CO-OP UPDATE

Kentucky Electric
CO-OP UPDATE
A roundup of Kentucky electric cooperative information
Area Students Win
App Contest
On February 5, U.S. Rep. Harold
“Hal” Rogers announced a team of
four students from Prestonsburg High
School as the winners of the first
Congressional App Challenge held
in Kentucky’s Fifth Congressional
District. The competition is open
for high school students across the
country. The winning app entitled the
“Kentucky College and Career Readiness Pathway” will be featured on a
display in the Capitol building for one
year. The app helps students begin to Congressman Rogers (far left) presented teammates Blake Ratliff, Jacob Pitts,
form a stronger mindset during their Jonathan Dotson, and Michael Shepherd with first place certificates.
freshman and sophomore year by getting them thinking more effectively about milestones to college
and career readiness. “We are proud of our students in the Big Sandy region,” says Big Sandy RECC
President David Estepp. “We are excited to witness their development of career skills that will unlock a
bright future of unlimited potential in our region.” For more information about the Congressional App
Challenge, visit congressionalappchallenge.us.
Zero Lost Time Accidents
March 2016
CALENDAR
MARCH
8 East Kentucky Power
Board Meeting
Winchester, KY
9-11 SAFETY—Tri-State
Coordinators Meeting
Louisville, KY
18 Big Rivers Electric
Board Meeting Henderson, KY
15 KAEC Board Meeting
Louisville, KY
23 RCCU Executive
Committee Meeting
Louisville, KY
APRIL
2-5 NRECA Directors
Conference
Blue Grass Energy is thankful for its culture of safety. Not only did employees work all of 2015 with
12 East Kentucky Power
More than $16,000 Raised for BGE’s 2015 Charity Organization
14-15 Kentucky HR
zero lost time accidents, but to date, employees have worked 439,217.5 hours without an accident.
Each year, Blue Grass Energy chooses a charity to work with for the year by partnering with a local
nonprofit organization that benefits the
communities in which
the co-op serves. All
fund-raising efforts for
the year goes toward
that cause. Last year
BGE partnered with
Kentucky Children’s
Hospital and raised
more than $16,000
for the hospital. This
year, Blue Grass is
partnering with God’s
Pantry Food Bank and
the Harrison County
Food Pantry.
Board Meeting
Winchester, KY
Conference
Lexington, KY
15 Big Rivers Electric
Board Meeting Henderson, KY
20-21 Spring Managers’ Meeting
Lexington, KY
22 RCCU Board and
Annual Meeting
Bowling Green, KY
27 Frankfort Youth Tour
Frankfort, KY
27-29 SAFETY—
Advanced Hot Line Skills
Bowling Green, KY
Kentucky Electric
CO-OP UPDATE
is produced by
EKPC Reaches Key Strategic
Objective of 15 Percent Equity
East Kentucky Power Cooperative has surpassed a key strategic objective to achieve
a 15 percent equity-to-asset ratio, finishing
2015 with a preliminary estimate of 15.4
percent equity. The equity ratio has nearly
tripled from a low of 5.3 percent in 2006. The final figure for 2015 is subject to change upon
completion of the independent audit and closing of the books this spring. “Five years ago,
our board set an ambitious goal to dramatically strengthen our finances and reach 15 percent
equity by December 2015,” said CEO Tony Campbell. “Through aggressive management of
costs, staffing, and capital assets, along with efficient operation of our generating fleet and
other steps, we finished the year well above the board’s equity target. Everyone deserves a pat
on the back for a job well-done.”
iPad II Air Winner
Morehead State University student and
2015 Grayson RECC scholarship winner
Whitney Pennington was the lucky winner of
an iPad II Air in the Best in Kentucky survey
drawing held recently by Kentucky Living
magazine. Whitney finds plenty of community information in Kentucky Living and
reads the magazine each month. Whitney
was presented the iPad at Grayson’s February
board meeting by CEO Carol Fraley.
When the board set the equity goal five years ago, EKPC’s senior leadership knew it would
be difficult to achieve. “Back then, we thought rates would have to increase and that costs to
member systems could exceed $75 per megawatt-hour,” said Executive Vice President and CFO
Mike McNalley. “But because of the hard work of employees, EKPC held base rates steady.
And we achieved the equity goal at a cost to member systems of $66 per megawatt-hour, which
saved our members more than $100 million last year alone. That is a real accomplishment—
hitting the goal without increasing member costs!”
