Let’s Go!
Let’s face it, December is mostly about kids and Christmas. For Christians, it’s a time to celebrate the birth of our Lord and Savior Jesus Christ on Dec. 25. But it is also a great month to reflect on everything that has happened over the last year, both good and bad. So as the great quarterback Tom Brady would yell at the beginning of every football game, “Let’s go!”
Back in 2014, South Alabama Electric Cooperative (SAEC) set what was then an all-time peak demand of 94 megawatts. That all-time peak demand was shattered in 2023 and again this year by 17%, reaching 110 megawatts in back-to-back years. To put it in perspective, that level of demand was not forecasted for our system until 2043.
So, what does that mean for our members? Well, reliability will suffer if demand exceeds the capacity our system is designed to provide during abnormal weather. As your electric cooperative, we don’t want this to happen and will address the issue as part of our current four-year plan next year.
The board of trustees first started acting on that plan in February, approving work on your distribution system that will take place over the next 4 years. The predicted budget for those projects is $32,484,000. So, as you can see, that construction is a serious investment and should not be entered into lightly.
As I’ve said many times, the only place a member-owned cooperative gets the money to cover these expenses is from the electric rates paid by our members. The challenge for your management team is to keep those rates stable and competitive while ensuring your service is still reliable.
I think our management team has done a wonderful job of meeting those goals. If you look at the largest electric utility in the state, Alabama Power Company, their average customer pays about $18 more each month than the average SAEC member. I am very thankful to our management team for keeping your rates stable and we will continue to stay on top of this process.
Economic development has always been another priority at SAEC, and in 2024 we were able to help Luverne hold on to a long-standing business in Crenshaw County: Pepsi Cola Bottling Co of Luverne, Inc. By taking advantage of the Growing Alabama Credit established in 2021, companies can receive a matching tax credit of up to 50% of their total income tax liability for investing in projects approved by the Renewal of Alabama Commission.
That’s exactly what SAEC and others did to help Pepsi Cola Bottling Company move to an expanded location in Luverne, rather than relocating to another city or state. For their contributions, I would also like to thank our partners: Central Alabama Electric Cooperative, Prattville; Dixie Electric Cooperative, Montgomery and Union Springs; Covington Electric Cooperative, Opp; and Coosa Valley Electric Cooperative, Talladega. First Citizens Bank, Petrey Wholesale, and Blue Cross Blue Shield.
Our community is also blessed to have a world-class educational institution at Troy University. And, powering it at the intersection of U.S. Highway 231 and George Wallace Drive sits the SAEC-Troy Substation, which has been there for over 70 years.
While no one likes to look at poles, wires, transformers, and substations, it is impossible to bury them all and still maintain reasonable and competitive rates. So SAEC teamed up with PowerSouth Energy Cooperative to build a beautiful fence around that aging substation that cleverly matches the new Troy University sign pointing the way to our hometown university.
I haven’t even mentioned SAEC’s new website, which I hope all of you will take a moment to visit soon. In the meantime, don’t forget the true meaning of Christmas as you celebrate with friends and family this season. We are so fortunate to live in a country that provides us with the freedom and financial ability to celebrate however we wish. Merry Christmas!