In 84th annual meeting, ANEC warns of rate increases

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A&N Electric Cooperative held its 84th Annual Meeting at its Tasley headquarters on Aug. 22.

At the annual meeting, Cooperative members elected four of their peers to serve on the Cooperative’s Board of Directors. The cooperative recapped the activities, financials, and operational successes from 2023, discussed information about its current year of challenges with increased energy demand as it relates to growth and, costs and provided a forecast for 2025. 

More than 1,600 cooperative members participated in this year’s election of directors, either in person or through designated proxy. The election process was overseen and certified by the cooperative’s Credentials and Elections Committee, which is independent of the board.

The meeting was broadcast live on WESR for co-op members who were not able to attend in person.

In District 1, Chris Bott was elected for another term. This district covers the northern areas of Accomack County from Parksley’s northern border to the Virginia/Maryland state line and includes Tangier and Smith islands.

In District 2, Garry Drummond was elected for another term. This district covers the areas between Melfa in the south and Parksley in the north.

In District 4, Ralph Dodd was elected for another term. This district covers the area just north of Nassawadox in the north to the peninsula’s southern tip in Kiptopeke.

In District 4, Penney Holland was also elected for another term.

All four candidates were unopposed in their elections to the board and will serve three-year terms per the cooperative’s bylaws.

Chairman’s Report

Addison Nottingham, chairman of A&N Electric Cooperative’s board, welcomed co-op members in attendance and those tuning in at home through WESR’s live broadcast.

He congratulated A&N lineman Denny Crockett for his work during an international humanitarian project in Guatemala last fall. Crockett joined lineworkers from the cooperative’s statewide association to help electrify more than 80 homes in the remote village of Santa Isabel. The project also powered a health post and school for the first time in the village’s history.

“We were very proud to support Denny on this humanitarian mission,” Nottingham said.

It was the second time A&N participated in an international project.

Nottingham announced that the board recently voted to return $1.56 million in capital credits to the membership. Nearly all members receive capital credits in the form of a bill credit, which was applied in July.

He also announced the cooperative is approaching three full years without a lost time incident. Nottingham thanked the cooperative’s employees for their hard work.

“Three years is quite an accomplishment,” he said.

Nottingham also highlighted the cooperative’s continued support of the Cooperative Youth Tour program, which sponsored four local youth delegates for a week-long trip to Washington, D.C. in June.

Nottingham, who also serves on the Members Helping Members Board, reported the nonprofit raised more than $58,000 in funds and was able to assist 294 cooperative members with paying their electric service bills in 2023.

President’s Report

President and CEO Butch Williamson warned of continued strains on revenue caused by little to no local growth, the continued effects of inflation on material, and other costs associated with providing electric service.

“We, along with you, do not like to see rate increases or changes,” Williamson said. “But we should implement the necessary rate structures to properly assign cost to rate classes with the effects of demand and how energy is used.”

He announced the cooperative will be filing a general rate case with the Virginia State Corporation Commission in the coming months and will be seeking an average rate increase of between 5% and 9% across all cooperative rate classes.

“We continue to see challenging environmental restrictions, high demand, and energy users competing for firm base generation, as well as the push for EVs to replace our current gas-powered vehicles,” Williamson said. “These developments are set to make a significant impact on where and how we get the additional base load generation.”

Any proposed rate increase would be submitted to and reviewed by the Virginia State Corporation Commission.

Williamson discussed integrated real-time communications through the cooperative’s advance metering infrastructure, which directs crews to affected areas for quicker outage restoration. He added that the cooperative is leveraging this technology to enhance real-time communication with co-op members and stressed that updated contact information is key.

He also mentioned the cooperative’s support of electric vehicles, which led to the formation of its subsidiary, A&N Innovative Solutions. 

The organization has established several EV chargers across the Eastern Shore with assistance from Old Dominion Electric Cooperative, A&N’s power provider.

Williamson also highlighted the cooperative’s annual commitment to Arbor Day and its member appreciation event, which was held this past spring at the cooperative’s headquarters. 

The event saw more than 500 co-op members attend and continues to grow each year. The cooperative will also be present at the upcoming Eastern Shore Agricultural Fair in October.

Immediately following the annual meeting, the board held officer elections, re-electing Nottingham as its chairman, Bott as its vice chairman, and Dodd as the board’s secretary/treasurer.

Learn more about the Cooperative’s programs and initiatives highlighted at the annual meeting at anec.com

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