Your Board of Directors is happy to report that a general rate increase will not be required for the seventh straight year! This news follows approval of the 2019 budget and financial forecast.
Kilowatt-hour sales for 2018 were 4.3% greater than budgeted and 4.6% greater than sales in 2017. Expenses were closely monitored and came in $131,353 under the budgeted amount of $21,136,890. Margins for 2018 were $2,353,549. This was $937,252 over the budgeted amount of $1,416,297. Margins from electricity sales were $1,343,448. The remaining $1,010,101 was derived from non-operating sources, such as patronage from Central Iowa Power Cooperative (CIPCO), our generation and transmission cooperative, and other non-profit cooperatives. After assigning some margins to Contingency and Statutory Reserves, the Directors will allocate the remaining margins to members.
The management team worked hard to propose a 2019 budget that both balances and prioritizes service reliability and rate stability. We will utilize technology and a skilled workforce to accomplish this goal. The 2019 budget includes estimated revenues of $22,207,556. This amount is lower than 2018, due to an anticipated reduction in kilowatt-hour sales. A return of approximately $500,000 to members in the form of patronage dividends is also
part of the 2019 budget.
Providing reliable, safe, and affordable electricity in an environmentally responsible manner is our top priority. A breakdown of the 2019 budget is listed below, allowing you to see where your dollars will be invested. The budget includes approximately $6,000,000 in system improvements. Some of the improvements include, but are not limited to:
- New services construction – $109,719
- 70 miles of line replacement – $2,994,040
- Substation upgrades – $1,300,000
- New transformers, meters, and special equipment – $340,000
- Member services upgrades – $111,000
- Sectionalizing (such as breakers and fuses) equipment – $100,000
- Pole replacement – $280,000
- Technology – $200,000
These system upgrades are part of ECI REC’s 2017–2020 Construction Work Plan, which makes it possible to accommodate new growth while improving the reliability of your electric service at an affordable cost to
The budget includes $700,000 in preventative and ongoing line maintenance programs, including pole testing, meter testing, tree trimming, transformer and breaker maintenance, and additional services that help keep your lights on. The graph below provides a brief summary.