Category: Coop News

The sun will shine bright again

Have you been a little stir-crazy? Have you been missing friends and family? How has school been going at home with your kids?

I have been struggling with the essential lockdown of our country. This is the time of year when I generally travel around the state to each of our 26 local electric cooperatives—from Paintsville to Paducah and from Gamaliel to Germantown—to attend annual meetings.

Many of those meetings in May and June have been rescheduled for later in the year, while some co-ops plan to hold virtual meetings and/or drive-thru registration instead. Thanks to all of you for your continued interest and participation as our co-ops adjust schedules.

Kentucky is beautiful and may be the best kept secret in the country. Our people are strong and resilient. Kentuckians are also kind. During this pandemic, I have seen this strength in our nurses and doctors. They have been quick to point out that this virus is dangerous and that we should heed the warnings.

I want to personally thank all the health care professionals and all the others who have been on the front lines during this war. These amazing Kentuckians prove how strong and kind we are.

It doesn’t matter where I am in the state, our citizens are warm, caring and willing to help in any way. Monthly in Kentucky Living, we introduce you to the unique characters and people who make our state special and we highlight interesting places and communities.

It’s also the time of year when I normally become sentimental over our state song with the Kentucky Derby, which usually takes place the first Saturday in May but has been moved to September this year.

My Old Kentucky Home is a wonderful song that makes me think of the warm, sunny days we yearn for at this time of year. I think back to times of sitting on the porch with my grandmother and preparing homegrown green beans, and waving at cars going by.

The sun will shine bright again on our Old Kentucky Home. I know that this spring has been difficult—as the song says, hard times come a knocking at the door. I can’t wait to drive down the parkway and see the corn and beans growing. I am going to look forward to the harvest once again.

May God bless and hold close each of you and your family and friends.

Chris Perry, Kentucky Electric Cooperatives President and CEO.

Counting on Kentucky co-ops

February started simply enough with electric co-op employees across Kentucky following the early advice of public health experts to increase handwashing and decrease physical contact with others.

As COVID-19 pandemic concerns intensified in March, cooperatives responded with characteristic discipline, setting into motion procedures and policies for the safety of consumer-members and employees.

Disasters are what electric-co-ops know well. Staffs are trained to respond quickly and safely to ensure consumer-members have electricity. 

Safety steps co-ops are taking

At Farmers RECC’s offices in Glasgow and Munfordville, the first steps included closing the lobbies and a regular deep cleaning of commonly touched surfaces.

“We have redeployed our workforce as much as possible, including alternating employee shifts and disbursing employees among different locations,” says Farmers President and CEO Bill Prather. “We want to assure our members that Farmers RECC has taken multiple steps to ensure continuous, normal business operations with a focus on serving our members with safe, reliable, affordable service, as always.”

In Paintsville, Big Sandy RECC implemented the highest level of its pandemic plan. With the exception of its billing department, employees are working from home. Customer service representatives work alternating shifts.

“Our CSRs wear latex gloves and disinfect payments and paperwork received in the drive-thru and the mail,” says Big Sandy RECC President Bruce Aaron Davis. “We are also practicing social distancing while in the office.”

Staggered shifts for line crews are also the new practice at Jackson Energy Cooperative in southeastern Kentucky. The co-op’s safety culture extends beyond the workday. All employees and their families have been encouraged to stay home when they are not working and on their personal time off.

“With the uncertainty created by the coronavirus pandemic, we know our members are facing many concerns,” says Carol Wright, president and CEO. “Jackson Energy is dedicated to finding the best solutions for our membership while ensuring the continued safety of our employees and our members during this difficult time.”

Electric co-ops critical and essential

Co-op employees and contractors are among the workers in critical infrastructure industries identified by the U.S. Cybersecurity and Infrastructure Security Agency as essential to continued infrastructure viability.

“With so many cooperative members isolated at home, it is critically important that we maintain reliable electric service,” says Anthony “Tony” Campbell, president and CEO of East Kentucky Power Cooperative, Winchester, which provides power to 16 electric distribution co-ops in central and southeastern Kentucky.

