New DEMCO CEO Discusses Reforms

New DEMCO CEO and general manager Randy Pierce was introduced to the Baton Rouge community at the Chamber of Commerce of East Baton Rouge Parish last month. Pierce took over daily operations of the electric cooperative late last year at what he characterized as a “time of crisis.”

Since then, he has been reviewing daily operations, company policies, audits, revenues, and expenses. He said he found “many opportunities for improvement.”

One of the things he’s done is make personnel changes — more than 40 so far. Although some employees had to be let go, he said he found 30 employees who were ready to take on leadership positions. 

In studying DEMCO’s operations, Pierce said he found the company was actually understaffed. Based on national averages, the non-profit organization should have 260 to 270 employees, although it only has 216.

Pierce has high level experience in the electric cooperative business. For 22 years, he served as CEO of the Louisiana Association of Electric Cooperatives.

He reported that Louisiana now has the lowest electric utility rates in the country. He said utility costs have been growing much slower than other costs of living. Comparing today to 1970, he said the cost of purchasing a home or automobile has increased by 1000 percent, whereas the cost utilities is about the same as in 1970.

DEMCO is the largest of the 11 electric cooperatives in Louisiana with 114,000 members in seven parishes in the Baton Rouge. It is headquartered in Central and is one of Central’s larger employers.

Pierce said the DEMCO board has been criticized but board members are only paid $19,000 a year. The cost of operating the board is only $250,000 out of company revenues of $232 million a year.

When asked about the threat of EMP to the electric grid, Pierce said the National Rural Electric Cooperative Association’s grid security group is looking at this and other threats to our power supply.

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