Many questions, challenges, and concerns face us as we roll into the New Year.  The campaign for the next United States President is already in full force.  Each candidate is trying to set themselves apart from the others and each is promising to deliver what is best for the American people.  Regardless who is elected President, he or she will face many tough decisions and difficult problems. 

Finishing the job in Iraq and bringing our troops home have to be near the top of the list.  Improving health care coverage should also be a top priority.  Even more difficult but necessary will be the task of keeping this country from going into a recession, if we are not already there.

Consumer confidence recently hit an all-time low with the American public.  Several issues contribute to our gloomy outlook on the economy.  Hiring practically stalled in December, pushing the unemployment rate to five percent, a two-year high, according to government reports.  Also, the meltdown in the housing market has dragged down home values and made people feel less wealthy.  Harder-to-get credit has made it difficult for some to make big-ticket purchases, and high energy prices are squeezing wallets and pocketbooks. Gasoline has topped $3 a gallon once again. These high energy costs for fueling cars and heating homes are leaving people with less money to spend elsewhere, analysts say.  Major retailers also reported weak sales for December.  Many economists believe upcoming reports will show the economy grew at a feeble pace of just 1.5 percent or less in the final three months of 2007 and will be weak in the first three months of 2008. 

These issues have also had an impact on French Broad EMC.  We have felt the effects of a dismal economy.  Wholesale power generation costs reached new records due to high rail transportation costs to move coal and increased natural gas prices.  The slowdown in the housing market has directly affected the number of our new electrical connections for the year.  With the closing of yet another plant on our system last year, we not only lost kilowatt hour sales but also many of the employees were members of French Broad EMC.  As they moved elsewhere to find new jobs, we lost those customers and the energy sales.  Gas prices along with substantial increases in most of the materials we use daily drove our operations and maintenance expenses up significantly. 

As we move into 2008 and face these challenges, French Broad EMC is still committed to providing our members with reliable electric service at a reasonable price.  As always, we will be looking for ways to keep costs down as much as possible. 

Thank You,
Jeff Loven
Email: jeff.loven@frenchbroademc.com


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