THE ENERGY COOPERATIVE TIMES DIGITAL ISSUE 2, 2024

PRESIDENT'S MESSAGE

By Todd Ware, President & Chief Executive Officer

In May, the U.S. Environmental Protection Agency (EPA) issued a rule that impacts energy production from power plants. The power plant rule threatens access to reliable electricity across the nation.

The rule constrains existing coal and new natural gas plants by requiring them to install carbon capture and storage (CCS) — a technology that has potential but has not yet proven viable. No power plant in North America currently uses CCS at the scale and level mandated by EPA. When power plants cannot comply with EPA’s CCS requirements, they will be required to shut down, significantly limit operations, or switch fuels. These unrealistic standards will force the unnecessary and early shutdown of many power plants that currently provide reliable electricity 24/7.

Renewable sources like solar and wind are important components of our overall generation mix. But given their intermittent nature, we cannot depend on them because the wind does not always blow, and the sun does not always shine. The need for always-available power-generating resources is still essential.

The timing of the power plant rule is equally troubling. At the same time the EPA is leading our nation down the path to fewer power plants, utilities are facing a surge in electricity demand – driven by the onshoring of manufacturing, the growth of the American economy, and the rapid expansion of data centers to support artificial intelligence, e-commerce and cryptocurrency.

Many states have already experienced rolling outages, and if the EPA’s power plant rule further threatens the electricity supply, the problem will only worsen. The North American Electric Reliability Corporation (NERC), the nation’s electric reliability watchdog, recently forecasted that over the next five years, all or parts of 19 states are at high risk of rolling power outages during normal peak electricity demand conditions.

It is also no secret that when demand is high and supply is low, costs go up. We are concerned about threats for reliability to our members and I want to bring awareness to the challenges we face.

We are joining electric cooperatives across the country to fight these regulations, and we are working with our local elected officials to help them understand the consequences of this new rule.

Electric cooperatives, like The Energy Cooperative, deliver power to forty-two million Americans. Our top priority is meeting our members' energy needs, and we must have reliable electricity available. If you want to learn more about policy impacts on power reliability or make your voice heard on this matter, visit voicesforcooperativepower.com.

THE COOPERATIVE DIFFERENCE

By Heather Juzenas, Vice President of Marketing & Member Services

Over 30,000 cooperatives across the United States celebrate National Cooperative Month every October. It is a time to reflect on all the aspects that set cooperatives apart from other types of businesses. Cooperatives are not-for-profit organizations built by the communities they serve.

We do not have shareholders—we are accountable to our members. The Energy Cooperative’s mission is to provide safe and reliable energy to our members while providing highly responsive service consistent with the Cooperative Principles.

There are many kinds of cooperatives, but they are all guided by the same cooperative principles. These seven principles provide a framework for all cooperatives to remain true to their purpose.

#1: OPEN AND VOLUNTARY MEMBERSHIP

Cooperative membership is open to all people who can use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender, or economic circumstances.

#2: DEMOCRATIC MEMBER CONTROL

Cooperatives are democratic organizations controlled by members for members. Every member has equal voting rights (one member, one vote). Our cooperative encourages members to participate in director elections annually to determine who represents them on our board. Each director is elected to serve a three-year term.

#3: MEMBERS’ ECONOMIC PARTICIPATION

Members contribute money to the cooperative to ensure its operation now and in the future. This happens when you pay your energy bill. Cooperatives operate “at cost,” and excess margins are reinvested into the cooperative to maintain the level of service members expect. We allocate (pay out) any remaining margins to members as capital credits annually. The Energy Cooperative pays capital credits on a 20 and 40-year cycle. This year, we will return money to electric members from 1983 and 2003.

#4: AUTONOMY AND INDEPENDENCE

Every cooperative is unique and operates in a way that best serves its membership. Cooperatives are independent from one another. Our Board of Directors helps ensure the cooperative’s work is aligned with its mission and values. They also speak to our members’ evolving needs and expectations.

#5: EDUCATION, TRAINING & INFORMATION

Cooperatives ensure employees have the training and information they need to make the organization successful. Education and training for members, elected representatives (board of directors), CEOs, and employees help them effectively contribute to the development of their cooperative.

#6: COOPERATION AMONG COOPERATIVES

Cooperatives share with and learn from other cooperatives. We work with cooperatives across Ohio and nationwide to improve our service to members. At The Energy Cooperative, we are proud to partner with cooperatives to supply our electric generation, provide after-hours support to members, and even maintain the SmartHub app.

