NEC Retail Member Newsletter March 2016

AT-Cost ELECTRICITY MEMBER CONNECTIONS

AT-Cost ELECTRICITY

Powered by People for your home AND BUSINESS

855-NEC-RD4U | necretail.com

for your home AND BUSINESS

Priority No. 2:

Cost Containment Trace McCuan, CEO

Many say luck has nothing to do with success, but rather hard work and perseverance create success. Sure I believe in luck, after all I am of Irish decent. But I also believe success is a two-way street.

We have been lucky, or fortunate, to have been gifted this Electric Cooperative from the 355 charter members who formed it in 1938. For the past 77 years, we have been tasked to work together, to work hard, and to continuously improve members’ quality of life by providing reliable and cost effect electric service.

Last month, in the February address to members, I spoke about my top priority, safety. This month, I would like to highlight my number two priority: cost containment to keep our rates as low as possible.

As you can imagine, this is a very tall order. With technol-

ogy advancements and a higher dependency on electricity than ever before, NEC has to continuously adjust how we operate in order to keep up with members’ expectations.

With over 34 years of experience in the electric utility industry, I understand what it takes to deliver a dependable product at an appropriate cost. I also understand that I was hired by a democratically elected Board of Directors, to guide the employees’ daily efforts, who ultimately work for you, the members who elect the Board of Directors.

You, our members, and your investment and trust in the Co-op are at the heart of everything we do. We are proud that we are not an investor-owned utility, where the primary purpose is to generate profit for their stockholders.

Cooperatives are different. While the co-op must, of course, generate enough revenue to cover costs, profit is never our motive. Serving you and your neighbors is our priority.

6¢: Member 4¢: Services & How Your Dollar Was Spent in 2014 Net Interest Information (As noted at the October 2015 Annual Meeting 6¢: Distribution 7¢: 4¢: Operations & covering the 2014 fiscal year. ) 5¢: Admin & Depreciation Maintenance Taxes General

68¢: Cost of Purchased Power

I have been with NEC for about four months now. Each day I identify obstacles and potential areas of resource realignment.

We were fortunate to have been given a great gift, which comes with great responsibility. Without a doubt our founding members would be extremely proud of the creative ways we have diversified our income through military bases and retail electricity.

Luck is on our side. And we will continue to work hard to turn our luck into success for all members.

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$1.2 million 73 nonprofits ...and counting Nueces Electric Charities 2015 Recap Nueces Electric Charities, through the generosity of the members of Nueces Electric Co-op, distributed about $102,000 last year to area nonprofits.

In 2015 Grants were awarded to 23 nonprofits:

While membership giving was slightly higher than 2014 giving, the 2015 distributions were down from the normal $125,000 the Co-op annually provides to the community.

Amistad Community Center $3,000 CASA of the Coastal Bend $3,000 Corpus Christi Chamber of Commerce $1,000 Corpus Christi Education Foundation $3,000 Corpus Christi Metro Ministries $3,000 FOCUS Foundation $3,000 South Texas Lighthouse for the Blind $3,000 United Way of the Coastal Bend $3,000 Coastal Bend Community Foundation $10,000 Brush Country CASA $4,500 Corpus Christi Museum of Science & History $2,900 Corpus Christi Tennis Association $1,500 Children’s Advocacy Center $5,000 Coastal Bend Kidney Foundation $3,000 Driscoll’s Children Hospital Foundation $4,000 Harbor Playhouse $3,000 Corpus Christi Hope House $5,500 Ronald McDonald House Charities $5,000 The Salvation Army $2,500 Wesley Community Center $3,000 Youth Odyssey $3,000 Joe A Gonzalez Education is Our Freedom Scholarship $3,000 Halo-Flight $24,000 Total Awarded $101,900

However, this decrease is not actually a decrease at all. In 2015, the Nueces Electric Charities Committee made the move to accept grants on a biannual basis, rather than the traditional quarterly basis which had been in place since the program began in 1996.

With the decrease in applications, not as many charities received funds.

The extra $33,000 in funds left from the 2015 fiscal year, will be rolled over into the 2016 giving fund.

