Newsletter June 2016 Retail

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AT-Cost ELECTRICITY MEMBER CONNECTIONS

AT-Cost ELECTRICITY

Powered by People for your home AND BUSINESS

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for your home AND BUSINESS Employee Engagement Priority No. 5:

Trace McCuan, CEO

Over the last few months, I have been outlining my top five priorities for success here at Nueces Electric Cooperative. I discussed how keeping the safety of our members, our employees and the public are my top priority, followed closely by cost containment to keep our rates as low as possible, the reliability of our electric service and the importance of maintaining good customer service in the process. To close out the top five of my priorities here, I believe that NEC and our members will benefit from a focus on employee engagement. Optimizing safety culture and performance requires employees to actively engage in different parts of the Co-op. Engaged employees help provide an open door for Co‐op leaders to assess and increase understanding of organizational risks and situations that require planned improvement actions. Without employee engagement, the door to these developments tends to remain closed. It is also imperative that employees provide positive and corrective feedback to each other at every level on a continual basis to reinforce and promote the positive behaviors that minimize our risk and ensure top-notch service to our members. Our human nature is to take shortcuts and embrace the immediate positive benefits of things being faster or easier. However, having engaged and wellinformed employees is more likely to decrease the likelihood of these shortcuts. Engagement begins when cooperative leaders establish concern for the well‐being of their employees by modeling the behaviors we as leaders wish to instill in our organization. This means we treat workers with dignity and respect in a fair and unbiased manner. This builds a foundation of good relationships and fosters a strong culture of helping each other, and guides us to meet our mission. 18

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In this environment, employees tend to go above and beyond their job description to do the right thing for members, fellow employees and management. Conversely, when employees feel no sense of connection to the organization, we can expect resistance in our activities to move NEC toward our mission. Employee engagement should focus on three areas in order for the cooperative to realize value: First, the Co-op must to create an environment where workers can easily communicate concerns and the challenges they face. Employees must believe that management will listen and act on this information without fear of reprisal. If lack of clarity exists in this area, the employee has no compelling reason to provide constructive input. Second, employees must be involved in assessing their jobs in a systematic way. A robust engagement system has to include a broad focus on continual improvement on a daily basis. Third, employees must be involved in identifying solutions to problems/issues. They are involved in the day‐to‐ day operations in the workplace and are best positioned to find the solutions. Employee engagement is a strategy that requires a long term commitment by Co‐op leadership. However, when instituted correctly, it sets the stage for improving the overall performance of the cooperative. I intend to continue to embrace this in my leadership of NEC and work with the employees here on a regular basis to engage them in the importance of our mission. Together, as an engaged member-owned cooperative, we will help our members continually improve their quality of life by providing reliable and cost effective electric service. www.necretail.com

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Hurricane Electric Safety Tips

June 1 marks the opening day of hurricane season. Below are tips you and your family should practice to stay safe before, during and after the storm.

Preparing for the hurricane: • Make sure flashlights, batterypowered lanterns and other sources of light are readily available. • Make sure flashlights and radio batteries are fresh. • Keep at least a two weeks supply of bottled water, non-perishable food items, batteries and firewood on hand. • If prescriptions are essential, make sure to get them refilled in case of an extended power outage or extensive damage to the area. • Make sure to have identification and documentation on hand, such as your social security card, driver’s license, birth certificate, and insurance information for your home, car, and life. • Have an evacuation plan for you and your family in case of an extended power outage. • Listen to weather forecasts and predictions for possible hurricanes – hurricane season begins June 1 and ends in November. • Make sure you have an adequate supply of medicine, first aid supplies, and baby items.

During the hurricane: • Make sure to get inside a building and stay away from the windows. • Don’t leave candles unattended and keep them away from furniture, draperies and other flammable materials. Make sure to keep children away from open flames. • Don’t open freezers and refrigerators any more than absolutely necessary. • Listen to local radio stations for news about power outages. • Turn off your heating and air conditioning systems, as well as electric range. • Unplug sensitive electronic appliances such as TVs, VCRs, microwave ovens and computers – this will protect your appliances against power fluctuations that can occur when power is restored. • After power is restored, be sure to wait five to ten minutes before turning on appliances and heating systems.

