VEA makes necessary investments in critical infrastructure

FOR IMMEDIATE RELEASE:
CONTACT:
Staci Behnke
Valley electric Association, Inc.
775.727.5312
stacib@vea.coop

Pahrump, NV -- With significant capital investment required for projects presently planned and underway to ensure electric service reliability throughout its service territory, the Valley Electric Association (VEA) Board of Directors and management has determined it is not in the best financial interest of the Association to retire patronage capital this year. It was also determined that a rate rebate would not be appropriate this year for the same reason.

According to VEA Chief Executive Officer, Tom Husted, the decision is in the best interests of the membership and the financial position of the Association. ''We're constructing 55 miles of new 230-kV transmission line at a cost of more than $25 million. That's a huge but necessary addition to our debt load. To retire patronage capital or issue a rate rebate at this time and then borrow to invest in critical infrastructure is not prudent.''

Patronage capital is excess margins beyond the Association's costs in a given year. Those excess margins are typically allocated back to individual members based on their percentage of the revenue attributed to their patronage in that year.

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