Union Power hb 070114

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MEMBER HANDBOOK

YOUR ELECTRIC COOPERATIVE AND YOU


TABLE OF CONTENTS 2. GUIDING PRINCIPLES 3. LOCATION & SERVICE HOURS 4. MESSAGE FROM YOUR GENERAL MANAGER 5. ELECTRICITY, A GREAT VALUE 6. YOUR ANNUAL MEETING 7. YOUR BOARD OF DIRECTORS 8. CO-OP FACTS 9. IF YOUR POWER GOES OUT 12. BILLING OPTIONS 13. PAYMENT OPTIONS 15. METER INFORMATION 16. ENERGY SERVICES 17. SAFETY FIRST 18. MOVE OVER LAW 19. PLANTING TREES & SHRUBS

21. RESIDENTIAL AND COMMERCIAL RATES 23. DEFINITIONS 26. SCHEDULE OF FEES 27. STATEMENT OF NON-DISCRIMINATION


GUIDING PRINCIPLES

Union Power provides safe and reliable power with exceptional value.

CONTINUOUS IMPROVEMENT

TEAMWORK

We relentlessly pursue excellence in all that we do.

We work together in integrating all Cooperative resources that can add value to our members.

FISCAL RESPONSIBILITY

DIVERSITY

Our financial success keeps us in business.

We treat all employees and members with fairness, respect and compassion.

EMPOWERMENT

Involved employees are our greatest asset.

CREATIVE

STEWARDSHIP

We promote conservation, energy efficiency and the use of renewable energy alternatives.

MEMBER FOCUS

We deliver the highest standards of service and ensure that the objectives of the Cooperative are linked to the members’ needs and expectations.

INTEGRITY AND TRUST

We are honest and truthful in all relationships.

CITIZENSHIP

We invest in the communities that we serve.

We are resourceful in adding value to our products and services by promoting change and encouraging innovation.

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LOCATIONS AND SERVICE HOURS We have two offices, both of which are open for business between the hours of 8 AM and 5 PM, Monday through Friday, excluding major holidays. Routine and regular service work is performed during these office hours. No routine or regular service work will be performed on Saturdays, Sundays and holidays. Emergency service work is performed 24 hours a day, 7 days a week.

HEADQUARTERS 1525 North Rocky River Road Monroe, NC 28110

• 704-289-3145 • 800-922-6840 • FAX: 704-296-0408

DISTRICT OFFICE • 704-485-3335 • 800-922-6840 • FAX: 704-485-4725

474 South Main Street Oakboro, NC 28129

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MESSAGE FROM YOUR

GENERAL MANAGER Dear Member,

On behalf of the Board of Directors and employees, we welcome you as a Union Power member. Our mission is to provide safe and reliable power with exceptional value. I encourage you to review this member handbook and visit our website, union-power.com, to learn more about your Cooperative and our subsidiary, Union Services. You will find there are many benefits of being a Union Power member. Our service rules and regulations, bylaws and a current rate schedule are available on our website, or you can call our office to request a copy. While co-op membership has many benefits, there are also responsibilities. As a Union Power member, you are expected to: • Comply with all aspects of the service agreement and agree to be bound by the Cooperative’s Articles of Incorporation and Bylaws.

• Agree to furnish, without cost to the Cooperative, all necessary distribution easements and rights-of-way.

We celebrate our history of improving the quality of life in our communities while powering homes, farms and businesses. You are now part of the Cooperative family, and we look forward to serving you! Sincerely,

GREG ANDRESS Executive Vice President and General Manager

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ELECTRICITY, A GREAT VALUE

You may be surprised to find that powering your entire home is considerably less than what you pay for gas to power your cars. In some cases, it’s less than half! Examples like this show you the great value electricity brings to your family. As a member of an electric cooperative, you have access to helpful energy saving tools and other efficiency tips to make it an even greater value. This handbook details the powerful privileges that come with your membership in your electric cooperative. Visit our website, union-power.com, any time to see all the ways Union Power is always looking out for you.

