MESSAGE FROM THE GENERAL MANAGER A NNUAL MEETING WRAP - UP

Informing our members as we look back on last year and ahead to the future.

Logan County Electric Cooperative held the 87th annual meeting of members on June 13 via a teletownhall meeting. This was my first annual meeting serving as your general manager and I am thankful that more than 500 members were able to attend the meeting.

I would like to share the content of that meeting, in case you weren’t able to join us.

Humbly serving our community

Logan County Electric Cooperative is a not-for-profit cooperative, which was incorporated December 16, 1935, and energized the first 41 members along Ludlow Road on October 21, 1936

From our humble beginning to today, we are wellpositioned to make any necessary investments to ensure we provide our members the safest, most reliable, and cost-based electricity. We were made by, and for, our local community. So, we exist to serve you, our members.

Selecting members for the ballot

A highlight of the evening is reporting the results of the trustee election and recognizing the members who were involved in that process. The co-op’s director of communications, Michael Wilson, gave the nominating committee report:

“First, I want to recognize the members who served on a nominating committee. They were Lance Hill — District 1, Scott Risner — District 2, David Evans — District 3, Jay Ackley — District 4, Greg Krisher — District 5, Tim Jenkins — District 6, And Gary Ginter — District 7. Men, thank you for your time and your commitment to serve on the nominating committee.

“This committee met on January 12, to interview five members who expressed their willingness to serve as trustee for the districts up for election. According to our Code of Regulations, the committee cannot place more than two members from each district on the ballot. So, after interviews were conducted with the candidates, a motion was unanimously approved by the nominating committee to present Jerry Fry and Phil Altstaetter as candidates for District 2 and Jim Rice and Jim Wolever as candidates for District 3.”

The nominating committee plays an important role in ensuring our co-op follows the principle of Democratic Member Control. I appreciate this committee’s diligence as they made some hard decisions about which members to present on the ballot.

Engaging in democratic member control

TIM STREET PRESIDENT/GENERAL MANAGER

Then the co-op’s legal counsel, Doug Smith, announced the results of the trustee election:

“There were 786 ballots cast in this election, which represents 20% of the eligible voting members. The member receiving the most votes in District 2 was Jerry Fry, and the member receiving the most votes in District 3 was Jim Rice.

“Congratulations, gentlemen. Please stand so I may administer the oath of office.

“Please raise your right hand.

“Having been elected trustee of Logan County Electric Cooperative, do you solemnly swear to perform the duties as trustee of the cooperative to the best of your ability, and in conformity to the laws and regulations of the United States of America, the State of Ohio, the Articles of Incorporation, and the Code of Regulations of this cooperative?

“If so, please answer by saying, ‘I will.’”

Both Jerry and Jim affirmed the oath and will resume their role as trustees at our July board meeting.

I am thankful and impressed that so many of our members engage in the trustee election. To have 20% of our members cast their votes is very encouraging. I hope that member engagement in the election will continue to grow as you find value in the opportunity to vote for your representative on the board of trustees.

Approving 2024 nominating committee

We then turned our attention to next year’s election and introduced the 2024 nominating committee. These members were presented to and approved by the trustees during the April board meeting: Lance Hill, Scott Risner, David Evans, Jay Ackley, Greg Krisher, Tim Jenkins, and Gary Ginter. The members present at the meeting voted to affirm the nominating committee with 344 in favor and 1 opposed.

Expenses outpacing revenue

Tiffany Stoner, vice president of administration and finance, presented our financial highlights: “Kilowatt sales were up, rebounding slightly after commercial businesses were interrupted the past couple of years. Kilowatt sales for 2021 were 171,642,155. And in 2022, they were 171,676,332. This was .02% increase in kilowatt sales. But kilowatt sales for 2021 were 7% lower than 2020,” she said.

“Of our $20,563,400 in expenses, 68% were related to the cost of power. The cooperative receives the bill each month from our wholesale power provider just as our members do, and it has been greater than $1 1 million each month. We expected that number to grow as transmission costs had been on the rise,” Stoner said.

“Operating expenses for 2022 were also up by $413,539 from 2021. Our margins were enough to carry our activities and retire a healthy amount of capital credit, but our expenses are outpacing the revenue.

“Finally, the cooperative retired $656,262 in capital credits in 2022, for a life-to-date total of $ 13,558,733. Because the cooperative operates on a not-for-profit basis, any excess revenue is returned to the members in the form of capital credits. The amount allocated to each account is based on electric use throughout the year.”

Facing unprecedented challenges

To end the meeting, I gave the president’s report:

“To meet our members’ electric needs, we purchase power from Buckeye Power, our wholesale power generation cooperative. Buckeye Power works diligently to meet continuously changing regulations while using a diverse power supply portfolio.

