The past year has been marked by a heightened awareness of energy issues in every aspect of our lives. These are not new issues for us, but many people have a new interest in what it takes to generate and transmit the kilowatt-hours you use every day. Read More…

 

We provide your electricity with the same type of poles, wires and transformers common throughout the industry. As you take a closer look we hope it is clear that, as a cooperative, we go about it a little differently — driven by an uncommon commitment to safe, reliable, affordable service and an unwavering support for the people and communities we serve.

 

Rising wholesale energy prices are here for awhile. Wholesale energy costs make up the lion’s share of our energy rates to you. We are working to hold prices, but our best efforts have not been enough to avoid an escalation in your energy costs. In April 2008 we received a 23% wholesale power increase. We absorbed a portion of that increase, yet had no choice but to pass along an 11% increase to you. With rising costs of generation fuel, transportation and environmental compliance, we’re assured of continual increases. 

 

We are uncertain what future costs are in store for us regionally and nationally. However, we are very certain that energy efficiency improvements offer the best protection from rising energy prices. We are taking greater measures to improve our own efficiency, and to offer you more tools to improve home energy efficiency. We are working with our power supplier to implement “Take Control & Save,” a cooperative effort for energy efficiency that includes rebate incentives and other opportunities.

 

Our conversion to automated meter reading has made great progress; 93% of our residential meters now report readings automatically. We are reaping the benefits of improved operating efficiency. 

 

We remain financially strong, and continue to benefit from an economy of scale as we grow. We continue to add new homes and businesses, but we are growing at a slower pace than in previous years.

 

As we and other cooperatives across the state continue to experience growth, our power supply must grow as well. The wind farms in northwest Missouri are producing our renewable energy, hydropower has been coming to us from Missouri’s dams, single and combined cycle natural gas-fired turbines are under development, and our power supplier continues to study other renewable options, clean coal and nuclear energy (see Fuel Diversity Report).

 

The safety and reliability of your power supply remain top priorities in the field. Our right-of-way maintenance program continues to serve us well.

Clear right of way helped us locate damage and restore power more safely and more quickly during the multi-day December ice storm. The ice damage to our lines was still significant, but could have been much worse.

 

Transmission and distribution system improvements are also critical to sustaining reliability. In Lincoln County, the Brussels substation was completed, and the Ethlyn substation will be completed later this year. In addition, a voltage conversion project was completed between the New Hope and Troy substations.

 

The sale of our former Lake Saint Louis office complex at Prospect Road marked the end of a 33-year era in the ever-changing landscape of the I-64 corridor. Our new branch office location at 8757 Hwy. N has allowed our members greater access to our facilities. The 14-acre site also gives us room to grow for many years.

 

As a cooperative we have a keen sense of our accountability* to you, our members, in matters of electric service reliability, personal service and operating costs. Your membership gives you equity in the organization after all expenses for providing your service have been paid. This summer the board refunded an historic amount of your equity — $3.8 million in capital credits from the years 1990 and 2007. Even though rates are on the rise today, your directors chose to return some of your capital from past years to underscore a key difference between cooperatives and other types of businesses. The organization’s equity belongs to you. 

 

As a member, you received access to new business discounts this year through your Co-op Connections® member benefit card. Our business connections through this Touchstone Energy® program are your business connections, too. We’re pleased that more than 110 local businesses now offer discounts, 72 national businesses, nearly 700 businesses total throughout Missouri and thousands more businesses supporting local cooperatives all across the country. We are especially pleased that pharmacy discounts are available to you, simply because you’re a Cuivre River member.

 

Our Operation Round Up program, now in its 11th year, has taught us the power of small efforts put toward a greater cause. Thank you for your continued support for the program to support youth, health, weatherization, education, community and emergency services. Your contributions of 1¢ to 99¢ now total more than $22,000 each month. Grants exceed $2.6 million since the program began in 1997 (see Operation Round Up chart).

 

Acts of generosity and cooperation express our ongoing commitment to the communities we serve locally, and set the tone for efforts that reached well beyond our borders this year. In support of the National Rural Electric Cooperative Association's International Foundation, Journeymen Linemen Mark Ziegler and Craig Larkin volunteered to travel with their tools to Yei, Sudan, Africa. They helped build a cooperative and provide electricity to a war-ravaged community thousands of miles away, one hundred years behind. We are grateful for their spirit and honored by their service.

 

Our annual Member Satisfaction Survey project is a valuable tool that helps us learn if we meet your expectations. We are very proud of our 2007 American Customer Satisfaction Index (ACSI) score of 90 and our 2008 score of 88 — both 16 points above the industry average, both direct expressions of our members’ sentiments. We’re facing tough challenges, and we commend our employees in the field and in the office for the way they face these challenges and for doing what they can to meet and exceed your expectations.

 

We are grateful for your support of what we do, and for the opportunity to serve you.

 

Walter Gregory, Board President

Dan L. Brown, General Manager/CEO