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YOUR ANNUAL MEETING Each year, the Cooperative holds a meeting to elect directors and update you on the business of your Cooperative. You will receive an annual report just prior to the meeting to update you on current issues facing us. You will receive an official notice in the mail to inform you of the date and location of the meeting.

CAPITAL CREDITS - BEING A MEMBER PAYS! Being a member of an electric cooperative entitles you to a share of the margins generated by the cooperative for the period of time you receive service. Each year, any margins (revenues in excess of expenses) generated by Union Power are proportionally allocated to you as capital credits and are held in an account in your name. Those margins are then reinvested into the cooperative for capital expansion, system improvements and on-going operations and maintenance activities. This reduces the amount of money being borrowed which helps keep rates as low as possible. Once the cooperative has met its financial requirements, and after a period of time, capital credits are returned (paid) to you. Union Power is currently on a twenty-year rotation cycle which means any margins allocated will be returned no more than twenty years later. Capital credits may be paid to you in the form of a check or applied as a credit on your electric bill. Note: If you terminate service, it is your responsibility to maintain a correct mailing address with Union Power for purposes of future capital credit payments.

Union Power Cooperative is an electric distribution cooperative headquartered in Monroe, NC. We serve more than 69,000 members in Union, Stanly, Cabarrus, Mecklenburg and Rowan counties and have more than 100 employees. The Cooperative is a not-for-profit organization incorporated in 1939. We have approximately 5,700 miles of energized distribution and transmission lines, 23 substations and 3 breaker stations and purchase wholesale power from the North Carolina Electric Membership Corporation (NCEMC). We are committed to serving members with reliable, quality and affordable electricity, and we offer many products and services designed to make your experience with us as convenient as possible. Visit union-power.com for more information.

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YOUR BOARD OF DIRECTORS Union Power Cooperative’s eleven-member board of directors is elected by the members of the Cooperative and is entrusted to establish policies and procedures. Directors are elected to serve three-year terms and are comprised of representatives from six districts.

BOARD OFFICERS

President....................................................................... B. L. Starnes Vice President............................................................... Lee Roy Kirk, Jr. Secretary/Treasurer....................................................... Jan Haigler Assistant Secretary/Treasurer........................................ Dent H. Turner DISTRICT I Rowan and Stanly Counties Lee Roy Kirk, Jr. Dent H. Turner Juanita W. Poplin DISTRICT II Union County

DISTRICT III Union County B. L. Starnes DISTRICT IV Mecklenburg and a Portion of Union County Neil W. Hasty Carole P. Jones

Tom J. Caudle David G. Hyatt

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DISTRICT V Union County Jan Haigler DISTRICT VI Cabarrus County Rufus N. Reid Jim T. Hartsell


CO-OP FACTS • Nearly 90 percent of rural people lived and worked without electricity in the 1930s. • The Certificate of Incorporation for Union Electric Membership Corporation was filed with the State of North Carolina on February 22, 1939. • Our first office was on East Jefferson Street in Monroe, NC. • The first board meeting was held on February 25, 1939, in the Jury Room at the courthouse in Monroe, NC. By December 1940, the Cooperative had 1,390 members. Now, Union Power Cooperative has more than 69,000 member accounts. • The Co-op’s first substation, Monroe Substation on Goldmine Road and Seymour Street in Monroe, served all the Co-op’s members from Monroe to Rowan County until 1956 when five new substations were put into service. Average kWh used 1940

28

2014

1,250

Miles of Line

Members per mile of line

512

2.7

5,780

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IF YOUR POWER GOES OUT

If you need to report a power outage, call 800-794-4423. It is important that your phone number be listed correctly on your account. Our outage reporting system recognizes the phone number being called from; however, if that phone number does not match our records, you will be instructed to enter additional information to help us identify the location of the problem. Provide any one of the following items that are listed on your billing statement:

Phone number

Account number

Meter number

To add or update your phone number, visit our website, union-power.com, click Update My Account in our Online Services Member Portal. You may also call our customer service department toll free at 800-922-6840.

