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.

LOUISVILLE — Agriculture advocate, renowned livestock judge and respected state leader Warren Beeler was honored as the “2018 Distinguished Rural Kentuckian” at the 72^nd  Annual Meeting of Kentucky Electric Cooperatives. The award is the highest honor bestowed by Kentucky’s electric cooperatives, which consists of 26 co-ops across the commonwealth.

Prior to his 2016 appointment as executive director of the Governor’s Office of Agriculture Policy, Beeler worked for the Kentucky Department of Agriculture for 17 years, including as  director of agriculture policy.

Beeler is a graduate of Western Kentucky University, where he majored in animal science. In addition to his role as director of agriculture policy, Beeler served as director of livestock marketing, director of the Shows and Fairs Division, and livestock marketing specialist. Before joining the Kentucky Department of Agriculture, Beeler served as an agriculture extension specialist at the University of Kentucky, where he helped develop the first on-farm testing program for swine in Kentucky.

A Spring Lick, Kentucky native who grew up helping on the family’s dairy farm, Beeler made a name for himself in the swine industry. He is recognized as one of the greatest swine geneticists in the U.S. and has produced some of the country’s finest breeding stock. As a farmer in Caneyville, Beeler has shown four grand champion hogs and two grand champion lambs at the Kentucky State Fair.

Yet Beeler is perhaps best known for his contributions to youth development. He established numerous livestock clinics and started a judging evaluation clinic that evolved into Kentucky’s popular junior livestock expos.

“I’ve judged livestock shows for 43 years in 42 states, and I don’t do it for the livestock,” Beeler said. “I do it for the kids. And the thing about being a judge is that they will listen to you. So, great judges are great teachers.”

Beeler and his wife, Dee Dee, raised five children on their farm in Caneyville. In his remarks upon accepting the award, Beeler expressed gratitude to his late parents for the values they instilled in him on the farm, working hard and love of family.

“Because the most important thing I think anybody can do is work,” Beeler said. “Success is earned. Most people that don’t go to the barn when they don’t have to, or things they do when they’re not asked. It’s what you do when you don’t have to do anything that makes people really special.”

Beeler joins an impressive list of Distinguished Rural Kentuckians, including other several legendary figures in Kentucky agriculture, such as farm broadcaster Barney Arnold, the state fair board’s Smith Broadbent and Harold Workman, and Agriculture Commissioner Billy Ray Smith.

“I think about all the Kentuckians in the world and rural cooperatives, and what a service that they offer,” Beeler said. “I think there are people way more deserving than me. I am very proud, very proud to even be considered, and I love Kentucky.”

Warren Beeler’s acceptance speech:

Background on Distinguished Rural Kentuckian Award:
Since 1982, the Distinguished Rural Kentuckian honor has been awarded by Kentucky’s member-owned electric cooperatives. Previous Distinguished Rural Kentuckians include elected leaders, authors, journalists, business executives, physicians, and sports champions. The award recognizes outstanding individuals who have devoted their lives to Kentucky in a way that matches the co-op mission of enhancing the quality of life here.

Kentucky Electric Cooperatives is the new identity of our statewide association, which represents and supports all 26 electric co-ops in the Bluegrass State. These locally owned co-ops provide power to more than 1.5 million people across 117 of the state’s 120 counties.

Our services to your local co-op include safety and management training, communications support led by our flagship publication, Kentucky Living, and public advocacy before the state legislature and state agencies.

We work to ensure that legislation and regulations won’t adversely affect your local co-op’s ability to provide safe, reliable and affordable electricity. That’s why we need your help to speak up for your co-op to your local elected leaders.

Our new name reflects the unity and collective strength of Kentucky co-ops. When we work together and present a unified front, our co-ops can achieve much more than we can as separate entities. This is an important collaboration to help your local co-op continue to efficiently and effectively serve you.

Though the commitment of the statewide association to its member co-ops has remained constant since we formed 75 years ago, every generation has had to adapt to its own unique circumstances and make careful and conscientious choices.

We continue to evolve, just like your local electric co-op. Kentucky Rural Electric Cooperatives Corporation (KRECC) was officially incorporated in 1948, and in 1974 we became Kentucky Association of Electric Cooperatives (KAEC).

At Kentucky Electric Cooperatives, each co-op brings its unique experience to the table. Your co-op was built by, belongs to, and is led by people in its home communities. Yet one of our principles is cooperation among cooperatives, and our unity has never been more important than in this era of co-op history. 

Holiday traditions

HENDERSON

Traditions are an essential part of the holidays, and that is certainly true at the Pendergraft home in Henderson.

Each Thanksgiving the Pendergrafts savor a big meal and then pull out their lists. It’s time to go shopping—for some 600 children.

Larry Pendergraft, his brother Richard and their siblings are the heart of the Henderson Goodfellows, a local organization that for 57 years has provided children with clothes, toys and a party to celebrate Christmas.

They get the names of needy children from local schools and the money to care for their needs from local people—mostly in the form of $5, $10 and $20 donations, which “although small, really add up,” according to Larry.

“When I was very young, a little girl was sitting on the steps of the school crying because she had never gotten anything from Santa,” Larry recalls. “I was able to pick out a tea set from our stock and give it to her. I’ve never forgotten how happy it made her.”

Larry has joined in every holiday season since, raising funds then making Christmas dreams come true for local children ages 4-11.

Family of firefighters

EWING

Before the days of 911 in Fleming County, the community of Ewing had a phone tree for emergencies. One person called the next until everyone got the information. Young boys such as Grover Money grew into men by watching their forefathers collectively handle emergencies. They saw lives rescued and homes saved from ruin.

When he matured, Money began volunteering for the Ewing Volunteer Fire Department, and at 61, he is still a volunteer firefighter.

“Nationwide, 85 or 95 percent of firefighters are volunteers,” notes Money. “We are the first line of help available. Saving someone’s life is the No. 1 priority, and saving property is second. Many of our neighbors don’t have insurance, so it is rewarding to save their belongings as well.”

Money is also in the business of saving lives in his job for Fleming-Mason Energy. He has worked at the co-op since May 2, 1977, currently as the safety coordinator and staking engineer.

Money’s work ethic and volunteer spirit will live on another generation. Son Sam, 28, is a professional firefighter with Florence Fire EMS and also volunteers in Ewing with his dad.

Pennyrile Electric’s Board of Directors selected Alan Gates as the cooperatives new President & CEO. Gates, who has most recently filled the role of vice president of operations and technical services, has held several positions throughout his tenure. Gates was hired in 1989 as an engineering aide. He soon moved to the position of substation technician and later promoted to manager of technical services. 

Jimmy Futrell, chairman of the board of directors, says, “We knew, with the strength of our internal employees, we could find our next CEO from within the cooperative. Alan has been instrumental in several positive changes the cooperative has made over his years of employment. We are confident in his ability to lead the cooperative in the years ahead.” 

“I want to thank the board of directors for giving me such a great opportunity,” Gates said. “Pennyrile Electric is a strong organization with great employees. I look forward to serving our membership and continuing our mission to provide safe reliable electricity.” 

Alan resides in Hopkinsville, Kentucky with his wife, Ashley. They have two children, Marley, 21, and Latham, 17.