East Central Energy Annual Meeting highlights the value of ownership

BRAHAM, Minn. - An estimated 850 members and guests attended the 68th Annual Meeting of East Central Energy held Saturday, April 17 at the Braham High School. The event featured a pancake breakfast, informational displays, entertainment, prizes and the official business meeting of the cooperative.

A new video highlighted the value of ownership and the special bond of trust that develops when consumers own their electric company and have a say in how things are done.

"We turned in a solid performance in 2003 thanks to merger savings, cost control and a little help from Mother Nature who spared us from major storm damage," says Garry Bye, president and CEO. "Our margin dropped about a million dollars from 2002, but we expected that as we diligently worked to delay a rate increase. We still hope to make it through 2004, but our studies show we need to raise rates in 2005 to meet the requirements of our bankers."

East Central Energy and Head of the Lakes Electric Cooperative merged on January 1, 2003. In accordance with the member-approved plan of merger, directors will continue to serve until elections in 2006. The board reelected Joe Morley, chairman; Jim Haasis, vice chairman; Jim Londgren, secretary-treasurer and Diane Zimmerman, assistant secretary-treasurer.

Energy sales for 2003 increased 2.8 percent from the previous year, due in part to the addition of 1,719 new services. Tenacious cost management paid off as the cooperative posted a 2003 margin of just over $3 million on electric revenue of $60.3 million.

With the retirement of about $2 million in capital credits in 2003, East Central Energy has now paid more than $45 million in capital credits to members - more than any other electric cooperative in Minnesota.

"We've made every effort to control costs and become more efficient, but the costs we cannot control are continuing to trend higher," says Joe Morley, ECE chairman of the board. "Nobody likes a rate increase, but electricity will still be a tremendous value even after the increase planned for next year."

East Central Energy offers a number of money-saving programs to conserve energy and reduce electric demand at peak periods. By taking advantage of these programs now, members can help reduce the impact of higher rates on monthly bills.

East Central Energy www.eastcentralenergy.com is a member-owned electric cooperative serving more than 52,000 homes, farms and businesses in east central Minnesota and northwestern Wisconsin. ECE also provides Internet and long distance services.