After the hurricane: • If power lines and poles are down in your yard or in the street, always treat them as if they are energized and dangerous. Never touch them and stay away. Make sure to call (insert your local co-op here). • Debris from the storm can hide power lines that have fallen. Fallen trees that contain energized power lines can electrocute any item it comes in contact with, including the ground around them. • If your electricity is out, check with neighbors to see if they have power. If so, you may have blown a fuse or tripped a breaker. Never replace a fuse or reset a circuit breaker with wet hands or while standing on a wet (or damp) surface. • If you’re without electricity and want to use a portable generator, make sure to use it in a well-ventilated area. • Avoid using candles if possible. If you must, never leave a burning candle unattended. • Replenish your supplies of batteries, water, non-perishable foods and firewood for future hurricanes.

Hurricane Season is June 1 - Nov. 30 WE’RE HERE FOR YOU... IN GOOD WEATHER AND BAD See our hurricane guide in next month’s issue of Texas Co-op Power. www.necretail.com

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ESFI warns public about the dangers of electric shock drowning Despite being categorized as leisure activities, swimming and boating can quickly become dangerous. While watersafety behaviors such as wearing life jackets and maintaining safe boating speeds have become commonplace, a serious hazard remains that is often overlooked. This silent killer, classified as electric shock drowning, occurs in fresh water when a typically low level alternating current (AC) passes through the body, which causes muscular paralysis and eventually leads to drowning. According to ESFI’s president Brett Brenner, “although there are reported incidents every year, there is a lack of awareness about the dangers of Electric Shock Drowning.” A 21-year-old Illinois man died in 2015 when touching a dock ladder at the Lake of the Ozarks in Missouri. Additionally, there were at least two fatalities in Kentucky in 2013, and a pair of deaths in both Missouri and Tennessee during the Fourth of July holiday in 2012. Each of these victims was under the age of 13. Further, Electric Shock Drowning deaths are usually recorded as drowning because victims show no signs of burns, so many instances remain undocumented. While a lack of awareness persists about the dangers of Electric Shock Drowning, positive strides are being taken to combat the problem. The 2011 National Electrical Code addresses the dangers in marinas and boatyards by requiring the main overcurrent protective device to be GFCI-protected. However, this only applies to installations and inspections, which are recommended annually but not enforced. Protect yourself and your loved ones from the risk of electric shock drowning and common boat electrical hazards with these handy tips from ESFI. • Don’t allow yourself or anyone else to swim near docks. Avoid entering the water when launching or loading your boat. • Always maintain a distance of at least 10 feet between your boat and nearby power lines. • If you feel a tingle while swimming, the water may be electrified. Get out as soon as possible avoiding the use of metal objects such as ladders. • Have your boat’s electrical system inspected and upgraded by a certified marine electrician who is familiar with National Fire Protection Association Codes: NFPA 303 and NFPA 70. www.necretail.com

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• Have GFCIs installed on your boat, and test them once a month. • Consider having Equipment Leakage Circuit Interrupters (ELCI) installed on boats to protect nearby swimmers from potential electricity leakage into water surrounding your boat. • Only use shore or marine power cords, plugs, receptacles and extension cords that have been tested by Underwriters Laboratories (UL), Canadian Standards Association (CSA) or Intertek (ETL). • Never use cords that are frayed or damaged or that have had the prongs removed or altered. • Never stand or swim in water when turning off electrical devices or switches. • Electric Shock Drowning can also occur in swimming pools, hot tubs and spas. Have an electrician inspect and upgrade your pool, spa or hot tub in accordance with applicable local codes and the National Electrical Code. For ESFI’s complete collection of Boating and Marina Safety resources, visit www.esfi.org. NEC Retail June 2016 Texas Co-op Power

