Sheridan Electric Moves Forward With New Facility

Go or No Go?

That was the question facing the Sheridan Electric Cooperative Board during a special meeting held in February to review the bid package for a potential new facility.

At the October annual meeting, the concept of a new site and building for Sheridan Electric Cooperative was introduced. Preliminary designs were shared along with a ballpark estimate of $20 million. The proposed project included a large cold-storage building for inventory, trailers and transformers. A smaller structure to protect fleet vehicles from the elements, an electrician bay, a fully equipped mechanical shop, a wash bay, and additional storage and work areas. The main office area, while similar to the current facility, would offer improved functionality, including expanded lineman locker rooms, additional workspace, an education meeting room, and a proper entry with a designated sitting area.

Since 2023, these plans have been thoughtfully developed with long-term service to our members and community in mind. Recognizing the shortcomings of our current facility, prioritizing employee safety and comfort, and accounting for an annual power load increase averaging 17 percent, the proposed building would provide the capacity needed to hire additional linemen, electricians, and office staff well into the future.

Understanding the complexity and scale of the project, the board elected to hire Dave Geib as construction manager. Geib has proven invaluable throughout the process, bringing extensive knowledge, organization, industry connections and careful attention to cost and quality. When the project went out to bid, he presented a comprehensive bid package to the board. This included a 200’ x 100’ cold-storage building estimated at $2.7 million and a main facility – complete with parking, mechanical rooms, offices, sewer, and water infrastructure – estimated at $14.6 million, bringing the total projected cost to $17.3 million.

While still a significant investment, the board was pleased to see the estimate come in well below the original $20 million projection. As a result, a motion was made – and approved – declaring the project a “go.” Sheridan Electric Cooperative will soon have a new home. With Geib continuing to lead the project, additional cost-saving opportunities will be explored, and the overall construction timeline is projected at approximately 20 months from start to finish.

Now the real work begins. Geib will collaborate with approved subcontractors, work to lock in material pricing (as costs continue to rise), and begin laying the groundwork – literally – for a modern, efficient and functional facility.

Naturally, one of the first questions is: How will this be paid for? This is where electric rates may eventually come into play. At this time, there is no immediate need to increase rates, and we hope to avoid doing so for as long as possible. Should an increase become necessary, many factors will be considered, including interest rate fluctuations, 30–35 year loan amortization schedules, recent and projected growth trends, and overall financial conditions. If growth continues at its current pace and interest rates remain reasonable, a potential increase of a half-cent ($0.005) per kilowatt- hour will be needed. This is strictly a projection and not a decision. Any potential increase would likely not occur until the end of construction and could change based on future conditions.

We invite our members to attend one of the town hall meetings being held throughout our service area for additional information or clarification. Members are also encouraged to contact board members or Sheridan Electric leadership directly. Transparency is important to us, and we are committed to addressing questions and concerns.