TO REPORT AN OUTAGE CALL 800-794-4423

OUTAGE UPDATES 24/7

Visit union-power.com on your computer or mobile device to view our Outage Map. The map updates automatically every minute and displays the following information: • • • •

Location of current outages by county Total number of outages Number of members affected Number of members whose power has been restored

From our home page, click: Storm Center then Outage Map, or View Outage Map under our Quick Tools section. You can also view our Outage Map on our mobile website from your iPhone®, iPad® or Android™ device.

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BILLING OPTIONS LEVELIZED BILLING

Members normally experience seasonal fluctuations in energy use throughout the year. The levelized bill will be based on the average energy use for the most recent 12 months. The bill is averaged so the amount does not stay the same, but increases or decreases slightly each month as consumption changes.

BUDGET BILLING Based on the previous 12-month history, we determine a fixed dollar average. The average is billed each month until November. A new average is calculated each November with any overpayments or underpayments and increases or decreases in energy use figured into the new average for the next 12 months.

E-BILLS Go paperless! You can now receive an electronically formatted version of your bill via email.

PAY YOUR WAY This billing option provides members with the tools to more closely monitor and adjust their daily energy use. The Pay Your Way program lets you pre-pay for your electricity and then track your daily usage with online tools and email/text alerts that show daily use and account balances.

FOR MORE INFORMATION

Visit our Online Services Member Portal to take advantage of other helpful services such as email and text message alerts, account information changes, service requests and much more! Account set-up and login is required prior to accessing your online account.

PHOTO TO LEFT: On May 11, 1935, President Franklin D. Roosevelt signed Executive Order 7037, establishing the Rural Electrification Administration.

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PAYMENT OPTIONS ACH DRAFT PAYMENTS

Your account can be set up for automatic draft from your checking, savings or credit/debit card account on the 1st, 10th or 20th of the month depending on your particular billing cycle and you’ll no longer worry about missed or late payments. This option may be set up by calling our customer service department.

AUTO PAY Similar to automatic draft, you can use our Auto Pay option to personally manage your bank or credit card drafts and make changes at any time, giving you more flexibility to manage your payments. This option can only be set up through our Online Services Member Portal.

PAY ONLINE View and pay your bill on our secure site using your credit card, debit card or by electronic check.

MOBILE APP View your bills, make secure payments, manage your alerts and reminders, and even receive push notifications using the Union Power mobile app with your iPhone®, iPad® or Android™ device.

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PAY BY PHONE Use our FREE automated system by calling 800-794-4423 and press 3. Please Note: A $5 service fee will be applied to bill payments made through a customer service representative.

PAY BY MAIL Use the address below to send your payment by mail. Include your payment stub and allow 5 to 7 business days for your payment to arrive.

Union Power Cooperative P.O. Box 63047 Charlotte, NC 28263-3047

PAY IN PERSON You may take your payment to one of the two office locations listed below. However, please do not mail your payment to these addresses.

1525 North Rocky River Road Monroe, NC 28110 M - F, 8 AM - 5 PM

474 South Main Street Oakboro, NC 28129 M - F, 8 AM - 5 PM

For more information or to sign up for any of these options, visit union-power.com or you may call our customer service department.

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METER INFORMATION

What is Advanced Metering Infrastructure? Advanced Metering Infrastructure (AMI) is the very foundation of Union Power’s efforts for grid modernization. The modernization of an electrical power distribution network, in addition to providing enhanced services, includes two-way, digital communications between Union Power Cooperative and our members. AMI’s remote communication technology provides faster outage verification, analysis and response. With AMI technology, meters are read remotely. Our personnel no longer need to visit each meter, and this reduces operating costs. AMI’s near real-time meter reads help us provide you with improved customer service and better assistance managing your energy.