Investment markets have recognized EKPC’s financial successes. In the fall, Fitch Ratings affirmed EKPC’s investment-grade “BBB+” credit rating and positive outlook, while Standard &
Poor’s (S&P) affirmed EKPC’s investment-grade “A-“ rating and stable outlook. In addition to
reaching the equity target, EKPC achieved a Debt Service Coverage ratio (over 1.25x), which
will support positive ratings actions in 2016 from Fitch Ratings. Members’ equities, total
assets, and operating revenues have strengthened for five years, along with the equity ratio.
Genset is Now Operational
The City of Glasgow has
already received its first
two checks from the sale
of methane gas produced
naturally at the city-owned
regional landfill from East
Kentucky Power that
is using it to power a few
hundred homes. Farmers RECC President/CEO
Bill Prather says the super
engine/generator combination, known as a genset
capacity, is running at
about 70 percent or powering about 350 homes.
East Kentucky owns and
Bill Kennedy, who supervises all seven of EKP’s landfill gas to electricity power
operates the plant for and plants, checks settings on the Glasgow genset. Photo: Glasgow Daily Times
buys the gas directly from
the city, then bills Farmers for the gas and the cost and operation of the plant. Prather said
that at full capacity, the expected payments to the city would total approximately $115,000
to $120,000, but it will be less than that this first year. The amount of gas will keep growing,
though, and the goal is to add more gensets as they are needed; the plant was designed with
that in mind. At full power, enough electricity will be generated to power approximately 500
member homes. The Glasgow plant makes the seventh one for EKPC. Prather hopes that
within the next couple of months everything will be leveled out and the plant will be running
at full capacity, which is 1,000 kW per hour.
2
Whitney, at left, with Grayson’s Manager Marketing &
Member Services Kim Bush. Whitney plans to use the
iPad to take pictures, and to help with her homework.
She also plans to use the iPad for ebooks, PowerPoint
presentations, and note-taking, along with using it
to have fun.
Christmas Blessings Program
Inter-County Energy held its 8th
Christmas Blessings Silent Auction. Items
for the auction were donated by several businesses as well as members in the
community. This year, the proceeds were
enough to sponsor nine families with a total of 27 children. All families are from the
counties in the service areas. Food, clothing, toys, coats, and other necessities were
purchased for each family and delivered in
December by employee volunteers. Since
2008, Inter-County Energy has sponsored
155 children and 53 families. Special
thanks were given to all who helped make
the 8th Christmas Blessings another success.
It Can Pay to be Generous
Go Blue or Go Green!
Jackson Energy is selling blue and green
compact fluorescent light bulbs to raise
money for two great causes. Members can
purchase a blue CFL for $5 and the money
goes to Shop With a Cop, which purchases
Christmas gifts for needy families. Or if a
green CFL is purchased $5 goes to GPS—Getting Peace for Those Who Served, which
supports local veterans. Bulbs are available at
all Jackson Energy offices.
Youth Tour
Memories
Kenergy Corp.
Three Nolin RECC members recently
received a cash prize because of their
participation in the cooperative’s Operation Round-Up (ORU) program. ORU, an
opt-in program, rounds up a member’s
electric bill to the nearest dollar and the
‘round up’ money is put in the ORU fund
and local organizations benefit. A membership drive concluded in December,
which placed new enrollees as well as
current participants of the program in
line to win $25, $50, or $100. The winning
members’ names were selected randomly
from all ORU participants. Nolin thanks
Nolin Cashier Manager Melinda Redmond presents $25 to its members who generously volunteer to
Tracy Arflin II who was surprised to have won and has been contribute to ORU. Members can enroll in
ORU any time throughout the year.
enrolled in the ORU program for several years.
Return to Haiti
Three linemen from Owen Electric landed in Haiti on February 28. This is the second time
Owen has sent linemen to Haiti to help build an electric system where there was no electricity
before. The linemen, Travis Duvall, Nate Pickett, and Bobby Von Bokern, are participating in
NRECA’s International Electrification program. To learn more about this program and the
many rewards received by participating, go to this YouTube link and watch the video featuring
Owen Electric’s CEO Mark Stallons and two of last year’s crew, Matt Greenlee and Bobby Von
Bokern: https://youtu.be/52z7j-yDlrE
member Joe
Westerfield of
Owensboro sent
the co-op this letter in February:
“I was just reading the article in the (Messenger-Inquirer)
about the kids who were selected to attend
the June Washington Youth Tour. It brings a
flood of memories back to me. I grew up in
Ohio County and along with two boys from
Daviess County, one from Hancock and one
from McLean, was selected to attend Rural
Electric Youth Day in Washington, D.C.
“I had never flown in an airplane before, yet
we were flown to Washington in what I believe was Green River RECC’s [now Kenergy]
private plane. This was in 1964 and may have
been the first year of this conference. There
were 400 of us there from 12 states. Because
the World’s Fair was so close that year in New
York City, we were also flown there to see it.