#7: CONCERN FOR COMMUNITY

Cooperatives give back to their communities to help them thrive and grow. We proudly support member communities through local sponsorships, community events, and special programs. We encourage members to round up their monthly energy bills to support The Energy Cooperative’s Operation Round Up Foundation. Our members’ average donation is $6.00 per year. Collectively, this spare change has a substantial impact on our member communities! Operation Round Up awards the funds to first responders, schools, community organizations, and non-profits that positively impact our members.

As we celebrate National Cooperative Month and the power of membership, we hope you will recognize what sets cooperatives apart. Our mission is to provide safe and reliable energy. Our purpose is to support people

NATURAL GAS & PROPANE SAFETY

IF YOU SMELL GAS

  • Do not operate lights, appliances, telephones or cell phones. Flames or sparks from these sources can trigger an explosion or a fire.
  • Leave the area immediately. Get everyone out of the building or area where you suspect a gas leak.
  • Shut off the gas. Turn off the main gas supply valve on your propane tank, if it is safe to do so. To close the valve, turn it to the right (clockwise).
  • Report the leak. From a neighbor’s home or far away from the suspected gas leak, call 911 and The Energy Cooperative right away.
  • Do not return to the building or area. You should not return to the area until we determine that it is safe to do so.
  • Get your system checked. Before you attempt to use any of your propane appliances, we need to check the entire system to ensure it is leak-free.

APPLIANCE SAFETY

  • Properly install and maintain connectors. It is important that all appliance connectors are properly inspected, installed and maintained by a qualified service technician.
  • Have connectors checked when moving or replacing appliances. Connectors can wear out from too much moving, bending or corrosion. Connectors should be checked by a qualified service technician whenever the appliance is replaced or moved from its location.
  • Use only approved appliance connectors. Make sure that all connectors and gas piping/tubing that bring propane to your appliances are installed by a qualified service technician and approved by the American National Standards Institute (ANSI).
  • Have older appliance connectors inspected. Over time, some types of appliance connectors can crack or break, resulting in a serious gas leak and the possibility of fire or explosion. If you have an appliance that is more than 20 years old, have a qualified service technician inspect the connectors to be sure they are safe and meet current safety code requirements.
  • Do not move an appliance yourself. Moving an appliance might damage the connector and create a leak.

ODOR FADE

The natural gas we deliver to you has an odor added to it that smells like rotten eggs. You may not be able to detect the odorant because of a weakened sense of smell or because the odorant is masked by other odors. Odor fade is an unintended reduction in the amount of odor in natural gas and propane that makes it difficult to smell.

  • Air, water or rust in a propane tank or cylinder can reduce propane odor concentration.
  • If the gas is leaking underground, its passage through soil may reduce the smell.
  • The odor may stick to the inside surfaces of gas piping and distribution system and possibly other materials.
  • Since there is a possibility of odor fade or problems with your sense of smell, you should respond immediately to even a faint odor of gas.
  • If you are concerned that you or others in your home may have difficulty smelling propane, consider buying propane gas detectors.

GET READY FOR WINTER

By Dan McVey, Vice President & Chief Operating Officer — Gas Operations

As winter approaches, ensure your heating equipment is ready to keep your home warm and comfortable during the colder months. Preparing your heating equipment for winter involves more than just turning it on when the temperature drops. A well-maintained heating system operates more efficiently, helps reduce energy costs, and minimizes the risk of unexpected breakdowns. Whether you rely on a furnace, boiler, or heat pump, preparing your equipment for winter requires a few key steps.

CHANGE OR CLEAN FILTERS

Dirty air filters can reduce the efficiency of your heating system and increase energy consumption. Clogged filters restrict airflow, forcing the system to work harder to maintain a comfortable temperature. In some cases, this can lead to overheating and system failure. Check your filters at the start of the season, and clean or replace them as needed. Most manufacturers recommend replacing filters every 30 to 90 days, depending on the type of filter and the system’s usage. If you have pets or allergies, more frequent replacements may be necessary.

INSPECT & CLEAN DUCTWORK AND VENTS

Proper airflow is essential for a heating system to function efficiently. Over time, dust, debris, and even pests can accumulate in your ducts and vents, reducing airflow and air quality. Before winter begins, inspect your ductwork for any visible debris or damage and consider professional duct cleaning if you have not had it done in a few years. In addition to ductwork, check that all supply and return vents are open and free from obstructions such as furniture, curtains, or rugs. Blocked vents can disrupt airflow and cause uneven heating in your home.