Nueces Electric Charities is funded by the generosity of Nueces Electric Cooperative members. Members RoundUp their electric bill to the nearest dollar and those pennies add up to great opportunities. Those funds are deposited into the Nueces Electric Charities account. Nueces Electric Cooperative absorbs all of the administrative cost to maintain the program, so 100% of the donated funds can be given back to the community.

The RoundUp program was originally created to assist Halo Flight Air Ambulance. Halo Flight continues to be the top beneficiary with $24,000 in total donations each year.

To date, the grant program has awarded almost $1.2 million to 73 organizations. Grant applications, and award criteria, can be found at www.nuecescharities.org and are accepted February 1st and August 1st of each year.

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Caring for Your Home’s Electrical System as It Ages

Look Up Before You Plant Spring is the best time to plant shade trees, which eventually will grow up and out and cast some nice shade on your house, keeping it cooler during summer.

But beware of where you plant. Tree branches can conduct electricity, creating a possible shock hazard for utility workers who need to service overhead power lines that are too close to towering trees.

Do some homework about the trees you’ve chosen before you plant them.

Know how tall and wide each tree will grow. That way, you can plant it in a spot where, when it’s fully grown, will still be 10 feet away from a utility pole and overhead wires.

Here are a few other smart springtime cautions: - Don’t climb a ladder that’s within reach of a power line.

- Hire a professional to prune tree branches that are near overhead wires.

That’s not a job for a do-it-yourselfer.

- Call your electric cooperative and 811 before you dig a hole to plant a tree—to make sure you won’t interfere with underground lines on your property. That one is not only a safe practice; it’s also the law.

To help prevent injury and illness, there are things we have to do to care for ourselves—especially as we get older. Our homes also have to be maintained to stay in good shape, and an important part of that maintenance includes a home’s electrical system.

PATT I E C ALFY | I STOC K.COM

How tall will that new tree get? You should know before you plant to make sure it won’t grow into power lines.

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Older homes are more likely to have an electrical fire than newer homes. An electrical system’s insulation can eventually wear out from a variety of factors, including age, animal gnawing or overloaded circuits.

Older homes were not designed for the volume and power requirements of today’s electronics and appliances. Increased electrical demands can have an impact on the household wiring in older homes.

If you have an older home, you may find that you need upgraded electric service.

Be aware of the signs of electrical wiring problems, which include dim or flickering lights, a burning smell, smoke, shocks or discoloration when using an electrical outlet or switch. Also look out for frayed wires, breakers that trip or blow, and signs of potential rodent damage that may affect insulation. If you suspect a problem, shut off the outlet or switch at the circuit breaker, and contact an electrician to make repairs.

To check on the status of your home’s electrical system, contact a qualified electrician to perform an electrical inspection of your home. The U.S. Consumer Product Safety Commission suggests the following guidelines for inspections: If the last electrical inspection of your home was 40 or more years ago: An inspection is overdue.

If the last inspection was 10 to 40 years ago: An inspection is recommended, especially if your electrical demands have increased significantly or you have noticed any of the warning signs of electrical problems.

If the last inspection was fewer than 10 years ago: An inspection should not be needed unless you have noticed any of the warning signs of an electrical problem, or any temporary wiring has been added.

The CPSC further suggests that if you are not sure of the last time your home had an electrical inspection, you might be able to find a label or tag with that information on your electrical panel door or cover. If there is no label or tag, then use the age of the house as a guide to the probable need for an inspection.

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Don’t forget to set clocks ahead one hour on March 13.

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Change Clocks, Change Batteries The second Sunday in March triggers Daylight Saving Time, when we “spring ahead” and set our clocks one hour later.

That’s also the best day to change the batteries in smoke alarms and carbon monoxide detectors—even if the batteries aren’t dead.

If you don’t have fire alarms and CO detectors, your family is at risk. The alarms sound loudly if smoke or gas is present in your home so you can get out.

Carbon monoxide is a clear, odorless gas that is deadly but difficult to detect.

If you don’t have an alarm, it’s unlikely that you will know if your home has a CO leak.

