South Central Arkansas Electric Cooperative 2026 March News

COLBY WELLS CEO

Our Responsibility, Your Power

In his monthly “The Cooperative Difference” column (page 5), Arkansas Electric Cooperative Corporation

President/CEO Vernon “Buddy”

Hasten explains how wholesale power costs are set and why those costs are rising across the electric industry. That perspective matters, because wholesale power represents the single largest component of what local electric cooperatives pay to keep electricity flowing to their communities.

What matters just as much is how those industrywide changes affect local cooperatives — and the members we serve.

Electric cooperatives are built on long-term planning. For decades, our power supply relied on dependable baseload generation designed to deliver affordable electricity around the clock, through summer heat and winter cold. That stability allowed cooperatives to focus on maintaining local systems, serving members personally and keeping rates as steady as possible.

Today, that balance is under increasing strain.

Across the country, large baseload power plants are being retired earlier than originally planned, often as the result of national policy decisions and regulatory settlements rather than the end of their useful life. At the same time, demand for electricity continues to grow. When dependable generation is removed faster than it can be responsibly replaced, the cost of producing and purchasing power rises — and system flexibility declines.

Those higher costs do not stop at the wholesale level. Because wholesale power accounts for the majority of a cooperative’s expenses, increases must flow through to local systems. Electric cooperatives operate with very slim margins, and absorbing sustained cost increases is simply not possible without undermining financial stability. Maintaining the strength of the cooperative is essential to securing the financing required to build new generation and invest in long-term infrastructure.

Reliable electricity begins with having enough dependable power available to meet demand — especially during periods of extreme heat or cold. When supply is tight and demand is high, wholesale markets become more volatile, and the risk to both affordability and reliability increases. Planning for that reality is one of the most important responsibilities electric cooperatives carry on behalf of their members.

At the local level, we take that responsibility seriously. We invest continuously in our distribution system by replacing aging lines, strengthening poles, trimming rights-of-way and modernizing equipment to reduce outages and improve service. We prepare year-round for severe weather, knowing that reliability matters most when conditions are toughest.

We also work directly with members to help manage energy use through efficiency programs, billing options and one-on-one support. Reducing wasted energy is one of the most effective ways to soften the impact of rising wholesale costs while strengthening the system as a whole.

Just as important, electric cooperatives advocate for balanced energy policies that recognize reliability as essential — not optional. New technologies will continue to play a role in the future, but they must be integrated responsibly, alongside dependable generation that can perform when demand is highest and conditions are most challenging.

Electric cooperatives are not driven by quarterly profits or shareholder returns. We exist to serve our members for the long term. That means planning decades ahead, making difficult but necessary decisions, and communicating openly about why those decisions are required.

The electric industry is changing, and those changes bring real challenges. But our mission remains the same: to keep power reliable, manage costs responsibly and serve our members with honesty and care — because reliability matters, and so does your power.

Our Responsibility in a Changing Energy Landscape

Powering data centers creates both opportunities and challenges for electric cooperatives. On one hand, data centers have the potential to bring steady, long-term electric load growth. That growth can support investments in local power infrastructure and help strengthen the electric system.

At the same time, providing power to data centers presents real challenges. While these facilities can be built and operational in as little as one year, ensuring the necessary electric infrastructure, equipment and power supply requires much longer lead times and significant financial investment.

Electric cooperatives across the nation, including those in Arkansas, are fielding requests and inquiries from data center companies. That includes the potential for future development right here in our service territory. With a large industrial megasite being developed nearby through the Economic Development Corporation of Clark County, our cooperative is closely monitoring growth opportunities that could one day include one or multiple data centers.

As a member-owned cooperative, our responsibility is to listen to members in the communities we serve and to provide reliable, affordable electric service. That means planning ahead — long before any new load is connected — to ensure we are prepared to safely and responsibly carry the load without placing undue burden on existing members. Balancing these responsibilities is not easy, especially as large-scale energy users become part of the local landscape.

No matter what the future holds, our priority remains clear: supporting economic growth with fairness. That means ensuring large-scale energy users pay their fair share, so residential members are protected, and electric bills do not spike. The energy landscape is evolving and becoming more complex, but our commitment remains the same — to listen, communicate, and work alongside members and community partners to ensure decisions reflect the best interests of those we serve.

Because responsibility matters — and so does your power.

Brian Kirksey (President) Scott Clark (Vice President) Karen Kirkpatrick (Secretary-Treasurer)

Loe

Investing in the Future of Our Communities

South Central Scholarship Program accepts applications

At South Central Arkansas Electric Cooperative, serving our members goes beyond delivering reliable power. It also means investing in the people and communities we serve — especially the next generation of leaders, workers and neighbors who will help shape the future of south central Arkansas.

That commitment is reflected in the South Central Scholarship Program. Since the program began just three years ago, South Central has awarded more than $20,000 in scholarship funds to local students pursuing higher education. These scholarships support graduating seniors and students from within the cooperative’s service area as they take the next step toward college, technical school or other postsecondary opportunities.

Importantly, all scholarship funds are raised through dedicated fundraising efforts and community support. No scholarship dollars come from members’ electric bills. This ensures the program strengthens our communities without impacting the affordability of electric service.

Education is one of the most powerful ways to strengthen rural communities. By helping students access continued learning, the scholarship program helps reduce financial barriers and encourages young people to invest their talents right here at home. Whether students pursue careers in healthcare, education, skilled trades, technology or public service, their success contributes to the long-term vitality of our region.

As a member-owned cooperative, South Central’s scholarship program reflects a shared belief in responsibility — responsibility to prepare young people for opportunity and responsibility to reinvest in the communities that sustain us. Fundraising events, partnerships and community involvement make it possible to turn that commitment into real opportunities for students.

The application process is designed to be accessible and fair, with scholarships awarded based on eligibility, academic effort, community involvement and personal goals. Each year, applicants are encouraged to share their stories, aspirations and commitment to making a difference — values that align closely with cooperative principles.

For South Central, the scholarship program is not just about financial assistance. It is about encouragement, confidence and connection. It is about letting students know that their local electric cooperative believes in them and is willing to invest in their future.

As the energy landscape continues to evolve, one thing remains constant: people matter. Supporting education today helps ensure strong communities tomorrow.

Our responsibility is more than powering homes and businesses — it’s powering potential. And through the South Central Scholarship Program, we are proud to help light the way for students across our service area.

To learn more about eligibility requirements, and how to apply, visit scaec.com and explore the South Central Scholarship Program. The deadline to apply is April 1.