldn’t agree with Gary’s comments more. That is really what Wiregrass Electric Cooperative is also about — safe, reliable, and affordable electricity for our members. We want the communities we serve and the lives of our members to be better, and that is at the root of everything we do.