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The Year in Review: 2008
At the beginning of a New Year, one has the opportunity to pause and ponder what the next 12 months might have in store. The Blue Ridge Electric Co-op board of directors, in conjunction with our management team, undergoes this annual process in great detail each Fall. At the end of our deliberations, the result is the Work Plan and Budget for the coming year. The proposed actions outlined in that document are designed to accomplish the cooperative's age-old goals: the delivery of the best possible service at the lowest possible price. A review of the 2008 goals and objectives indicates that the Blue Ridge operation continued to set high standards.
Safety & training – Blue Ridge and its work force completed 2008 without a single lost-time accident. The last lost-time accident was recorded on November 5, 2007. Heavy emphasis on both safety training and job training continue to produce excellent results from our employees. There is also a huge savings in operating expenses for a safe working environment.
Financial goals – 2008 proved to be an unusual year from the standpoint of finances. Substantial increases in wholesale power costs, coupled with the massive global economic downturn, produced negative margins at the end of 12 months. This financial loss was directly tied to our power costs and not our cost of operation. While we were not pleased to see this shortfall, both board and management have taken steps to ensure that Blue Ridge will finish 2009 in positive financial territory.
Construction & maintenance – Multimillion-dollar investments in new construction, system improvements, and ordinary replacements projects were made all across the co-op's distribution network in 2008. These included 23 major line-construction jobs. The relocation process continued for power lines originally routed cross-country and through wooded areas. By moving these facilities so that they parallel existing roadways, the co-op is building better service reliability into its system.
Service reliability – In addition to system improvements, the co-op continued to conduct its right-of-way maintenance program at a high level. An active vegetation-management operation is essential to the dependable service we want our members to receive. With nearly 7,000 miles of power lines to maintain, cutting right of way on a regular cycle is a big undertaking. Our experience with both storm emergencies and the day-to-day supplying of service has demonstrated that Blue Ridge must budget adequately for this important work.
Economic development – At a time when the economy is suffering, efforts to support jobs creation take on added importance. By directing Rural Development Act funds toward local economic-development initiatives in 2008, the co-op helped to lay a foundation for quality jobs ultimately to come to our service area. These investments in various forms of infrastructure improvements are helping to establish the conditions that are producing, and will produce, good-paying jobs for local residents.
Customer service – Before 2008 drew to a close, Blue Ridge completed the multi-year process of converting all of our 63,000 members to remote-read meters. The work of reading meters, which once took days on end, can now be accomplished within a relatively short period of time. This enterprise has helped the co-op to cut costs and has enabled us to devote more attention to the details of keeping our distribution system in tiptop condition.
At-cost operation – A general capital-credit refund totaling $600,000 was made to members last year. The board has approved the payment of another $500,000 in retained margins this month to those who were members in 1984. Cumulative returns of capital credits through the years have now climbed to more than $17,600,000. The board believes strongly in the cooperative model, and regular capital-credit refunds are a hallmark of our business philosophy.
Community service – Blue Ridge Fest 2008 reached a new milestone. Its $145,000 in net proceeds broke all previous records. Those dollars were distributed to 13 area charities that are making a difference in the community. Thanks in large part to our employee volunteers, Blue Ridge Fest has raised a total of $810,000 in the last 11 years. This fund-raiser is but one manifestation of the community-mindedness that is so much a part of the co-op work environment.
Blue Ridge Electric Co-op endeavors to do all things well. The emphasis on quality defines the organization from top to bottom. Driving that emphasis is our understanding that Blue Ridge is a member-owned utility. This board of directors is committed to sustaining that edge as the co-op continues to fulfill its mission.
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