Carbon monoxide doesn’t come just from cars. Your gas furnace or stove is a potential source of the gas. The U.S. Environmental Protection Agency offers these tips for poison prevention: Keep gas appliances properly adjusted.

• Use electric space heaters, not gas space heaters.

• Install an exhaust fan, vented to the outdoors, over a gas stove.

• Open flues when wood-burning fireplaces are in use.

• Have a trained professional inspect, clean and tune up all components of your heating system annually. Repair leaks promptly.

• Do not idle your car inside the garage.

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How To Clean Refrigerator Coils

Yearly maintenance helps ensure efficiency and long life Your refrigerator is one of the largest, most-used appliances in your home. It requires only minimal maintenance—just simple cleaning of the condenser coils, which disperse heat. If the coils are covered with dust, gunk or pet hair, they cannot diffuse the heat properly, and the unit will not run efficiently. A bigger problem can result if the compressor burns out from having to run constantly because of the grimy coating. This can be an expensive problem. But a minor time investment once a year can save you cold cash down the line.

1. Locate the refrigerator’s coil, a grid-like structure, or fan that will likely have

a covering or grate protecting it. The coil is usually concealed behind the front toe-kick or in the back. Some newer models have internal coils, so if you don’t see them in the front or back, this may be the case with your fridge.

2. If the coil is in the back, slide the refrigerator away from the wall, removing

the plug from the electrical outlet if possible. You may also need to disconnect the line to the water dispenser or ice maker to allow enough room to work.

3. Gently vacuum and clean the coil. Using the brush or crevice attachment,

carefully vacuum the dust and dirt wherever you see it. If you have pulled the fridge out, vacuum and wipe down the sides and back of the fridge and the floor.

4. Once the floor is dry, plug the refrigerator back in, and rearrange the power

cord and supply lines so they don’t get kinked or stuck under the weight of the refrigerator or behind it. Slide the refrigerator back into place. Be sure to replace the toe-kick panel if it was removed.

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How Does Roofless Solar Compare to Rooftop?

The cost of residential solar electricity has dropped 45 percent since 2010, making the sun an attractive source of energy for more Americans. We recognize the potential benefits to members and want to help you take advantage.

But when researching solar systems and collecting quotes, you’ll be faced with a decision: install rooftop solar panels or subscribe to a roofless community solar array?

Both options possess benefits and drawbacks. However, because community solar is still a relatively new concept, many Americans are unaware of how this shared-energy model compares to on-site solar.

Optimal Rooftops

As of September 2015, there was enough solar electric power online in the U.S. to meet the electricity needs of more than 4.6 million homes. But only half of residential and commercial rooftops are able to host a solar photovoltaic (PV) system due to tree shading, angle and direction of roof slope, and ownership issues that prohibit occupants from modifying their rooftop.

Often built on undesirable parcels of land—such as brownfield

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sites and utility substations—shared solar projects are optimally sited to maximize sun exposure. Positioned to face dead south at the ideal tilt, community solar arrays produce 12 to 15 percent better over time than rooftop systems.

Home Upgrades

Installing a rooftop array is often comparable to a home addition. Residential solar permitting varies by state, but typically includes building, electrical and sometimes structural permits.

While solar installation companies handle the permitting process, any necessary upgrades are the homeowner’s responsibility. For example, the breaker panel may need to be updated to handle solar, which requires a certified master electrician. If the electrical line is too thin, the wiring and conduit may need to be replaced, while the roof structure and framing must be strong enough to support solar panels. All of these upgrades can add thousands of dollars to the cost of installing rooftop solar.

Ground-mounted community solar arrays also require permitting, such as land use and building permits, but any site modifications are the developer’s responsibility and are factored into overall panel pricing.

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Maintenance and Monitoring

With on-site solar, the homeowner is responsible for keeping the PV system in optimal condition to maximize clean energy generation. For systems with string inverters, it can take weeks before a homeowner identifies a production loss (indicated by an unusually high electricity bill). From there, a solar technician must come out to assess the system, and make any repairs or order replacement parts.

Community solar facilities are regularly monitored by operations and maintenance staff, so any loss in generation is promptly identified, allowing production to be restored in a timely fashion.