What a trip. This was one of the highlights
of my high school years. I am so happy that
Kenergy has continued to support this wonderful program some 50-odd years later for
our young people to experience.”
J. William Flowers Award
Pennyrile Electric’s Frances Henderson,
manager of IT, received the J. William Flowers Award at the United Way of the Pennyrile
Campaign celebration. This award is given
to the person who is deemed to be the most
tirelessly dedicated and an invaluable contributor to the United Way’s cause. Frances, on
the left, is pictured accepting her award from
past recipient Sandy Grogan, Pennyrile’s vice
president of Accounting and Finance. Frances
has been working with the United Way campaigns for more than a decade. Also receiving
an award, Pennyrile Electric was awarded the
People Helping People Award, which was created to honor organizations that provide outstanding support to the United Way. Also, Pennyrile Electric employees were recognized for
100 percent participation in the Hopkinsville and Elkton districts.
3
Efforts Continue with Backpack
Food Program
During the 2015 holiday season, Shelby Energy experienced great success with its efforts to give to the Backpack
Food Program by collecting more than $1,400 to distribute
among the Shelby, Henry, and Trimble counties’ programs.
The co-op wants to continue helping the program throughout
2016 and beyond. In January, employees came together for
a fundraiser luncheon to raise money to contribute to the
program. The cooperative raised $120 and plans to continue
these luncheons throughout the year. In addition to fundraisers, Shelby Energy is also sending employees out to each of
the school districts in Shelby, Henry, and Trimble counties to
help pack the bags of food going out to students.
In the photo at left, Evelyn Lancaster, CSR, and Rick Shaw, line technician, pack some backpacks.
Award Winners
Shelby Energy was recognized
as the 2015 Energy Efficiency
Award winners among East
Kentucky Power Cooperative’s
owner-member cooperatives.
Shelby Energy saved the most
kilowatt-hours (adjusted by co-op
size) across the system. Pictured
at left, Shelby’s Laurie Gutermuth,
Barbie Goodwin, and Candi Waford receiving the award.
Raising Money for American Cancer Society
South Kentucky RECC recently held a luncheon to raise money for the American Cancer
Society. This luncheon included a silent auction with items donated by several employees. The total
raised was $2,251. This event was held in honor of Sherry Edmon who recently lost her battle with
cancer. Sherry was the wife of South Kentucky Staking Engineering Supervisor Andy Edmon.
Winter Storm Jonas
South Kentucky RECC experienced a severe ice and
snow event (Winter Storm Jonas) on January 22 with over
half an inch of ice followed by over 18 inches of snow.
This caused widespread outages throughout the service
area with over 15,000 members being out of service at
the peak. South Kentucky thanks its sister cooperatives
for assistance during this storm. Shelby Energy released
its contractors to assist, Inter-County Energy and Salt
River Electric sent linemen to assist in outage restoration. Power was restored to all members by January 26.
Damage caused by Winter Storm Jonas.
4
After this major storm, First Christian Church in Monticello, KY, hosted an appreciation pancake breakfast for
SKRECC workers to show sincere appreciation for all the
hard work during Winter Storm Jonas. Flyers to the local
offices were sent to encourage both workers and their families to stop by the church February 13 and enjoy breakfast
served with a smile from First Christian Church volunteers.
New Web Site
The West Kentucky RECC Web site has
a fresh look and some great new features—
www.wkrecc.com. Helpful information under
the “Outages” tab provides a handy tipsheet
from the Red Cross to help families prepare
for possible power outages. Under “Resources,” there are a variety of tools and services
for members, including a new link to fun
activities for kids and details about the West
Kentucky Community Room, an event space
available to WKRECC members. Members
can still use the Web site to access the online
bill payment system, read news releases, or
even download the latest copy of bylaws.
WIRE Offers
$1,000
Scholarships
Since 1989, the
Kentucky Chapter of Women in
Rural Electrification
(WIRE) has offered
college scholarships
to Kentucky college
students to help finish their degree. Applications for three $1,000 scholarships are now
being taken. 2015 scholarship recipient Kelci
Fulkerson is grateful. “I’m attending graduate
school now and it is more expensive. Receiving the WIRE scholarship helped relieve a
little financial burden stress and I can focus
more on school work.” Kelci, who is studying
speech language pathology, says she heard
about the WIRE scholarship from her mother
whose hometown is served by Warren RECC.
Over the past 27 years, WIRE has given more
than $91,000 in Kentucky college scholarships. WIRE scholarship applications will be
taken until May 13, 2016. For more information about the scholarships, go to KAEC.org
and search “WIRE scholarships.”
