Dear Rio Grande Electric Cooperative (RGEC) Members,
As we reflect on the past year, RGEC is proud to present our 2024 Annual Report, themed “Empowering Our Members: A Year of Engagement, Innovation, and Growth.” This report highlights our commitment to member engagement, operational excellence, safety, infrastructure improvements, community service, and future plans, all centered around the strategic goals established in 2024.
In 2024, RGEC focused on 5 key strategic goals to ensure continued growth and stability:
Strengthening Our Safety Culture
We reviewed and updated our Safety & Health Program to ensure the well-being of our employees and members. This included launching an annual safety event to celebrate our culture of safety and enhancing supervisory training programs to improve accountability and incident reporting. Additionally, we conducted a comprehensive Cybersecurity Assessment, highlighting our efforts to protect our infrastructure from potential cyber threats. These initiatives underscore our dedication to maintaining a safe and secure environment for all stakeholders.
Maintaining Financial Stability & Fair Rates
Our cost-of-service study was completed in 2024. Based on the study, the Board opted to hold current rates while closely monitoring service costs to ensure continued financial stability and fair pricing for our members. We also implemented several cost-reduction initiatives to strengthen our financial position. Transitioning to Texas Coop Power magazine improved communication with members and achieved significant cost savings.
Our Annual Membership Meeting was held in an online format, resulting in substantial savings and setting a record for attendance with 262 memberships participating virtually. Strategic procurement and negotiations led to cost savings on transformers and equipment. A significant highlight of 2024 was the update to the Capital Credits Retirement Plan. This update aimed to shorten the retirement cycle and manage financial implications effectively. The plan proposed retiring the years 1995-1999 in 2024, totaling $5,015,038. This would reduce the retirement cycle to 25 years, with an average cash requirement of about $3 million per year. This approach ensures that RGEC can meet its financial obligations while maintaining a healthy financial position.
Maintaining a Skilled Workforce
To attract and retain top talent, we reviewed salaries and benefits to ensure competitive compensation. We are also looking to enhance support for employee education through degree programs, certifications, and technical training in the future.
Enhancing System Reliability
We invested $21.4 million in infrastructure improvements to enhance system reliability and support sustainable growth. This included upgrading substations and implementing advanced technologies to improve service delivery. We initiated a pole inspection program to inspect 10% of our poles, totaling approximately 14,000 poles, to ensure the reliability and safety of our infrastructure.
Promoting Member Engagement & Satisfaction
The annual Member Involvement Survey showed that many members are interested in participating in our decision-making processes. Several members expressed their willingness to serve on the Member Advisory Committee (MAC) and the Board of Directors.
To address challenges in forming nomination committees, we introduced a petition process for director election nominations, requiring candidates to gather at least 15 signatures from eligible members in their district. RGEC’s dedication to serving the community was evident throughout the year.
Each year, RGEC and our energy partners team up to provide grants to deserving non-profit organizations in Co-op Country through the CoBank Sharing Success Program. In 2024, we awarded a total of $90,500 to various community projects and initiatives, reflecting our commitment to giving back to the communities we serve and supporting local development.
In conclusion, 2024 was a year of significant accomplishments for RGEC. Our focus on strategic goals, including member engagement, operational excellence, safety, infrastructure improvements, community service, and future plans, has positioned us for continued success. We are grateful for the support and involvement of our members and look forward to another year of empowering our community and driving positive change.
Thank you for being a part of Rio Grande Electric Cooperative, Inc. Together, we will continue to build a brighter future.