Nueces Electric Member Newsletter June 2015 by Nueces Electric

John L. Sims, NEC CEO

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

Texas Co-op Power NEC June 2015

www.nueceselectric.org

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.

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 WYCalallen sign-out a petition and instructions at the NEC officeHin 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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Nominating Process

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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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 members from that list. A full copy of the By-Laws can be found District at www.nueceselectric.org -> About-> Transparency and Your 03 05 Cooperative

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Director Responsibilities

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1 1 CoR 3the Petitions will be signed out from, and returned directlyCto, 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.

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

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

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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.

62 4

Nominations Open June 22nd for NEC Director Positions

Director and Election FAQ’s

www.nueceselectric.org

1.800.NEC.WATT

www.nueceselectric.org

1.800.NEC.WATT

NEC’s Loss... is Member’s Gain Line loss that is. But NEC is not exactly losing it; but rather making it better. Line loss is described as “Energy waste resulting from the transmission of electrical energy across power lines; refers to losses within distribution systems. These losses occur due to the conversion of electricity to heat and electromagnetic energy. A small amount of loss occurs even in the most efficiently engineered systems.” That means NEC power lines, our distribution system which carries electricity from the substations to your home or business, are functioning better than they ever have before. Between February 2013 and February 2015, the Co-op decreased line loss by 49.6 million kWh (yes, you read it right, million) which resulted in decreased power costs over the years of approximately $3.7 million. This decrease is credited to improved power factors such as: • Feeder optimization: Picking the most efficient route to service a line. • Removal of idle services: leaving an unused transformer out in the field is like leaving a light bulb on for 24 hours. • Transformer sizing: better sizing of the transformers to match the amount of electricity (or load) they serve to avoid over sizing. • Better conductors: the quality of the power line we use. • Better telemetry: watching feeder and substation readings on a daily basis to hone in on where the Co-op has losses. Due to STEC making these systems available to the Co-op, we are able to identify and tackle issues faster verses the monthly or yearly reports. Because of the improved power factor, NEC is able to reinvest in other capital upgrades. This means the Co-op does not have to dip into margins as much to cover the cost of necessary upgrades. Instead the co-op reinvests the funds in projects like: • 22

General line maintenance: in the past few years, the Texas Co-op Power NEC June 2015

•

Co-op has invested more than ever on tree clearance and pole maintenance, both of which help the longevity of member’s investment in the power lines. Feeder Upgrades: We have been able to complete several projects such as the replacement of wooden cross arms to fiberglass cross arms along long and heavily used feeders like FM 624. The Co-op recently upgraded a 3-mile stretch outside of Orange Grove from a single phase to a three-phase to accommodate the larger load needs due to population growth. The new NEC Headquarters is a reinvestment in itself: previously it was taking one to two hours to get crews loaded with materials and into the field. With the new truck bay and warehouse system, NEC crews productivity has increased almost 25%.

“Line loss is unavoidable, it’s just something you have to manage,” said Avan Irani, Chief Operations Officer. And we will. The Co-op will continue to work hard to improve the system. But NEC could use your help, too, by reporting meter tampering. Meter tampering is stealing electricity and contributes to our overall line loss. CEO, John Sims, explains, “The Co-op is improving our metering system and will be able to target line loss down neighbor to neighbor loss and we should be able to monitor sales and purchase per meter in 15-minute intervals which will help us identify line tampering. Those instances will be immediately identifiable.” “When an Investor Owned Utility (IOU) saves $3 million, it does not go back into their lines, it goes to shareholders. Co-ops reinvest or simply use the savings to increase margins,” Sims adds. The goal is to continue to decrease losses while improving the system. This can be a tough challenge as technology continues to advance at a rapid pace. But the Co-op is up for the challenge and to ensuring all members receive reliable and cost effective electric service. www.nueceselectric.org

www.nueceselectric.org

1.800.NEC.WATT

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.nueceselectric.org Let your voice be heard Comm un-i-ca tion

www.nueceselectric.org

Dependable!

Survey closes July 17th Service!

What makes you happy?

I love NEC!

Reliable!

I’m proud of my Co-op!

Co-op Power June 2015 NEC Texas

www.nueceselectric.org

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.

1.800.NEC.WATT 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. For members living on Nueces Electric Cooperative power lines, call 1.800.NEC.WATT. 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 and habitat for birds and other nature dwelling animals.

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.

Step 3: Planting, Safety & Efficiency Information

Happy Planting!

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.

In the electric delivery business, trees are a blessing, and a 24

Texas Co-op Power NEC June 2015

www.nueceselectric.org

1.800.NEC.WATT

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

www.nueceselectric.org

Co-op Power June 2015 NEC Texas

www.nueceselectric.org

1.800.NEC.WATT

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. 26

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 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.nueceselectric.org

www.nueceselectric.org

1.800.NEC.WATT

Eight Convenient Ways To Pay Your Bill Pay Online www.nueceselectric.org The easiest way to pay! Access your account 24 hours a day from any computer to manage your account. Just click on “Make a Payment” on the homepage.

