Category: Coop News

10 year milestone

Congratulations to the employees of ET&S (Energy Transmission and Substation) for reaching 10 years without a lost-time incident! ET&S employees work in all conditions to repair and maintain power service, so safety is paramount. A decade of work without a lost-time incident is an impressive safety milestone that wouldn’t be possible without employees dedicated to making that happen for themselves and their coworkers.

Blue Grass Energy is donating $21,570.53 to Kentucky Wounded Heroes

Powered by the cooperative’s purpose of making life better, the cooperative way, employees organized fundraisers throughout 2019 to raise the money. This total is the largest yearly total collected since Blue Grass Energy began their corporate charity program. Over the last six years, employees have raised and donated over $106,000 to local charities. Thank you to all employees and Blue Grass Energy members who helped make this donation possible!

Nucor and Kentucky co-ops: A powerful partnership

When Nucor Corp., America’s largest steel producer, decided to expand its operations in North America, it chose Kentucky—specifically, two sites served by electric cooperatives.

“Access to affordable and reliable power was a major reason we chose to expand our Gallatin mill and locate our new plate mill in Kentucky. We’ve enjoyed a great working relationship with the state’s electric cooperatives, so it made sense to continue to grow here,” says John Farris, Nucor Steel Gallatin’s vice president and general manager. 

Nucor Steel Gallatin, a mill producing flat-rolled coils in Ghent, is served by Owen Electric Cooperative in partnership with East Kentucky Power Cooperative, its wholesale energy provider.

After a substantial investment in 2017 of $176 million to add galvanizing and pickling lines to the Ghent facility, Nucor is investing $650 million to nearly double the mill’s annual capacity to approximately 3 million tons.  

“Nucor’s continued investment at their Ghent facility has led to tremendous job creation and economic prosperity in the region,” says Michael Cobb, interim CEO of Owen Electric. “We appreciate our strong working relationship with Nucor and value the opportunity to serve as their electric power supplier.”

Meanwhile, about 120 miles downstream on the Ohio River in Brandenburg, Nucor is investing $1.35 billion in a new steel plate manufacturing mill slated to open in 2022 at the Buttermilk Falls Industrial Park, served by Meade County RECC in partnership with Big Rivers Electric, its wholesale energy provider. 

“Big Rivers and Meade County RECC staff have fostered a productive relationship with Nucor officials to bring their Brandenburg steel plate facility to operation on schedule and economically,” says Marty Littrel, Meade County RECC’s president and CEO. “We are excited about the future and the economic growth that will follow Nucor’s presence in the region.”

In addition to an estimated 2,000 construction jobs, Nucor’s new mill is expected to create about 400 full-time positions with an average annual wage of $72,000.

2020 WIRE Scholarships Available for Kentucky College Students

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 end of the 2019 Fall College Term.
  • Student must attend a Kentucky college or university

The scholarship application deadline is JUNE 12, 2020. 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.

Application should be returned to Mary Beth Dennis, KAEC, P.O. Box 32170, Louisville, KY 40232.

South Kentucky RECC Disbursing More than One Million Dollars to Members

For the second year in a row, the Board of Directors of South Kentucky Rural Electric Cooperative Corporation has announced the co-op is mailing $1,604,397 in capital credit refunds to members this week. The refunds from South Kentucky RECC total $1.4 million for the years of 1986, 1987 and 1988. In addition, more than $200,000 is being returned to members from East Kentucky Power Cooperative, which generates the electricity and is owned by South Kentucky RECC and 15 other distribution cooperatives across the state. Capital credit refunds from SKRECC and East Kentucky Power will be delivered in one check to members. A member’s share of this refund is based upon the amount of electricity used in the specified years in relation to the electric usage of all members at that time. In the world of co-ops, when revenues are greater than expenses, the difference is called a margin, and shares are not paid to investing stockholders, as an investor-owned utility would do. They are shared among the member-owners of South Kentucky RECC—the people who get their electricity from the co-op. South Kentucky RECC CEO, Ken Simmons, said this is just one of the many benefits of being a member-owner of an electric cooperative. “It gives the Board and myself great pleasure to be able to send these patronage capital checks to our membership. It affirms what our mission statement says – that we were ‘formed for people, not profit.’ We believe in this mission statement and strive to do the best that we can for our members.”

New Year’s resolution: Act now— and later—to cut energy costs

Some energy efficiency programs have indeed achieved those kinds of results. Get started by looking at some energy saving measures you can do right away for quick savings, and those you can plan for the future for even greater savings.

