Business Spotlight: Southwest Electric Cooperative

Southwest Electric Cooperative Inc. recently received the 2002 Agribusiness of the Year award from the Springfield Area Chamber of Commerce.

The cooperative, which has its headquarters in Bolivar, was formed in 1939 and serves 35,133 members who live in rural areas in 11 southwest Missouri counties, according to Jerry Divin, CEO and general manager.

"We're the third-largest electric cooperative in the state," said Divin. "As of Oct. 1, 2002, we had 4,971 miles of line and 24 substations."

The cooperative operates on a not-for-profit basis and is owned by the members it serves. Because of this, all revenues over operating expenses and debt service are credited to members' accounts and periodically returned to them.

Earlier this month, Southwest Electric mailed more than 20,000 refund checks to members. The checks represent patronage capital, or capital credits, that were paid by cooperative members in 1985.

"The board of directors began approving payment of capital credits back in 1993," said Divin. "This year, the Board of Directors decided to reward the members who have been with us the longest. The refund this year totaled $2.2 million."

Southwest Electric Cooperative has paid capital

credits each year for the past 10 years. Approximately $15.2 million has been returned to cooperative members during this period.

Like many electrical cooperatives, most of Southwest Electric members live in rural areas. However, Devin said the area served by the cooperative "isn't so rural anymore," and he expects many more members will be added in the coming years.

"We're in a period of growth," said Devin. "We've been averaging 700 to 1,000 new customers every year for the last seven years."

Southwest Electric Cooperative has grown considerably since its start. In 1957, a district office was opened in Preston, and in 1989, another office was opened near the junction of Highway 7 and Highway K in Camden County. Recently, a third district office was added near the intersection of Highway 65 and Bluegrass Road just north of Springfield to help serve members who live in that rapidly growing area.

The cooperative has added a number of services over the years. Members can request an energy audit or get a home guide that outlines the latest energy-saving methods. The cooperative also offers a surge protection plan, tree trimming, meter testing and fiber-optic service. In addition, members receive the cooperative's monthly magazine Rural Missouri and the quarterly newsletter Light Lines, which inform members about what's going on at Southwest Electric.

Several special programs benefit members as well. For example, the Life Support List system gives priority service to cooperative members who rely on medical equipment to stay alive. In the event of a power outage, members on the Life Support List will have their power restored first. Another special program sees the cooperative conduct electrical safety programs in area schools.

Supporting the communities in which members live is one of Southwest Electric's priorities, Devin said, and the cooperative is a member of the Springfield, Bolivar, Warsaw, Camdenton and Buffalo chambers of commerce. The cooperative also supports several Future Farmers of America chapters, the Missouri and Ozark Empire fairs and contributes to many charitable organizations throughout southwest Missouri.

The cooperative's community emphasis also is reflected in its organizational structure. Each member of the board of directors hails from one of the nine districts served by Southwest Electric.

Recently, the board of directors examined the cooperative's expansion plans, operating budget and rates as part of a new two-year plan. Board members also developed a new long-range plan.

"The two-year plan doesn't call for any new substations to be built," said Devin. "I also doesn't foresee any rate increases in the near future."

However, Devin said that stronger environmental regulations governing coal-fire plants, which generate power for South-west Electric Cooperative's members, could push up prices in the future. Members receive their power through two large wholesale electricity suppliers, Sho-Me Power Cooperative in Marshfield and KAMO Power in Vinita, Okla.

Associated Electric Cooperative Inc. in Springfield satisfies more than 99 percent of Sho-Me's power needs. The Little Niangua hydro project, which was built during the 1920s, provides less than 1 percent.

KAMO gets its energy from two sources its part-ownership of the Grand River Dam Authority power generation, and its share of ownership in Associated Electric Cooperative, which operates several coal-fire power plants throughout the state. These coal-fire plants would be affected if more stringent environmental regulations were passed in the future, Devin said, and the associated costs of meeting those regulations could wind up being passed on to members. However, Devin added the cooperative would continue to operate in the most cost-efficient manner possible.

Devin's commitment to members of Southwest Electric Cooperative hasn't gone unnoticed. Recently, he received the Distinguished Service Award from the Association of Missouri Electric Cooperatives, a statewide service organization representing 47 electric cooperatives in the state.

"This award shouldn't have gone to me," he said. "It should have gone to the employees. We have a terrific team."