In addition to such measures as teleconferencing, limiting travel and strict social distancing, EKPC is taking special care in its role as a major power supplier to co-ops serving consumer-members in 87 counties in Kentucky and to PJM Interconnection, the nation’s largest electrical grid. Some work areas have been isolated. Critical staff such as plant operators and line crews have been isolated, and shifts have been separated.

“EKPC is doing everything we can to keep our employees healthy and to prevent the spread of illness, so we can keep the power flowing,” Campbell says.

To help consumer-members to pay their electric bill safely, cooperatives are encouraging them to use electronic transactions via co-op websites and mobile apps. In addition, most drive-thrus remain open and night-deposit boxes can accept payments. (Please check with your local electric co-op or see the center section in this issue to confirm before going.)

“We understand the challenges and overwhelming circumstances that many of our consumer-members are facing,” says Greg Grissom, president and CEO of Jackson Purchase Energy Cooperative in Paducah. “JPEC will not disconnect consumer-members or charge late fees for a limited time. While this is not our normal procedure, we are sensitive to the unforeseen circumstances and financial burden being placed on many of our consumer-members.”

This is the case at many electric cooperatives, but consumer-members are encouraged to pay at least a portion of their bill as they are able. This will help avoid a large multi-month balance when the pandemic is over. Contact your co-op for payment options.

Community Action Agencies Accepting Applications for Low-Income Home Energy Assistance Program (LIHEAP)

FRANKFORT, Ky. (May 1, 2020): In response to the COVID-19 emergency, Community Action Agencies across Kentucky are now taking applications for an added spring open enrollment period for Low-Income Home Energy Assistance Program (LIHEAP). Applications will be accepted through June 30, 2020, or until designated funds are depleted on a first-come, first-serve basis.

“The COVID-19 pandemic has put many families under unprecedented stress. They should not have to worry about how they will keep their lights on and cook for their children,” said Roger McCann, executive director of Community Action Kentucky. “That is why this new Spring LIHEAP couldn’t come at a better time. It will help take some of that stress off. When it is combined with other Community Action services, LIHEAP will really help families and communities in their efforts to recover and rebuild.”

The program, which is designed to help low-income households offset home energy costs, has increased income eligibility requirements to 150 percent of the Federal Poverty Guidelines. The benefit amount awarded is based on an individual’s income and primary fuel type. Benefits are paid directly to the primary fuel vendor in the form of a voucher.

Each year, the 23 Community Action agencies provide home energy assistance to over 100,000 Kentucky families through LIHEAP. Kentucky’s Community Action Network collectively operates outreach offices in all 120 Kentucky counties. Qualified applicants are encouraged to contact their local Community Action outreach office for specific applications instructions.

All applicants will be required to supply the following documentation at time of application:

• Proof of Social Security Number or Permanent Residence card (Green Card) for each member of the household.

• Proof of all household’s (all members) income from the preceding month.

• Most current heating bill, statement from your landlord if heating expenses are included in your rent, statement from utility company if you participate in a Pre-Pay Electric Program. 

• The account number and name on the account for main heating fuel sources and electric bill.

Community Action Kentucky administers LIHEAP in partnership with the Kentucky Cabinet for Health and Family Services who receive the funding as a pass-through block grant from the U.S. Department of Health and Human Services. More information about LIHEAP and a listing of LIHEAP outreach offices can be found at the Community Action Kentucky website at www.CAPKY.org.

Electric Co-ops Face $10 Billion Revenue Loss by 2022 Due to COVID-19

COVID-19 is projected to cost electric cooperatives $10 billion in load loss and unpaid bills through 2022, new research by NRECA finds.  

Economic disruptions related to the pandemic will drive electric co-op sales down by 6.1% in 2020, 6% in 2021, and 3% in 2022, for an average loss of 5% over the period when compared to pre-COVID-19 projections, according to NRECA estimates. 

This loss of electric load will slash co-op sales revenue by $7.4 billion, while a surge in unemployment, combined with a moratorium on disconnections, will drive up unpaid electric bills to $2.6 billion through 2022, the report says.

NRECA CEO Jim Matheson urged the administration and Congress to recognize the peril this represents for co-ops and their members and to act quickly to blunt unprecedented financial hardship.

