Our industry is very capital-intensive. It takes a lot of physical materials and building of infrastructure to get power to our members. Providing reliable electricity requires significant investment in that infrastructure long before a member flips on a light switch. SVEC must plan for growth, replace aging equipment and maintain the system needed to serve members safely and reliably. That means we often have to invest in poles, lines, substations, transformers and other infrastructure before new members arrive or existing equipment reaches the end of its useful life.
Over the next 10 years, SVEC expects to invest approximately $31 million to keep pace with member growth alone. These investments help ensure we have the capacity and reliability needed to serve our members today and into the future.
For electric utilities, these investments are financed through long-term loans rather than paid for all at once, which helps keep electric rates more affordable and ensure costs are shared fairly over time. Instead of today's members paying the full cost of improvements that will benefit the system for decades, the cost is spread over the useful life of those assets, so future members who benefit from them help pay for them as well.