Following a long commitment of service as utility leaders, Dr. George D. Brown (Central District) and Jim Riley (Eastern District) announced their plans to resign as board members of Pennyrile Electric. Dr. Brown, who has served on the board since 1987, is a retired veterinarian from Elkton, Kentucky. Jim Riley, who has served on the board since 1977, is retired owner/operator of Jesse L. Riley & Son Insurance in Russellville, Kentucky. 

Pennyrile Electric Board Chair, Jimmy Futrell, says both men will be missed for their strong leadership ability. “Dr. Brown and Mr. Riley have both provided the cooperative with outstanding leadership during their years of service to Pennyrile Electric. We are truly blessed to have had the commitment and devotion displayed by these two individuals.” Futrell continues, “We would like to thank Dr. Brown and Mr. Riley for their service to Pennyrile Electric and wish them the best.” 

As a result of the two vacant seats, the cooperative has announced the appointment of two local men to fill the positions. George L. Fox has been appointed director from the Central district and Bob E. Allen has been appointed director from the Eastern district. 

Futrell says, “The two vacancies left on the Pennyrile Electric board by Dr. George Brown and James Riley left big shoes to fill. However, both Mr. Fox and Mr. Allen have already displayed their abilities to be strong leaders in their communities.” 

Fox is a self-employed grain farmer, who currently resides in Elkton with his wife, Catherine. He is a graduate of the University of Kentucky. Bob Allen is also a grain farmer, who resides in Russellville with his wife, Melissa. 

Futrell says, “We are very fortunate to have Mr. Fox and Mr. Allen fill the terms as board members, and we are confident the cooperative will continue to move forward with their leadership.” 

Co-ops thank legislators advocating for Kentucky’s rural communities

Louisville, Ky. (December 20, 2018) – Kentucky’s electric cooperatives applaud today’s signing of the 2018 Farm Bill by President Donald Trump which will advance the interests of rural America. Kentucky’s 26 electric cooperatives serve 1.5 million Kentuckians in 117 counties and are committed to improving the quality of life for their consumer-members, most of which live in rural portions of the state.

Kentucky Electric Cooperatives President and CEO Chris Perry expressed gratitude to the Members of Congress who advocated for Kentuckians in the Farm Bill, in particular Senate Majority Leader Mitch McConnell and Congressman James Comer who both served on the Farm Bill Conference Committee.

“We appreciate Leader McConnell and Congressman Comer tirelessly advocating for rural Kentuckians in the compromise Farm Bill,” Perry said. “The legislation signed by President Trump today includes strong rural development provisions that will allow co-ops to continue our mission, to keep rates affordable and operate as engines of economic development in rural areas that need it the most.”

The Farm Bill includes funding and loans for rural economic development, rural broadband deployment, renewable energy initiatives and home energy retrofits.

The bill also modifies guidelines of the escrow accounts co-ops maintain with the USDA’s Rural Utilities Service. Perry credited advocacy by McConnell and Comer for compromise language that creates a manageable transition to a different structure for this important program.

“Thanks to Leader McConnell and Congressman Comer, the Farm Bill includes compromise language to protect how co-ops interact with the Rural Utilities Service. This will help Kentucky co-ops keep rates affordable while continuing to invest in modernizing the electric grid,” Perry said.

Since its inception two years ago, the Glenn English National Cooperative Leadership Foundation Scholarship Committee has awarded almost $10,000 in scholarships to individuals pursuing a career in engineering.

This annual opportunity would not be possible without the foresight and generous contributions of the IEEE: Rural Electric Power Committee (REPC). Together, we hope to support future engineers with an interest and passion for defining and solving the electric utility challenges of the future, specifically in the rural parts of America.

Get the details and apply.

The Glenn English National Cooperative Leadership Foundation Scholarship
(The “Youth Tour Alumni Scholarship”)

The Glenn English National Cooperative Leadership Foundation encourages educational advancement by awarding high education scholarships to eligible students.

