As summer graces us with longer evenings, I find myself cherishing the few extra hours of sunlight. It’s a gentle reminder of change and of how we adapt to the opportunities provided by each season.
At Wiregrass Electric Cooperative, we are no strangers to change and the challenges that come with it. But in true Wiregrass spirit, we continue to navigate these trials with grit and grace. As we enter the heart of summer, I want to provide a candid update on some of the challenges we are facing, while also sharing our unyielding optimism for our future.
First, I must address the setback at the Lowman Energy Center. The unexpected discovery of rusted piping that must be replaced postponed the start of the center’s operations until later this year. This delay carries a considerable cost for PowerSouth Energy Cooperative — an estimated $28 million — and also affects us here at WEC. As a power distributor, we share both the benefits and challenges of our power generation partnerships, which you can learn all about in the May edition of our Alabama Living magazine.
Simultaneously, we are conducting a cost- of-service study to ensure our rates support the cost of providing service to our members. Early findings show that our costs are very close to exceeding our revenue. This situation is due to a mix of factors: higher federal interest rates, increased material costs, supply chain disruptions, and the main cause — rising cost of wholesale power.
Seeds of opportunity
Speaking of supply chains, we’ve taken pro- active steps to manage these complications.
Because of prolonged delivery times, we’ve more than doubled our normal inventory level over the last year. This strategic decision ensures that we have the necessary supplies on hand to maintain our electrical grid’s reli- ability and resilience. It’s an investment in our shared future.
Now, I know some of this news may feel heavy. But remember, every challenge brings with it the seeds of opportunity. And at Wiregrass, we’re all about nurturing those seeds.
On that note, I’m delighted to share some good news. The spec building project being outfitted for its new tenant in Geneva is nearing completion. The manufacturer, ISA Corporation, is on the cusp of hiring staff members and is projected to begin operating in the first quarter of 2024. This project is a testament to our commitment to local job creation and economic development. Furthermore, the access road for the Geneva County Industrial Park is currently under construction. This will help with ISA Corporation’s needs as well as possible future tenants of the industrial park.
Undoubtedly, we are facing headwinds. But let’s not lose sight of the fact that we’re in this together, as a cooperative and as a community. We can choose to view these challenges as stepping stones to a better tomorrow.
As I often remind myself, the power of Wiregrass lies not just in the electricity we distribute, but in the community spirit of our cooperative. We’ve weathered storms before, and we’ll weather this one too, emerging stronger on the other side.