Celebrating 2024 and Preparing for the Future
David J. Means, President & Thomas W. Howard, CEO/General Manager
As we prepare to host another annual meeting and begin a new year, we want to express our gratitude for your membership and support of Callaway Electric Cooperative. Our cooperative’s strength lies in our members’ commitment and engagement, and 2024 has been a testament to what we can accomplish together. From enhancing reliability and fostering growth to navigating challenges and embracing new opportunities, it’s been a year of progress and resilience.
Prioritizing Reliable Power
One of the standout achievements this year has been our reliability. Thanks to targeted investments and operational improvements, our outage time for 2024 averaged just 79.3 minutes per member. This marks a significant improvement over our five-year average of 122.2 minutes and highlights the effectiveness of our right-of-way clearing and pole testing programs.
By combining mechanical clearing with low-volume spraying, we’ve reduced labor costs and extended the benefits of these efforts, ensuring a more reliable system for years to come. Our biennial survey results showed that members rank reliability as their No. 1 priority for electric service, and we’re proud to maintain and exceed the level of service you expect from your locally owned electric cooperative.
We experienced peak energy demand in January 2024 during extreme weather. It was the second all-time peak on record for our system – and we were able to serve our members with reliable power.
The cornerstone of providing reliable power during all types of weather and seasons is having always-available power generation to effectively serve members. In 2024, the Environmental Protection Agency (EPA) announced proposed power plant rules that would shut down always-available affordable and reliable generation, make it harder to build new plants, put a strain on the electric grid, and increase the risk of rolling blackouts. We worked with electric cooperatives in Missouri and across the country to send letters to Congress urging them to stop the EPA’s proposed rules, which would have detrimental impacts on families and communities. We thank our members who also took the time this summer to contact their elected officials on this critical issue.
Celebrating Growth and Innovation
Callaway Electric Cooperative’s commitment to reliability ensures we have the power our members need today and into the future. In 2024, we supported commercial expansion within our service area, helping businesses manage increased electric loads. A new substation, set to come on line this year, will enhance efficiency and support future growth. These efforts reflect our focus on being prepared to successfully navigate future challenges and opportunities.
On the technology front, we’ve continued to invest in software enhancements that improve operational efficiency and member services. These upgrades streamline everything from outage response to billing, ensuring we remain at the forefront of innovation.
Adapting to Challenges
As a not-for-profit cooperative, we’re committed to providing safe, reliable and affordable electricity. We take pride in mitigating rate increases through efficient resource management and solutions that take upward pressure off rates. However, rising costs – from materials and labor to fuel and insurance – have posed challenges this year.
Our power supplier, Associated Electric Cooperative Inc., is implementing a 4% increase in wholesale power costs for 2025 and forecasts rates will likely continue to increase. These rising costs led Callaway Electric Cooperative’s board to approve a 7% revenue increase for 2025, which will affect all member classes, including residential and commercial. However, this does not mean a flat 7% rate hike. For the average residential member using 1,200 kilowatt-hours per month, this translates to a 4.6% increase – right at $10 per month. We’re not in business to make a profit, so we only pass along rate changes when they are absolutely necessary.
We understand rate changes are never easy, and we’re here to help with energy efficiency programs, budget billing and personalized advice to reduce energy usage.
Supporting Members Through Technology
One way we can reduce pressure on rates is through the continued growth of our broadband subsidiary, Callabyte Technology. The revenue generated by Callabyte helps to offset and potentially reduce the impacts of any necessary rate increases. In 2023, we celebrated surpassing 10,000 subscribers.
This year, we’ve added 12% more services, expanding our service area into Southern Boone County and bringing us to more than 11,000 subscribers. These numbers reflect the strong support and trust you – our members – have placed in us. It’s also a reminder of the tangible benefits that Callabyte brings to the cooperative. We are grateful for the immediate value Callabyte provides to all co-op members. This year, we also hosted “Streaming 101” classes to help members transition as Callabyte’s TV service winds down in February. More than 200 individuals attended these sessions, gaining insight into the vast array of streaming options available through our high-speed internet service. While saying goodbye to our TV service is bittersweet, the shift underscores the versatility and power of the broadband connectivity we’re proud to offer. And with the launch of 4 Gbps internet service across all areas, we’re positioned to meet your family’s diverse broadband needs.
We will celebrate Callabyte’s 10th anniversary this year, and we’re reminded of how far we’ve come. From connecting our first fiber subscriber in 2015 to serving more than 11,000 subscribers today, Callabyte has transformed how members can connect, communicate and leverage technology.
The Power of Mutual Aid
One of the most inspiring moments of 2024 was our participation in mutual aid efforts following Hurricane Helene. Our crew’s dedication to helping other cooperatives restore power embodies the cooperative spirit. These efforts highlight the strength of the cooperative network and demonstrate our unwavering commitment to reliability – both at home and beyond.
Looking Ahead
Our vision for the future remains rooted in the cooperative principles that guide us. We’ll continue to prioritize reliability, affordability and service while embracing new opportunities to enhance the value we provide. Whether investing in infrastructure or finding innovative ways to manage costs, we’re committed to building a brighter future for all members.
Thank you for being a part of Callaway Electric Cooperative. Your engagement and support fuel our mission and inspire us to do better every day. Here’s to another year of progress and partnership – together, we’ll power the future.
Learn More about the upcoming Annual Meeting on Feb 1 at Callaway Electric Cooperative.