YOU get the (capital) credit WHAT ARE CAPITAL CREDITS? As a member of Nueces Electric Cooperative, you get the credit. When you signed up to receive electric service from NEC, you became a member of the cooperative. While investor-owned utilities return a portion of any profits to their shareholders and investors, electric co-ops allocate any excess revenue to members as capital credits. We retire (or pay) these out to our members when the co-op’s financial condition permits. In the upcoming months, members will start receiving notices about their capital credit retirements. The amount of each allocation and retirement is based on how much the member paid the co-op for electric service during that period. Capital credits represent the most significant source of equity in NEC. Since a cooperative’s members are also the people the co-op serves, capital credits reflect each member’s ownership in, and contribution of capital to, the cooperative. This differs from dividends investor-owned utilities pay shareholders, who may or may not be customers of the utility. It is time for the members who helped build and sustain this co-op to get the credit... through capital credits. WHERE DOES THE MONEY COME FROM? Member-owned, not-for-profit electric co-ops set rates to generate enough money to pay operating costs, make payments on any loans, 18
and provide an emergency reserve. At the end of each year, we subtract these necessary operating expenses from the operating revenue collected during the year. The balance is called an operating “margin.” HOW ARE MARGINS ALLOCATED? Margins are allocated to members as capital credits each year based on their purchases from the cooperative—how much power the member used. Member purchases may also be called patronage. DOES AEP OR CPS ENERGY RETIRE CAPITAL CREDITS? No. Within the electric industry, capital credits only exist at not-forprofit electric cooperatives owned by their members. ARE CAPITAL CREDITS RETIRED EVERY YEAR? Each year, the Nueces Electric Cooperative Board of Directors makes a decision on whether to retire capital credits based on the financial health of the cooperative. During some years, the co-op may experience high growth in the number of new accounts, or severe storms may result in the need to spend additional funds to repair lines. These and other events might increase costs and decrease member equity, causing the board not to retire capital credits. For this reason, NEC’s ability to retire capital credits on a year to year basis reflects the cooperative’s overall strength and financial stability. The board alone decides whether to retire capital credits.
Texas Co-op Power NUECES ELECTRIC COOPERATIVE
NEC_WIRES_November2016.indd 18
DO I LOSE MY CAPITAL CREDITS IN THE YEARS THE CO-OP DECIDES NOT TO MAKE RETIREMENTS? No. All capital credits allocated for every year members have been served by NEC are maintained until such time as the board retires them. HOW OFTEN DO MEMBERS RECEIVE CAPITAL CREDIT RETIREMENTS? The NEC Board of Directors makes a decision each year by October whether or not to retire capital credits. When the cooperative is strong enough financially and member equity levels high enough, the board directs staff to retire some portion of past years’ capital credits. HOW WILL THE RETIREMENT WORK? Inactive or former members who no longer purchase electricity from NEC (but who purchased electricity during the years being retired) will receive their share of the capital credits. WHAT IF I HAVE MOVED? If you move out of the service area or no longer have electric service with NEC, it is important that you inform the cooperative of your current address, so that future retirements can be properly mailed to you. If you purchased electricity during the years being retired, then you are entitled to a capital credit retirement, even if you move out of the NEC service area. If it has your current address, then the co-op will send your retirement check by mail. www.nueceselectric.org
10/10/2016 5:12:32 PM
www.nueceselectric.org 1.800.NEC.WATT
This November, let your voice be heard Low voter turnout has been a topic of conversation for the last several election cycles. Since the 1960s, voter turnout during presidential elections has seen a steady decline – with the occasional uptick here and there. In the 2016 primary election cycle, voter turnout in most states was only 21 to 30 percent, and this was a record year for primary voter turnout! In Texas, we saw a voter turnout percentage of 21.5%. Some speculate the reason for the decline is because the average American is not as engaged in politics as they have been in the past. And who can blame us really? Often times, we may feel like candidates are not speaking to the issues we care about. Or perhaps we don’t feel like we understand enough about the candidates’ stances on the issues, or even the issues themselves. But we can change this.
