APRIL 2025
THE MESSENGER A Publication for North Arkansas Electric Cooperative Members
RISING COSTS Materials’ percentage increase
Fuse switches (cutouts)
from 2019 to present
+74% Overhead secondary conductor
Crossarms
+106%
+36%
Right-of-way clearing
+153%
Lightning arresters Transformer
+95%
+79%
Overhead primary conductor
Guy wire
+65%
+64%
40-foot pole
+53%
Bucket truck
+57%
NAEC facing increased costs from inflation From food to housing, few areas of our lives have escaped being impacted by inflation and the subsequent increased costs that began during the pandemic. Just like individuals, North Arkansas Electric Cooperative (NAEC) has experienced increased costs in many areas. They include contract labor, property taxes, insurance, equipment and materials as well as internal labor and benefits. For example, right-of-way maintenance costs increased
from $1.8 million in 2019 to $4.5 million in 2024. That’s a $2.7 million increase, or 153%. As for equipment, a bucket truck cost $159,000 in 2019 but $250,000 in 2024. As for materials, a transformer cost $830 in 2019 but $1,480 in 2024. NAEC operates as a not-for-profit but must generate sufficient electric operating margins to maintain debt-toincome ratios set by our lenders. We must cover oper— See COSTS on Back