Randolph EMC focusing on brighter future amid cost pressures

ASHEBORO — There was good news and not-so-good news for members of the Randolph Electric Membership Corporation during the co-op’s 87th annual meeting.

Held June 20 at Southwestern Randolph High School, the meeting was attended by some 350 members. Dennis Mabe told the gathering that this was his 32nd meeting but his first as CEO. His focus was “how to build a brighter energy future for our members.

“I’m happy to tell you tonight that your cooperative is in good shape with a grid that has never been better,” Mabe said. “Still, it’s our responsibility to plan for the cooperative long term. So, how do we make this brighter energy future a reality? By focusing on reliability and affordability, we balance our member’s needs and their best interests. 

“Tonight, I will focus on three key topics that will shape this brighter energy future for our members: the current rising cost environment, the recent rate adjustment and our vision for the future.”

Mabe then addressed the cost pressures that the energy industry is now facing. “In 2024, REMC’s wholesale power costs exceeded what was built into the retail rates by over $1.9 million, and so far in 2025, wholesale power costs have exceeded $2.5 million.”

He listed factors that have led to the increases on wholesale power costs. First, power contracts have come in significantly more than budget. Along with that were additional costs for required operations and maintenance at the Catawba Nuclear plant.

Next, Mabe said, was the fact that overall kWh sales were below budget because of milder weather, leading to lower revenues. Then in November and December, more natural gas was used to compensate for colder temperatures and higher demand. But even with higher revenues, the increased costs on the wholesale market outpaced current rates.

“Our goal is to maintain stability in our rates, but these were significant cost increases to absorb,” said Mabe. “While wholesale power is a significant portion of our total costs, inflation is still impacting the cost of keeping the lights on.”

“I’m happy to tell you tonight that your cooperative is in good shape with a grid that has never been better. Still, it’s our responsibility to plan for the cooperative long term.” — Dennis Mabe, REMC CEO

Despite the problems, Mabe gave credit to REMC employees for “an outstanding job of controlling costs while maintaining a high level of reliability.”

But to meet the inflationary pressures, he said, “REMC implemented an overall rate adjustment of 8.54 percent, which started with the May billing cycle.

“While a rate increase is never ideal, electricity continues to be an exceptional value. As your electric cooperative, we remain dedicated to keeping rates affordable while maintaining the high level of service you expect.”

Mabe then gave the members the good news — two large government grants. The first was awarded by the US Department of Energy’s Office of Clean Energy Demonstrations in the amount of $4.9 million to rebuild transmission lines in the Dover, Ether, Snow Camp and Staley areas. Crews will replace 177 deteriorating wooden transmission poles with galvanized steel poles along 21 miles.

The second federal grant is more than $11 million to improve the grid. The project will expand the power of REMC’s self-healing grid with the creation of strong circuit ties to lessen the impact and duration of outages.

Both projects have been paused by the Trump administration’s review of expenditures.

“I’m so proud of our employee team for their work in winning these outstanding awards for the benefit of our members,” Mabe said. “I also am grateful that our family of cooperatives stands together to help our members in the face of adversity.”

After sharing a video of the recovery efforts in the North Carolina mountains following the devastation of Hurricane Helene, Mabe concluded: “Electric cooperatives excel in the face of crisis because we always focus on those we serve. For 87 years, your cooperative has navigated numerous challenges, and I am confident that we can achieve a brighter energy future together.”