www.nueceselectric.org
NEC_WIRES_November2016.indd 19
Here at NEC, we want to see civic engagement in our rural communities increase. We want to give you what you need to make informed decisions about candidates at all levels of government, not just the presidential race. And we want you to know more about the issues that could impact our local communities. America’s electric cooperatives are doing their part by informing co-op staff and members through Coops Vote, a non-partisan campaign with one simple goal: increase voter turnout at the polls this November. By visiting vote.coop, you can learn about your candidates, access voter registration information and more. The future of rural economies depends on their ability to keep up with today’s global economy, which is why access to broadband internet is a key topic of discussion this election season. Just 55 percent of rural
Americans have broadband at home. Quick access to information is crucial in finding a job, getting a better education and even gathering the information needed to make major health decisions. But there is a barrier: expensive costs. With the right state and federal policies, broadband technology can become available to all Americans, allowing families and businesses to communicate in new and faster ways. Electric cooperatives are already committed to providing affordable electricity to our communities, so helping provide affordable broadband access is a natural next step. We encourage you to visit vote. coop and take the pledge to learn more about the issues that impact us locally. Let’s work together to improve our communities by increasing voter turnout and changing our country, one vote at a time.
NUECES ELECTRIC COOPERATIVE
Texas Co-op Power
19
10/10/2016 5:12:33 PM
20
Texas Co-op Power NUECES ELECTRIC COOPERATIVE
NEC_WIRES_November2016.indd 20
www.nueceselectric.org
10/10/2016 5:12:34 PM
www.nueceselectric.org 1.800.NEC.WATT
www.nueceselectric.org
NEC_WIRES_November2016.indd 21
NUECES ELECTRIC COOPERATIVE
Texas Co-op Power
21
10/10/2016 5:12:37 PM
Ramiro De la Paz Memorial
SCHOLARSHIP Nueces Electric Cooperative awards high school seniors of cooperative members scholarships each year. This year, there are three different types of scholarships that will be awarded. Students planning to attend a 4-year college or university in Texas are eligible to apply. Two Grand Prize scholarships of $4,000 and ten $1,000 scholarships will be awarded. Students planning to attend a 2-year college or vocational school in Texas for a career related to the electrical industry (GIS mapping, communications, engineering, etc.) are eligible to apply. Ten $1,000 scholarships will be awarded. Students planning to attend a Texas lineman’s college are eligible to apply. Two $5,000 scholarships.
nt s e r a r p bers u o , If y e mem o - op r a he C win d o f t co u l s h i p ! r yo u h o l a c as
Applicants must reside in the home with a parent or legal guardian who has been a Nueces Electric Cooperative member for a minimum of six months as of the application deadline date.
Two $5,000 scholarships and
Two $4,000 scholarships and
C hig allin h g se sch all nio oo rs! l
For Applications & Details: www.nueceselectric.org
Application deadline: February 10
Twenty $1,000 scholarships
22
Texas Co-op Power NUECES ELECTRIC COOPERATIVE
NEC_WIRES_November2016.indd 22
www.nueceselectric.org
10/10/2016 5:12:40 PM
www.nueceselectric.org 1.800.NEC.WATT
2017
Youth Leadership Tour Win the trip of a lifetime!
The Govenment-in-Action Youth Leadership Tour 2017 is an all-expense-paid trip for high school students to learn about different aspects of the government, meet their members of Congress and visit historical sites. Each year, NEC sends four delegates from the cooperative to participate. This year’s trip will begin in Austin, Texas on Wednesday, June 7 and continue on to tour sites in Washington D.C. before the trip concludes on Friday, June 16. The travel package, valued at $3,000, includes air transportation to and from Washington D.C., hotel stay, meals, admission fees, and $250 cash for extra expenses.
Essay Topic: Choose one of the Seven Cooperative
Principles and explain how NEC embodies that principle.
