NEC Retail June 2015 by Nueces Electric

MEMBER CONNECTIONS

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John L. Sims, NEC CEO

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Our Directors Make a Difference

LIKE OTHER ELECTRIC CO-OPS, Nueces Electric Cooperative

is guided by an elected board of directors that represents its members when making important decisions. Being a member of the co-op’s board is an important and highly responsible position in the community, and directors volunteer considerable time and energy to the cause of powering our communities and empowering co-op members to improve the quality of their lives. A director’s decisions affect issues such as service rates, rightsof-way and capital credits, as well as strategic, financial and work plans. The post requires savvy, selfless men and women who understand their community’s needs and work to represent the members’ best interests. All electric co-op boards benefit from the experience and accumulated knowledge of incumbent directors, many of whom undergo substantial education on topics such as the electric industry, technology, governance, risk management, ratesetting and policy development. The National Rural Electric Cooperative Association offers training for directors to achieve national benchmarks such as Credentialed Cooperative Director or Board Leadership certifications. Established directors provide continuity and a depth of knowledge.

It is equally important that we elect capable directors from a strong pool of candidates, which is why we encourage new candidates to run in our board elections. Fresh ideas and new perspectives from all professions and backgrounds help us to enact policies that can keep our co-op competitive in a changing world. Our board is a democratically elected body, with each director nominated by members of the cooperative’s service territory and voted into position by all members who choose to participate in the cooperative’s open election. Any co-op member in good standing is welcome to run for an open board position for the district in which they receive service. Not only should NEC members encourage neighbors, friends and family to run for positions on the board, they also should attend the co-op’s annual meeting and vote for those individuals whom they think will act in the best interest of our co-op community. Directors matter. Let’s make a difference together. Call 361.387.2581 or visit www.nueceselectric.org to find out who represents you on the cooperative’s board and reach out to them with any concerns—or compliments—about NEC.

COOPERATIVE PRINCIPLE #2: DEMOCRATIC MEMBER CONTROL Cooperatives are democratic organizations controlled by their members - those who buy the goods or use the services of the cooperative - who actively participate in setting policies and making decisions. 18

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Director and Election FAQ’s

Nominations Open June 22nd for NEC Director Positions

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 director districts of the cooperative. A portion of the co-op directorships stand for election each year. All members can vote on all directors.

Beginning Monday, June 22, 2015, any NEC member who wants

to be a candidate for co-op director for districts 3, 5 and 9 can sign-out a petition and instructions at the NEC officeHin WYCalallen 44 at 14353 Cooperative Ave, (intersection of CR52 and CR69) .44The deadline for the return of these petitions is 5:00 p.m. on Friday, July 24, 2015.

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Any NEC member in a district up for election may seek to become a candidate.

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.

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.

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NOTE: NEC Retail members on power lines maintained by AEP, Oncor, CenterDistrict 3, 5, and 9 Boundary Point, TNMP are in District 10. NEC Retail June 2015 Texas Co-op Power

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Article I, Section 8, “Membership List,” of the Cooperative’s Bylaws. Upon authorization, Petitioners may be granted access U V 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, Legend the names, addresses, and account numbers of up to fifty (50) Districts District members from that list. A full copy of the By-Laws can be found 03 at www.nueceselectric.org -> About-> Transparency and Your 05 09 Cooperative

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Director Responsibilities

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Petitions will be signed out from, and returned directlyCto, 1 1 CoR 3the op’s Administrative Assistant who will contact you once signatures 10 are verified as valid NEC members living in your district. If more C than two qualifying petitions are received for a district, a primary election will be held in each district during the month of August to narrow the candidates to two.

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.

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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

Nominating Process

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.

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Director Election Process

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.

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Arbor Day Tree Give Away NEC went bigger (and better) than ever to put trees into the community Nueces Electric Cooperative (NEC) recently celebrated Arbor Day with 2,000 trees, their biggest annual tree give away to date. Organizers say this popular event has grown by 500 trees each year and the Co-op is happy continue to grow the event as an effort to accommodate as many members as possible; and to put as many trees as possible back into the communities. This year the Co-op was more than prepared with plenty of trees and a convenient drivethrough tree pick-up system. In total, the Co-op gave out over 1,000 trees to members at the Ricardo, Ben Bolt, Robstown, and Calallen NEC office locations.

