manager gives annual reports

The Webster Progress-Times

The need to help economically depressed areas such as Webster County, upgrades and a proposed TVA rate hike were cited in the manager's report given at the annual membership meeting of the Natchez Trace Electric Power Association.

General Manager Joe Boehms, speaking April 28 in Eupora, said, "Regretfully, Webster County has been deemed to have the highest unemployment rate of any county in Mississippi (21 percent in January). Hopefully all of the economic development entities - Tennessee Valley Authority, the North Mississippi Industrial Development Association and locals - will focus in to address the needs of the more economically depressed areas such as Webster County."

Boehms also reported that TVA is planning its first rate adjustment since 1997 to be effective Oct. 1. The proposal being discussed is for TVA's revenue to gain approximately 6 percent from the rate increase, but it is not clear at this time how the residential, commercial and industrial customers will ultimately be affected on the retail side. This rate adjustment is needed by TVA, he said, to pay for clean air equipment mandated by the federal government. This will be only the second time in 15 yeas that TVA has changed the basic wholesale rates.

Also in his report, Boehms stated that:

Work continues toward upgrading the Derma (Calhoun City) 69-kilovolt substation to 161 kilovolts with a projected in-service date of June. The upgrade will assure an adequate power supply in the Calhoun County area for a number of years, he said.

Eupora and Houston NTEPA crews are in the process of converting the primary distribution voltage in certain downtown sections from 12.5 kilovolts to 25 kilovolts.

"All of these changes and additions will help to improve overall electrical service and make the distribution system more efficient," according to Boehms.

NTEPA had another good year in minimizing long power interruptions because of system improvements. For example, NTEPA crews changed out 146 bad poles in 2002 under its pole inspection program. In addition, contract crews sprayed about 260 miles of distribution line right-of-way, mostly in Calhoun County. The NTEPA right-of-way crew bush hogged and trimmed about 150 miles of rural lines, did extensive trimming in towns, and cut numerous live and dead trees endangering the power lines.

"All of these right-of-way maintenance activities really pay back great dividends by reducing the number of power interruptions," Boehms said.

NTEPA has contracted with NaturChemical out of Nashville, Tenn., to spray about 222 miles of right-of-way in 2003. The application will be mostly in the Houston and Eupora areas, and should be completed in May.

The NTEPA board decided to take advantage of the historically low interest rates by refinancing some $3 million of debt for a projected savings of four loans of some $80,000 over a 20-year average term.

NTEPA has been approved for a $1.8 million Rural Utilities Service low-interest loan with a term of 35 years to improve and make additions to the distribution system. The Derma substation upgrading and converting primary distribution voltage are examples of projects paid for with loan money.

NTEPA's kilowatt-hour sales were 5.5. percent less in 2002 compared to the previous year primarily because of the bad economy and mild weather. The number of meters in service has increased only about 0.6 percent during the past two years so that growth has also been adversely affected by the slowdown in the economy.

"NTEPA's board and employees strive each day to provide members a reliable power source at the lowest possible cost," Boehms said. "We really appreciate the cooperation of all members in making this possible."

Re-elected without opposition as directors were Earline Wilson of Houston for District 1, Chickasaw and Pontotoc counties; Pete Fortner of Eupora for District 2, Webster and Clay counties; and Jimmy Ball of Calhoun City for District 3, Calhoun, Grenada and Yalobusha counties. The board has nine directors, three of whom are elected every April.

Also at the meeting, Boehms recognized Eupora High School senior Nicole Hodges as the recipient of a $4,000 Tennessee Valley Authority scholarship, which is awarded annually to the child of an association employee. She is the daughter of Eupora NTEPA crewman Stan Hodges and his wife, Kay.