Current Events

ELECTRIC RATES MAY INCREASE IN 2012

The Cooperative has been notified by its power supplier that in early 2012 the purchase power rates would be increased as a result of a new generating plant being ready to use.  Associated Electric Cooperative, Inc., who is the power supplier for 39 electric distribution cooperatives in Missouri, 9 electric distribution cooperatives in Oklahoma and 3 electric distribution cooperatives in Iowa, announced that purchase power rates would increase when the Chouteau II Power plant was placed into service in 2012.  The new generating plant is a 600 mw plant which uses natural gas to produce electricity for cooperative members.  Because cooperative loads continue to grow, more generating plants are needed.  Ozark Border Electric Cooperative’s purchase power expense, which is the amount paid for the electricity our members use, accounts for 65% of the cost to operate the Cooperative; therefore, when purchase power increases it means an increase in our member’s rates.

Along with the increase in purchase power, the Cooperative has had an increase in interest expense from the January 27, 2009 ice storm.  FEMA paid for about 75% of the cost to get the power back on after the ice storm, 75% of the cost of damaged electrical equipment and 75% of the reconductoring projects after the ice storm; however, 25% of the cost that remained had to be borrowed from RUS which increased the Cooperative’s interest expense and depreciation expense.  Along with an increase in interest and depreciation expenses, almost all areas of the Cooperative’s operations have increased from fuel for vehicles, insurance, right-of-way clearing, equipment repairs and added cost from government regulations.  The Cooperative attempts to operate as efficient as possible but costs are increasing faster than any gains made from improved efficiency.

While cooperatives are exempt from state and federal income taxes because they operate on a non-profit basis (margins in the form of capital credits are returned to the members), they still pay sales and use taxes, employment taxes and property taxes.

Property taxes are paid on things such as real property (the land and buildings where our five offices and warehouses are located), vehicles and the more than 5,848 miles of distribution lines which bring electricity to you.

In 2011 Ozark Border Electric paid $1,210,137 in property taxes.  Following is a list of the 2011 property taxes paid to counties, cities and political subdivisions within the cooperative’s service area.

County/City                    2011

City of Grandin             $163

City of Malden              $311

City of Neelyville           $292

City of Puxico               $1,036

City of Qulin                  $341

Bollinger                        $28,600

Butler                             $413,384

Carter                            $146,040

Dunklin                          $99,659

New Madrid                  $21,627

Oregon                          $1,929

Reynolds                       $14,384

Ripley                            $244,915

Shannon                        $1,311

Stoddard                       $145,996

Wayne                           $90,149

Total                             $1,210,137