Application Deadline: January 31, 2017
Complete the 2017 Nueces Electric Cooperative Youth Leadership Tour Application form which can be found on both nueceselectric.org and necretail.com. Submit a 400-600 word essay on the topic “Choose one of the Seven Cooperative Principles and explain how NEC embodies that principle.” Finalists will interviewed to determine the final four winners that will take this Youth Leadership Tour trip of a lifetime. Applicants must have consent of and reside in the home with a parent or legal guardian who is a current Nueces Electric Cooperative member. www.nueceselectric.org
NEC_WIRES_November2016.indd 23
Apply Today!
How to apply:
NUECES ELECTRIC COOPERATIVE
Texas Co-op Power
23
10/10/2016 5:12:42 PM
Busting myths about “smart meters” By now, most Americans have likely heard of the “smart grid.” This phrase is being used to describe the computerization of America’s electrical infrastructure. The purpose of this computerization is to improve the reliability, efficiency, resiliency and security of the electric grid. A key component of the smart grid is an advanced metering infrastructure, also known as AMI in the utility world. AMI systems utilize digital meters as well as computer technology to measure electric use at homes and businesses more precisely than was possible with analog meters. The digital meters communicate via radio or the existing power lines and have been loosely termed as “smart meters.” AMI benefits electric co-op members with greater accuracy in billing, faster outage restoration, operational savings versus manual meter reading and detailed data that you and your co-op can use to manage electric use much more accurately. Unfortunately, a number of myths have developed over the years concerning smart meters. These myths can be classified into three categories: privacy concerns, security and health effects. Let’s take a look at each, starting with privacy. Nueces Electric Cooperative takes great pains to keep your information private – and that information includes the details of your electric use. The only people who see that data are co-op employees and you. Your co-op will not release this information to anyone else without your specific permission. The myths are that the data collected can tell when you are home or away and exactly what you are doing when you are there and that this data is being given to the government. Naturally, the data will show when you are home because for most families, energy consumption is higher then. But having said that, the current smart meter cannot identify 24
what activities are taking place down to the specific appliance in use. This myth is simply unfounded. What about the myth that these meters actually make the electric grid less secure by providing an avenue for hackers to break into systems through the smart meter and wreak havoc? While hackers continually attempt to break into electric systems, their focus is at higher levels in the operation. Hacking a meter is unlikely for a variety of reasons. Hackers like to work remotely via the Internet, and smart meters don’t offer that option. Radio-based smart meters require the hacker to be nearby to catch the weak communication signal, break the proprietary communication protocol and to be there for extended periods of time to collect the short burst of data sent. Therefore, smart meters are an unlikely and unprofitable target for hackers. Finally there are the myths sur-
Texas Co-op Power NUECES ELECTRIC COOPERATIVE
NEC_WIRES_November2016.indd 24
rounding smart meters and ill effects on health. These concerns state that having the radio-based smart meter is the equivalent to having a cell tower attached to the side of your home. Again, this is unfounded. Let’s look at why. Number one is that they communicate intermittently for as few as five minutes a day. These devices are regulated by the Federal Communications Commission, and their output is well below the levels this Federal agency sets. As one doctor observed, the radio waves emitted are more like those of a cordless phone or wireless router. Radio waves emitted by smart meters are much weaker and less frequent than other sources we use on a daily basis. We will all benefit from the continued development of America’s smart grid and can rest easy with the knowledge that the rumors surrounding radio-based smart meters don’t hold water.
www.nueceselectric.org
10/10/2016 5:12:43 PM
www.nueceselectric.org 1.800.NEC.WATT
Payment Options: Pay Online www.nueceselectric.org Access your account 24 hours a day from any computer to view usage, make payments or manage your account. Just click on “Pay Your Bill”, on the left side of our Homepage and it will take you to the SmartHub account portal.
Pay With Your Smart Device Download the SmartHub app to your iPhone or Andriod device. View usage, weather impacts, make payments and manage your account any time of the day.
