Nueces Electric Co-op Membership Newsletter March 2016

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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.

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

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.

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.

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.

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.

How Your Dollar Was Spent in 2014 (As noted at the October 2015 Annual Meeting covering the 2014 fiscal year. )

68¢: Cost of Purchased Power

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. 4¢:

6¢: Member Services & Net Interest Information 6¢: Distribution 7¢: 4¢: Operations & 5¢: Admin & Depreciation Maintenance Taxes General

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 donations from members 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 Board 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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Nueces Electric cooperative

­­Texas Co-op Power

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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.

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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.

Nueces Electric cooperative

­­Texas Co-op Power

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Power Out?

Check the status of your outage using the NEC Outage Viewer located at www.nueceselectric.org Use your phone or computer to view real-time outages and restoration efforts.

For 24/7 power outage reporting, please call 1-800-632-9288

Outage Maps Keep You Informed Cooperatives across the country use a powerful tool to aid power restoration and keep you informed during an outage. Outage maps are just what they sound like: a graphical representation of a power outage displayed on a map of your electric co-op’s service area. The typical map shows where the outage is and includes information such as the number of members without power. Behind the map is a sophisticated system that provides the data needed to populate the graphic. This technology is considered to be part of the smart grid because it improves control, reduces outage length, increases reliability and provides information to employees, co-op members and the public. Maintaining an accurate outage map starts with devices on the co-op’s lines that can report their status to the cooperative, meaning that they can report whether there is power at the meter. This data flows back over the power lines to a computer at the co-op. There it is analyzed, and the results are presented to the engineering and operations team for action. Here’s an example: Something causes a fault in the lines that blows a fuse or trips a circuit breaker. The cause could be a gust of wind dropping a branch on a line; a furry critter deciding the brush around the transformer looks like dinner; or a car hitting a utility pole. Regardless of the cause, the power is now out for a number of members. The piece of equipment nearest the fault signals that it cannot see anything down the line—or that it has “tripped.” A program 24

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now runs to determine the extent of the outage. It collects information from other devices to determine where the flow of power stops. Once it has completed its detective work, the system generates a map showing the extent of the outage. Because of the power of the information contained in these maps, co-ops are making them available via the Internet. Members can consult the map online rather than waiting in a telephone queue to learn about their power outage from a member service representative. They can check to see if the co-op knows whether their power is out, and when the co-op expects it to be restored—all with the click of a button! Many people have asked how they can access the Internet if their power is out. There are a couple of ways to do this. The first is via a smartphone or cell-enabled tablet. Another is to ask a friend or family member who has power to check for you. Or head to a place with power and computers, such as a library or Internet café. There are many ways you can access crucial information during an outage and keep yourself informed on the status of your service. Knowledge is power, and when it comes to outages, knowledge is also a comfort because it can tell you when the lights (and the heat / AC and the TV) are likely to come back on. NEC provides outage information as part of our ongoing efforts to provide the highest quality of service at the lowest possible cost. This is just another benefit of being a co-op member.

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Spring Storms All to often Texans fear hurricane’s, but the reality is that spring storms have proven to pack a larger punch. As spring arrives, make sure you’re prepared to handle storms that come with the changing season. When a storm does arrive, Lineworkers must battle the elements to find problem areas and restore service as quickly and safely as possible. Members want to know why the lights are out and when they’re coming back, but first crews must find the problems. Then we follow a series of steps to bring the lights back on. Efforts are made to restore power to the largest number of members as quickly as possible. Then crews fix problems impacting smaller groups of members.

Restoring power

When an outage occurs, line crews work to pinpoint problems. They start with high-voltage transmission lines. Transmission towers and cables that supply power to thousands of consumers rarely fail. But when damage occurs, these facilities must be repaired before other parts of the system can operate. Next, crews check distribution substations. Each substation serves hundreds or thousands of members. When a major outage occurs, line crews inspect substations to discover if problems stem from transmission lines feeding into the substation, the substation itself, or if problems exist down the line. If the problem cannot be isolated at a distribution substation, distribution lines are checked. These lines carry power to large groups of members in communities or housing developments. If local outages persist, supply lines (also called tap lines) are inspected. These lines deliver power to transformers, either mounted on poles or placed on pads for underground service, outside businesses, schools, and homes. If your home remains without power, the service line between a transformer and your home may need to be repaired.

Report & Monitor

Always call NEC at 1-800-632-9288 to report an outage. This helps crews isolate local issues. After you notify the Co-op, use your smart device to monitor your outage, using the NEC Outage Viewer located on the home page of our website: www.nueceselectric.org.

Storm Tips: •

Stay away from down power lines. Electricity could still be flowing through them. Hear thunder? Head inside. If you can hear it, you could be in danger from lightning. Stay indoors at least 30 minutes after the last clap of thunder. Unplug your electronics. Avoid

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using TV’s, computers, or game systems, which can carry power surges. Use generators wisely. Do not plug generators into power outlets. Doing so could electrocute a line worker. Place generators outdoors under a patio. Keeping a generator inside will cause carbon monoxide poisoning. Be careful with candles. Place candles in a glass container.

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. Nueces Electric cooperative

­­Texas Co-op Power

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Employee Spotlight:

Sylvia Garza

Welcome David Tivis

As a seven year veteran employee, Sylvia Garza has done a bit of everything in the front office. She is a jack-of-all-trades when it comes to billing, cashier, and new service. Now as a Member Care Representative, Sylvia is one of seven valuable employees who are the front line for service for all 13,500 + Co-op members. Sylvia says, “What I like most working for the Co-op are the great benefits and working with members. With every call, I try to help the member have a good experience whether they are connecting service, paying their bill. Even when the member is upset, I try to maintain a professional composure and make their day a little bit better.” Sylvia’s co-workers say “her customer service skills are polite, always professional, and she always has a smile. Sylvia, always does her job to the fullest. She works on pleasing and helping all members with such concern. She is definitely an asset to Member Care department.” Sylvia exemplifies the Mission of Nueces EC every day, by assisting members to improve their quality of life and doing what she can to provide cost-effective electric service.

Meter Technician We are extremely happy to have David with us. As a 29 year veteran of TriCounty EC in Oklahoma, David brings vast knowledge of meters, warehouse, and energy audits to NEC. David and his wife moved to the area to retire. In his spare time, David likes to hunt, fish, and fly model airplanes.

Joe Guzman

Design Technician Joe is a 23 veteran of the U.S. Marines where he specialized in electrical wiring and electronics. A H.M. King graduate, Joe is glad to be back home where he can ride his Harley on the back roads and relax on his days off. Joe is also taking online college classes to earn his degree.

Coy Erwin

Journey Lineman - Orange Grove Coy comes to the Co-op with 24 years of utility experience, mainly in the Co-op world. He, his wife, and their two sons relocated to NEC from Colorado. Coy is ready to enjoy the warmer weather, fish and hunt. He says he is glad to be back with the Co-op family and is ready to get to work.

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

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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 signup 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.

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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 Corpus Christi, TX 78380 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 Co-op 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

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