The electric utility industry has changed more in the last 10 years than in the first 80. As we look to the future, I see more change on the horizon at a rapid pace. As uncontrollable pressure on the cooperative's wholesale power ad material costs puts additional pressure on retail rates, it is the co-op's duty to put our members in the best position to adapt to these changes. We believe the best way to combat this evolving landscape is to give YOU, the member, more opportunities to manage your energy usage and ultimately control your power bill.

The electric utility industry is seeing an unprecedented rise in material costs. A combination of post-pandemic supply chain issues and new competition for raw materials that go into power line infrastructure are the leading causes of these cost increases. For example, core steel used in transformers that power our homes and businesses on our system has more than doubled in price due to the significant increase in demands for the same materials by the electric vehicle industry, which is also core to their vehicle batteries. These demands, coupled with inflation, have made operating and maintaining our distribution system more expensive.

As South Carolina continues to grow, the demand for electricity does as well. Our state is at a critical point and our current power supply is not built to withstand the burden of continued growth. As with most supply and demand scenarios, as the power demand grows and the supply constraints continue, the cost of power for all of us has and will continue to increase. As a distribution co-op that buys its power wholesale, Blue Ridge finds itself having to react to these cost increases.

Material, labor, and power costs are not unique to Blue Ridge. The electric utility industry as a whole, particularly in South Carolina, is wrestling with these same challenges. The co-op has plans to roll out a new retail rate in the fall of this year to allow our members to mitigate these external pressures. By incentivizing our members to use power strategically throughout the day, the co-op can positively influence its cost of power, and the members can do the same. With some small diligence in shifting our electric usage, we can work together hand in hand to react productively to these changes in our industry.

Please stay tuned for more information on these new residential and general service rate structures in the coming months. I ask you, our members, to keep an open mind and reach our to us with questions when we begin to discuss these new changes. The more education that occurs, the more successful this new concept will be - benefiting us all. 

Jim Lovinggood

President and CEO