REC’s Annual Meeting for Members
Another Year of Success Brings Growth
Aug. 16, 2010
REC President and CEO Kent D. Farmer presents his president's report to members at the 2010 Annual Meeting.
Member-owners attending REC's 72nd Annual Meeting on Saturday, Aug. 14 had the opportunity to meet and vote on the candidates for the Board of Directors and to pose questions to the Cooperative’s management. During the Annual Meeting, employees also exhibited information at over 21 display booths about the Cooperative’s reliability, safety, efficiency and community involvement.
In addition to receiving a general business and financial update, members elected, by acclamation, Frank B. Boxley, Jr. and Linda R. Gray for three-year terms. Frank B. Boxley, Jr., a resident of Louisa County has served on REC’s Board since 1989 and has completed the Credentialed Cooperative Director (CCD) Certificate program, through the National Rural Electric Cooperative Association. Linda R. Gray was elected to REC’s board of directors in 1998. She currently serves as secretary of the Board and is on several cooperative board standing committees. A native of Caroline County, Ms. Gray resides in the Sparta community.
In REC’s contested election, members voted by ballot between Robert G. Marmet and Thomas T. Grady. With over 85 percent of the votes, members elected Mr. Grady to continue serving as REC’s Region II Director. Mr. Grady, who resides in Fauquier, has been an REC member for over twelve years and recently completed his first year representing the members of Region II on REC’s Board. He has completed several courses and is working towards a Credentialed Cooperative Director (CCD) Certificate through the National Rural Electric Cooperative Association.
Elected to REC’s Board of Directors are left to right: Thomas T. Grady, Linda R. Gray and Frank B. Boxley, Jr.
Members also learned about the challenges and accomplishments from 2009 and 2010. Kent D. Farmer, REC’s president and CEO said, “The acquisition is behind us, and the transition has begun. This has been a smooth process, successfully carried out by an extremely qualified and dedicated workforce.”
The acquisition of Allegheny Power resulted in REC becoming Virginia’s largest electric cooperative and its third largest electric utility. In one moment, REC experienced more than 20 years of growth. Farmer said, “REC saw the decision to work with Shenandoah Valley Electric Cooperative to purchase Allegheny Power’s Virginia territory as an opportunity to grow the Cooperative business and to reduce per-unit operating costs for members.”
REC and its members were reminded just how much impact the weather can have on our electrical system. “Record-setting snowstorms hit our service area this past February, causing millions of dollars in damages to the distribution system. This resulted in many cold, powerless hours for our members,” explained Farmer. “REC employees endured almost unbearable conditions as they worked to restore power to every member."
Farmer also mentioned future challenges that REC is facing such as power supply options, legislation that affects the electric industry and environmental concerns. Through the efforts of REC’s skilled workforce, the Cooperative will continue to make decisions that benefit the members.
Jack Reasor, president and CEO of Old Dominion Electric Cooperative (ODEC), REC’s generation supply source, discussed the proposed construction of an electric generation facility called Cypress Creek Power Station. Reasor stated, “Our primary responsibility and challenge is to provide reliable, environmentally balanced power at the lowest possible cost. The demand for electricity continues to grow, and we recognize that the two ways we can meet that growth is through energy efficiency and maintaining a diverse portfolio of assets and contracts.”
Reasor explained to REC’s members that the lowest cost electricity that can ever be delivered is the electricity that is never used. He said, “Even if all of us reduce usage, we are still going to have a higher demand for electricity in the future than we do today. We cannot just rely on one source of energy; we have to have other alternatives.” ODEC continues evaluating the possibility of building a coal plant, but no final decision has been made. According to Reasor, ODEC is convinced that with the technology available to them, if they do build the plant it will be the cleanest coal plant in the United States, and costs for the plant will be distributed to approximately half a million member-owners.
REC provides electric service to over 154,000 connections in parts of 22 Virginia counties. With its general office in Fredericksburg, Va., Rappahannock maintains more than 15,500 miles of power lines through its service area, which ranges from the Blue Ridge Mountains to the tidal waters of the Chesapeake Bay. For information about REC, please browse this website.