Manager's Report

Jack E. Hamblin

In 2008, Southeast Electric Cooperative Inc. (SECO) engineers completed a 20-year, long-range plan. This plan was prepared after a detailed analysis and evaluation of our lines and substations and it essentially outlines what improvements and upgrades will be necessary to keep our system viable and reliable into the future. SECO has now been in business for over 65 years and some of our poles and substations are, well, getting old. It's necessary to have an ongoing program of maintenance and improvements to keep the system in good operating condition. One major project of this long-range plan was the rebuilding of the Ekalaka substation that was completed last year. Other ongoing projects include the replacement of aged equipment such as regulators and reclosers system-wide. But our main project that has been in place for several years is the continued replacement of old poles which are no longer reliable. We have an aggressive pole inspection and replacement program in place where we annually test thousands of our existing poles for rot and structural damage. Those poles found to be in the worst shape are replaced immediately while those that will stand for a while longer are placed on a prioritized list to be changed out later. In 2011, we will change appx. 300 poles. The 2011 construction season began late this year due to the unusually wet spring, but fall is being good to us and we look to be able to continue replacing poles for weeks to come. It's important to note that these poles have been replaced using our own crews and equipment, thus avoiding the higher costs of contractors. We also have several new projects upcoming that will aid our efforts and add new revenue to the co-op. Plans are moving forward for a new substation near Alzada. Members in that southern-most area of our service territory are many miles from the nearest substation and have experienced a higher than acceptable number of outages in recent years. The main reason for these outages are the hundreds of miles of lines, all exposed to Mother Nature, between a substation and the end of the line. A substation in that area will greatly enhance the integrity of the power to the homes, businesses and ranches. Also, plans are being finalized to upgrade the Baker substation. This particular project will come at very low cost to SECO as we were able to acquire most of the equipment from a neighboring cooperative at a very attractive price. This upgrade, like the substation in Alzada, will enhance reliability andposition us to better serve future loads that are sure to come into the area. All in all, we have accomplished alot this year to improve the reliability of our system, while building for years to come. We can certainly look forwardto a continued bright future.