“As the economic impact of this pandemic spreads, electric co-ops are being challenged like never before to keep the lights on for millions of essential service and frontline workers in hospitals, grocery stores, food production, critical infrastructure and families quarantined at home,” Matheson said.

“Policymakers must act to address COVID-19’s financial threat to co-ops and rural communities and prevent significant disruptions.”

Forecasts from Moody’s Analytics show a sharp decline in U.S. GDP and a lengthy recovery through mid-2023 due to the pandemic. NRECA leveraged those forecasts and other publicly available information in the analysis.

“Electricity powers the American economy, and a stalled economy uses less energy,” said Russell Tucker, NRECA’s chief economist. “As GDP growth falls in the wake of COVID-19, co-op electricity sales will decline.” 

He noted that disconnect moratoriums in 46 states are likely to dramatically increase delinquency rates for cooperatives.

On top of the financial crush, Tucker said about 2.5 million jobs in co-op communities are in the most at-risk sectors of the economy, including energy extraction, transportation and tourism.

“As the coronavirus pandemic evolves,” he said, “the economic impact on the communities and members served by electric cooperatives is significant and is growing.” 

Cathy Cash is a staff writer at NRECA.

Scammers Target Co-op Consumer-Members

LOUISVILLE, Ky. (April 23, 2020) – Electric cooperatives across Kentucky are reporting a surge in scammers attempting to exploit Kentuckians amidst the COVID-19 crisis.

Since the COVID-19 pandemic began its spread, consumer-members in at least six electric cooperative service areas across Kentucky have reported receiving calls from someone claiming to work for the local electric co-op and threatening to disconnect service without immediate payment.

In March, the Kentucky Public Service Commission issued an order that halts disconnections for non-payment and fees for late payments. The PSC cautioned that these temporary measures do not relieve customers of the obligation to ultimately pay bills in full, and co-ops have been working with their members on deferred payment plans and other assistance to ease the transition once the pandemic has passed. 

Coops urge members to avoid arranging payment or divulging account or personal information, including debit or credit card information, over the phone unless you are certain you are speaking to your utility. If you are unsure, hang up and call the publicly listed number for the utility. When making online payments to your electric provider, always double-check to ensure that you are on the correct website before submitting credit card information.

Kentuckians who suspect a scamming attempt should contact their utility and the Kentucky Attorney General’s office:

Online scam reporting form:  ag.ky.gov/scams

Consumer Protection Hotline:  1-888-432-9257

Below are some tips Kentuckians should follow to protect themselves: 

  • Do not assume the name and number on your caller ID are legitimate. Caller IDs can be spoofed.
  • Never share your personal information, including date of birth, Social Security number or banking account information.
  • Never wire money to someone you don’t know.
  • Do not click links or call numbers in unexpected emails or texts – especially those asking for your account information.
  • Most utilities will NOT require their customers to purchase prepaid debit cards or money orders to avoid an immediate disconnection. 
  • If you receive a call that sounds like it may be a scam, or if you believe the call is a scam, hang up, call the police, report the incident to your local utility, and report the call to the Attorney General’s Office.
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About Kentucky Electric Cooperatives:

Kentucky’s electric cooperatives serve more than 1.5 million people – about 35% of the state’s population – in 117 of Kentucky’s 120 counties.  The statewide association provides representation before the General Assembly, Congress, and regulatory bodies: safety training; coordination of management training; and public relations support including publication of Kentucky Living magazine.  Kentucky Electric Cooperatives is governed by a board consisting of one manager and one director from each of its 26 member systems and is headquartered in Louisville.  

McConnell briefs Kentucky electric cooperative leaders

LOUISVILLE, Ky. (April 21, 2020) – On a Tuesday morning conference call, U.S. Senate Majority Leader Mitch McConnell (R-KY) briefed leaders of Kentucky’s electric cooperatives on the progress of coronavirus relief measures, and listened to co-op concerns about the impacts of the pandemic on local communities.

Kentucky Electric Cooperatives, the statewide association of the local member-owned co-ops, projects at least a $90 million loss of co-op revenues statewide through May as a result of COVID-19. While much of that loss in revenue is due to a downturn in electricity sales due to state mandated restrictions on economic activity, co-ops are also shouldering millions of dollars in bill non-payment. Co-ops are providing information about available resources and working with consumer-members to help them avoid large balances in the future.