Selling a Solar-Equipped Home

A fully owned, solar-equipped home can sell for up to $15,000 more than a home without rooftop PV, according to researchers at the Berkeley Lab. But this doesn’t hold true for solar leases and power purchase agreements (PPAs). With lease agreements, the solar company owns the system, so individuals who want to sell their home must find a new owner who qualifies to take over the lease. If the potential buyer has too low of a credit score or does not otherwise quality, the homeowner may be forced to buy out the system’s remaining production in order to sell the house. Even with a fully owned system, there is no guarantee that a buyer will be interested in a solar-equipped home, as rooftop panels increase a homeowner’s insurance liability.

A community solar subscription is easily transferable. Whether an individual buys or leases panels in a shared solar facility, or subscribes to the clean energy output, he or she can sell or gift their stake in the array to anyone in the same utility territory.

A Bright Future for Community Solar

Today, the greatest challenge with community solar is availability—not everyone in America has the option to participate in a shared solar array.

As of mid-2015, 24 states had at least one community solar project in operation and 12 states had two or more, totaling 110 online projects, reports GTM Research. By the end of 2016, researchers predict the U.S. will have installed 465 megawatts (MW) of community solar—seven times the capacity online at the end of 2014. The future is undoubtedly bright.

And for NEC Retail members, that future is now. Thanks to our partnership with Clean Energy Collective, you can reserve panels in our roofless community solar array today. Learn how you can save thousands of dollars with Roofless Solar—and create a better future.

Call 361-236-4357 or visit www.necrooflesssolar.com to learn more.

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Arbor Day Tree Giveaway Back by popular demand, NEC will host an Arbor Day Tree Giveaway.

We take care to deliver a tree which grows well in the South Texas climate and soil while providing cost-savings shade to your home.

Save The Date!

Friday, April 29th Time: TBD Full details on time and locations will be posted in the April Texas Co-op Power Magazine, Facebook, Twitter, and in the News and Events section of the website.

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Lite-Up Texas is Back A low income electric discount program LITE-UP TEXAS is back. The Low Income Electric Discount Program will run May 2016 through August 2016. For additional information and program requirements you can call 1-866-454-8387 or go to the Public Utility Commission of Texas website at http://www.puc.texas.gov/consumer/low income/ Assistance.aspx.

Ha regresado LITE-UP Texas. El Programa de Descuento en la Electricidad para Personas de Bajos Ingresos estará en vigor de mayo 2016 a agostó 2016. Para mayor información y los requisitos del programa usted puede llamar al 1-866-454-8387 o visitar el sitio web de la Comisión de Servicios Públicos de Texas en: http://www.puc.texas.gov/consumer/lowincome/Assistance.aspx.

Payment Options Pay Online www.necretail.com. Access your account 24 hours a day from any computer. Just click on “Pay Your Bill”, on the homepage and it will take you to the SmartHub account portal.

Auto Draft:

Play & Win! If Your Account Number is:

31597-002

Sign up to have your bank account or credit card drafted for your monthly bill. You can sign-up via your SmartHub online account.

YOU WIN $25 off your electric bill!

Call, NEC Retail before the 20th!

Level Billing Payment Plan Through this plan, 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 Why NEC menu tab, or call the office.

Pay by Phone:

Calendar Dates: April 29, 2016 ............Arbor Day June 15, 2016 ............ Director Election Packet Pick-up for Districts: 6 (Agua Dulce Area), 7 (Orange

Grove Area), 8 (San Diego Area), 10 (NEC Retail).

August 1, 2016 ...........Nueces Electric Charities Grants Deadline

855.NEC.RD4U (855.632.7348)

Pay by Mail: PO Box 659832, San Antonio, Texas 78265

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.

October 13, 2016 ...... Annual Meeting RMB Fairgrounds 26

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If you have already submitted your proof of military service, you do not need to submit it again. You will automatically receive the credit each year. If you have not submitted proof of military service, it’s easy! Simply visit www.necretail.com (under Military programs) for the variety of ways you can submit your information to the Co-op.

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