We are now in the midst of an economic period we have not seen since the 1970s and early 1980s. Interest rates are moving higher for the foreseeable future, inflation is at a level not seen in 40 years, and economic growth is slowing. This was called "stagflation" in the '70s and '80s.

The point of this article is to discuss how this economic environment impacts management issues at power and utilities organizations. We'll touch on the large areas for consideration. There are not always straightforward answers in these areas, but many points for consideration.

Electric cooperative financial strategies include operating cash flows, cash reserves, debt, and customer equity investments in the co-op, which are called patronage capital. What is patronage capital, and how can your cooperative establish a financial strategy that has a long-term balance of cash reserves, debt, and member equity. We discuss proven policies.

The 2021 Infrastructure Investment and Jobs Act provides a number of grants for electric utility and co-op projects, including grid infrastructure, distribution projects, cybersecurity, nuclear, carbon capture, and renewals. The 2022 climate bill adds additional funding, mainly for renewal energy projects. This article includes insights on applying for federal grants and the types of grants available for applications.

Environmental, Social, and Governance (ESG) and sustainable business practices are a key component of utility strategy. Success in moving the “E” factor towards reducing emissions can sometime put a dent in the utility or co-op electric budget. This article discusses the use of decoupling to mitigate budget damage and maximize budget recovery.

Are lines blurred in your utility over financial responsibilities? The responsibility for the bond rating is part of the role of the utility's Board of Directors through the approval of budgets, electric rates, and short and long-term strategy. The better the bond rating, the lower the interest rate and more funds are retained by the utility vs. paid to bond holders. What are strategies to follow? Here are some insights.