Auto Draft: Sign up to have your bank account or credit card drafted for your monthly bill. You can sign-up via your SmartHub online account.
Equal Payment Plan Through this payment program, a member’s usage is averaged for the year and the member makes equal payments each month. See more information and sign up online under the Member Services ->Payment Options menu tab, or call the office.
Pay by Phone: 800-NEC-WATT (800-632-9288)
Pay in Person: Pay your bill at any one of our Customer Service centers located in Calallen, Ben Bolt, Ricardo or Orange Grove.
Pay by Mail: P.O. Box 659821, San Antonio, TX 78265
Pay at the Payment Kiosk Quick, easy, and accessible 24 hours a day, the Kiosk is located at the Calallen office. Payments post immediately to your account.
Payment Services Pay using any Fidelity Express Pay Stations or for an additional $1.50 service charge. Search online to find a payment station near you.
www.nueceselectric.org
NEC_WIRES_November2016.indd 25
Find us on the web at: www.nueceselectric.org Call us at: 361-387-2581 or 1-800-632-9288 Your Elected Board of Directors: Brian Menking: District 8, President Bill Hartman, District 7, Vice-President David Rosse, District 3, Secretary Treasurer Tommy Ermis, District 6, Asst Secretary-Treasure Johnny Alvarado, District 9 Gladys Lippincott, District 10 (Retail) Donald Herrmann, District 4 Maxine Stewart, District 5 Gregg Truesdale, District 2 Rumaldo Z. Juarez, District 1
Main Office / Mailing Address: 14353 Cooperative Ave Robstown, TX 78380 (Calallen) M-F 8:00 a.m. - 5:00 p.m. Ben Bolt Service Center: 5646 S. Hwy 281 Alice, TX M-F 8 - 12/ 12:30 - 4 Ricardo Service Center: 123 CR 1026, Ricardo, TX M-W-F 8 - 12 / 12:30 - 4 Orange Grove Service Center: 5302 W. FM 624 T-Th 9 - 12 / 1 - 4 (FM 624 & Hwy 281)
Use the NEC Outage Viewer to view outages 24-hours a day with any device. The Outage Viewer is located on the homepage our website.
NEC Power Providers
PLEASE NOTE: The (CRs) listed below have completed the process to qualify to serve NEC area members. This provider list is subject to change. For the most up-to-date list of providers, please monitor our website nueceselectric.org or you can obtain a list from any NEC office.
AP GAS & ELECTRIC COMMERCIAL & INDUSTRIAL APOLLO POWER & LIGHT COMMERCIAL & INDUSTRIAL BLUESTAR ENERGY COMMERCIAL & INDUSTRIAL ONLY CHAMPION ENERGY SERVICES COMMERCIAL & INDUSTRIAL CONSTELLATION ENERGY COMMERCIAL & INDUSTRIAL ONLY CORAL POWER SOLUTIONS LARGE COMMERCIAL & INDUSTRIAL DYNEGY COMMERCIAL & INDUSTRIAL ENERGY TRANSFER LARGE COMMERCIAL & INDUSTRIAL ENERTRADE ELECTRIC LARGE COMMERCIAL & INDUSTRIAL GDF SUEZ COMMERCIAL & INDUSTRIAL HINO ELECTRIC COMMERCIAL & INDUSTRIAL MPOWER /MP2 COMMERCIAL & INDUSTRIAL ONLY NEC RETAIL ELECTRICITY RESIDENTIAL, COMMERCIAL & INDUST TENASKA LARGE COMMERCIAL & INDUSTRIAL ENCOA (TERM) COMMERCIAL & INDUSTRIAL ONLY SMARTCOM ENERGY SERVICES COMMERCIAL & INDUSTRIAL ONLY STARTEX POWER LARGE COMMERCIAL & INDUSTRIAL SOURCE POWER & GAS COMMERCIAL & INDUSTRIAL
NUECES ELECTRIC COOPERATIVE
Texas Co-op Power
25
10/10/2016 5:12:44 PM