Annual Report

From MJM President/CEO Chris M. Spears 
and Board Chairman Robert Lehmann:

Cooperatives are different from other businesses you deal with. As a not for profit, member owned, at cost, electric provider, we like being different because we believe it is more beneficial to the members to operate this way.

We're different because we're looking out for you. Now, more than ever, that's important because we need to work together to keep your electric bills affordable.

Although Congress did not pass a comprehensive climate bill last year, regulation is moving forward. In January the U.S. Environmental Protection Agency began regulating greenhouse gasses - an action made possible by a 2007 Supreme Court decision. This ruling allows the EPA to use the Clean Air Act to curb carbon emissions from power plants and other fossil fuel burning sources. This coupled with policies dealing with coal ash, even more stringent controls on other power plant emissions, and other government mandates, will significantly increase the cost to produce power.

Prices for fuel, materials, and equipment continue to rise as well. For example, MJM has a 1989 digger truck that cost almost $90,000 when it was purchased new. The replacement for this 22 year old vehicle will be approximately $200,000 - a 200 percent increase. A 35 foot pole in 2005 cost $163 and today it cost $203, which is a 25 percent increase. The Cooperative purchases a number of 15 kVa transformers each year and those have increased from $541 in 2005 to the current price of $704 each. Therefore, between 2005 and the present, 15 kVa transformers increased by 30 percent.

To offset rising costs for the member, we're offering measures to help them reduce their energy use and energy bills. Energy saving information as well as an online energy audit can be found on the MJM website - www.mjmec.coop. MJM is sponsoring the Doug Rye Home Remedies radio program each Saturday on WSMI 1540 AM at 9 a.m. This is a live broadcast and members can call in to ask Doug questions regarding energy efficiency. Furthermore, MJM Electric Cooperative members may also qualify for various rebates on new energy efficient heating and cooling systems and appliances.

Efforts are constantly being made to improve operating efficiencies of the Cooperative. In 2011, MJM will begin deploying an automated meter reading system, which will help us control operating costs and provide opportunities for members to save money on their electric bill by participating in energy management programs and "time of use" rates.

While our goal is to be innovative, above all else we must remain member focused. No matter what comes our way we'll continue to put you, our members, first. Your cooperative is member controlled and locally operated. As a member, you have a voice in how your cooperative operates. At our annual meeting each year you have the opportunity to elect fellow members to our board of directors to represent your best interests.

Member control means we are accountable to those we serve, and are dedicated to assisting our communities - your money stays at work close to home. Costs are rising for all of us, but when it comes to your electric bill, our rates are set simply to cover the cost of doing business, not to generate profits for distant stockholders.

The bottom line? We exist only to serve you and meet your needs for safe, reliable and affordable power.

As you can see, we're different. We're working together to keep your electric bills affordable. We're controlling costs through innovation. And we're continuing to put you, our members, first. No matter what the future brings, one thing is certain - we're looking out for you.