2021 President's report
PRESIDENT’S REPORT
Hugh Gene Smith
This year has been rewarding for our cooperative and the Board of Directors. In the last year, we have started PearlComm, an entirely new fiber internet company. While this subsidiary is separate from Pearl River Valley Electric, the Board was instrumental in approving its formation. Since the Mississippi Legislature passed a bill allowing electric cooperatives to consider offering broadband internet in 2019, we have investigated providing this service to our members. Fiber internet was an extremely complicated decision. Essentially, 4,700 miles of fiber optic line with an estimated cost exceeding $100 million needed to be built. We understand the need for this service, especially with more members working and attending school from home due to COVID-19. For this reason, we teamed up with Conexon, a fiber internet design and construction company, to help us develop a plan for bringing fiber internet to our service territory. While the Board of Directors voted to provide internet service, I can assure you PearlComm will have no effect on the cost of electric service.
The last year has also brought economic volatility throughout our country. However, we are proud to report that Pearl River Valley Electric, now in its 83rd year, has continued its growth. While there is great economic uncertainty, we want our members to know that your Board of Directors is committed to maintain economic strength and stability for the Association.
WHOLESALE POWER COSTS
Purchasing wholesale power accounts for nearly 68 percent of our overall cost of providing electric service to members. PRVEPA is a member-owner of Cooperative Energy, a generation and transmission cooperative. This arrangement ensures us of having our wholesale power delivered on a not-for-profit basis.
Cooperative Energy’s strategy to generate electricity is to use a broad mix of fuels — including coal, gas, nuclear, hydro, and other renewable sources — which helps keep costs as low as possible. Finding new, cost-effective ways to meet our wholesale power needs is a continuing priority and your PRVEPA Board will be closely watching developments throughout the industry.
ECONOMIC DEVELOPMENT/COMMUNITY
Many of our members may not realize it, but Pearl River Valley Electric plays an important role in helping our region grow economically. Your Association is very active in promoting economic development for our 12-county service area and belongs to various economic development organizations, which are committed to bringing new businesses and helping existing ones grow.
In November 2020, we, along with Cooperative Energy and the Stone County Economic Development Partnership, helped bring in Adranos, a solid rocket fuel innovator through Cooperative Energy’s Cooperative Competes grant. The $25,000 grant will aid in site preparation and existing building upgrades on the former General Dynamics campus in McHenry. The 640-acre and seven-building campus has largely sat vacant since General Dynamics ceased operations in 2012. The Cooperative Competes grant will help rehabilitate the vacant buildings for state-of-the-art research and manufacturing. As part of its relocation to Mississippi, Adranos is making a $525,000 corporate investment and plans to create 20 new jobs. This is just one example of how your Association works to improve the economic opportunities of its members.
ANNUAL MEETING
As a member of Pearl River Valley Electric, you are instrumental in the direction of our cooperative. I encourage you to be active and informed and to attend our annual membership meeting. The annual meeting gives you an opportunity to learn about the Association and to participate in its decision-making process.
Our cooperative is stronger than ever before as we prepare to enter 2022. In addition, our 83-year legacy is only growing more impressive by adding PearlComm. The decision of your Board to pursue this life changing service shows how committed we are to making Pearl River Valley Electric a positive example of what a member-owned electric cooperative can be. As president of your Association, I am proud to present this report for your consideration.