CoServ announces election results, Capital Credit retirement and more at 2023 Virtual Annual Meeting
CoServ Members elected two incumbents and added a new face to the CoServ Electric Board of Directors at the 2023 Virtual Annual Meeting held on Tuesday, June 6. CoServ President and CEO Donnie Clary also announced that CoServ will retire a record $16 million in Capital Credits back to Members through bill credits in August. Donnie also talked about the plan going forward now that Brazos has emerged from bankruptcy and CoServ has full control of its power supply purchases.
Annual Meeting election results
Chris McCraw, the District 3 incumbent, won with 55 percent of the vote over the challenger, Harlan Jefferson. A total of 10,398 ballots were cast. The McKinney resident has served on the Board since 2016 and will serve a four-year term.
Frisco resident William Kollar ran unopposed for District 4. He’s new to the board. A total of 9,665 votes were cast.
Historically, Board terms were three years. In 2021, CoServ extended the terms to four years to capitalize on their industry knowledge and expertise. Starting in 2025, there will be two board seats up for election each year and every fourth year there will be one seat up for election. This means Kollar will serve a five-year term.
Bill Ragsdale, the District 6 incumbent, ran unopposed to win another four-year term on the Board. The Flower Mound resident has served on the Board since 2010. A total of 9,788 votes were cast.
CoServ will retire $16M in Capital Credits
CoServ’s Board of Directors voted last month to retire Capital Credits to Members this year. As a nonprofit electric cooperative, CoServ doesn’t have shareholders or dividends to pay with its annual margins (profits). Instead, the money is allocated to Members based on the amount of electricity purchased and how long they’ve been on our lines.
When the Board votes to retire these Capital Credits back to Members, as they did last month, Members receive this money in the form of a bill credit. This year, it will be a credit on the August bill, which is typically the largest electric bill of the year.
The $16 million retirement will be the largest in CoServ’s history.
Full Power Supply Control
CoServ entered a new era on March 1 when its power supply contract obligations to Brazos Power Electric Cooperative ended. CoServ now has 100 percent control over its power purchases so our Energy Resources Team can buy power days, weeks and even years ahead of time. Ultimately, the ability to buy power in advance will save CoServ money, which will be passed on savings to Members.
“This will be the final CEO report where we have to discuss Brazos as our power supplier,” Donnie said. “While the process took almost two years, CoServ obtained the result we have been working toward for many years – a complete severance from Brazos for power supply. CoServ will now be able to tailor a power supply portfolio for our Cooperative, a portfolio that addresses our growth and power needs of our service area.”