“Even in these uncertain times, Kentucky’s electric cooperatives continue providing unfailing service across our Commonwealth. I’m heartened to have them lighting the way,” said Senator McConnell. “As Senate Majority Leader, I’m constantly working to put Kentucky’s priorities at the center of the national discussion. I’m grateful for the information the co-ops shared with me, and I enjoyed the opportunity to update them on the Senate’s efforts to deliver immediate relief during the coronavirus crisis.”

To help prevent the need for rate increases to offset revenue losses, co-ops are seeking federal legislation that would direct the U.S. Department of Agriculture’s Rural Utilities Service program to take advantage of historically low interest rates and allow co-ops to reprice or refinance RUS debt without penalties for borrowers and to increase the amount of lending available under the RUS Guaranteed Underwriter Program. Cooperatives are also seeking to be included in future coronavirus relief including increased funding for rural broadband service.

“We greatly appreciate Senator McConnell hearing our concerns and demonstrating his awareness of how this pandemic is affecting rural Kentucky,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “We would have certainly understood if this call had been postponed as he negotiates coronavirus relief legislation, but Sen. McConnell always has time for us, and we believe that by understanding our concerns, the legislation he negotiates in Washington reflects real needs here back home.”

Kentucky’s electric cooperatives continue to provide service and perform necessary maintenance and repairs while following CDC guidelines such as social distancing. Cooperatives have adjusted staff schedules to protect the safety of the employees and maintain quality service levels. 

About Kentucky Electric Cooperatives:
Kentucky’s electric cooperatives serve more than 1.5 million people – about 35% of the state’s population – in 117 of Kentucky’s 120 counties.  The statewide association provides representation before the General Assembly, Congress, and regulatory bodies: safety training; coordination of management training; and public relations support including publication of Kentucky Living magazine.  Kentucky Electric Cooperatives is governed by a board consisting of one manager and one director from each of its 26 member systems and is headquartered in Louisville.  

Youth Tour goes ‘virtual’

Coronavirus changes co-op plans

(March 27, 2020) – With the Frankfort Youth Tour of Kentucky’s electric cooperatives postponed by the COVID-19 pandemic, elected leaders are making sure that the 150 high school juniors selected for the leadership program are still receiving a virtual dose of civic engagement.
Video messages by Kentucky Secretary of State Michael Adams and Representative Samara Heavrin highlight the “Virtual Frankfort Youth Tour” released by Kentucky Electric Cooperatives. Other elected leaders are also invited to add their messages to the video.

“Now more than ever we need those of you who are eligible to register to vote, and we need poll workers” says Adams, whose message focused on rural voting. He credited his election in November to voters in rural counties saying: “My grandfather made me this wooden state of Kentucky after I won my race. Look how many counties are red, rural counties. Never forget every vote counts.”
Previously scheduled for March 17, the 2020 Frankfort Youth Tour was to also kick off this year’s Co-ops Vote initiative to encourage civic engagement by local consumer-members of Kentucky co-ops. Electric cooperatives serve 117 of Kentucky’s 120 counties.
“We are really sorry to miss the opportunity to take students to Frankfort. It’s not only an opportunity for our students to learn more about Kentucky’s government, but for those that go on to the Washington Youth Tour, it creates an even deeper connection between local and national leadership” says Sarah Fellows of Nolin RECC.
For nearly fifty years, Kentucky’s local electric cooperatives have sponsored youth tours of both Frankfort and Washington, D.C., selecting rising young leaders in their service territories to gain a personal understanding of American history, civic affairs, and their role as citizens and members of electric cooperatives.
“It saddens me that we had to cancel the Frankfort Tour, but it was the best decision,” says Vanessa Blagg of Jackson Purchase Energy. “Our students’ health and well-being are of the utmost important to us.”
“My mom told me the trip to Frankfort was cancelled,” says Gabe McFadyen, a Warren RECC student. “I’m bummed, but I understand.”
Heavrin, who was sponsored on the 2009 Washington Youth Tour by Warren RECC, says the experience opened her to career opportunities she didn’t know existed. After working on Capitol Hill and the Kentucky State Treasurer’s office, Heavrin was elected in November to represent Kentucky’s 18th House District, serving Grayson and Hardin Counties.
“I became the youngest woman ever to serve in the Kentucky General Assembly and I truly give that all up to my opportunity to be on the Washington Youth Tour,” Heavrin says. “I’m so thankful Kentucky Electric Cooperatives invested in me just like they are investing in you today. What an incredible opportunity you have to learn more about our government and a life as a public servant.”
In deciding to postpone the 2020 Frankfort Youth Tour, Kentucky Electric Cooperatives heeded the call of Governor Andy Beshear to avoid large social gatherings. Since then, Beshear has only intensified those public health directives.
“The safety and quality of life of our local co-op consumer-members are our priorities,” says Chris Perry, president and CEO of Kentucky Electric Cooperatives. “We hope to find an alternative date in the future to continue this important commitment to Kentucky’s future.”

