Back in 1940, citizens from four North Carolina counties unanimously voted to form their own electric cooperative. Today, it is known as the Lumbee River Electric Membership Corp. (Lumbee River EMC). Its purpose was to provide electric service to rural areas, and though times have changed, the cooperative’s mission remains focused on supplying safe, reliable and affordable electric power to the members of its four-county area.
Currently, Lumbee River EMC has more than 51,400 members and more than 59,000 electrical meters. It maintains 5,705 miles of line and has an annual revenue of $142 million. Its core service is distribution of electric power.
“Our goal is to be more than just a standard provider of wires and poles,” President and CEO Steven Hunt says. “We are striving to move the organization into the role of energy advisor. We want to be the first resource our membership reaches out to when there is any energy-related question.”
Lumbee River EMC has worked to become a trusted partner for its members in all facets related to energy while leveraging the years of service and reliability it has provided via its core business. Although power distribution is its core service, the cooperative also offers fiber to the home (FTTH), weatherization programs and a rural economic development loan and grant program.
One quality that has been the vehicle for the cooperative’s success is its grassroots foundation. Its members own the cooperative, and they have a voice in the direction of the organization. “Our consumers are more than an account number or rate payer, but an active member/owner,” Hunt says.
The cooperative is driven by seven cooperative principles: voluntary and open membership; democratic member control; members’ economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community.
“These are all very important, but the principle of cooperativeness in all facets internally and externally – along with the emphasis on the community – has really entrenched us into the landscape of the area,” Hunt says. “Although we operate in a regulated industry, it is our goal to create an atmosphere that makes us the first choice and not the only choice in the energy-related needs of the member.”
Wise Initiatives
Lumbee River EMC has invested millions of dollars in its efforts to provide electric sustainability and efficiency gains. But Hunt says the most important investment has been in team members.
“I prefer the term ‘teammate’ and not ‘employee,’ as the term ‘teammate’ defines a unit of people working together to execute the common strategy,” he says. “We are diligently working to develop folks not only via training, but by encouraging folks to step outside the box of tradition while instilling responsibility and accountability.”
The cooperative’s most recent investment has been its broadband FTTH service. Hunt says it will be the platform for growth and the vehicle for success in the very near future.
“This $20 million project is a service project to a prescribed area designated as unserved or underserved in regards to Internet access,” he says. “Although the project is a triple play service of Internet, TV and telephone, we are realizing the benefits of communication via the fiber. It will prove to be an integral tool even in our core business.”
Increasing power cost will be the largest direct impact to members over the next few years. That is why it is imperative to seek out opportunities to reduce the cost.
“There will not be one lever to pull to fix the problem, but a host of levers to attack the problem,” Hunt says. “Levers such as volt reduction, LED lighting, renewable energy sources, customer-owned generation and a host of other projects to combat the issue.”
Fierce competition also will challenge Lumbee River EMC. Entities including renewable energies like solar, wind and hydro and other technological advances such as smart devices will help manage energy consumption.
“Sitting back and doing things the same way will be a death sentence to many electric cooperatives,” Hunt says. “Our strategy is to diversify our portfolio by complementing the electric business with different services and products. We want to be out in front by being the energy expert on all facets of the business. The best defense is a great offense, and striking first is critical for future success.”