CO-OP STAFF UPDATES
BLUE GRASS ENERGY
INTER-COUNTY
CLARK ENERGY
JACKSON ENERGY
Greg Harrington joins Blue Grass
Energy as vice president of Engineering. He previously worked for Nolin
RECC as manager of Engineering and
Operations for over 13 years. His wife,
Tonya, works for Central Hardin High
School. They have three children.
Board director Walter “Smiley”
Ballard was recently awarded the
Credentialed Cooperative Director
Program Certificate and board director James Wells was awarded the
Board Leadership Program certificate. Both directors completed the
required education hours to receive
these recognitions.
CUMBERLAND VALLEY ELECTRIC
The March 2016 issue of Kentucky
Living devotes a whole page and
more on its Web site for Cumberland
Valley Electric President and CEO
Ted Hampton. Hampton succeeded
his late uncle as distribution manager
for Cumberland Valley 52 years ago.
Hampton is the longest serving manager in Kentucky history and has the
10th longest tenure in U.S. history.
Only one other active co-op leader
has served longer, hired five days before Hampton, according to benefits
administrators at NRECA.
GIBSON EMC
Gibson EMC board members Steve
Sanders and Rana Buchanan have
both earned a Director Gold Certificate through NRECA’s new certification program. Both Sanders and
Buchanan have previously earned
NRECA’s Credentialed Cooperative
Director Certificate and Board Leadership Certificate. The Director Gold
Certificate demonstrates an ongoing
commitment to advancing knowledge.
Sanders has been on the board for 15
years and has served as board chairman
since 2014. Buchanan has served for
nearly 13 years.
Diane Rogers retired in January. She
began her career in June of 1984 as
a billing and collecting clerk. Diane
later accepted a position as the assistant accountant. In 2008 Diane was
promoted to accountant, a position
she held until her retirement.
Tim Bobrowski was recently selected by the board of directors to fulfill
the remainder of the term for former
director Fred Callahan. Bobrowski
is the superintendent of the Owsley
County School District. He and his
wife, Tina, have two children.
JACKSON PURCHASE ENERGY
On January 15, Izell White retired
from Jackson Purchase Energy. Izell
joined the JPEC family in April of
1986, when she was hired to work
as a stenographer in the personnel
department. After her 30-year tenure,
she left the cooperative as vice president of Human Resources and Member Relations. Izell is widely regarded
by her colleagues across the state as a
leader in the field of human resources.
Fellow co-workers wish her well.
KENERGY CORP.
Susie Givens has been selected to fill
the Kenergy board seat left vacant by
the death of long-time director Randy
Powell. Powell served for 40 years before his death on September 12, 2015.
Givens, who is Powell’s daughter, took
her seat on the board at the February
board meeting. Givens is the CEO of
Givens International Drilling Supplies, a company she founded 21 years
ago.
PENNYRILE ELECTRIC
Two long-term employees recently
retired: Ricky Turner, district manager of the Cadiz Office, and Mark
Wilkins, district manager of the
Russellville Office. Ricky came to the
co-op in August 1983 and served as
district manager since 2004. Mark
has been an employee since July 1978
and served as district manager since
2000. Steve Walters has been named
manager of Member Services and
will assume the position of managing
district offices. Steve began work in
May of 1992 and has worked in several
positions, including right-of-way, line
technician, and district manager of the
Elkton Office.
SHELBY ENERGY
Shelby Energy would like to announce some recent staffing changes.
Johnna DeWitt, who was previously the executive assistant to the
CEO, will now be in the position of
District Billing supervisor at the
Bedford office on June 1. Johnna’s replacement in the executive assistant
position is Laurie Gutermuth, previously Member Services representative. Laurie began her new position
on February 8.
TRI-COUNTY EMC
Retiree Mike Arterburn was presented a retirement album and silver
tray on December 8 in recognition of
41 years of dedicated service to TriCounty Electric. Mike retired from
the Scottsville District Office in May.
WARREN RECC
President and CEO Scott Ramsey is
recuperating from undergoing back
surgery on January 29.
LICKING VALLEY RECC
After 29 and a half years of service
to Licking Valley and it’s members,
Tommy Conley retired in January as
General Superintendent. During his
years with the co-op, he also served
in maintenance and member services.
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Kentucky Association of Electric Cooperatives -- 2016 Annual Meeting Schedule
Cooperative
Date
Registration
Business Mtg.* Meeting Location
Gibson EMC
Tri-County EMC
Inter-County Energy Co-op
Grayson RECC
Licking Valley RECC
Big Sandy RECC
Clark Energy Cooperative
Fleming-Mason Energy Co-op
Blue Grass Energy Cooperative
Salt River Electric
South Kentucky RECC
Cumberland Valley Electric
Kenergy Corp.
