CEO’s Message – July 2024

Staying Cool Under Pressure

Rising costs everywhere you turn make for challenging times, and I know you and your family are probably feeling that squeeze. Feeding your family is more expensive today than it was a couple of years ago. Housing costs have soared. Basic services, tuition, groceries — everywhere you turn, it seems like you’re feeling that pinch, even when you spend most of your time at home.

At Wiregrass Electric (WEC), we’re doing our best not to add to that burden by keeping your energy costs as low as we possibly can. As we navigate the ongoing challenges of rising prices, I assure you our commitment to providing reliable and affordable electricity remains constant.

For a moment, consider the price changes in everyday goods over the past couple of years. In 2022, a dozen eggs cost $2.05. Today, that same dozen is $2.99. A pound of chicken was $1.72 in 2022, and now it’s $1.99. These increases in refrigerator staples are stark reminders of the broader economic pressures we’re all feeling.

Now, let’s look at electricity. Since 2022, the average cost per kilowatt-hour in the U.S. has risen by 13%, largely due to new policies and regulations on the national level. While WEC may not agree with these changes, we must comply. We’re working with leaders at all levels to advocate for policies that ensure affordable and reliable energy. Despite these challenges, WEC’s rates remain below the national average, reflecting our commitment to shield you from economic fluctuations while continuing to operate effectively.

This mission is a promise we keep every day. But we don’t work in isolation. As a cooperative, we operate under a democratic and open process, serving our members and our communities with transparency and dedication.

Our board members, management, and I spend countless hours deliberating how best to serve you. Each decision balances immediate needs with the long-term viability of our cooperative, supported by some of the best employees in the industry, who are dedicated to providing exceptional service to our members. We understand that even minor increases can impact your household budget, and that’s why we approach any billing adjustments with the utmost care and consideration.

As you may know, we permanently incorporated the 15-mill Power Cost Adjustment debit into the kilowatt-hour, or kWh, energy charge due to sustained increases in the costs of purchased power and materials, supplies, and wholesale power costs. Then, we also implemented a residential coincidental peak demand charge. This decision was not easy, but it was necessary. It was intended to signal members to be more conscious of their demand on our electric grid during peak times during winter months — when wholesale power costs are highest.

As a result, I’m pleased to say that our peak demand decreased this past winter compared with the year prior. Not only does this help us keep your power bills as low as possible, it contributes to the sustainability of our cooperative. This is what’s possible when we work together toward a common goal.

And while many other electric utilities must continue to increase rates this year, we are hopeful we can mitigate future power rate increases by working together to keep our coincidental peak demand as low as possible.

I want to be clear that rising costs are something we’re dealing with every day. But our board and staff is proactive and diligent in minimizing the impact of inflated prices felt by members, and we will still need your help keeping demand low.

Your needs drive our decisions, and your welfare is at the heart of our operations. As we move forward, we continue to prioritize efficiency, explore cost-saving technologies, and maintain a lean workforce to keep costs down. We also collaborate with our wholesale power supplier, PowerSouth Energy Cooperative, and other organizations to advocate for policies that keep power affordable and reliable for members.

Thank you for your trust and support. We are proud to serve you and look forward to brighter days ahead.