Building a strong future of reliable power for members
Reflecting on 2024 and looking ahead to 2025 by General Manager Steve Stroshane
Happy New Year from your electric co-op!
As we begin 2025, I'd like to share how the directors and employees of Polk-Burnett Electric Cooperative are working on strategic priorities to ensure you have access to reliable electricity and extraordinary service today and for the future.
Investing in reliable power
Do you know that co-op linemen, engineers and our operations crew work year-round to strengthen our local power grid? We maintain 3,500 miles of power lines and 33,000 poles across 2,000 square miles! Our annual work plan prioritizes manpower and financial investments.
In 2024, our work plan invested $5.9 million to upgrade the electric system and reduce power outages for members. In 2025, we will invest $6.1 million in the following system improvements:
>50 miles of construction; 21 miles are overhead rebuilds, 3 miles are new tie lines, and 26 miles are conversion from overhead-to-underground. Watch for conversion work near these lakes and waterways: Pipe, Dahl, Cedar, Horseshoe, Clear, Grenquist, Pine, Largon, Spirit, Bashaw, Bass, Clam River, Wood River, Waterman/Sand Lake Flowage, Yellow River and St. Croix River.
>Upgrading substation equipment to enable quick rerouting of power during outages.
>Installing animal guards at substations, pictured above.
>Clearing trees and brush from the right-of-way to improve safety and reduce outages.
>Inspecting poles, transformers and equipment; replacing damaged equipment before it causes an outage.
Your return on this investment is safe, reliable electricity. Our goal is to keep the average outage time to less than one hour per member for the year, excluding major events.
Introducing Cedar Lake Substation
We are also working with Dairyland Power Cooperative, our wholesale power provider, to build a new substation north of Somerset. Cedar Lake Substation is the first new substation to serve Polk-Burnett members since 2001. It will help meet the growing need for energy and improved reliability in Somerset and Star Prairie areas, and will relieve pressure at Farmington Substation. Construction begins in 2025.
Dairyland owns all substations in our service area, and we deliver power from the substation to you, our local members.
Upgrading load management
Also in partnership with Dairyland Power Cooperative, we will begin a multi-year upgrade of our load management program in 2025. I'm excited to announce this important initiative for the co-op and participating members.
The backbone of the program is installing new receivers on load-controlled devices, such as electric water heaters,
boilers, baseboard and storage heat, and other participating loads. Current load management receivers are no longer manufactured and replacement parts are hard to find.
The upgrade is not just about replacing equipment; it's about building a reliable and affordable energy future. Our load management program helps reduce energy demand and cost by temporarily pausing electricity to enrolled devices during peak demand periods, typically the hottest and coldest days of the year. This reduces the need for costly peak power generation. When we can lower the peak, all members benefit from lower energy costs. Additionally, members enrolled in load management may qualify for reduced rates and special water heater prices made possible by the cost savings from having electricity paused during peak periods.
I invite you to learn more about load management on our website. Members in the load management program will be notified when receivers are being upgraded in your area.
Holding electric rates down
Another strategic priority is delivering extraordinary service for your energy dollar. Our load management program is one important way we are holding down the cost of power. We also work to keep operating and interest expenses low.
We are currently reviewing a 2024 cost-of-service study to forecast revenue requirements and ensure fair rates going forward. Co-op rates are set to cover the cost of operating and maintaining the utility, not to generate profit.
In 2024, electric rates held steady. For 2025, the board is considering a small increase to help cover rising costs.
We will keep you informed.
Polk-Burnett does not generate electricity. We purchase it from our energy provider, Dairyland Power Cooperative. 58% of all revenue collected from members is used to buy wholesale power and the other 42% covers expenses to deliver power to your homes and businesses.
Giving money back
In 2024, Polk-Burnett returned $1.6 million to members. Instead of making profits for investors, the co-op allocates and returns Capital Credits to the people we serve. Annual Capital Credits are a benefit of your co-op membership.
I'm also proud to say that Polk-Burnett gives back to our community. In 2024, we hosted EV safety training for local first responders and our employees performed more than 600 hours of community service.
Through our Operation Round Up program, we awarded more than $70,000 to 70 local nonprofits, thanks to the generosity of members who round up monthly electric bills! Polk-Burnett also awarded $144,000 in scholarships to children of co-op members, with 96 students in Class of 2024 each receiving $1,500 to continue their education. Scholarships are funded with unclaimed and donated Capital Credits.
You can see all 2024 Operation Round Up and scholarship winners on polkburnett.com (links in paragraph above).
Expanding solar to improve reliability, offset costs
In May 2024, I was joined by friends of the co-op to dedicate Georgetown Solar east of Balsam Lake, our newest solar array to benefit local co-op members. The 2MW array was developed by OneEnergy Renewables and will generate
4.5 million kWh annually to power about 375 homes.
We are looking forward to two more projects with OneEnergy Renewables in our service area: Luck Solar and Viola Solar. Each array is 2.5MW and will power about 600 homes. Both will be energized in 2025. Our first SunTuria Solar array was dedicated in 2017 behind our Centuria office.
Polk-Burnett strategically invests in utility-scale solar when it provides financial and operational benefits for members. Co-op solar projects relieve high demand at substations and offset energy market costs by generating power locally.
Delivering extraordinary member service
As a co-op, we were founded by members and exist to serve our members. All of us at Polk-Burnett are dedicated to your satisfaction. That's why it means so much to receive high ratings from you on member surveys. From your feedback, we know that reliability is your number one expectation. We also know you like Capital Credit distributions, our co-op business model that puts members and community first, our convenient online and auto payment options, our SmartHub app to manage your account, and text messaging for outages and service calls.
Our promise for 2025 is to continue providing reliable power with efficiency and extraordinary service. Please call us or visit our website to learn about co-op programs, and how we can help you save energy and serve you better this New Year.