Meter Tampering Breaking a meter seal, opening a meter base, removing a meter or altering an entrance cable in any manner is ‘meter tampering.’ Meter tampering is extremely dangerous and can result in electrical shock or even death. It is also illegal. Electric use that goes unbilled and/or unpaid increases the cost of electricity for all paying members of the Co-op. If you know of or suspect that someone has tampered with their meter, please contact Union Power immediately to report it.

CHECK OUT TogetherWeSave.com From our home page, check out our link to TogetherWeSave.com, Touchstone Energy’s interactive website that offers energy efficiency resources, tools and tips to help you manage your energy use. Small changes can add up!

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ENERGY SERVICES Managing Your Energy

Visit union-power.com and click on Your Energy Advisor to check out our free online energy-saving tools: • • •

Free online home energy audit. Energy libraries. Special purpose calculators - including lighting, water heating, heat pump, TV, and appliance calculators and more!

• • • •

Home Energy calculator - get details about your home’s estimated usage in 10 minutes or less. Analyze My Energy Use - analyze your home’s energy use, based on your account information, for detailed use insight. My Energy Report - sign up for this report and get a customized analysis of your home’s energy use. Kids Zone and Kids Korner are interactive learning sites for kids, parents and teachers.

Keeping You Informed Every month, you will receive a copy of Union Power Cooperative’s newsletter, Cooperative Review, and Carolina Country magazine. The Cooperative Review newsletter is located in the centerfold of the Carolina Country magazine, printed monthly by the North Carolina Association of Electric Cooperatives (NCAEC).

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SAFETY FIRST

PADMOUNTED TRANSFORMERS & SUBSTATIONS Obey warning signs and stay away from substations and padmounted transformers. If you see a padmounted transformer unlocked or open, or if you notice anything unusual at a substation, please call our office immediately.

OVERHEAD LINES Treat all lines as if they are “energized” and “dangerous.” Never assume a line is “dead.” Do not use aluminum ladders around power lines. Report any trees that have fallen on the power lines and stay away. Never pick up a wire or cable of any size until you know it’s not a live power line. These situations are potentially hazardous, so take necessary precautions to keep others out of the area. Call Union Power immediately if you see a hazardous situation.

UNDERGROUND LINES If you plan to dig near any underground lines, please call the North Carolina One Call Center at 811 at least two business days (48 hours) before starting to dig. Union Power’s lines, as well as all underground utility lines, will be properly located within that time frame to avoid damaging the underground facilities.

SIGNS ON POLES Any sign attached to a power pole is dangerous and illegal in North Carolina. Nails, tacks and rusty staples endanger linemen who climb these poles. Punctures to their insulated gloves could result in electrocution. Please do not affix signs to utility poles.

For more safety tips, visit union-power.com

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MOVE OVER LAW

The North Carolina Move Over law requires motorists approaching or passing any public service or utility vehicle that is operating a warning signal to reduce speed and move their vehicles into a nearby lane if possible. This includes electric utility vehicles stopped on roadway shoulders, with amber lights flashing. If the roadway has only one lane for proceeding traffic, or if the approaching vehicle may not change lanes safely, the motorist must slow the vehicle and proceed at a reduced speed. Failure to do so can create a safety hazard for the workers and can result in a $500 fine for the driver of the vehicle. In 2012, legislators passed additional amendments to this law, which include the following: 1)

Added telephone, cable, communications, and gas maintenance vehicles to the current law.

2)

Extended the protection to whenever the utility is working along the road rather than just during service restoration.

These amendments make it clear that this law protects utility crews at all times. Motorists should watch for utility service crews, comply with the law, slow down, and move over for utility service trucks. It could be a matter of life and death!

and click on the Safety Tips button.