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You are a member, not a customer Many businesses use the word “member” to describe their customers. Places like Sam’s Club or Costco and even American Express like to refer to their customers as members. You pay a fee to buy their goods and services, but that is really all you get for the “membership.” No right to vote for the Board of Directors or to participate in any meaningful way in the organization. In cooperatives like NEC, membership really does mean something more than just the right to buy electricity. Co-ops of all types are founded on seven cooperative principles that give us guidance and strategic direction. Membership also gives you rights as an owner of this co-op. Brett Fairbairn is the director of the Center for the Study of Cooperatives at the University of Saskatchewan in Canada. He makes the case that member relations is not just part of what co-ops should be doing, but in fact is the fundamental core business of the cooperative. He further lays out the three strategic concepts that any co-op must get right in order to survive and thrive:

Cognition In this case, cognition is best defined as how your co-op thinks. It includes the current and historical identity, the mission and the sense of shared values with co-op members. Research, education and training are critical functions that NEC must conduct on an ongoing basis to ensure that we always have the best information to make decisions. The cooperative business model is the best one on earth, but like any enterprise, it is up to the human beings who work at the co-op, who serve on the board and the members like you to ensure that the principles and values do not fade over time. First and foremost, NEC strives to be thought of as a memberowned cooperative that gives you the best value of any utility. If we succeed, our community thrives and you will always value being a member – not a customer.

Economic Linkage NEC is connected to you. There is a business relationship that serves you (the member) and the co-op. Since co-ops are solely owned by people in the community, they have a mutual interest to ensure that both the co-op and the member do well and prosper. Transparency As an owner of the co-op, you have a right to know how it operates and how decisions are made that directly impact you. If the co-op is transparent and combines this trait with integrity and fairness, it will build trust with the members.

Calendar Dates: June 15................. Director Election Packet Pick up for Districts 6 (Agua Dulce Area), 7 (Orange Grove Area), 8 (San Diego Area), 10 (NEC Retail). August 1.............................Nueces Electric Charities Grants Deadline October 13........................ Annual Meeting Richard M. Borchard Fairgrounds 22

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Electrical products to avoid Sometimes too good to be true is too good to be true

When it comes to saving energy, caveat emptor (Buyer Beware) is alive and well. We are all bombarded by claims that border on outright falsehoods, so it pays to view savings claims from third parties cautiously. Remember, if it sounds too good to be true, it generally is. Electric space heaters drain energy savings from your home if used incorrectly. Companies make elaborate claims about the amount of money you can save and charge exorbitant sums for their products. The advertisements frequently target those on a fixed income, presenting false hope while extracting precious dollars from their customers. There are so many different space heaters and some do appear to be well made, but they typically offer no better economy than any other 1,500-watt electric heater. Bottom line, electric space heaters should only be used to heat small spaces – not your entire home. Black boxes that claim to clean up power, protect appliances and reduce energy use come and go. These often require an electrician to install and claim to improve power quality, smooth out power fluctuations and store energy so you can reduce your bills. Save your money. The concepts they present are already in use by NEC and require utility-size equipment to deliver them. Something that can fit in a shoebox is not going to deliver any value, at least not in the areas promised. If you are concerned about protecting your sensitive appliances and electronics, talk to NEC about surge protection. When you see the ad that reads, “The power companies don’t want www.necretail.com

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you to know,” skip it. These are generally claims around building your own renewable energy source from parts easily obtained at the local hardware store or a motor that produces limitless “free” electricity. Those can be equated with the emails you get from foreign countries telling you that you can receive millions of dollars by simply sending all my banking information. At least in the case of the homemade renewables and limitless motor you get some cool plans and parts lists. You decide if it’s actually worth $50 – $200.

anyone personal or financial information who claims to be an NEC employee without confirming their identity. Ask for a call back number from the caller, then check with NEC. Ask the door-to-door person for a valid NEC Employee ID. If they really are a co-op employee, they’ll be able to prove it. Most of us want to save energy and keep our bills manageable. Technology can help do this, but be careful. Call NEC first before making any investments in technology that seem too good to be true. You’ll be glad you did.