East Kentucky Power
Owen Electric Cooperative
Meade County RECC
Jackson Purchase Energy Corp
Shelby Energy Cooperative
Nolin RECC
Pennyrile RECC
West Kentucky RECC
Warren RECC
Farmers RECC
Jackson Energy Cooperative
Taylor County RECC
Big Rivers Electric Corporation
3/31/2016
5/5/2016
5/6/2016
5/12/2016
5/13/2016
5/19/2016
5/20/2016
5/26/2016
6/2/2016
6/6/2016
6/9/2016
6/10/2016
6/14/2016
6/14/2016
6/17/2016
6/20/2016
6/21/2016
6/23/2016
6/24/2016
7/5/2016
7/9/2016
7/12/2016
7/14/2016
7/14/2016
7/15/2016
9/15/2016
6:00 p.m. CDT
5:30 p.m. CDT
5:00 p.m. EDT
7:30 a.m. EDT
5:00 p.m. EDT
6:00 p.m. EDT
5:00 p.m. EDT
4:30 p.m. EDT
4:30 p.m. EDT
5:00 p.m. EDT
4:00 p.m. EDT
5:00 p.m. EDT
4:00 p.m. CDT
9:00 a.m. EDT
4:30 p.m. EDT
6:30 p.m. EDT
4:00 p.m. CDT
4:30 p.m. EDT
5:30 p.m. EDT
4:00 p.m. CDT
12:00 p.m. CDT
4:00 p.m. CDT
6:00 p.m. CDT
10:00 a.m. EDT
8:30 a.m. EDT
N/A
7:00 p.m. CDT
7:00 p.m. CDT
7:00 p.m. EDT
6:00 p.m. EDT
6:45 p.m. EDT
7:00 p.m. EDT
6:30 p.m. EDT
6:00 p.m. EDT
6:30 p.m. EDT
7:00 p.m. EDT
7:00 p.m. EDT
6:30 p.m. EDT
6:30 p.m. CDT
10:00 a.m. EDT
7:00 p.m. EDT
7:30 p.m. EDT
6:00 p.m. CDT
6:30 p.m. EDT
7:00 p.m. EDT
5:30 p.m. CDT
2:00 p.m. CDT
7:00 p.m. CDT
7:00 p.m. CDT
2:00 p.m. EDT
10:00 a.m. EDT
6:00 p.m. CDT
Gibson County High School, Dyer, TN
Trousdale County High School, Hartsville, TN
Boyle County High School, Danville
Grayson RECC Office, Grayson
Licking Valley RECC Warehouse, Malone
Mountain Arts Center, Prestonsburg
Stanton City Park, Stanton
Fleming-Mason Energy Office, Flemingsburg
Keeneland Barn & Entertainment Ctr., Lexington
Bullitt County Fairgrounds, Shepherdsville
South Kentucky RECC Farm, Nancy
Knox County Middle School, Barbourville
Owensboro RiverPark Center, Owensboro
East Kentucky Power Office, Winchester
Grant County High School, Dry Ridge
Breckinridge County High School, Harned
Four Rivers Center, Paducah
Henry County High School, New Castle
John Hardin High School, Elizabethtown
Western Kentucky State Fair, Hopkinsville
Graves County High School, Mayfield
South Warren High School, Bowling Green
Cave City Convention Center, Cave City
Jackson Energy Farm, McKee
Taylor County RECC Office, Campbellsville
Kenergy Corp. Headquarters, Henderson (tentative)
times
tentative
subject
to change.
**AllAll
times
areare
tentative
andand
subject
to changes.
CO-OP PHOTO OPS
At right, Clark Energy’s Patty Young
attends the Campbell Jr. High “It’s
Your Reality” program. The Clark
County 4-H program helps students
experience real-life simulations
of what life will be like after high
school. Clark Energy was a volunteer for the program.
H.L. Spurlock became East Kentucky Power’s first general
manager in 1951. Under Mr. Spurlock, EKPC built three
power plants that dramatically improved rural Kentucky’s
quality of life. This year, EKPC celebrates 75 years of delivering safe, reliable, and affordable power to 16 ownermember cooperatives serving 1 million Kentuckians.
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At right, it’s all in a day’s work. On
January 28, Inter-County Energy linemen performed a pole-top rescue for
this unfortunate cat. The cat had spent
the night on top of the utility pole
during very cold temperatures and
left-over snow.