Shelby Energy
A Water Supply Solution
April 1997
Don Heilman had a
problem.
 The chief
operations officer for Henry County Water District #2 had learned
that, due to water quality and hookup problems, the state water
division had imposed a moratorium on line extensions. Fixing the
problems would cost $9 million for the district, which serves 4,800
customers in the county, plus the cities of New Castle,
Campbellsburg, and Eminence.
As Heilman was
working to put together a financing package early in 1995, he got a
call from Dudley Bottom Jr., president and general manager of Shelby
Rural Electric Cooperative (Shelby RECC), asking if a $400,000,
interest-free loan would help with the water system improvements.
What would you
say?
Heilman said yes.
“It was the
element that made the project feasible,” says Heilman. “It’s
what put the cap on it.”
Shelby RECC was
able to offer the loan thanks to a program from the federal
government’s Rural Utilities Service (formerly the Rural
Electrification Administration). That program provides grants to
electric cooperatives that the cooperatives must use to set up a
local “revolving fund” that makes reduced-interest loans for
economic development projects. Once the loan is paid back, the
cooperative can make loans to other economic development projects in
the community.
“Water service
is an especially worthwhile way for Shelby Electric Cooperative to
help the area,” says Bottom.
“These
improvements have to be in place for the county to grow,” says
Bottom. “And we hope our interest-free loan can help keep the
water rates more reasonable.” Ground was broken last fall for the
improvements that include new water mains, storage tanks, booster
stations, and a new treatment plant. The work is scheduled for
completion in January 1998.
Bottom says this
kind of assistance makes a lot of sense for Shelby RECC, which is a
consumer-owned utility that serves 11,000 customers in the nine
counties around its main office in Shelbyville.
“We’re part
of the community,” says Bottom. “As a consumer-owned
cooperative, our ‘stockholders’ are the residents and businesses
that use our electricity. What’s good for them is good for us.”-Paul
Wesslund |