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PLANTING TREES & SHRUBS

Trees and shrubs that grow into power lines can not only cause power outages and delay the restoration of power after an outage, but they can also be dangerous. If plants must be placed in the right-of-way, they should be a low-growing variety (species that grow no taller than 20 feet at maturity) and should be planted at the edge of the right-of-way and not directly under the wires. You may contact the Cooperative to receive a list of plant species that are suitable for planting in right-of-way areas. The Cooperative will remove and/ or trim trees on a cycle basis that are within the right-of-way area based on Cooperative specifications for proper, safe clearance. Call the Cooperative with any questions. Planting trees and shrubs or placing obstructions around padmounted transformers and other Union Power padmounted equipment also creates problems.

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Appropriate clearance and permanent access to Union Power equipment is necessary at all times; guidelines for minimum required access distances to equipment are as follows:

• No closer than 10 feet on side of equipment with locked door

• No closer than 4 feet on all other sides

These distances are needed to permit Cooperative personnel to safely access, operate and maintain the equipment. It is also important to note that padmounted transformers are cooled by air. Do not place any obstructions over or near a padmounted transformer. If obstructions block proper air circulation, the oil in the equipment may overheat, resulting in oil leakage and/or equipment failure, which can lead to power outages. Before digging around any padmounted equipment, call the North Carolina One Call Center at 811. Shrubs planted under meter bases can also pose a problem for our meter technicians. They may need to access your meter for routine maintenance and testing. Please remove or trim back shrubbery near your meter base. For more information about Union Power’s vegetation management program or tree trimming practices, please call 704-289-3145 to speak with one of our certified arborists.

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RESIDENTIAL MONTHLY RATES (Effective as of July 1, 2014)

GENERAL SERVICE RATE*

RESIDENTIAL ALL-ELECTRIC SERVICE RATE*

Available in all service territories. Applicable to farm, residential, small businesses, schools, churches, and small community buildings and other single-phase service types.

Available in all service territories. Applicable to residential members, mobile homes or individually metered apartments only.

MONTHLY RATE

MONTHLY RATE

Basic Facilities Charge..........$22.50

Basic Facilities Charge......... $22.50

ENERGY CHARGES

ENERGY CHARGES

Summer (June - October)

Summer (June - October)

All kWh................................$0.09590

All kWh................................$0.09124

Winter (November - May)

Winter (November - May)

First 1,000 kWh...................$0.09590

First 500 kWh......................$0.08850

All other kWh......................$0.09131

All other kWh......................$0.08321

PAY YOUR WAY PRE-PAY RATE* MONTHLY RATE

FEES

Connection Fee....................$25.00 Minimum Purchase...............$50.00

Basic Facilities Charge..........$25.50 General Service Rate..............$0.09537 Residential All-Electric Service Rate............................$0.08759

Note: For the Pay Your Way rate only, there are no disconnect or reconnect fees. However, if the account is disconnected and goes inactive for 7 business days, the above fees will be applied again to reconnect service. Disconnects and reconnects are performed automatically so it is up to you to manage your account and make sure that you always have available funds to use. It is highly recommended that you always keep at least a minimum of $10 on your account to avoid having your service automatically disconnected. If your account is disconnected because there is no money on your account, please note that it can take up to 15 minutes to be reconnected once a payment is made. Pay Your Way accounts are not eligible for payment arrangements.

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COMMERCIAL MONTHLY RATES (Effective as of July 1, 2014)

COMMERCIAL SERVICE RATE* There are three basic billing components of the Commercial Service Rate:

MONTHLY RATE Basic Facilities Charge....................................................................... $55.00

BILLING DEMAND CHARGES First 25 kW........................................................................................... $0.00 All kW over 25 kW............................................................................... $7.65

ENERGY CHARGES

First 3,000 kWh.................................................................................... $0.1161 Next 3,000 kWh................................................................................... $0.0872 Next 6,000 kWh................................................................................... $0.0702 Next 12,000 kWh................................................................................. $0.0564 All kWh over 24,000............................................................................. $0.0453

*Applicable riders, including those associated with the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS) and the Wholesale Power Cost Adjustment (WPCA) may apply. Visit union-power.com for a full schedule of all Union Power’s Rates and Riders.