1.855.NEC.RD4U curse. While well placed trees can help reduce electric bills by providing shade in the hot summer and wind barriers in the windy winter, trees are the main source of power outages across the nation. If you currently have a tree touching power lines, please call a professional tree trimmer or your power line maintenance company to come out and trim the trees for you. With hurricane season right around the corner, some pre-preparation will help you and your neighbors prevent power outages. To have your trees cut away from your power lines, contact your power line maintenance company. Responsible tree planting can be exciting as you watch your tree grow and mature. The benefit of trees are numerous with their natural production of healthy oxygen, their beautiful canopies, and as they serve as a natural resource

An easy tree pick-up process made the popular event run smoothly. No waiting in line or even getting out of the car made members extremely happy!

Step 1: Confirm Membership

Step 2: Pick up your tree

The giving didn’t stop with NEC members. Additional trees were given to area schools, including 500 trees to Ricardo ISD, 110 to Driscoll ISD, 150 to Orange Grove ISD, 50 to San Diego ISD, 50 to Ben Bolt ISD, as well as the Agua Dulce Head start program and the Nueces County Master Gardeners. “As a co-op we are doing as much as we can to be community-focused and to give back to the member-owners of the Co-op. This event is a way we can thank members while doing something to reduce our carbon footprint” said John L. Sims, NEC CEO. “It’s a win - win and the Co-op enjoys the chance to interact with members,” he adds. In the electric delivery business, trees are a blessing, and a 20

Texas Co-op Power NEC Retail June 2015

Step 3: Planting, Safety & Efficiency Information

Happy Planting!

and habitat for birds and other nature dwelling animals. Nueces Electric Cooperative strives to be an active part of all communities and to give back in a variety of ways. Whether it is scholarships, Nueces Electric Charities community grants, community education presentations, or simply improving members quality of life by providing reliable and cost effective electric service, the memberowned Co-op proudly gives back to the community as much and as often as possible. Yet, sometimes it’s as simple as planting a tree that can make the biggest difference and give the most back today and every day. www.necretail.com

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NEC’s Planting Advice Plan for summer and winter

Plant safely

During the windy winter months, trees and bushes act as wind barriers by blocking cold air from hitting your windows and home siding; thus assisting to keep warm air inside your home.

When you have chosen your perfect planting spot, be sure to take consider safety. Always look up, down and around for electricity and other utility wiring. Sometimes those underground wires are not buried as far down as you might think. “Due to soil erosion and previous underground line placement specifications, you may accidentally hit a line while digging, “ said NEC Safety Manager Cassy Hill, “The solution is to use the Texas utility line-locating service offered free of charge. Simply dial 8-1-1 and within a few days you will know where those lines are buried in your yard.”

Windows are key

Place it properly

Plant trees on the west and north side of your home to provide mid-to-late afternoon shade. Additionally, plant to cover your air conditioning units, patios and drive-ways. During the summer months, well-placed shade trees and shrubs keep the hot sun from beating in home windows thus causing the air conditioner to work harder.

Trees will not help prevent the hot, humid south Texas air from leaking in or out through poorly sealed windows, or keep cold winter air from leaking in, but it will help by acting as an additional insulator for your windows and home siding. Maximize efficiency by applying weather stripping to doors and windows and, when possible, replace older windows with updated energy efficient windows.

Take tree placement into consideration. Remember trees can grow pretty tall and have expansive roots. Evaluate how tall your tree is expected to grow by reading the information tags or researching the tree online. If your tree could grow tall enough to tangle into the overhead power lines, plant the tree at least 40 feet away from the power line. Trees that touch power lines are not only hazardous during storms, but if your trees limbs are touching power lines, children who play in that tree could be electrocuted.

“The best time to plant a tree was 20 years ago. The next best time is today” -Chinese proverb

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Cool Down Refrigerator Costs

Using energy at the right time costs your co-op—and you—much less.

AS WARM TEMPERATURES settle in for the summer, refrigerators are set to get a workout keeping food and drinks cool for hot and thirsty friends and family members. Follow these tips to reduce the amount of energy your refrigerator uses. Minimize the number of times you open your refrigerator. Plan accordingly so you don’t have to leave the door open for prolonged periods of time. An open door allows warm, moist air to enter, which makes the compressor work harder. Set the appropriate temperature. Keep your refrigerator at 35 to 38 degrees Fahrenheit. Place your fridge in a cool place. Position the refrigerator away from a heat source such as an oven, a dishwasher or direct sunlight from a window.

