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NOVEMBER 2011

Steps to restoring power Whether we’re building a new substation, replacing power poles, or trimming trees too close to power lines, Blue Ridge Electric works every day to keep your power reliable. No matter how well we maintain our electric system, severe weather sometimes harms power poles and lines, leading to outages. Trees falling on power lines are the major cause of outages. That’s why we have a right-of-way maintenance program to protect over 8,000 miles of power lines serving the cooperative’s 74,000 members. Restoring power after a major outage involves much more than simply throwing a switch or removing a tree from a line. The main goal is to restore power safely — for members and line technicians — in the shortest amount of time possible. Our outage response plan is based on the following priorities: Step 1: Transmission structures and lines that supply power to one or more transmission substations are restored first. These main delivery lines receive first priority because they serve tens of thousands of people. Step 2: Restored next are distribution substations, which “step down” or reduce voltage from transmission lines so it can be distributed to thousands of members. You can report an outage at any time by calling our automated PowerLine at 1-800-448-2383.

Step 3: Main distribution supply lines are restored next if the problem cannot be found at earlier check points. These are the lines on power poles along roads. Step 4: The final power supply lines, called “tap lines,” are restored next if needed. These lines “tap off” the main distribution lines. Step 5: Damage can also occur on the service line leading from the transformer pole into your home. This can explain why your neighbors have power and you don’t. Please report outages at any time by calling our automated PowerLine at 1-800-448-2383.

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Members can be involved and have a voice in their cooperative in many ways from Member Advisory Committees, Community Leaders Council, Foundation Advisory Committee, and more. While not all members may have the opportunity to serve on a committee, each of you has the opportunity to vote annually to elect other members to represent you on the board of directors. And this is the most important way you can participate in your cooperative! That’s because your directors help guide and direct Blue Ridge Electric. They set policies, rates and strategic direction so that the best interests of the membership as a whole are met. And they help ensure your cooperative is positioned to meet your needs for reliable and affordable electricity, now and in future years.

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A key benefit of belonging to a cooperative like Blue Ridge Electric is the voice you have in this business.

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More convenient voting options: greater member involvement

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ve to control costs in Offi cer Doug Johnson ways that don’t sacrifice power reliability or customer service to our members. Based on the overwhelming response by members to vote for directors using new options combined with a need to control costs, your directors — after careful review — voted to approve a new annual meeting format beginning in 2012. Next year’s annual meeting will be a much simpler, less costly event. It will continue to be held the second week of June but moved to a weekday evening: Thursday, June 14, starting at 7 p.m. Instead of entertainment and prizes, the focus will be to deliver business information: financials, the state of the cooperative, and any other timely updates. Directors elected by the membership will also be announced. While members may still cast their vote at the annual meeting, it is more cost effective for the cooperative if you vote by mail or the Internet.

The board recently approved a change to the cooperative’s bylaws to make it easier than ever to vote in director elections: you can vote over the Internet starting with the next election in June 2012. The overwhelming response to this year’s director election kit mailed to members and their participation in the “vote by mail” option led the board to review and approve adding this second convenient alternative. More than 9,000 members voted by mail this past June — up from an average of about 800 votes in past elections when the only way to vote was to attend the annual meeting!

All members will again receive a mailed director election kit and will continue to receive information in a variety of other ways: your member magazine and newsletter: Carolina Country and Membership Matters; on our website at BlueRidgeEMC.com, through our social media at facebook.com/blueridgeemc; and through member committees and the entire director election and governance process which members are informed of through their newsletter and other communications channels.

As the director voting process modernized and evolved, it presented the opportunity to review how we conduct the annual meeting. Years ago, the annual meeting was held solely for the purpose of director elections. Over time, it grew into a much more elaborate — and costly — event. Yet, fewer members are attending. As your cooperative is affected like other utilities across the nation by rising costs from the nation’s need to build more power generation plants and delivery systems, we must consider how

We’re excited about the tremendous increase in members involved in their cooperative made possible by new convenient options to vote for their board of directors. We’re also pleased to find ways to save money and benefit our members by delivering the most reliable electricity at the lowest possible cost. As we modernize and evolve in many different ways, your cooperative’s board and management have one ultimate goal: to better serve you — the members of Blue Ridge Electric.

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More News Portable generator safety While Blue Ridge Electric has one of the highest reliability records in the nation, severe weather sometimes lead to power outages. Portable generators offer benefits when an outage affects your home but they can pose serious safety hazards to you and others if not used and installed correctly. We urge members to follow these tips: •

Follow the manufacturer’s instructions when operating your generator.