Dialing for dollars

NOW In most homes, the largest portion of the energy bill goes toward heating and cooling, so set back your thermostat by 7 to 10 degrees for eight hours a day. In winter, aim for 56 degrees at night and when no one is at home, and 68 degrees when you’re up and around. Throw on a sweater. Note that this tactic is not as effective for some homes with radiant heat systems and it is not recommended to change thermostats on heat pump systems more than 1 or 2 degrees.

LATER Adjust your air conditioning settings this summer. If you have a manual thermostat, consider purchasing a smart or programmable one.

Chilly efficiency 

NOW Make sure your refrigerator and freezer aren’t set to a colder temperature than needed. The fridge should be at 38 degrees to 40 degrees and the freezer compartment should be set at 5 degrees. If you have a separate chest freezer, set it to zero. On the flip side, set your water heater to 120 degrees. 

LATER If you’ve got an old refrigerator or freezer, replace it with a new, energy-efficient model or get rid of it. The refrigerator in the garage that you use to chill drinks could be costing you around $200 a year.

Bright moves

NOW The obvious: turn off lights when not in use. Replace the incandescent bulbs that you use most with LED bulbs, which last longer and use less energy. Prices on LED bulbs have decreased. 

LATER Replace all your old incandescent bulbs over time, and consider smart, programmable lighting options. 

Draft dodging

NOW Look for signs of air leaks. Block gaps under exterior doors with a towel or install weather stripping. Make sure windows are caulked, and seal areas around plumbing and wiring penetrations.

LATER Have an energy auditor do a blower door test, which is the best way to identify all air leaks. In fact, an energy audit can help you develop an overall plan for your home. KL

PAT KEEGAN and BRAD THIESSEN write on energy efficiency for the National Rural Electric Cooperative Association.

Giving back this holiday season

The Kentucky statewide office and United Utility Supply are giving back to the community during the holidays! Employees donated over 275 non-perishable items to the Dare to Care Food Pantry located at Lighthouse Christian Church in Louisville. Volunteers served a chili supper and were able to provide 50 food boxes to families in need. We are proud to support one of the cooperative business principles- Commitment to Community.

Kentucky co-ops cheer House vote for RURAL Act

The United States House of Representatives on Tuesday passed the RURAL Act, protecting more than 900 electric cooperatives throughout the nation from the risk of losing their tax-exempt status when they accept government grants for disaster relief, broadband service and other programs that benefit co-op members.

The Senate is poised to pass the bill later this week, and President Trump is expected to sign it into law.

Kentucky Electric Cooperatives has been advocating for the RURAL Act with Kentucky’s Congressional delegation, with four co-sponsors from Kentucky,  Rep. Andy Barr, Rep. James Comer,  Rep. Brett Guthrie, and Rep. Hal Rogers. Kentucky Rep. John Yarmuth also voted in favor of the bill.

U.S. Rep. Andy Barr (Ky-6) meets with Kentucky electric cooperative leaders. Photo: Joe Arnold

In addition, Kentucky’s co-ops have been encouraged by the support of Senate Majority Leader Mitch McConnell of Kentucky on the issue. McConnell listened to the concerns of co-op leaders at the Kentucky Electric Cooperatives Annual Meeting in November.

“We appreciate the members of Kentucky’s congressional delegation who listened to our concerns and are standing up for the local consumer-members of Kentucky co-ops,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives.  The statewide association represents 26 co-ops in Kentucky.

U.S. Rep. James Comer (Ky-1) meets with Kenergy CEO Jeff Hohn. Photo: Joe Arnold

“The overwhelming support of the RURAL Act, despite what congressional observers considered its unlikely passage, also speaks to the strength of the electric cooperative program when local consumer-members speak with one voice,” Perry continued. “The passage of this legislation is an affirmation of cooperative principles. We are all in this together.”

The RURAL Act is the National Rural Electric Cooperative Association’s top legislative priority for the year because of the profound threat to the business model of not-for-profit co-ops. Tens of thousands of co-op leaders, employees and members across the country rallied to advocate passage of the bill.

U.S. Rep. Hal Rogers (Ky-5) meets with East Kentucky Power Cooperative President and CEO Tony Campbell. Photo: Joe Arnold

“This package preserves the fundamental nature of the electric cooperative business model and will save electric co-ops tens of millions of dollars each year,” said NRECA CEO Jim Matheson. “Moreover, it protects co-op members from unfair increases in their electric rates and provides certainty to co-ops that leverage federal and state grants for economic development, storm recovery and rural broadband deployment.”

