Looking toward the Fort Loudoun Electric Cooperative (FLEC) annual meeting celebration of 84 years on October 5^th, FLEC’s management reported on a few strategic adjustments that it has taken over the past year and touted some notable accomplishments.  Jarrod Brackett, FLEC’s CEO, stated that, “due to the pressures of a recent 5.25% TVA rate adjustment that will take effect on October 1^st, higher aggregate inflationary costs, continued growth, and the costly impacts of weather events the Cooperative has to adjust the residential and small commercial electric rates slightly (increasing the customer charge by $2.50/month effective October 1^st).   

Brackett explained in the following bullets how the Cooperative is responding. 

• TVA has advised local power company managers that the additional costs assessed (just shy of 10% over the past two years) will be spent largely toward building new generation assets and funding programs to support grid stability in the future. 
• FLEC has to pass TVA’s rate increases and fuel costs on to the membership.  During an extremely hot or cold weather event, the membership tends to utilize much more electricity and TVA often has to purchase electricity from other generators external to TVA… causing the costs associated to be passed on to the local power companies through TVA’s fuel cost adjustment. 
• FLEC must have adequate funding available to pay the bills.  For example, FLEC pays the TVA electric bill approximately 30 days before it is collected from the membership.  So, FLEC pays TVA and trusts the members to reimburse the Cooperative for its payment (FLEC’s bill from TVA is millions of dollars monthly). 
• Still, FLEC remains focused on keeping the rates as low as reasonable.  With the increases, the Cooperative’s rates are well below the national average cost per kilowatt hour (i.e. national average residential rates are about 16.4 cents/kwh and FLEC provides electricity to residents at a rate between 10 and 11 cents/per kwh). 
• FLEC invests in the future!  FLEC has built a new substation in Madisonville, expanded the substation in Vonore, and made several line upgrades in order to meet the demand for electricity experienced as the area’s businesses and populations have grown.  The Cooperative still has very little debt and is capable to plan and act efficiently toward a bright future (i.e. properties in the Ball Play, Greenback and Coker Creek communities had been acquired over the past few years for future system growth, when needed). 
• The aggregate impacts of inflation have forced the Cooperative to buy materials at costs much higher than ever before.  For example, the costs of the transformers we use to step voltage down to safe and usable levels have doubled or tripled in price over the past three to four years.  Manufacturers are telling us that we can anticipate material costs to remain higher with the shortages in raw materials and the slowdown in the supply chains. 
• On a brighter note, the Cooperative now serves over 100,000 people with the 36,000+ meter points (up by over 1,000 members over the past 18 months).  And, last year our Cooperative was able to keep the lights on without interruptions 99.96% of the time.  Together… we have retained the safe, reliable and affordable power that was focused on 84 years ago, as we navigate some growing pains!