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Discover Co-op Conversations with DEMCO as we explore the power of a local member-owned not-for-profit electric cooperative. Since 1938, DEMCO has woven cooperative principles into every wire, and our business isn’t just about electricity.
At DEMCO, we’re more than just an electric company, and our work, is more than just a job. As a local member-owned cooperative, we are your neighbors, your family and your friends. We exist to serve you, and we take a lot of pride in all that we do.
Our mission is to enhance the quality of life for our members, employees, and communities by safely providing reliable and competitively priced energy services. You’ve probably seen us out in the community—at events on and off duty—doing what we can to make a difference.
And now, you can hear us on your favorite podcast platform as we discuss what makes cooperatives special and inform the community about how we are striving to serve you in everything we do.
DEMCO, Powering life and community, that’s the cooperative difference!
David Latona:
Welcome to Co-op Conversations with DEMCO,
where we talk about the topics that impact your power,
your co-op, and your community. I'm your host,
David Latona.
Joining us today is DEMCO's Chief fFnancial Officer Peggy
Maranan.
And today we're talking about something that affects every
member,
how DEMCO works behind the scenes to manage costs responsibly
while continuing to improve the
reliability of our electric distribution system.
Peggy, thanks so much for being here.
Peggy Maranan:
Thank you David. I'm so glad to be here today.
David Latona:
I wanted to start with something we know is top of mind for
members right now,
and actually anytime. That's costs dollars and cents are very
important to folks.
We're seeing costs go up everywhere:
groceries, fuel, insurance.
Oh my goodness, insurance. Everyday expenses and electricity is
part of that conversation,
too. And when it comes to managing those costs for the co-op,
your role really sits at the center of that,
and we appreciate that so much. Can you talk a little bit about
how you do that,
how you're the guardian of those finances for our members?
Peggy Maranan:
A big part of my role in the finance team is making sure that
we're managing the co-op's finances,
as you stated, responsibly. Looking at both the cost of operating
the system and how we recover those costs.
But it also means looking for opportunities to bring funding to
the co-op so the full burden doesn't fall all on
our members.
David Latona:
That's an important distinction because DEMCO is a not-for-profit
cooperative.
Can you explain what that really means from a financial
standpoint?
Peggy Maranan:
Our customers are actually member-owners.
We exist for the sole purpose of providing a service,
which is electricity to our co-op members.
The decisions we make are focused on serving our members and
maintaining a reliable system as responsibly as possible.
At DEMCO, the costs of operating and maintaining the electric
system are shared by those members,
all of our members. So really, David,
every dollar matters.
David Latona:
That's so important. And it's so different from other business
models that we see.
That's what I want to talk a little bit more about today.
Would you expand on that?
Peggy Maranan:
Oh, sure. That's one of the guiding principles behind how we
operate.
The finance department is always working to find innovative
funding opportunities.
A lot of work goes into that behind the scenes.
David Latona:
Can you dive into that a little deeper for us,
Peggy?
Peggy Maranan:
Sure. Anytime we can secure outside funding for work that has to
be done anyway,
it helps to offset those essential system costs and allows us to
reallocate our resources for other reliability needs across
the system. Our teams work closely with agencies at the state and
federal level,
and we maintain partnerships across our industry.
We're continuously monitoring the funding landscape for programs
that will align with our operational needs and our long term
goals.
David Latona:
I know that's difficult. Everybody has the ability to search the
internet and to look at the federal opportunities.
How do you find those opportunities because I'm sure it is pretty
competitive,
right?
Peggy Maranan:
Yes. There's a lot of research,
a lot of coordination, a lot of communication needed.
The state and local grant funding opportunities are becoming
increasingly more competitive.
There's public entities, utilities,
nonprofits, private organizations.
We're all competing for that limited pool of dollars.
Programs focused on grid resiliency,
disaster mitigation, and energy innovation continue to attract
significant interest, as you can imagine.
Cooperatives that maintain shovel ready projects,
build relationships with funding agencies and support
applications with strong data are often the best positioned to
secure that funding that we talked about.
Today, grant success is not just about finding the opportunities.
It's about being prepared to compete for them when they become
available,
so we're constantly monitoring the landscape.
You have to understand what programs are available,
what they're intended to support and whether they fit the
operational needs that DEMCO has.