Lawmakers passed the popular bipartisan legislation in the final hours of the 2019 session as part of a larger tax and spending bill that funds the government through September 2020.

Big Rivers President and CEO Bob Berry (left) listens to remarks by U.S. Rep. Brett Guthrie at the U.S. Capitol. Photo: Joe Arnold

The bill’s passage fixes a problem created in 2017 when Congress passed the Tax Cuts and Jobs Act, which redefined government grants to co-ops as income rather than capital. That change made it difficult for many co-ops to abide by the 15% limit on non-member income to keep their tax-exempt status. The RURAL Act once again exempts grants from being counted as income and is retroactive to the 2018 tax year.

U.S. Rep. John Yarmuth (Ky) meets with Kentucky electric cooperative leaders in 2019. Photo: Joe Arnold

Without the fix, some co-ops would have had to start paying taxes this spring after receiving grants in 2018 or 2019 to repair storm damage, bring high-speed internet to rural communities or invest in renewable energy and energy-efficiency programs. Many co-op leaders feared they would have to raise rates for members to pay the new taxes.

The legislation attracted more than 300 co-sponsors in the 435-member House and more than half of the senators. The effort was led in the House by Reps. Terri Sewell, D-Ala., and Adrian Smith, R-Neb., and in the Senate by Rob Portman, R-Ohio, and Tina Smith, D-Minn.

NRECA lobbyist Paul Gutierrez credited the victory to a collaborative campaign strategy that included co-ops’ grassroots efforts to alert their senators and representatives to the issue.

“This was an amazing NRECA team and membership effort, including co-op members at the end of the line,” he said. “We had great legislative champions in the House and Senate, and they worked tirelessly to get this included in the final tax package.”

A fan of winter: Using ceiling fans can save on energy costs in winter

Most people know ceiling fans can keep you cooler in the summer, but did you know they also can help warm a home in winter? 

In warm months, ceiling fans are set to rotate counterclockwise to create a breeze that cools the skin, though they don’t actually cool the air. In the winter, you should set your fan to clockwise rotation. This pushes down warm air—which rises—and redistributes the heated air through the room. Though this won’t warm the whole house, some studies have shown reversing your ceiling fan in the winter can save as much as 15% on heating costs.

To prevent a too-drafty chill, turn the fan on the lowest speed setting. It may take some adjustments to get the right blend of warm air without a cool draft. With a high vaulted ceiling, it may not even be necessary to reverse the rotation if the fan is set on a low speed.

It’s easy to change the direction on most modern ceiling fans. Just turn off the fan and locate the direction switch, usually on the fan motor housing. Flip the switch and turn the fan back on.

A ceiling fan with a built-in heating element is another option for winter. It still can be used in summer like a regular fan with the heating element switched off. And for balancing temperatures in a two-story home, try mounting a ceiling fan at the top of an open staircase.

—Madelynn Coldiron

Breathe easy: Tips for using room air cleaners

The most important factor in a room air cleaner isn’t the size or price of the unit, but the type of filtering material inside.

For the most effective air cleaning, particularly during winter, use a high-quality central heat pump/furnace air cleaner along with room air cleaners. Some newer central air cleaners are effective, but they remove only the particles that get into the duct system.

When you plop down on a sofa or walk on the carpeting, a cloud of allergen particles will fill the air. Some of these particles are relatively large and settle out of the air before they ever get near the furnace return air registers. An efficient room air cleaner can remove many of these particles using minimal electricity.

Instead of relying on advertising, use the CADR (clean air delivery rate) rating to compare air cleaners’ effectiveness. The Environmental Protection Agency and the American Lung Association recognize the CADR data as accurate and realistic.

Match cleaner to particles

First, have your children tested to determine what airborne allergies they have, and then choose an air cleaner based on the type of particles pinpointed. Three of the most common types of particles in room air are household dust, tobacco smoke and pollen. These cover the size range of most other typical airborne particles. The CADR ratings use separate numbers for the three types and the rating system also indicates the maximum room size for which the air cleaner will be effective.

For example, an electrostatic air cleaner with washable cartridges is effective for tiny smoke particles, but a media filter is better for removing larger pollen and mold spore particles. A HEPA filter removes most particles, but its powerful fan uses more electricity. HEPA and media air cleaners require periodic filter element replacements.

If your allergies are with the larger particles, turn off the air cleaner if the room will not be used an hour or more. These larger particles settle back down and will not be significantly removed with continuous operation.

JAMES DULLEY is a nationally syndicated columnist who writes on energy efficiency and do-it-yourself energy topics.