The Glenn English National Cooperative Leadership Foundation has awarded almost $100,000 in scholarships to NRECA’s Youth Tour alumni since the program’s inception in 2014! These are awarded in one $10,000 scholarship and four $1,000 scholarships annually.

Get the details and apply.

Company to create 30 jobs in Inter-County Energy service territory

FRANKFORT (Dec. 13, 2018) – Diageo, a global producer of beverage alcohol, will locate a $130 million distillery in Lebanon creating 30 full-time jobs.

“It was just last year that we unveiled Diageo’s Bulleit distillery in Shelbyville, and this latest investment is another example of continued growth for the company and within our bourbon and spirits industry,” said Gov. Matt Bevin said. “We are honored to broaden our relationship with Diageo and are grateful for their further commitment to Kentucky.”

Diageo will locate the entire manufacturing facility – including a distillery, dry house and warehousing – in Lebanon. Company leaders expect the project to begin in summer 2019 and go operational by early 2022.

Joe Spalding, chairman of the board at East Kentucky Power Cooperative, serves on the local industrial development authority and is chairman of Inter-County Energy, one of Kentucky’s Touchstone Energy Cooperatives. He noted the widespread efforts needed to secure the project.

“Diageo’s investment in the Kentucky bourbon industry and the local community is vitally important, and we welcome them,” Spalding said. “Inter-County Energy has worked with Diageo to meet this distillery’s needs for affordable, reliable energy.”

In 2017, Gov. Bevin joined Diageo executives to cut the ribbon on the company’s Bulleit Distilling Co. facility in Shelbyville. The approximately $140 million, 30-job Shelbyville operation includes a 3 million proof gallon distillery and currently six barrel warehouses. A new Visitor Experience at the site is scheduled to open to the public in summer 2019.

In recent years, the company also invested in a restoration of Stitzel-Weller in Louisville, including a Visitor Experience, bottling line and experimental still. Currently, Diageo employs more than 100 people in Kentucky.

“We thank the Kentucky Economic Development Finance Authority, Gov. Matt Bevin, the Marion County Industrial Foundation and the City of Lebanon for their continued support of Diageo as we look to further invest in Kentucky’s spirits industry,” said Barry Becton, senior director of federal affairs and whiskey at Diageo North America. “Bourbon and American whiskey are vibrant and growing categories and we are excited to expand Diageo’s footprint in Kentucky to support our ambitions in this space.”

Diageo is a global beverage alcohol producer with a collection of brands that includes Bulleit and Buchanan’s whiskies, Johnnie Walker, Crown Royal, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo’s products sell in more than 180 countries. The company employs more than 30,000 people globally with offices in 80 countries. In addition to North America, it also operates manufacturing facilities in Great Britain, Ireland, Canada, Spain, Italy, Australia, India, Africa, Latin America and the Caribbean.

Sen. Jimmy Higdon, of Lebanon, welcomed Diageo’s investment.

“This new distillery is an exciting opportunity for Lebanon,” Sen. Hidgon said. “Diageo is a leading premium beverage producer that has been proven valuable to Kentucky’s world famous bourbon industry. This could be one of the biggest developments in recent Marion County history. I am hopeful that this investment will encourage tourism and future development within our community.”

Rep. Brandon Reed, of Hodgenville, noted the impact the additional employment will bring.

“New jobs and business growth are always good news in our rural areas,” Rep. Reed said. “More jobs and economic opportunity are the positive trends we continue to see thanks to the pro-business policies coming out of Frankfort, and I’m excited about the economic opportunity that this announcement will provide to families in Marion County.”

Lebanon Mayor Gary Crenshaw said Diageo will help drive the local bourbon industry.

“With Marion County’s rich history in the bourbon industry we are proud and humbled to add Diageo’s name to this evolving legacy,” Mayor Crenshaw said.

Marion County Judge-Executive David Daugherty said the project is the result of hard work.

“Marion County has worked hard to create good jobs for the skilled workforce in Central Kentucky and we welcome Diageo’s commitment to help us continue our efforts,” Judge-Executive Daugherty said.

