In the July, 2007 issue of the WATTS NEWS and in my presentation to the membership I reported that I thought an increase in the neighborhood of 15% would be needed in 2008 and would increase 50% to 60% over the next 10 years. As we are currently going through the 2008 budget process it appears that we will need additional revenue of $750,000 (15%) for the following purposes: Cost of purchased power - $300,000 (6%); Operations and Maintenance - $150,000 (3%); and Margins – $300,000 (6%). Our budget is not yet completed or set in stone but I expect it’s pretty close.

Whatever the final numbers turn out to be, we’ll do our best to keep any adjustment to a minimum without sacrificing service and reliability. Your Board has not yet determined how the cost increases will be passed on in the rates but if you’re in the process of budgeting for your own purposes you should probably just use the 15% across the board. The cost of 1,000 KWhs in 1985 was $100.70. Our current rate for 1,000 KWhs is $104.00. The anticipated cost of 1,000 KWhs in 2008 is $117.75 (17% higher than 1985). That’s less than 1% per year increase.

We’ll have more details for you in the next issue of the WATTS NEWS.

Capital credit retirement

Each year since 1984 your Board of Directors has authorized a payout or retirement of capital credits back to the Members based on a 20 year rotation of ownership. Some years back then were good years financially and others were not so good depending on costs the cooperative encountered (storms, power costs, etc.) to keep the lines up and the power flowing. From 1984 through 2006 we’ve returned $2,812,655.36 of equity back to the Members.

In 1986 our members provided the cooperative with $34,310.35 in equity and we’ve already paid back $6,223.63 to estates leaving a balance of $28,086.72. Because the amount was relatively small in comparison to other years and to save on the expense of crediting accounts or writing checks your Board considered holding off a year and combining it with next year’s retirement. In the end it was decided that “every penny counts” and we should continue to cycle our equity on a 20 year basis. The $28,086.22 will be divided between the 3,145 Members we had in 1986 or an overage of about $9.00.

It was also decided that we would once again credit Members’ electric accounts for current members who were also members in 1986 thereby avoiding the additional expense of sending checks. Those members who have moved and are no longer using our electric/long distance services will be sent a check. Last year there were a few members who requested that a check be issued rather than getting a credit on their bills but the overwhelming majority was OK with the credit. For those of you who were members in 1986 and continue to be current members – if you would prefer to have a check rather than a credit, please call Tina at 1 (800)762-4048 or e-mail her at tinad@nieci.com and let her know.

On the electric bill for the month of November which you will receive the early part of December, there will be a separate line item on the bill stating the capital credit amount and subtracting it from the total due. Please let us know if you need more information or have any questions.