PLANNING FOR 2008
The GVEC Board and Staff have been very focused over the past couple of months on the preparation of the 2008 Business Plan. The Focus Areas of our five-year plan include benchmarks and strategies related to providing customer-focused service, maintaining our financial strength, pursuing opportunities in the competitive electric markets and enhancing our corporate communication and employee development activities. The Business Plan also includes a five-year financial forecast which projects revenues, expenses and capital expenditures into the future. The financial forecast looks very favorable with the projected financial ratios meeting the benchmarks set forth in the Plan. The good news for you, our members, is that GVEC does not anticipate the need to increase distribution rates in the foreseeable future. In fact, GVEC has held distribution rates steady since 2005.

2008 WHOLESALE POWER RATES ON THE RISE
Since GVEC is a distribution utility, we do not own any generation resources; we are simply the deliverer of electric energy. To use an analogy, GVEC’s line of business is somewhat similar to the postal service as we pick up a product (electric energy) and deliver it to your home or business (through our distribution system). Since we do not own any generation resources, GVEC purchases electric energy on your behalf and passes it on to you, dollar for dollar. While we make no margin on the pass-through cost of generation, we work diligently on your behalf to get the best deal possible for the entire GVEC membership. However, due to several factors, we have been informed by our largest wholesale power supplier that we can expect costs for 2008 to increase by approximately 20 percent. These increases are primarily reflective of the higher cost of coal transportation through the rail systems and the rising cost of market energy caused by the tightening market. I have written over the past couple of months about the tightening of the energy market in Texas and steps GVEC has taken to try and soften the forthcoming increases. Although our prices are predicted to increase by 20 percent in 2008, we are taking steps now to try and minimize the rate at which these increases will be passed on to you.

QUESTIONS OR COMMENTS
Please contact me anytime you have questions, comments or suggestions. Email me at info@gvec.org, call me at 1-800-223-GVEC (4832) or write to me at P. O. Box 118, Gonzales, Texas, 78629. I look forward to hearing your thoughts.

The information provided on this website is for informational purposes only,
and is subject to change. The official documentation can be obtained by
contacting the GVEC headquarters office at 800-223-4832.