Written by John Klauder, District 6 Director, CCD, BL
We appreciate and value the investment that you make in the The Energy Cooperative each month, and we strive to use that investment wisely for the benefit of all members of our community.
Twenty eighteen for Licking Rural Electric, Inc. (LRE, Inc.), dba The Energy Cooperative, is now in the books. Last year the weather was a bit more seasonal with winter temperatures a bit colder and summer temperatures a bit warmer than it has been in recent years. The “normal” temperatures make it easier to forecast and even maintain our budget the following year.
The President & CEO and his staff spend many hours reviewing trends and assumptions that help predict revenues and expenses. Budgets are prepared for Licking Rural Electric, National Gas & Oil, (NGO), NGO Transmission, NGO Propane, NGO Development and Producers Gas. The budgets are then presented to and approved by the board of directors. In fact, budgets were reviewed and approved at December’s monthly board meeting.
In this edition of the newsletter, Vice-President & CFO, Pat McGonagle talks about natural gas prices rising 48% at the end of 2018. How can utilities predict that dramatic change in the market? They can’t, but they can manage gas purchases and storage to help moderate the dramatic change in pricing. See Vice President & Chief Operating Officer, Dan McVey’s article on how we store and manage the supply of our natural gas. This is a crucial part of our financial strategy when trying to keep gas rates as low as possible while maintaining an adequate supply.
As we get started in 2019, I want to assure you that Todd Ware, President & CEO, his staff, and your Board of Directors are working hard to manage the short and long term financial stability of The Energy Cooperative.