BY DAN HILDEBRAN
Clay Electric Cooperative held its 87th annual meeting on Saturday, March 29, at Keystone Heights High School.
CEO and General Manager Ricky Davis said Florida’s largest electric cooperative now serves just under 164,000 members, an addition of 4,582 accounts over the previous year.
He also said the utility maintains over 14,000 miles of line, which he said, if extended linearly, would stretch from the North Pole to the South Pole.
Retiring board member and capital credits
Board President Kelley Smith recognized retiring board member Jo Ann Smith, who represented District 8 for 13 years.
“She brought a lot…of insight into business, into…financial assistance, into agriculture, and into politics,” Smith said of the outgoing board member. “I mean, this lady has done it all. It’s amazing.”
Smith also highlighted the co-op’s capital credits program, which will refund $12 million to Clay Electric members this year.
“The refund is available to members because Clay is a not-for-profit organization,” he said. “So, all the profits return to the members at the end of the year.”
Cost increases and possible rate increase
Davis said the nonprofit remains financially sound. However, he added that the co-op is currently undergoing a rate study as its materials costs continue to rise.
“No one likes to discuss the possibility of a rate increase,” the CEO said, “but it is a necessary thing to keep your cooperative financially stable.”
“Who would’ve thought eggs would be 53% higher than last year?” he asked the members in attendance. “The average cost of wiring insulators used on power poles is up 58%. Transformers are up almost 100%, and cross arms, which are used also in power pole construction, are up 103%.”
The CEO added that because of uncertainties in the utility’s materials supply chain, it has increased its materials inventory from $15 million to $42 million.
Davis said hurricane restoration costs continue to affect Clay Electric, adding that the last three storms impacting the utility’s service area—Debbie, Milton, and Helene—cost the co-op $20 million.
“We hope to receive about $15 million of that back from FEMA,” he said, “but that could be as much as a couple of years.”
Changes to bylaws
Davis said that in addition to the re-election of trustees Karen Hasting and Cindy Loose and the election of new Trustee Terri Kane, Clay Electric members passed two bylaw changes this year.
The first extended the time members will be notified of the date and time of elections and meetings from 45 to 90 days.
“This change will allow us to send the members the official notice for elections and annual meetings before the elections begin,” he said.
The second bylaw amendment changes the qualifications for trustees.
“Trustees will be disqualified if they have been convicted or pled guilty of a felony or if they have been convicted of a first-degree misdemeanor five years before or while an active trustee,” Davis said.
