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Page 7 · column 7 of 8 · from the scan, no model involved
upaiKe saia tnat tne Cooperative, like other business organizations, was experiencing a reduction in sales due to the general state of the economy. He said, “if we exclude one large industrial corisumer. our sales dropped approximately 10.6 percent from the comparable period last year even though our number of members increased by 1075 during 1981." Updike said that Rappahannock Electric Cooperative will have margins (profits) for the year of only one-half of one percent.
The Cooperative has signed mortgage agreements in which it pledged to maintain a given level' of earnings to keep the business financially sound. “Those requirements must be met or the Cooperative will be penalized in future loan applications." Updike said. -He added that the Cooperative needed adequate margins in order to rotate capital credits to its members on a timely basis and to settle estates of deceased members.
"We have implemented all possible cost saving procedures in every area of the business including the reduction of our work force by eight employees". Updike said. In spite of those managerial efficiencies, he said the Cooperative will still be unable to maintain its financial health without some relief in the form of increased revenue from its electric rates. He went on to add that members won’t see any change in electric rates until late spring ,or early summer of 1982, should the increase be approved by the State Corporation Commission.
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