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DEFINITIONS GENERAL SERVICE RATE Available in all service territories. Applicable to farm, residential, small businesses, schools, churches, and small community buildings and other single-phase service types.

RESIDENTIAL ALL-ELECTRIC SERVICE RATE* Available in all service territories. Applicable to residential members, mobile homes or individually metered apartments only. (*Special terms and conditions apply.)

PAY YOUR WAY A program that allows you to pre-pay your electricity and then track your daily usage with online tools and email/text alerts that show daily usage and account balances.

BASIC FACILITIES CHARGE The Cooperative’s fixed monthly cost that occurs regardless of the amount of energy purchased or sold. This includes the meter, monthly meter reading, rendering of the bill, bill remittance processing, the operation of the phone system, the staffing of the offices and most importantly, an outage system to provide for 24-hour emergency service for power restoration and repairs. The basic facilities charge is included in your energy charge.

ENERGY CHARGE The costs that vary with the overall amount of electricity consumed. Energy is measured in kilowatt-hours (kWh).

CAPITAL CREDITS The return of margins that are allocated to cooperative members based on the amount of electricity purchased from the Co-op in a given year.

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NC SALES TAX North Carolina applicable sales tax rate is applied to all charges, including energy charges, WPCA charges, yard lights, etc.

WHOLESALE POWER COST ADJUSTMENT (WPCA) The correction or modification on a member’s monthly electric bill designed to compensate for monthly fluctuations in wholesale power costs not covered in the basic rate structure.

RIDERS The following riders may apply to service supplied under the General Service Rate and the Residential All-Electric Service Rate. The current cents/kWh rider charge or credit must be added or subtracted to the cents/kWh rates shown on your monthly bill.

RENEWABLE ENERGY PORTFOLIO STANDARD (REPS) RIDER A state mandated rate adjusted annually to recover the Cooperative’s developmental and incremental costs incurred during the year to comply with North Carolina General Statute 62-133.8 and North Carolina Utilities Commission Rule R8-67.

ENERGY EFFICIENCY RIDER The monthly energy efficiency fee added to your energy charge to cover energy efficiency programs.

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SCHEDULE OF FEES* Description Amount SECURITY DEPOSIT (residential).............................$0, $175, $375 (Charges Vary) SECURITY DEPOSIT (commercial)...........................2 months’ estimated bill SECURITY DEPOSIT INTEREST RATE........................Varies ACTIVATION FEE.......................................................$25 LINE RELOCATION.....................................................At Cost CONVERSION OF EXISTING OVERHEAD................Call for current fee (underground service) AID-TO-CONSTRUCTION..........................................At Cost LATE PAYMENT CHARGE..........................................$5 or 1.5% of past due balance if greater TRIP CHARGE.............................................................$25 RETURNED CHECK....................................................$25 METER TEST...............................................................$75 (Charge will be refunded if meter’s margin of error is greater than 2%.) DUAL METER COMPARISON....................................$50 RECONNECT CHARGE..............................................$50 (collected in advance) (8 AM to 4 PM, Monday through Friday, excluding holidays) RECONNECT CHARGE..............................................$100 (collected in advance) (4 PM to 9 PM, Monday through Friday, weekends and holidays) METER TAMPERING..................................................$250 (plus cost to repair damage) (1st offense) METER TAMPERING..................................................$500 (plus cost to repair damage) (2nd and subsequent violations)

*Subject to change

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STATEMENT OF NON-DISCRIMINATION Union Power Cooperative is an equal opportunity provider and employer. If you wish to file a Civil Rights program complaint of discrimination, complete USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call 866-632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax 202-690-7442 or email at program.intake@usda.gov.

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Revised: 7/2014


ACCOUNT NUMBER: ________________________________ Notes:______________________________________________

__________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________

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P.O. Box 5014 • Monroe, North Carolina 28111-5014 • 704-289-3145 or 800-922-6840


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