Freddie Higdon, president of the Marion County Industrial Foundation, thanked those involved in getting the project to this stage.

“We need to recognize the city, county and community leaders for their aggressive, visionary leadership in developing infrastructure that allows us to attract an industry with worldwide recognition,” Higdon said.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved the company for tax incentives up to $2.5 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

Additionally, KEDFA approved Diageo for up to $1.5 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

Diageo also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.

For more information on Diageo, visit www.Diageo.com.

The Kentucky Chapter of Women in Rural Electrification (WIRE) is offering three $1,000 scholarships to Kentucky college students.

The scholarships are open to any applicant who meets the following criteria:

• Student or Student’s family must be served by a Kentucky Rural Electric Cooperative.
• Student must have completed at least 60 credit hours at the beginning of the 2018 Fall College Term.
• Student must attend a Kentucky college or university

The scholarship application deadline is JUNE 9, 2019. Scholarship recipients will be notified in July. Scholarships will be awards based on academic achievements, extracurricular activities, career goals, recommendations from professors and community leaders, and financial need.

Mail applications to: Mary Beth Dennis, KAEC, P.O. Box 32170, Louisville, KY 40232.

WIRE Scholarship Application

Disruptive technology may change the way electronic transactions are processed

We are living in the age where the pace of innovation and disruption is getting faster and faster. As a result, keeping up with the latest-and-greatest technologies is becoming increasingly difficult, not to mention expensive. It seems that as soon as we upgrade our smartphone, a new model with a bigger screen and cooler features is released.

One word that comes with a lot of hype and confusion is “blockchain.” Because this technology is completely digital, thereby intangible, it’s tough to truly grasp exactly what it is.

Electric cooperatives know that with any new technology, they must view it from every angle and consider how it will ultimately improve their services. With blockchain, that means recognizing its potential and limitations, both for Kentucky’s electric co-ops and the energy industry as a whole. It also means asking whether blockchain truly benefits our consumer-members.

Let’s take a look at how blockchain works.

What is blockchain, exactly?

In simplest terms, blockchain is a digital, shared ledger that records transactions between buyers and sellers. The transaction records, or blocks, are linked together in a time series, or chain. When a new transaction is completed, a new block is added to the chain.

Electric co-ops make numerous transactions daily, such as billing, contracting with vendors and purchasing power, and even though we have secure, well-functioning systems already in place to handle these types of transactions, some see this as a potential application for blockchain and electric utilities.

What makes blockchain unique?

When a transaction takes place, it’s recorded on a network of computers, also known as nodes. The chain is shared and synchronized among all participating nodes in the blockchain network, making it very difficult to alter the chain without the interference being detected.

Another important characteristic of blockchain is that it’s decentralized. As noted before, a blockchain is distributed across the systems of all participating parties, rather than residing within a single institution, like a bank. This particular feature is why some consider the technology disruptive. Someone in Kentucky can send money to someone in Japan directly, without needing to go through a third party. This feature makes it transparent and eliminates the need for the trusted third party.

What are some real-life examples and applications of blockchain technology?

Currently, blockchain works best when the product being bought or sold is virtual rather than physical. If the transaction involves a material product, whether it be a new home thermostat or a jumbo jet, some trusted agent usually is required to certify that the physical transfer actually takes place.

Eventually, this technology may even start to intersect areas of your life when recordkeeping and processing requires security, efficiency and connectivity. In the coming years, experts see potential for blockchain technology in the fields of health care, supply-chain management, finance and lending, and more. Blockchain could even change the way we prove our identity, as well as issue and maintain birth, wedding and death certificates.

Blockchain, like all software, is a means to an end that will provide different solutions to different needs, and determining its impact starts with understanding what the technology is and how it works.

Time will tell if blockchain proves useful for electric utilities in the future, but for now, they are keeping an eye on this technology trend. Their top priority will always be to provide consumer-members with the safe, reliable and affordable energy they depend on.

Kaley Lockwood writes on consumer and cooperative affairs for the National Rural Electric Cooperative Association.