Never connect a generator directly to your home’s wiring — this can cause backfeeding along power lines and electrocute anyone coming into contact with them. For the same reason, never plug a generator directly into a regular household outlet.

To prevent electrical shock, ensure your generator is properly grounded according to the manufacturer’s instructions.

Operate generators in a dry place outside away from intake vents into your home to avoid dangerous fumes inside your house.

Always plug appliances directly into generators. Use heavy-duty, outdoor-rated extension cords that have a grounded three-prong plug and are in excellent condition.

Keep children and pets away from generators.

Never overload a generator. They should only be used when necessary and to power only essential equipment or appliances.

Never refuel a generator while it’s operating. Only store fuel outside away from living quarters and away from heat sources.

Always turn off equipment powered by the generator before shutting it down.

It’s a good idea to contact Blue Ridge Electric if you plan to be using a generator, especially during an outage.

Thank you for following safe installation and operating procedures when using portable generators. This helps protect the safety of your family as well as our line technicians who are working on power lines and equipment during outages.

Smart meter service inspections While automated smart meters are greatly reducing the need to be on members’ properties, we must still periodically check this digital equipment and perform maintenance. Blue Ridge Electric or a contractor authorized by the cooperative conducts periodic inspections of the metering facilities. This inspection is in accordance with the requirements of the National Electrical Safety Code and helps ensure our members receive reliable and uninterrupted electric service. As a safety precaution, members should be aware that authorized contractors and their vehicles will have official Blue Ridge Electric identification.

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Members Only NEWS

~For Members of Blue Ridge Electric

Governance documents updated CORPORATE OFFICE PO Box 112 • Lenoir, NC 28645

CHIEF EXECUTIVE OFFICER Doug Johnson EDITOR Renée R. Whitener PRODUCTION SUPERVISOR Susan Simmons DISTRICT OFFICES Caldwell (828) 754-9071 Watauga (828) 264-8894 Ashe (336) 846-7138 Alleghany (336) 372-4646 Wilkes (800) 451-5474 (800) 448-2383 PowerLine® (PowerLine® is an automated account information and outage reporting system.) Toll Free 1 (800) 451-5474 (for members outside the service area) To report an outage at any time, call one of the numbers listed above. OFFICE HOURS 8:30 am - 5:00 pm, Monday - Friday Night deposit available. Visit us on the Web: www.BlueRidgeEMC.com

The board of directors approved updates to the cooperative’s Bylaws and Service Rules and Regulations at their regular September board meeting held Sept. 22. Members can view the complete set of Bylaws and Service Rules and Regulations at BlueRidgeEMC.com or they can request a copy at any Blue Ridge Electric office. A summary of the Bylaws updates include: accepting an electronic proxy (in addition to existing options of mailed proxies and written ballots) when voting for nominees for the board of directors (Sec. 2.05, 2.06); in preparation for the following year’s director elections the board will appoint a credentials and election committee and a nominationing committee at their October board meeting (Sec. 2.07, 3.06); director qualifications now include not having a membership that has been suspended or disconnected due to nonpayment in the previous 12 months and not having been involved in meter tampering reported to law enforcement (Sec. 3.02); specifying on the directorate district map that District A includes parts of Alexander and Wilkes counties in addition to Caldwell County; District B includes parts of Avery, Caldwell, and Wilkes counties in addition to Watauga County; District C includes parts of Wilkes County in addition to Ashe County; and District D includes parts of Wilkes County in addition to Alleghany County (Sec. 3.05); and the addition of the position of Assistant Secretary-Treasurer to the officers group of the cooperative (Sec. 5.01) and that this position will fulfill the duties of Secretary-Treasurer if this officer is unable to perform the responsibilities (Sec. 5.09). A summary of the updates for the Service Rules and Regulations include a “new account” set up fee of $10 to cover administrative costs (Appendix A. Sec. 101); adding that it is the member’s responsibility when service is ended to give the cooperative current and future mailing addresses so that the member can receive future capital credits (Sec. 305); adding non-demand general service accounts such as well and security lights as eligible to participate in the FlexPay program (Sec. 500); and to match definitions elsewhere in the Service Rules and Regulations and member policies, “Member in Good Standing” was changed to “Most Favorable Credit Rating” to describe a member who has fulfilled obligations for all accounts in his or her name and who, within a designated time period, has had not more than one returned check or two late payments, no involuntary disconnections, honored all extensions and payment arrangements, and has had no violation of meter tampering at any time (Definitions, Part II 401, 403, 407); and all non-residential deposits will be retained as long as the account is active (Sec. 401).

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