COVID-19 Threat Triggers Nationwide Co-op Response

Faced with a national public health emergency and heightened concerns among members about the spread of the coronavirus, electric cooperatives are taking steps to deal with pandemic contingencies. 

“We have closed our offices and are maintaining all administrative services with employees who are teleworking from home, and line crews are using a video conferencing app to do their morning check-ins,” said Krista Bouchey, a communications specialist with Orcas Power and Light.  “Lineworkers are taking their rigs home at night and staggering their visits to our yard and warehouses, so they don’t have to congregate on the loading docks.”

Assignments requiring the physical presence of staff are now filled by a single staffer supported by colleagues working remotely, she added.  

The Eastsound, Washington-based distribution cooperative serves about 15,000 members across an archipelago 100 miles north of Seattle. With gatherings by more than 50 people prohibited by an executive order from the governor, Orcas Power has canceled annual and district meetings and has used social media to conduct candidate forums in preparation for director elections that will proceed by mail-in ballot. 

“We’ll use a teleconference app for our board meeting this week and air the first part of the meeting on Facebook Live,” Bouchey said.

A co-op subsidiary that provides broadband service has geared up to support affected school systems, enabling online classes for high school students regardless of whether their families subscribe to the service.  

“The schools will provide them with laptops, and our broadband company will provide hotspots granting them access to school-related content,” Bouchey said.

Months-Long Preparations

Co-op managers of human resources and safety and loss control began raising concerns about novel coronavirus exposure and its effects on operations in January as the first deaths in China’s Wuhan Province were making headlines. 

Inquiries and information-sharing intensified across the co-op network in early February, and the pandemic preparedness, response and mitigation sections in co-op emergency operations plans were reviewed.  Many co-ops have devoted time and space in safety meetings and staff communications to their individual preparations in recent weeks.

“We have been planning for this over the past several weeks,” said Tim Culpepper, CEO of Cullman Electric Cooperative, who says the pandemic threat represents a unique situation. “We are fortunate to have technology that will allow some of our employees to work from home.”

The co-op notified its more than 43,000 members around Cullman, Alabama, that both of its offices are closed until further notice.

“For those employees who need to be at the office, we are developing a modified schedule to limit the number of employees at our facilities at any one time,” said Culpepper. “We are also fortunate that almost all customer transactions can be performed over the phone, through the internet, at a kiosk or at the drive-thru.”

Minimizing Contact 

Following recommendations from the U.S. Centers for Disease Control and Prevention that discouraged gatherings of more than 50 people for eight weeks, many co-ops are notifying members that annual meetings and other community events typically held in spring will be postponed or canceled.

“The attendance at EnerStar’s Annual Meeting is well above 250 people and has the potential to attract more than 1,000 people,” said Michael D. Clark, president and CEO of Paris, Illinois-based EnerStar Electric Cooperative

In a message to his members on March 16, Clark cited a mandate issued by Illinois Gov. J.B. Pritzker last week prohibiting large crowds.

“The election of the board of directors will proceed as scheduled,” Clark wrote, adding that completed ballots are being collected at the co-op’s night lockbox. “The cooperative highly encourages members to mail their ballots in the pre-addressed, stamped ballot envelope they received along with their ballot in mid-February.”

Prepared for Uncertainty

While many co-ops are taking actions to limit staff density and member contact for at least two weeks, officials are continuing to follow reports from the CDC, their state emergency management agencies and the federal government for long-term guidance. 

