DEMCO – Dixie Electric Membership Corporation
Over the last seventy-seven years, DEMCO has advanced as one of the fastest growing electric cooperatives in the United States. Since its founding in 1938, DEMCO has expanded its customer base from 750 meters to over 107,000 meters in southeast Louisiana. DEMCO is dedicated to providing safe and reliable power to its members throughout its service territory at affordable prices.
“Our main goal, in a nutshell, is to continue supplying power to members for a long time,” said DEMCO CEO and general manager John Vranic, “We have no stockholders, per se, so we strive to pay the lowest price for power and provide the highest reliability.”
To meet the needs of its expansive, 15,000 square mile customer base, DEMCO chose to place its headquarters in the City of Central, a strategic location beneficial for both business and customer. As a non-profit organization, DEMCO strives to stimulate economic growth throughout all areas of operation to promote prosperity and sustainability through sound business principles and ethical business conduct.
DEMCO supplies power but does not produce it. Instead, DEMCO purchases electrical power from an in-state generation facility, Cleco Power LLC, which uses multiple generating sources and multiple fuels for its electric power.
“The challenge,” Vranic explained, “is that all co-ops require a contract with a power supplier, which has to be periodically renegotiated. DEMCO is currently under contract with its provider until 2024. The cost of obtaining power is our biggest expense and has escalated over the last 10 years. We used to have fixed fuel costs, but that’s not available anymore. The provider’s costs of coal and natural gas are factored in, and we have to pay for those variable fuel adjustments. DEMCO’s provider has a good mix of fuels (coal and gas), and we believe we have a good contract with them going forward.”
The RUS monitors co-ops and tracks how many hours of outages they have, and the co-ops are required to have a plan in place to reduce outages to consumers. “We take this very seriously and work hard to keep the power on for our members,” Vranic continued, “We do everything from controlling vegetation growth in rights-of-way to adding additional stations at strategic locations.” DEMCO is firmly committed to reliable and efficient service to its members.
DEMCO's distribution network operates throughout Ascension, East Baton Rouge, East Feliciana, Livingston, St. Helena, Tangipahoa, and West Feliciana parishes. For more information, please visit www.demco.org.