Dear Members,
As we reflect on the past year at Alcorn County Electric Power Association (ACE), I am proud to share the remarkable strides we have made in serving our community. Our commitment to providing reliable and affordable electric service while embracing innovation has been at the forefront of our endeavors.
Electric Distribution System Upgrades
We have been diligently working on upgrades to our electric distribution system, making substantial progress on three-phase line upgrades, such as on County Road 755, among other projects. These enhancements bolster the reliability and resilience of our electric grid, ensuring uninterrupted service for our members, even under challenging conditions. Our line and service crews build on a legacy of excellence, demonstrating meticulous attention to detail and an unwavering commitment to safety. These principles are integral to their craft, and we continually strive to enhance them.
Street Lighting Upgrades
At the close of the fiscal year in June, ACE completed the second year of our four-year upgrade of the City of Corinth’s street lighting infrastructure. As of the end of June, ACE has replaced over 1,000 high-pressure sodium lights with LED lighting. These upgrades significantly increase the amount of light emitted on the streets, creating safer and more secure roadways for the citizens of Corinth. We are thankful to the City of Corinth for their continued trust and confidence in ACE for this important project, and we look forward to its continued impact as we embark on year three.
Continued Investment in Right-of-Way
ACE remains committed to substantial investments in our right-of-way program, which significantly improves electric reliability by preventing outages caused by vegetation overgrowth. Our association’s reliability metrics highlight the exceptional work of our right-of-way crews in maintaining clear power lines, free from potential faults. Given the persistent severe weather patterns affecting our region, it is crucial that ACE continues to invest in this vital vegetation management program. A robust right-of-way program not only enhances the reliability of our electric grid but also boosts the value and dependability of our fiber broadband services, providing our members with an “always-on” network essential for remote work, education, and entertainment.
Mutual Aid Assistance
Once again, our lineworkers stepped up to assist other electric utilities affected by severe weather. This past year, our fellow cooperatives needed help after storms disrupted power for many of their members. In April, our crews spent several days in Sabastopol, Mississippi, restoring essential electric service to members of Central EPA. In May, Warren Rural Electric Cooperative Corporation required assistance, and we sent a team of lineworkers to Kentucky to help restore power to their members. We are grateful for our crew’s safe return and their readiness to provide aid when others are in need.
Fiber Broadband Expansion
One of the most significant accomplishments this year has been the expansion of our fiber broadband services into the New Albany market. This project not only enhances connectivity for our members but also sets the stage for economic growth and improved quality of life in our region. The demand for high-speed internet continues to rise, and we are dedicated to meeting that need.
Our broadband subsidiary, ACE Fiber, continues to deliver on its mission of connecting all members of ACE to world-class broadband services while creating a diverse revenue stream, which is used to keep electric rates stable. ACE Fiber contributed over $2.2 million in fiber lease and pole attachment payments and its full allocation of shared costs, creating the cash flow stream that is needed for ACE to offer low and stable electric rates. We are proud to report that we are ahead of our business plan’s equity position by three years.
Investment in MS Fiber
In line with our mission to foster collaboration and innovation, ACE Fiber has invested in MS Fiber, a middle-mile fiber transport organization. This strategic investment will interconnect the seventeen Mississippi electric cooperatives currently in the broadband space, ensuring robust and reliable internet service across the state. By pooling our resources and expertise, we are creating a more connected and prosperous Mississippi. We will also leverage this network for future revenue opportunities, maximizing the value of our fiber infrastructure.
DC Fast EV Charging Station
We are excited to announce the completion of Alcorn County’s first DC Fast EV Charging Station. As electric vehicles become more prevalent, it is essential to support this transition with the necessary infrastructure. We are grateful to the City of Corinth for allowing ACE to lease parking spaces in their lot behind City Hall. The chargers are part of TVA’s Fast Charge Network and were installed with an 80% grant from TVA.
The current capacity includes two DC Fast chargers, capable of charging an EV in 20-30 minutes, and is expandable to four chargers. This station provides fast and convenient charging options for EV owners, promoting cleaner transportation alternatives in our community. We’re excited to see how these chargers enhance our downtown corridor.
Solar Power Purchase Agreement
Under TVA’s Flexibility 2.0 agreement, ACE can source up to 5% of our wholesale power supply from third-party providers. Following a thorough review of all of the options available under Flexibility 2.0, ACE executed a 30-year Power Purchase Agreement (PPA) with Silicon Ranch, joining the Mt. Pleasant, Mississippi project alongside other TVA local power companies. The Mt. Pleasant array is projected to be commissioned in late 2027 or early 2028.
Although the solar arrays will not be situated within the ACE distribution system, ACE will receive credits on our wholesale power bill from TVA for the kilowatt-hours generated at the Mt. Pleasant site. This arrangement allows for ACE to offset any negative impacts when the solar generator is not producing energy. TVA, as a federally owned utility, is obligated by our wholesale power contract to meet the full energy demands required by our distribution system. While we understand that solar arrays will not always generate electricity due to varying sunlight conditions, this agreement promises substantial fuel savings over the duration of the agreement.
New Industrial and Downtown Substations
Planning and scoping for the new Industrial Substation on South Parkway and the Downtown Substation on Cox Street have been key projects this year. These substations will support the growth of new industries and businesses in Alcorn County, ensuring the necessary infrastructure to attract and retain economic opportunities. These new substations will replace the Industrial and District Substations, providing reliable electricity for generations to come. We anticipate the new Industrial Substation to be commissioned in 2026 and the Downtown Substation in 2027.
Economic Development
Our ongoing efforts to attract business and industry to Alcorn County have yielded positive results. By providing reliable electric service and investing in infrastructure improvements, we create an environment conducive to economic growth and job creation. We remain committed to working with local and regional partners to make Alcorn County a prime location for business investment.
Rate Adjustments
In October 2023, we implemented a modest 1.5% rate increase, the first in eight years. This adjustment was necessary to continue providing high-quality service while investing in essential infrastructure projects. Despite economic and inflationary pressures and supply chain constraints, I am pleased to report that there will be no planned rate increase in October 2024. This decision reflects the success of ACE Fiber and its ability to return profits to ACE, allowing us to maintain stable rates for our members. It also highlights the efforts of our staff to operate efficiently while maintaining exceptional reliability and member service.
In closing, I want to extend my heartfelt gratitude to our dedicated employees, board members, and most importantly, our members. Your support and trust enable us to pursue these initiatives and positively impact our community. As we look ahead, we remain committed to innovation, reliability, and service excellence.
Sincerely,
Sean M. McGrath
CEO