Efficient Timing Why the time you use energy matters to your co-op

JUST AS YOU CAN GET A CHEAPER AIRFARE by catching a red-eye flight, using energy

when fewer folks are pulling power out of the electric grid generally costs your co-op much less. That price filters down to you and your neighbors. There’s a certain amount of energy we all use, whether we’re at home or away. Air conditioners, refrigerators and other “steady” appliances make up baseload power requirements—the minimum amount of power your co-op needs to supply all of its members. And, then there are “peak” periods when many consumers are using lots of power at the same time, such as in the morning getting ready for school and work.

Why Timing Matters NEC carefully monitors “load patterns” because our price for wholesale power rises and falls depending on the type of fuel (coal, natural gas, hydro, etc.) generating that electricity, which largely depends on the time of day when power is used. For example, generating baseload power with coal costs far less than starting up a natural gas peaking plant to meet peak electricity consumption on hot, humid summer weekday afternoons. Here’s a quick look at the types of power plants and fuels used to supply electricity at various times: • Baseload: These are large, efficient generating stations providing enough dependable electric power at a low cost to meet the minimum level of electricity needed at any given time. They run around the clock and do not start or stop quickly. Power sources are typically coal, hydro and large natural gas-fired power plants. • Intermediate Load: These plants handle sharp increases in demand, filling the gap between baseload plants and peaking plants, and typically use coal or natural gas. • Peak Load: Though expensive and small, these plants can start generating power quickly during times when electric consumption reaches its highest point. Power sources are natural gas and diesel fuel. NEC remains committed to providing you with affordable power, but there are some costs we can’t control. As an owner of the co-op, you can help by keeping an eye on the clock when you use power and limiting use during peak periods. 22

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Help Us Keep Your Electric Bill Affordable

Keep your refrigerator’s temperature set at 35 to 38 degrees Fahrenheit, and make sure the seals around the doors are airtight.

Allow air circulation behind the fridge. Leave a few inches between the wall and the refrigerator, and keep the condenser coils clean if you have an older model. Read the user’s manual to learn how to safely clean coils. Check the door seals. Make sure the refrigerator seals around the door are airtight. If not, replace them. If you buy a new refrigerator, be sure to recycle your old one. Many appliance retailers will pick up and recycle your old refrigerator when you purchase a new one.

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It’s Time For You to

Speak and us to Listen

It’s that time of year when we seek your voice as member-owners to give us large-scale feedback on the operations of Nueces Electric Cooperative. Results of this survey are given to all department supervisors to guide them in their daily choices and it is used by your elected Board of Directors to reference when making important decisions which impact all membership. You will have multiple way to take the survey:

1. Be on the lookout for an e-mail containing the 2015 Member Satisfaction Survey link. 2. The survey will also be mailed to all members as a bill insert. 3. Copies will be available at al service centers 4. A link will be posted on our website

But do we really listen? Absolutely. Take the Member Satisfaction Survey online at www.necretail.com Let your voice be heard Comm un-i-ca tion

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Dependable!

Survey closes July 17th Service!

What makes you happy?

I love NEC!

Reliable!

I’m proud of my Co-op!

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Hurricane Season Starts June 1st While Hurricanes tend to appear in the gulf later in the summer... don’t get caught in the frenzy when there is a threat. PREPARE NOW! Yard & Trees Inspect your trees and yard. If you need to trim or clean up items which could fly and break windows or power lines go ahead and clean it, trim it or fix it now. If your trees are touching power lines, call NEC to have them trimmed for you for free. Do not attempt to trim them on your own. 24

Shutters When is the last time you looked at your hurricane boards or shutters. Inspect them to make sure they are still in good shape or purchase some new ones. Again don’t get caught in the crowds or the higher prices.

Emergency Kits Have A Plan Do you have one? Kits should contain supplies to last your family a minimum of one week should the power go out.

They should contain nonperishable food, fresh water, first aid kit, flashlights, candles, clothes, While you are looking at sunscreen, sprays, etc... your boards, make a plan Again DON”T wait until the on how you will mount grocery store shelves are them to the windows. empty.

Texas Co-op Power NEC Retail June 2015

Will you leave, will you stay, will the kids leave and you stay? Where are they going? How will they get there? Where are the gas stations or towns? Plan for pets too! Having a plan eliminates confusion and frustration in a time of crisis. Take a few minutes with your family to discuss your plans. www.necretail.com

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