The Manager's Message...
From Don L. Marker, CEO/General Manager 
I am a proud grandfather.  I love the funny things my little tots say and I can't help but smile when they get excited about the little things in life.  I am assuming most kids are like my grandkids, always up for a challenge or a game.  They especially love running around and truth be told, they can run circles around me!  Watching them brings me back to my own childhood when we would have footraces during recess... I can still hear the words "on your mark, get set--GO!" I rarely won of course, but it was still fun.  Here at Sioux Valley Energy, we are off and running again with a new work plan and budget for 2010.  

The board of directors recently approved the work plan and budget that will result in significant changes in our programs and services for the upcoming year.  Our revenue projections have been set at $50.5 million.  Because power supply costs continue putting upward pressure on rates (SVE will spend $30.6 million on power supply in 2010), the board did approve an overall rate increase of 4.8 percent starting in May.  The rate increase will differ for specific rate categories. and we are currently undergoing a cost of service study which will give the board guidance on how to equitably  develop rates for each of the several classes of service.  Once that is complete and approved by the board, we will be communicating with you about specific rate changes.

The capital budget for replacing and upgrading electric facilities is estimated at $13.9-million compared to $10.3-million in 2009.  This includes the replacement of approximately 50 miles of existing underground cable.

Throughout 2009, we implemented several cost containment strategies including the reduction of over-time and operational/ management expenses.  We were able to reduce budgeted direct expenses by 4 percent.  We have taken that approach in the 2010 budget as well.  We will continue to closely monitor all expenses and utilize cost containment strategies.  

As you may be aware, Sioux Valley Energy was awarded a $4-million federal stimulus grant to off-set the cost of installing and implementing smart grid meters.   We will begin installing meters at the end of 2010.  Once the smart grid system is up and running, we will be able to respond more efficiently to outages, our customers will be able to more closely monitor their electrical usage and we will also begin a pilot project to utilize critical peak pricing and time of use rates.

In 2010, we are transitioning from a growth-based strategy to a focus on energy efficiency and conservation.  For example, rebates will be offered to members installing ENERGY STAR heat pumps, while electric resistance and non-energy star heat pumps will not qualify for rebates.  In addition, Sioux Valley Energy will no longer sell Marathon water heaters. However, we will continue to offer a rebate program for lifetime warranty water heaters that are purchased elsewhere and placed on load management.  Sioux Valley Energy will continue to provide warranty work to members who purchased their Marathon water heater at the cooperative.  Additionally, we will roll-out a new incentive program for customers who agree to put their central air-conditioners under load management during the summer.  The incentive will include a $6 bill credit per month from May through September.  Sioux Valley Energy will also offer rebates for members who want to upgrade their old inefficient appliances or make home energy efficiency improvements.  In a month or two you will receive printed materials that describes all of our new programs.

We also plan to try something new in regards to our annual meeting.  In past years we have held a handful of member appreciation events in addition to the annual meeting.  This year we plan to combine those and provide a family night at the Sioux Falls Canaries in conjunction with the annual meeting on Tuesday, June 1-- so mark your calendars (rain date of Tuesday, June 29). More details will follow as the summer approaches.

Community involvement continues to be one of our core commitments which is why we will maintain our dedication to the Operation Round Up program.  To date, over $700,000 has been given to worthy communities and organizations.  Operation Round Up is a program where members round-up their monthly bill to the next highest dollar.  It's simple and it's effective.  We hope to highlight several of the organizations awarded funds in the newsletter throughout the year.

On the topic of newsletters... will be offering our newsletter via email in addition to our traditional printed version.  This is a new option that will allow our members to help reduce costs and still receive important information from the cooperative.  Look for a postcard with a personalized website that you can go to and sign up for the electronic newsletter.  You can also send us an email at info@siouxvalleyenergy.com to sign up.

As you can see, there are several new initiatives that will begin in 2010. Our goal is to balance our priorities, the cooperatives mission and goals, and member expectations.  May your new year be blessed.  Now "on your mark, get set--GO!"

We are excited to kick off the year with district meetings in February.  We'll see you soon!