And then be prepared because you typically need to move very
quickly when those opportunities become available.
David Latona:
That's a great point. So that's how DEMCO identified the US
Department of Energy's Grid Resilience
Innovation Partnerships. You know,
the federal government loves a good acronym.
So the GRIP fund's. What stood out to you about the GRIP funding
opportunities?
Peggy Maranan:
Well, the GRIP funding, they had many opportunities,
but one of them focused on strengthening electric grid
reliability and resilience. And one of those funding categories
specifically involved vegetation management and
hazard tree removal, which immediately stood out to us because of
how important that work is for our rural electric system
like DEMCO.
David Latona:
And vegetation management is probably one of those things members
don't think about very often unless a tree comes down during a
storm.
Peggy Maranan:
Well, that's very true. But for us at DEMCO,
it is actually one of the most significant costs and ongoing
operational responsibilities that we have.
David Latona:
What makes that such a major focus?
Peggy Maranan:
Well, because DEMCO serves a very large rural area spanning seven
parishes,
a lot of our infrastructure runs through heavily wooded areas,
and vegetation is one of the leading causes of outages,
especially during storms and severe weather.
But believe it or not, even on what we call our blue sky days.
So keeping rights-of-way clear and removing hazard trees is
essential to protecting the system and to helping prevent the
outages even before they occur.
David Latona:
Okay, so this isn't necessarily occasional work.
Peggy Maranan:
Oh, not at all. This is continuous,
recurring work that happens all year round.
It's part of our normal operations,
and it's also one of the more labor intensive and costly parts of
maintaining the system.
David Latona:
So I guess when we have those existing expenses,
that's when that funding opportunity becomes especially
meaningful.
Peggy Maranan:
Exactly. Because that is work that DEMCO would have needed to do
regardless.
David Latona:
Would you walk us through that timeline a little bit?
When did DEMCO apply for the grant and just some of those steps
that it took for that process?
Peggy Maranan:
Oh, sure, and it is a process. I'm glad you brought up that word.
You need to have a lot of patience.
We submitted the application in November 2024 under that
Vegetation Management and Hazard Tree Removal category.
And then in October of '25, we received notice that the award had
been approved.
We have gone out for bids with vegetation contractors this year,
and the contracts were recently awarded for that first set of
line spans that are scheduled for this maintenance.
But in total, we anticipate completing about 125 miles of
vegetation management system wide and were
scheduled to have that work completed by around about the same
time next year,
of course, weather permitting.
David Latona:
That is something we face here in southeast Louisiana,
for sure.
So tell me what was ultimately approved?
Peggy Maranan:
So ultimately, the total project that we submitted represented
about $3.3 million in vegetation
management work. And of that amount,
approximately $2.2 million will be covered through the federal
and state support, so we did have about a third match on the
DEMCO side.
David Latona:
Excellent. So I know you said it takes a lot of work,
but when you're talking about those dollars now,
that is certainly significant.
Peggy Maranan:
It really is, David. Because again,
this is planned system work that DEMCO would have completed
regardless. By securing outside funding,
we're able to apply resources to other reliability and resiliency
improvements across our system.
David Latona:
That's really the big picture here.
Peggy Maranan:
Exactly. The impact goes well beyond just the funding itself.
We're always working to strengthen the overall system.
We look for ways to operate efficiently,
consistently.
We pursue funding opportunities,
and we manage costs responsibly,
all while continuing to invest in reliability and resilience to
our members.
That's what our members expect,
David.
David Latona:
What a great takeaway. DEMCO found a way to complete essential
work while continuing to invest in
reliability improvements.
Peggy Maranan:
That's exactly right. And really,
it's a practical example of how the cooperative model works.
David Latona:
For our members, the benefit is clear.
The work gets done. The system stays strong.
The funding secured through external partnerships allows DEMCO to
reinvest more resources into
strengthening the electric system for our members.
And that's what it means to be a part of a cooperative.
Peggy, thanks again for joining us today.
Peggy Maranan:
And thank you, David, for having me.
David Latona:
Absolutely. Thank you for listening to Co-op Conversations with
DEMCO.
Be sure to subscribe so you don't miss an episode.
If you like what you heard, leave us a review and like and share
the episode with a friend.
For Peggy Anne Maranan, I'm David Latona.
Let's keep the conversation going.