The Bylaws Committee of Flathead Electric’s Board of Trustees is proposing a few changes in the bylaws that govern the Co-op’s operations. The changes will be explained at the annual meeting on March 27 and will be voted on by mail-in ballot. Text of the proposed changes will be included in the ballots that will be mailed to all members after the meeting.

One proposed change would require candidates for the Board of Trustees to submit a nominating petition five days in advance of the annual meeting rather than two days as specified by the current bylaws. The change would give more time to verify that signers of the petition are residents of the district.

The other proposed changes clarify that a majority vote of the Board of Trustees is needed to elect or remove an officer of the board.

Flathead Electric had another solid year in 2003, with continued improvements in the Co-op’s financial health.

Unaudited figures show year-end margins of $5.9 million, helping to build equity and strengthen the Co-op’s financial situation.

"Our margins were good, but not as good as 2002 because of the rate decrease to residential and small commercial members," said Terri Smiley, the Co-op’s Manager of Administrative Services.

The Board of Trustees voted to reduce the basic charge for most members from $21 to $16, effective Jan. 1, 2003. That decrease reduced revenue by approximately $3 million over the year.

The Board also returned a total of $350,000 in capital credits for prior years to to current and former members and the estates of deceased members.

Wholesale power costs were up slightly because of rate increases from Bonneville Power Administration, partially offset by a decrease in power costs from PacifiCorp.

Total expenses in 2003 were down from 2002, primarily due to less costs for maintenance and interest payments. The major focus for line crews in 2003 was construction of new services to keep up with record growth. This year, a renewed emphasis will be placed on maintenance to assure system reliability.

Interest costs were down substantially due to lower rates on variable-interest loans.

Another factor was the sale of the electric distribution system serving coal mines along the Montana-Wyoming border, which consolidated the Co-op’s service area and generated cash flow.