There is a product that claims it will replace basement dehumidifiers and save tons of money. It basically is a fan system that vents all the basement air outside. Yes, dehumidifiers can be expensive to run and are a nuisance when you have to empty the water. Knowing that, we asked the Cooperative Research Network (an arm of the Arlington, Va.-based National Rural Electric Cooperative Association) a few years ago if these products delivered on their savings claims. They said no. The problem is that when you blow all the basement air outside, it is replaced with conditioned air from other parts of the house. Now your HVAC system works harder and dramatically reduces the promised savings. Here’s a solution: set your dehumidifier to 60 percent and run a hose to your floor drain. This resolves the water emptying hassle and really reduces the power use while keeping my basement acceptably dry. Finally, we will close with a nontechnology warning. Scammers love to call or stop by claiming they represent the local power company. Never give NEC Retail June 2016 Texas Co-op Power

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Director and Election FAQ’s Nominations Open June 15th for NEC Director Positions Director Election Process

NEC prides itself on its director elections. The election process reflects one of the Seven Cooperative Principles democratic member control: one member, one vote. Nueces Electric Cooperative is member-owned and is governed by a ten (10) person, member-elected board of directors. These directors represent the ten member directorate districts of the cooperative. A portion of the co-op directorships stand for election each year. All members can vote on all directors.

Nominating Process Any NEC member in a district up for election may seek to become a candidate. If more than two candidates petition for a directorship, a primary election will be held in the district to select two candidates who will appear on the election ballot. At the annual membership meeting to be held October 8, 2015, all members of NEC may vote to elect the new directors in the districts up for election. All members will receive a ballot by mail or attached to the Texas Coop Power Magazine. If members cannot attend the meeting, they may cast their vote by mailing in the ballot. It is up to you, the members, to elect the directors best qualified to run your cooperative. There is no term limit for an NEC director but he/she must complete the nomination process every three years and be re-elected by the members.

Director Responsibilities

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eginning Wednesday, June 15, 2016, any NEC member who wants to be a candidate for co-op director for districts 6, 7, 8 and 10 can sign-out a petition and instructions at the NEC office in Calallen at 14353 Cooperative Ave, (intersection of CR52 and CR69). The deadline for the return of these petitions is 5:00 p.m. on Friday, July 22, 2016. If you are unsure of your district number, contact the NEC billing department by calling 1.800.NEC.WATT or by e-mailing membercare@nueceselectric.org. The process requires a petition to be submitted by any person wanting to be a candidate for cooperative director. The bylaws of NEC provide for staggered three-year terms for each director. A petition for nomination must contain 15 signatures of NEC members who have service within the district the nominee would represent. All petition signatures will be verified. Petitions will be signed out from, and returned directly to, the Co-op’s Executive Secretary who will contact you once the signatures are verified as valid NEC members living in your district. If more than two qualifying petitions are received for a district, a primary election will be held in that district during the month of August to narrow the candidates to two. The director elections will be held at the Annual Meeting on October 13 in Robstown.

Directors are tasked with the development of governance policies and monitoring the financial health of the cooperative. In addition, they are charged with keeping up-to-date on industry trends, legislative actions, and other pertinent issues affecting cooperatives as well as representing the membership at cooperative related functions.

Director Compensation Directors receive a fee, which includes insurance benefits, for each day during which they attend meetings or otherwise perform duties on behalf of the Cooperative.

Membership Access: Article I, Section 8, “Membership List,” of the Cooperative’s Bylaws. Upon authorization, Petitioners may be granted access to a copy of a map of the district in which your residence lies and to view a list of the Cooperative members in your district for up to one (1) hour for the purpose of recording, in writing, the names, addresses, and account numbers of up to fifty (50) members from that list. A full copy of the By-Laws can be found at www.nueceselectric. org -> About-> Transparency and Your Cooperative 24

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