The Enlightener

March 2008

Coming in April!
A New Look for Your Member Newsletter

As your cooperative turns 72 years old this year, the newsletter that’s been bringing information and tips to members each month is updating its look – and its name.

Beginning in April, The Enlightener will be called “Membership Matters.” Its new name sums up the cooperative difference: there are benefits and advantages of belonging to a cooperative. Membership in a cooperative is more than simply being a customer. You have a voice in the company that provides your electricity – a company whose goal is to provide the most reliable electricity at the lowest possible cost. For your service and community commitment we have local staffs and offices to ensure high-touch member service. And you’re also a part owner: you receive money back from your cooperative through capital credits.

Along with a new name, you’ll notice a new look for your newsletter. We’ve updated our appearance with a bold new design that’s easier to read. And, to reflect our members’ growing interest in energy efficiency and controlling costs, we’re also adding a monthly “Energy Tips” column.

Some things you’ve loved about your newsletter over the years will remain the same. We’ll continue to run the Trading Post, although fewer items will be listed in order to include the growing list of news items you’ve told us to keep you informed about: state and federal laws regarding energy efficiency and renewable energy, safety tips, annual meeting updates, scholarship deadlines, and other important news that impacts our members.

We hope you enjoy the new look of your newsletter. Keeping our members informed is another one of the benefits of belonging to a cooperative and is one of the principles upon which we operate. Most importantly, it’s a key way we demonstrate that membership matters.

Members Only News
- For Members of Blue Ridge Electric

Power Reliability Projects

Caldwell District
Two system improvement projects will soon begin on Zack’s Fork Road and Cottrell Hill Road to help improve reliability and increase capacity of the electric system in that area. A reliability project is also beginning soon on Old John’s River Road. In the design stages is an upgrade to a one-half mile section of transmission line located along Creekway Drive near the Thomasville Furniture Plant and along Highway 90 near Blair’s Fork Church. This upgrade should be complete by late summer.

Watauga District
Several system improvement projects are beginning in Blowing Rock along Main Street and in Chetola Resort to improve reliability and increase capacity of the electric system. Starting soon is construction of Phase 1 of the new Blowing Rock Substation, which will consist of site grading and preparation. This should be complete by late fall.

Ashe District
A system improvement along the Big Windfall Road near Lansing is starting soon to help improve reliability and increase capacity of the electric system.

Alleghany District
A system improvement project along Highway 113 near the Piney Creek community is underway to help improve reliability and increase the capacity of the electric system.

Reminder

Your board of directors recently approved a $2 million capital credits retirement to be returned to our members. This is part of the cooperative’s equity management plan to return a percentage of margins back to the members after an annual review of the fiscal health of the cooperative.

Capital credits will be sent inside a newly designed annual report that will be mailed to members in late May.

As usual, members who qualify for a retirement of $15 or more will receive a check in their annual report. Those receiving a retirement of less than $15 will receive a bill credit which will appear on your March bills.

Capital credits are one of the many benefits of belonging to a cooperative: funds are returned back to you, the member-owners of Blue Ridge Electric.

The Perspective

An Editorial by Chief Executive Officer Doug Johnson

Containing Costs

In working to provide the members of Blue Ridge Electric with reliable electricity at the lowest possible cost, I’m pleased to announce that we recently implemented a long-term full-requirements wholesale power agreement with Duke Energy Carolinas. Approved by the Rural Utilities Service and the Federal Energy Regulatory Commission for implementation on February 1, Duke will now fulfill all of our wholesale power resource needs.

Members will benefit because this agreement helps us keep your rates as low as possible by providing more economical wholesale power costs for the cooperative.

This is good news as we experience a critical need to reinvest in our electric infrastructure. Some of our system is nearly 40 years old and reaching its life span for dependable electricity delivery. Last year, we completed our major reliability project: a $22 million investment that included higher capacity transmission line, several modernized substations, and a new, state-of-the-art substation in West Jefferson that serves as the “hub” for delivering power to some 52,000 members in Watauga, Ashe, Wilkes, and Alleghany counties. We are also making other substantial improvements across our system to further improve our record of providing excellent service reliability.

With this new agreement we are able to balance the cost pressures of these expensive – but necessary – investments in the electric system and maintain stable electric costs for our members for the next 2-3 years.

We have already begun seeing positive economic effects of our new wholesale power agreements with Duke Energy, some of which took effect in 2006. Last year, a rate adjustment resulted in the majority of our members receiving a slight rate reduction and savings on their monthly electric bill.

And, your board of directors recently approved a $2 million capital credits retirement due to the healthy fiscal condition of your cooperative. This retirement – the largest in recent history – means that more than 50,000 members will receive a refund this spring.

As other energy costs continue to rise, I’m pleased that Blue Ridge Electric is able to provide our members with good value by offering stable – and often lower – electric costs. And as an electric cooperative, that’s why we exist: to benefit our member-owners with the most reliable electricity at the lowest possible cost.

Nominating Committee Named

As required by the cooperative’s bylaws, the board of directors appointed members for the cooperative’s Nominating Committee at their January board meeting. The committee will select a slate of nominees to fill four available board seats at the Annual Membership Meeting on June 14. The nominees will be announced in the May member newsletter as well as posted in district offices at least 30 days prior to the annual meeting.

Running for re-election to the board are: Martha McKnight, Alleghany District; David Boone, Ashe District; Clayton Cooke, Watauga District; and David Eggers, Caldwell District.
Nominating Committee members are:

Caldwell:
Monteen German, Blayne Hollar, Charles Woodworth. Alternate: Etta Phillips

Watauga:
Ted Clevenger, Doyle Ward, Webb
Alexander. Alternate: Rick Coffey

Ashe
Louise Hart, Marty Norris, Robin Marlow. Alternate: Lynelle Blackburn

Alleghany:
Edith Cooper, Peggy Choate, Kathy Anders. Alternate: David Jackson

Published monthly by Blue Ridge Electric Membeship Corporation for its
72,741 member consumers.