Investing wisely for our members and our future
by Randy Smith
For more than 85 years, Dixie Electric has grown alongside the communities we serve. That growth brings additional responsibilities to our members and our employees.
Recently, Dixie Electric purchased property on Flynt Road in Laurel, formerly the Wayne-Sanderson headquarters. I want to take a moment to explain why this decision was made, how it benefits our members and employees, and how it positions us for the future.
But before I do that, I want to take a moment to provide some historical context. Dixie Electric, then Jones County Electric Power Association, was in a small office on Ellisville Boulevard in Laurel from 1938 until 1943, when they moved to an office on South Magnolia Street. In 1949, a new headquarters was built on that same site on South Magnolia Street, which is now the site of the Laurel Police Station. They remained at that location until 1970, when the office and headquarters on Hwy 184 (Hwy 84 at that time) were completed.
It is a solid, well-designed, and well-constructed facility that has served Dixie Electric well for more than 55 years, almost two-thirds of the life of the cooperative. By contrast, they were at the South Magnolia site for only 21 years. At the time it was built, there were fewer than 60 employees. It was built with growth in mind, but I don’t think anyone could have imagined what Dixie Electric would become. Today, we employ more than 145 employees, each playing a critical role in delivering safe, reliable, and affordable electricity to our members, as well as reliable, high-speed internet service through DE Fastlink.
When DE Fastlink launched in 2020, our growth accelerated. We didn’t just grow in size; we grew in responsibility, services, and expectations. We did everything we could to make our existing space work. Offices became shared spaces for up to three or four employees. Conference rooms also became shared office space, and storage closets became offices. We even had to rent storage space for equipment and files. We stretched and adapted as much as possible, but over time, it became clear we had outgrown the facility that had once served us so well.
As we began planning for the future, we considered building a new headquarters on our existing property. However, with today’s construction costs, that option would have required a very significant investment. Then, unexpectedly, another opportunity emerged: the Wayne-Sanderson facility became available.
This option allowed us to meet our needs at a much more cost-effective price than building new. While the property includes more space than we currently require, that excess space also became part of the solution. By leasing unused portions of the building back to Wayne-Sanderson, we are offsetting the costs to purchase and operate the new facility and further reducing the financial impact to our members.
We had a decision to make — either pursue the option that kept us in a single location but at a much higher cost or make the more financially responsible decision. With careful deliberation and guidance from our board of directors, we chose the path that best reflects our commitment to being good stewards of our members’ investment.
Every decision of this magnitude is made with thoughtful consideration. This one was no different. Guided by our cooperative principles, particularly Members’ Economic Participation, we approach decisions with a long-term view. Much like the facility built in 1970 supported our members for decades, this decision reflects thoughtful planning and our responsibility to ensure the cooperative remains strong and well-positioned for the future. When we looked at the options, we fully believed this was the best decision for Dixie Electric and its members and employees.
As with any expense of this magnitude, members might be concerned with how it could affect their electric bill. This purchase was financed over a long period of time so that no one generation of members absorbs all the cost. Just like the costs of substations, poles, wire, and transformers that are spread out over time, this purchase is treated exactly the same way. It plays a small part in the overall fixed costs of the cooperative, but when spread over time, it has a minimal impact on any one member, especially when you consider that we’re leasing part of facilities back to Wayne Sanderson or other organizations in the future.
Today, we are adjusting to a new normal. Our operations and member services teams continue working out of the existing facility on Hwy 184, while administrative departments and DE Fastlink-related employees have transitioned to the Flynt Road location. We are excited about what’s ahead for Dixie Electric and DE Fastlink. Most importantly, we remain committed to serving you with integrity, accountability, and a long-term vision that keeps our members at the center of every decision we make.