Pay by Phone: Due to Payment Card Industry (PCI) Compliance standards, NEC is limited in the ability to take credit card numbers over the phone. These standards are nationally implemented to secure consumers finances and hinder identity theft. To make a payment via the phone you can call 24 /7 and pay via the electronic phone payment system at 800-NEC-WATT (800-632-9288).

Pay by Automatic Credit or Bank Draft: If you prefer to not use the computer, you can still sign up to have your account drafted for your monthly bill.

Use the Easy Pay Kiosk Quick, easy, and accessible 24 hours a day, the Kiosk is located at the Calallen office. Payments post immediately to your account.

Pay in Person: Use any one of our Customer Service centers located in Calallen, Ben Bolt, Ricardo or Orange Grove.

Pay using a Fidelity Express Pay Station There is an additional $1.50 service charge.

Pay by Mail:

Use the enclosed envelope that comes in your bill or set-up your banking bill-pay system to send your payment to: NEC, P.O. Box 659821, San Antonio, TX 78265-9121

NEC Power Providers Competitive Retailers Qualified To Serve Consumers Located in the Nueces Electric Co-op (NEC) Electric Distribution Service Area* Updated 07/10/2014

Regardless of the company you choose as your power supplier, remember that your energy delivery needs will always be the responsibility of Nueces Electric Cooperative (NEC) and you have the right to contact us with questions regarding your electricity needs at any time. PLEASE NOTE: The (CRs) listed below have completed the process to qualify to serve NEC area member-consumers and you may choose one of them for your power supplier.Some of these providers do NOT serve residential services. This provider list is subject to change. Please monitor the Texas Co-op Power magazine (sent monthly to all NEC members) and/or our website at www.nueceselectric.org for updated CR provider lists. These can also be obtained at any NEC office:14353 Cooperative Ave, Corpus Christi, TX 78410 (located at the intersection of CR52 & CR69); 123 County Road 1026 in Ricardo, TX; 5646 S. Hwy 281, Alice/Ben Bolt, TX; or 5302 W. FM 624, Orange Grove, TX

Competitive Retail Power Provider AFFORDABLE ENERGY, L.P./AP GAS & ELECTRIC BENEFICIAL POWER LLC – APOLLO POWER & LIGHT BLUESTAR ENERGY CHAMPION ENERGY SERVICES

Phone Number 1-877-544-4857

COMMERCIAL & INDUSTRIAL

866-BLUESTAR (866-258-3782)

COMMERCIAL & INDUSTRIAL ONLY

1-877-653-5090

COMMERCIAL & INDUSTRIAL OVER 40,000 KWH/YEAR

713-767-5400

DYNEGY

877-4DYNEGY (877-439-6349)

ENERGY TRANSFER EVERYTHING ENERGY GDF SUEZ

800-375-5702

27219002

COMMERCIAL & INDUSTRIAL ONLY

HINO ELECTRIC POWER COMPANY

1-866-446-6797 Monday-Friday, 8 am-5 pm

MPOWER /MP2

1-888-202-4770 1-855-NEC-RD4U (1-855-632-7348) 713-341-7365 713-771-7400

LARGE COMMERCIAL & INDUSTRIAL ONLY dms@dynegy.com COMMERCIAL & INDUSTRIAL LARGE COMMERCIAL & INDUSTRIAL ONLY COMMERCIAL & INDUSTRIAL www.hinoelectric.com COMMERCIAL & INDUSTRIAL COMMERCIAL & INDUSTRIAL ONLY www.necretail.com RESIDENTIAL, COMMERCIAL & INDUSTRIAL LARGE COMMERCIAL & INDUSTRIAL ONLY COMMERCIAL & INDUSTRIAL ONLY COMMERCIAL & INDUSTRIAL ONLY

STARTEX POWER

LARGE COMMERCIAL & INDUSTRIAL (50 KW OR LARGER)

SOURCE POWER & GAS

COMMERCIAL & INDUSTRIAL

V247 POWER

If Your Account Number is:

COMMERCIAL & INDUSTRIAL

1-855-750-5556

CONSTELLATION NEW ENERGY CORAL POWER SOLUTIONS CORAL POWER, LLC

NUECES ELECTRIC CO-OP RETAIL DIVISION (NEC RETAIL) TENASKA ENCOA (TERM) SMARTCOM ENERGY SERVICES

E-Mail/Website

Play & Win!

1-855-888-9888 or 1-832-629-1119

YOU WIN $25 off your electric bill! Call, NEC before the 20th! 1-800-NEC-WATT (800-632-9288)

RESIDENTIAL, COMMERCIAL & INDUSTRIAL

WPS ENERGY SERVICES

www.nueceselectric.org IMPORTANT: NEC MEMBERS HAVE THE CHOICE TO RECEIVE EITHER 1 BILL -WITH BOTH NEC AND YOUR PROVIDER CHARGES, SENT BY

Co-op Power June 2015 NEC Texas