Reliable power and extraordinary service for today and tomorrow
Reflecting on 2023 and looking ahead to 2024 by General Manager Steve Stroshane
Happy New Year from your electric co-op. As we begin 2024, I'd like to share highlights from 2023 and a preview of what's ahead.
Investing in reliable power
In 2023, our construction work plan invested $6.3 million in the electric system to reduce the number and length of power outages for members. System outages averaged less than one hour per member for the year, excluding major events.
In 2024, the co-op will invest $5.9 million to ensure reliable power. Our work plan includes:
• Converting 26 miles of overhead line to underground.
• Replacing 17 miles of aging overhead line.
• Upgrading substation equipment, so power can be rerouted quickly during outages.
• Clearing trees and brush from rights-of-way to improve safety and reduce outages.
• Inspecting poles, transformers and equipment to replace damaged equipment before it causes an outage.
Other investments in 2024 include a digger-derrick truck and cybersecurity improvements.
We are also in the planning stages with Dairyland Power Cooperative, our power supplier, to build a new substation north of Somerset. The Cedar Lake Substation is the first new substation to serve Polk-Burnett members since 2001. It will help meet the growing need for energy in Somerset and Star Prairie areas, and will relieve pressure at Farmington Substation. Construction is set to begin in 2025.
Dairyland owns all substations in our service area, and we deliver power from the substation to you, our local members.
New electric services continue to climb
2023 was a strong year for new construction, with 239 new service connections through the end of November. Electricity sales are increasing at a moderate pace, with some growth offset by energy efficiency.
No rate increase in 2024
Polk-Burnett electricity rates increased 5% in 2023. This was our first rate increase since 2010. For more than a decade, the co-op absorbed millions of dollars invested into the electric system, including 2011 and 2019 storm restorations, a systemwide meter upgrade and annual power line construction to keep us in the top 25% of all co-ops nationwide for reliability.
There is no 2024 rate increase, but a cost-of-service study is scheduled to help us forecast revenue requirements and ensure fair and equitable rates. We will continue to keep you informed, and deliver extraordinary service for your dollar.
You may not realize it, but Polk-Burnett does not generate electricity. Instead, we purchase it from our energy provider, Dairyland Power Cooperative. 58% of all revenue collected from members is used to buy wholesale power.
Giving money back
In 2023, Polk-Burnett returned $1.58 million to members. Instead of generating profit for distant investors, Polk-Burnett allocates and returns Capital Credits to the people we serve. Annual Capital Credits are a direct benefit of your co-op membership. I’m also proud to say that Polk-Burnett gives back to our community in ways that do not impact your electric rates.
In 2023, Operation Round Up awarded more than $83,000 to 73 local nonprofits, thanks to the generosity of members who round up!
Polk-Burnett also awarded $145,500 in scholarships to the Class of 2023, with 97 students each receiving $1,500 to continue their education. Co-op scholarships are given to children of co-op members, and are funded with unclaimed Capital Credits. You can see all Operation Round Up and scholarship winners on polkburnett.com.
Diversifying our power supply
Polk-Burnett supports a sustainable transition to clean energy and we’re strategically investing in utility-scale solar to become less reliant on volatile energy markets. In 2023, we partnered with OneEnergy Renewables to develop a 15-acre solar site in Georgetown, about 10 miles east of our Centuria office. The 2 MW solar array will generate 4,500,000 kWh of electricity annually, enough to power about 375 homes.
Our first SunTuria Solar array was dedicated in 2017 behind our Centuria office.
We will continue to evaluate solar and diversify our power supply when it leads to financial and operational benefits. Co-op solar projects relieve high demand at substations and offset energy market costs by generating power locally.
Extraordinary service for today and tomorrow
A final highlight for 2023 and the future is improved communication technology. Members can connect with us on our SmartHub app and on our website, where we have a new chat feature, as well as self-service webforms.
Our upgraded meter system is helping lineworkers pinpoint the exact location of power outages, so they can get your lights on faster. And we're also sending outage texts to members who have a cell number on their account. Our goal is to restore power quickly and safely, while keeping you informed.
As we turn our focus to 2024, we'll continue working to provide reliable power with efficiency and extraordinary service – for today and tomorrow.
Please call us at 800-421-0283, or visit our office or website to learn about co-op programs and ways we can help you save energy and serve you better this New Year, including billing options, EnergySense rebates and SmartHub to track and manage your energy use.
