CFC Helps Norris Electric Focus on the Future

One of CFC’s newest 100 percent borrowers credits CFC-organized strategic planning and training programs with sharpening its focus and helping position it for the future.

Norris Electric Cooperative, which serves more than 19,000 members across eight counties in southeast Illinois, had a two-day strategic planning session with CFC in mid-2018.

“The whole focus of the strategy session was to give Norris Electric direction,” Norris Electric General Manager Tamara Phillips explained. “We needed to see where our strengths were, but most of all we needed to know our weaknesses. We quickly realized our biggest weakness was our aging distribution lines.”

The strategic planning session also teased out other areas needing attention, Phillips added. “A comprehensive technology plan that improves efficiency of operation and availability of information to the members and employees was one area identified. We also discovered a need to create and launch a formal communication and safety plan that both engages the members and enhances the focus on safety for both cooperative personnel and the general public. Lastly, we realized Norris needed a long-term headquarters facility plan because our building has some age and safety concerns.”

Norris Developed a Long-Range Financial Plan to Help Prioritize Construction Projects

To address the aging infrastructure, the cooperative knew it had to develop and implement not only a construction plan, but also a long-range financial plan that incorporated the construction plan as well as other key financial drivers. CFC worked with the Norris Electric Board of Directors and management to help create a 10-year financial forecast.

“That led us to the decision to start rebuilding our distribution system starting with our core three-phase lines,” Phillips said. “With the magnitude of work to be done, we needed to have an aggressive plan. In order to implement that plan, we determined financing through CFC was the way to go.”

Norris Electric now has a six-year line construction work plan focused on improving the reliability of electric service for its members. No decision has been made yet on the headquarters facility, Phillips noted. “But CFC will be back this month to help us determine feasibility. Even if we don't construct a new building, we will probably need to remodel.”

Norris Chose to Work with CFC Based on Electric Cooperative Recommendations, Free Member Services

Through its Strategic Services Group, CFC offers various facilitation services to help members plan for the future—including strategic planning, strategic thinking, strategic financial planning, enterprise risk management and specialized solutions on topics tailored to meet a cooperative’s unique requirements. And all services are free to members.

Norris Electric chose CFC to assist with long-range planning based on recommendations from other electric cooperatives.

“I heard great things from other managers and, to be honest, it was free,” Phillips shared. “I feel our strategy session was very helpful, and CFC following up on the items quarterly kept me and staff focused on what needed to be completed. It’s easy to get complacent and stagnant if you aren't diligent in following through on your initiatives.”

The strategic planning work and the financial support provided by CFC has helped put Norris Electric in a stronger position as it looks to the future.

“Because of the due diligence of our board of directors, Norris Electric continues to have the lowest cooperative rates in the state of Illinois,” Phillips said. “We’re very proud of that, but we also face some challenges. For example, during the first half of 2020, 10 percent of our workforce retired. That was letting go of 206 years of experience. That amount of knowledge and experience is hard to replace.”

CFC’s Regulatory Affairs group has also helped Norris Electric with rate design on two occasions and has provided training and support to the cooperative’s accounting staff.

“CFC has been supportive in so many ways,” Phillips remarked. “If we had not completed the strategic planning process, I’m not sure where our focus would be right now.”