“The Jackson EMC emergency management team has implemented the pandemic response plan to address increasing concerns and mitigate the impact of the coronavirus on our co-op and our communities,” April Sorrow, director of public relations and communications for the Jefferson, Georgia-based distribution co-op, said in a statement March 16. 

“Our offices will be open for drive-thru traffic only” through March 27, she said.  “We will also scale-down office personnel, with most of our employees telecommuting. During this period, we’ll suspend disconnections of service for nonpayment.”

Many co-ops are already preparing for the economic disruption members will face as a result of protracted pandemic restrictions, including loss of income, unexpected childcare expenses and related household cost increases.

“Members may have difficulty in the coming weeks with potential unexpected coronavirus impacts of illness, quarantine, lack of regular income or caring for an affected family member,” said Kathryn Gloria, vice president of corporate communications and community services for SECO Energy

The Sumterville, Florida-based distribution co-op is waiving late fees and allowing for special payment arrangements for members.

New Hampshire Electric Cooperative notified its 81,000 members and account holders March 16 that service disconnections would be suspended and late charges waived for the duration of the national emergency. They also told members that staffing at co-op offices would be reduced to minimize the threat of exposure.

“We appreciate our members’ understanding and patience,” said Steve Camerino, president and CEO of the Plymouth, New Hampshire-based co-op. “We encourage all our members to follow public health officials’ guidance on what they can do to protect themselves and their community.”

Derrill Holly is a staff writer at NRECA.

See NRECA’s COVID-19 hub on cooperative.com for key resources for co-ops, including guidance on business continuity planning and communication, as well as event schedule changes.

Frankfort Youth Tour postponed

Kentucky’s electric cooperatives heed Governor’s caution amid COVID-19 concerns

Frankfort, Ky. – Kentucky Electric Cooperatives Frankfort Youth Tour which annually sends 150 high school juniors from across Kentucky to the state capitol has been indefinitely postponed out of public health concerns amid COVID-19.

“The safety and quality of life of our local co-op consumer-members are our priorities,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “Based on the recommendation of Governor Beshear to avoid large social gatherings and in an effort to protect all Kentuckians, we made the decision to postpone the 2020 Frankfort Youth Tour. We hope to find an alternative date in the future to continue this important commitment to Kentucky’s future.”

Previously scheduled for Tuesday March 17, the Frankfort Youth Tour includes remarks from elected leaders, tours of the State Capitol and Governor’s Mansion and civic education at the Kentucky History Center and Museum. For nearly fifty years, Kentucky’s local electric cooperatives have sponsored youth tours of both Frankfort and Washington, D.C., selecting rising young leaders in their service territories to gain a personal understanding of American history, civic affairs and their role as citizens and members of electric cooperatives.

Let’s play ball

My memory is strong of my dad and I throwing a ball back and forth in the front yard. I would try to throw a curve ball and invariably it would bounce in the dirt and hit him in the chin.

My team was the “Big Red Machine” and I wanted to play third base like my hero Pete Rose. My dad would reference Brooks Robinson of the Baltimore Orioles when I would play third, but he was slightly before my time. 

I would eventually learn that I wasn’t good enough to make it that far, but I still love going to baseball games.

The best place to spend a few hours is at one of the many Minor League Baseball parks in Kentucky. A baseball fan can see a mix of players at a minor league game. You may see the seasoned veteran rehabilitating from an injury. You may see the bright-eyed new pro trying to make his mark, and at times, you may see world-class talent preparing for a major league roster.

I once went to Louisville for a Reds affiliate game—more specifically, I went  to see Deion Sanders prepare to join the majors. I sat close to him in left field, watching his amazing talent as he ran down a ball in the gap that no human should have been able to get to and then speed around the bases for a triple.

I want to encourage you to visit one of these parks as winter turns to spring. The entertainment, the food and the ability to see amazing athletes up close make it the best-kept sporting secret in Kentucky.

Many of the baseball coaches in your communities are staff and lineworkers of Kentucky’s electric cooperatives. Be sure to thank them for volunteering their time. Catch one of their games, too.

Chris Perry, Kentucky Electric Cooperatives President and CEO.