“But the reality is that providing a safe, reliable, affordable, and environmentally responsible supply of electricity is becoming more and more challenging. Across the country, we are facing disorderly retirements of baseload coal and nuclear power plants, stemming from poorly conceived and harmful energy policies. These include overreaching and unreasonable environmental regulations that result in high cost, but minimal environmental benefits. Also, unreasonable goals and time frames to achieve greater reduction in carbon emissions are causing problems.

“I want to share with you our reality here in Ohio. In 2009, Ohio had 21 coal-fired power plants capable of producing over 22,000 megawatts of electricity. As of today, there are four remaining plants generating less than 7,000 megawatts of capacity. Many of these plants that closed had recently completed major environmental requirements. Some of these plants have been replaced with modern natural gas-fired plants and large solar installations. But we have greatly reduced our capability to produce electricity, especially during periods of severe cold weather, like we experienced this past Christmas.

“On December 23 to 25th, the grid operator for our region, PJM Interconnection, used all emergency steps available, stopping just short of ordering rolling blackouts, to stabilize our regional power grid. Just to our south in Kentucky, Tennessee, North Carolina, and parts of six other states, rolling blackouts were required to keep the system from collapsing.

“The integrity of our national and regional electric grid is at risk and will only get better if we change our course of direction. Reliable, affordable, environmentally responsible power is Buckeye Power’s commitment to us. We should expect it to be our government’s commitment to us as well.

“As an organization, we continue to provide information to our legislators at both the state and federal level. In all our communication, we emphasize the importance of understanding the impact policies and laws have on you, the members who pay their electric bills every month. We will continue to work for our members to provide electricity in the most efficient and cost-effective way.”

Raising electric rate $5 per month

“We are all becoming too familiar with the unpleasant reality of high inflation rates affecting nearly everything we buy. At the co-op, we too are realizing higher costs across the board. To improve revenue for maintaining excellent service reliability, and to build our reserves in the event of a major storm, on September 1, 2023, the co-op will implement a rate increase.

“For residential members the increase will be $5 per month in the basic service charge. The basic service charge will increase from $ 37 to $ 42 and will be shown on your October billing statement.

“The previous general manager had mentioned at last year’s teletownhall annual meeting that there would need to be a rate increase in 2023. Increasing the basic service charge in the fourth quarter will allow Logan County Electric Cooperative to provide the reliable electric service our members want and deserve, and for the cooperative to remain financially sound.

“For only 16 cents more per day, you are assured that your expectation for continuous power and outstanding service are met.

“This fixed availability charge gives each member a fair and equitable share of the cooperative’s operation. It provides the co-op funds that must be invested now to maintain the quality, reliability, and integrity of services you expect today and in the future.

“So, what is included in the basic service charge?

Trucks, wire, transformers, power poles, and labor needed to build and maintain the electric distribution system are a significant portion. But there’s more: keeping pace with increased system investments to improve both capacity and reliability; implementing new technologies to provide increased operational efficiencies, such as our outage management system, accessible metering infrastructure or AMI, and remote circuit control switching capabilities; and tree trimming and brush removal to help prevent outages. And finally, liability insurance, interest taxes and emergency storm restoration funds are also within this charge.

“These are all costs that exist whether or not a single kilowatt hour of electricity is used. Achieving and maintaining service excellence requires a fair and equitable contribution from each member.

“Please look for more information and ways to save in future issues of the Ohio Cooperative Living magazine local pages.”

Engaging with our members

“In closing, I would like to thank all of you for participating in this meeting, and in the trustee election. For 87 years, the mission of your cooperative has been to deliver reliable, safe, environmentally responsible electricity at stable and affordable rates to the members we serve. As I mentioned in the opening, this cooperative was made by and for our local community. So, we exist to serve you, our members. I speak for every employee in stating that it is a privilege to serve you. And I’d like to say ‘thank you’ for that privilege.

“We believe in being local and being accessible to our members. Members of Logan County Electric Cooperative have the opportunity for face-to-face communication with the cooperative, with their board of trustees, and with the general manager. If there is a problem or situation that I can help with, or something you would like to talk through with me, my door’s open. Members are welcome to call and schedule a time to meet with me because I’m here to serve you.

“Finally, let me say ‘thank you’ to my staff and team members. No matter what department they are in, what job they perform, or what is asked of them, every employee comes to work with the same goals: making safety a priority, delivering reliable electric service, and offering nothing less than exceptional member service. I appreciate all that you do.

“The 87th Annual Meeting of Members is adjourned.”

A full recording of the annual meeting can be found on the co-op’s website, https://logancounty.coop. Go to About Us > Annual Meeting of Members.