Good morning! I am thrilled to see so many of you connected here today for the 2024 emPOWER Summit and the 79th Annual Meeting of Rio Grande Electric Cooperative (RGEC). I’m excited to share the progress achieved over the past year and discuss future plans.
The past year has been 1 of significant transformation and growth for the Cooperative. New challenges and opportunities have been embraced, setting the stage for continued excellence in the years to come.
Looking back at my 2023 Annual Report, it’s important to re-emphasize a fundamental principle: “Momentum cannot be achieved without movement.” The commitment to excellence and innovation has driven us ahead, creating a culture that promotes rapid growth and advancement.
Employees are the backbone of the Cooperative. In 2023, Rio Grande continued its commitment to their professional development through the NRECA Supervisor and Manager Development Program (SMDP) and TEC’s Loss Control Program. These programs equip staff with the tools needed to lead high-performing teams, ensuring safety, member satisfaction, reliability, and cost control.
Succession planning remains a priority to ensure there are qualified personnel as experienced employees retire. Notably, Martin Flores was promoted to Chief Operations and Engineering Support Officer, following the mentorship of Steve Wright. Martin’s extensive experience, from apprentice lineman to senior operations manager, makes him the ideal choice for this critical role.
In 2023, 19 employees were recognized, celebrating a total of 225 years of service. Among them, Administrative Services Coordinator Susanna Castillo and Journeyman Line Foreman Gilbert Villarreal were honored for their 25 years of dedication to the Cooperative.
I would also like to extend our heartfelt gratitude to Priscilla Parsons from Director District 2, who has reached her maximum term limit of 15 years of service on the board. Her unwavering commitment, leadership, and dedication have been instrumental in guiding the Cooperative through numerous milestones and achievements. We are deeply appreciative of her contributions and the lasting impact she has made on Rio Grande Electric and its Board of Directors.
The Cooperative’s safety culture underwent a transformation, empowering employees to drive safety practices. After coming to the realization that frontline employees – not management - should create and drive the safety culture in which employees want to work. Yes, the Cooperative has a multitude of safety policies, procedures, plans, etc. in place and employees know these are “hard and fast” rules. However, today we recognize that safety culture is a combination of the attitudes, values, and perceptions that influence real-life safety practices. Those most affected by the policies have an investment – a buy-in if you will -- in the program. It is their program. To be successful, safety must be an ongoing and ever-evolving cultural alignment. This was never more evident than when Rio Grande joined a group of 8 other Texas cooperatives, to participate in a rural electrification project in Guatemala through the NRECA International Program. Representing the Rio Grande were 2 of our very best volunteers, Fort Stockton Area Operations Manager Gavin Forst and El Paso Journeyman Line Foreman Eli Bejarano, who described their journey as “the experience of a lifetime”.
While on the topic of safety, Texas Mutual Insurance Company awarded the Cooperative a grant for new training simulators for the AED and CPR programs, ensuring employees are always prepared to assist in emergencies. All 170+ Rio Grande Electric Cooperative employees are trained in First Aid, CPR, and AED usage. Whenever RGEC employees are at community events, trained personnel are available for emergencies. Additionally, every RGEC vehicle has first aid supplies and fire extinguishers, and service trucks carry an onboard AED.
Financial stability is paramount. The cost of service study conducted by SEnergy provided insights into the Cooperative’s financial health and rate structures. While the Board has not yet reached a decision on adjusting the rate structure, the plan is to make any adjusted rates effective early next year once a decision is made. This study ensures that appropriate margins are maintained and that informed decisions are made about pricing, to support Rio Grande’s long-term financial goals.
In Rio Grande’s ongoing efforts to optimize costs and enhance member engagement, we successfully transitioned to Texas Coop Power Magazine. This strategic move has not only improved our communication with members but also resulted in significant cost savings. The savings realized from this conversion amount to a little over $100,000. Additionally, the conversion included a digital bridge, allowing members to view the TCP magazine, cover-to-cover, on our website. These savings have been reinvested into other critical areas, further strengthening the Cooperative’s financial position and supporting the commitment to providing affordable and reliable services to members.
Significant strides in system improvements have been made, with ongoing projects aimed at enhancing reliability. The USDA Rural Utilities Service mandates annual inspections of 10% of poles in the distribution system, totaling about 14,000 poles for the Rio Grande. Pole inspections, conducted by EXO, are part of a comprehensive effort to ensure the integrity of the infrastructure. Area operations managers identified the selected feeder lines as high priority based on factors like frequent outages, age, and condition. The pole inspection initiative this year has already identified several critical areas that will result in more extensive pole replacement projects slated for 2025. Over the next decade, every single pole will be inspected and replaced, as needed to maintain system reliability.
RGEC’s commitment to renewable energy continues to grow. Since launching the solar projects in June of last year, a little bit over 3% has been saved on purchased power. Additionally, there are plans to incorporate more solar and battery storage projects soon, with the aim of reducing wholesale power costs by 15%. These initiatives align with the Co-op’s goal of providing sustainable and cost-effective energy solutions to members.
While the Cooperative strives for 100% reliability, external factors such as geomagnetic storms and severe weather pose challenges. Continuous monitoring, evaluation, and improvement are essential in the pursuit of system reliability. Resilience in the face of these challenges is a testament to Rio Grande’s commitment to excellence.
Corporate attorney, Lea Ream, has announced the newly elected board members. Let’s welcome them and express our gratitude for their service.
The director election process has been revamped this year to encourage greater participation and transparency. Moving forward, candidates will seek a place on the ballot through a petition process, ensuring a fair and inclusive selection process. As of the 2024 election cycle, which just wrapped up, and going forward, there are no nominating committees.
To qualify for a spot on the ballot, every prospective candidate – including incumbents – must participate in a petition process. This straightforward procedure necessitates obtaining at least 15 signatures from eligible members within the district the candidate aims to represent on the board. Additionally, all candidates are required to satisfy other director qualifications detailed in Article IV of the RGEC Bylaws, which address factors such as residency, annual kWh usage, and conflicts of interest, among others. Candidates must also sign an Affidavit of Eligibility.
Another change for the 2025 Director Election is that, in the event only 1 person is nominated for a position on the board, the board president may declare that the nominee is elected by unanimous consent or acclamation. This amendment aims to save costs associated with conducting an election when there is only 1 candidate.
The 2025 Director Election cycle officially commences today—let the race begin!
Ballot positions will be available for:
- Director District 3, the seat currently held by Jamie Ballew
- Director District 7, the position currently held by Tim Edwards
- Director District 4A, the seat currently filled by Margarita Nelson, and
- Director District 1, for which Howard Ivey is the current director.
The views of every member are appreciated and those with a strong commitment to service are urged to think about stepping up to help guide the Cooperative’s leadership and direction. Contested elections bring energy to the process. If you’re interested in sustainable growth. As we look to the future, the Co-op remains dedicated to innovation, member satisfaction, and operational excellence.
Thank you for your continued support and commitment to Rio Grande Electric Cooperative. Together, we will achieve remarkable success.