With Easter right around the corner, this is the perfect time to celebrate hope, faith in the future, and new beginnings. This applies in our personal and spiritual lives, and in business, as well. In order for an organization to succeed, it needs to be able to foresee upcoming trends and patterns and plan to proactively address these changes. Because Rio Grande is always growing and changing, we strive to stay ahead of the curve. To this end, Strategic Planning began in January, with the hiring of a widely-respected consulting firm to conduct a Cost of Service Study. This study includes modeling financial projections, planned capital investments, and others. The model then includes options and recommendations for such things as rate adjustments, any additional rate classes, and any corrections to cross-subsidization between rate classes.
This is a normal process and one that RGEC undertakes periodically to ensure that all rate classes are self-supporting. By this, we mean that, for example, the regular residential rate does not support the actual cost of service for the seasonal rate. In this way, we strive to ensure parity across all rate classes.
One of the elements we are examining currently is the Line Extension Policy. This aspect has been challenging, and we want to streamline and possibly revise policies and procedures, in order to better serve members, and keep up with the rapid growth being experienced in portions of the Cooperative’s service territory.
Once the study has been prepared and presented to the board, it could then be used as a tool in the development of the 4-Year Construction Work Plan. The estimated timeline for the Cost of Service Study would call for it to be presented to the board in June. The 4-Year Construction Work Plan outlines projects to be undertaken in each of RGEC’s non-military operations areas. You may recall that a preview of some of this year’s projects was included in the January magazine.
Another important change this year is the director nomination process. Please review the procedures for it in the pages of this edition. We will be sharing more information on this in the coming weeks.
As an electric utility, we are always cognizant of the importance of safety -- not only the safety of Coop employees, but the safety of members, their families, and the general public. We have worked hard to instill a culture of safety at Rio Grande, and that work is paying off! RGEC was recently awarded the Work Safe Award by Texas Mutual Insurance. Speaking of safety, those of you with elementary-aged children should encourage them to participate in the Co-op’s annual electrical safety poster contest. It is a good way to introduce them to the principles of electrical safety at an early age. Every student who participates will receive a certificate.
As we prepare to celebrate the greatest miracle of all, may Easter bring you and yours joy, peace, and hope. Have a blessed holiday.