Energizing Tomorrow: A Resilient Journey of Innovation and Dedication

by CEO Teresa Floyd and Board President Steve Rau

As we reflect on the successes and milestones of 2023, it can be said it was a remarkable year filled with historically low outages, lower power costs than projected, and strategic investments in our infrastructure, maintenance, and employees.

We had a record low outage total of 28.2 average minutes per member-account, based on the outages we could control. That figure does not include planned/scheduled outages or outages caused by the public or our power supplier. Our continued investment in plant upgrades, our proactive maintenance program, and good weather also played a big part.

Financial stability is crucial and remains the bedrock of your Cooperative. We started out 2023 announcing the need to raise electric rates, and we expected our members to see an increase in wholesale power costs via the power cost adjustment. The rate increase was implemented on March 1; however, the increase in wholesale power costs did not materialize. In fact, our power supplier lowered their rate twice during 2023, saving our members an average of $86 in power cost adjustments. Despite the initial forecast of rising electric rates, we were able to navigate through uncertain terrain, ultimately witnessing a reduction in wholesale power costs.

Our ongoing monthly safety meetings continue to shine the light on working safely. One aspect we focused on in 2023 was fleet management. ECI REC invited the Iowa State Patrol to our September safety meeting to do a presentation on proper cargo securement, vehicle weight limits, and distracted driving. While onsite, the commercial vehicle patrol officer inspected some of ECI REC’s fleet and gave pointers on how to remain in compliance with commercial vehicle regulations.

Cybersecurity is another top priority for your Cooperative. In May 2023, the ECI REC management team underwent data security training. An RC3 (Rural Cooperative Cybersecurity Capabilities) tabletop exercise was also performed to test our cybersecurity posture.

In collaboration with our esteemed leadership and through active engagement with legislators, we have advocated for the interests of rural electric cooperatives, amplifying our collective voice and shaping policies that benefit the communities we serve.

In January 2023, Directors Jeff Elliott and Gary McKenna and CEO Teresa Floyd represented the Cooperative at the Welcome Back Legislative Session. During the March 2023 REC Day on the Hill, Manager of Finance Jennifer Schmitz represented your Cooperative. In August, ECI REC was visited by a legislative correspondent out of D.C. We also held a get-to-know event in November, inviting local legislators to meet the Board and management team. These initiatives and annual events are a valuable opportunity to meet with state legislators to discuss issues that impact rural electric cooperatives and the communities we serve. We hope to become a trusted resource they can call upon if a need should arise.

Each year, regular inspections and our vegetation management program proactively address potential issues and extend the lifespan of the Cooperative’s distribution assets.

In 2023, we invested over $380,000 in maintenance and $4.8 million in infrastructure investments that included 45 miles of distribution line replacement by contractors. In 2023, supply chain management was another challenge we dedicated resources to addressing. Fortunately, ECI REC is a 30-year member of the Rural Electric Supply Cooperative (RESCO), a not-for-profit wholesale distributor whose advanced logistics gave us a slight edge in terms of cost-effective inventory and quicker deliveries. We implemented new strategies and projected the need for materials like transformers five years into the future.

Your Cooperative continues our commitment of returning patronage dividends to our members. In September, your Board approved returning over $453,000 in deferred patronage dividends. These dividends were margins allocated to the membership in 2008. In the past 10 years, ECI REC has returned $5,261,705 to the membership.

Guided by our commitment to community, ECI REC has a long history of supporting students through scholarships and leadership opportunities. We’ve been sending deserving high school students to Washington, D.C., every summer for years as a part of the national Electric Cooperative Youth Tour program. In 2023, ECI REC also participated in both the Benton and Buchanan County Fairs by setting up a booth to connect with our members and the community.

As we look back at the past year, it becomes evident that our journey has been defined by resilience, innovation, and unwavering dedication. Our commitment to infrastructure investments and maintenance ensured the reliability and efficiency of our services, exemplified by the record low outage duration experienced by our members.

At the heart of our operations lies our 34 employees with 548 combined years of service. Their collective expertise and dedication to safety has propelled us forward. (Our employees have worked over 386,000 hours since our last lost-time accident!) In 2023, we invested over 2,100 hours in employee development. Through these initiatives, we continue to foster a culture of excellence and continuous improvement.

As we embark on the journey ahead—guided by our Board of Directors—we remain steadfast in our commitment to innovation, sustainability, and the well-being of our members. Together, we stand poised to embrace the challenges and opportunities that lie ahead, fortified by a resilient spirit and an unwavering dedication to energizing tomorrow.