TEST YOUR THERMOSTAT

A functioning thermostat is crucial for maintaining a comfortable indoor temperature and optimizing energy usage. Before winter sets in, test your thermostat to ensure it responds correctly when you adjust the temperature. If you notice any inconsistencies or if the thermostat is outdated, it might be worth upgrading to a programmable or smart thermostat. Smart thermostats allow you to set heating schedules and control the temperature remotely, helping to reduce energy usage when you are away from home.

ADEQUATE INSULATION

Your heating system works best when your home is well-insulated. Insufficient insulation allows warm air to escape, making your system work harder to maintain a comfortable temperature. Check the insulation in your attic, walls and floors to see if any areas need additional insulation. Proper window and door sealing can also prevent drafts, further improving your home’s energy efficiency.

SCHEDULE A PROFESSIONAL INSPECTION

If you are not a do-it-yourselfer, the best way to ensure your heating system is in top shape is to have a professional HVAC technician perform a seasonal inspection and tune-up. During this visit, the technician will check for issues such as gas leaks, malfunctioning components, and dirty filters. They will also clean and lubricate moving parts, inspect the thermostat, and ensure the system operates safely and efficiently. Regular professional maintenance can extend the lifespan of your heating equipment and give you peace of mind that your system is ready to handle the demands of winter.

CARBON MONOXIDE & SMOKE DETECTORS

Lastly, if your heating system runs on natural gas or propane, it is important to have working carbon monoxide detectors in your home. Carbon monoxide is an odorless, colorless gas that can be dangerous in high concentrations. Inspect your detectors to ensure they function properly and replace the batteries if needed. It is also a good time to check your smoke detectors and replace batteries to ensure they are in working order.

UTILITY SCAMS ON THE RISE

By Scott Stitts, Vice President & Chief Information Officer

There has been a rise in fraudulent activity within the utility industry in recent years. Although scammers have been around since the beginning stages of the industry, the threats have become more prevalent and more deceptive as time passes.

Scammers will stop at nothing to steal your personal information like your full name, birthday, address, Social Security number, banking information and other confidential data, which is why it is important that you only give out your information to credible and trustworthy entities.

When it comes to scammers, anyone can be a target at any time, but you can protect your information by understanding the three tactics that that are commonly used and the communication methods they take advantage of whether it is over the phone, in-person or on the internet.

OVER THE PHONE

If you receive an unexpected phone call from someone saying that they are affiliated with The Energy Cooperative (TEC) from our electric, gas or propane division, and claim that your energy bill is overdue and demand that payment should be made as soon as possible or else they are going to disconnect or discontinue your services, that is a fraudulent attempt to steal your financial information. The first warning sign of a potential fraud is if the call is coming from an unknown number or there is no called ID.

Our member service representatives will never call you to request immediate payment over the phone. You can use the SmartHub app to verify whether your account is delinquent or not.

IN-PERSON

If a person shows up at your door (home or business) without warning, claiming they work with for our cooperative, and they are insistent on inspecting your utility equipment, but they not wearing attire with our TEC logo on it, or fail to present you with a valid ID badge, and showed up in an unmarked car — those are all the signs of a deceitful scheme to gather more information about you or to steal from you. If you ever find yourself in this type of situation, shut the door and call us at 740-344-2102. If you feel threatened, call 911.

Before our crewmen show up at your home, you will receive a notice by call, text or email stating the reason for their visit. You will also be given an estimated time of their arrival. Another important note, they will always show up in our utility trucks, wearing our logo and carrying their employee ID badges.

ON THE INTERNET

At The Energy Cooperative, we share information through email with our members in regards of their account, to share newsletters and send invitations to community events; however, we will never ask you to provide your confidential information like your Social Security number, driver’s license number, account numbers and passwords through email.

PHISHING SCHEMES

Scammers will use phishing schemes to try to trick you into thinking that they work for The Energy Cooperative. They can be misleading and confusing by including our correct cooperative name, logo and web links to get you to trust them.

Good news – there are ways to decipher if a scammer is trying to deceive you. If the email has a questionable email address (including numbers and additional letters), or there is a request for sensitive information, and there is an urgent demand to send a large payment.

If you come across a suspicious email, take the following precautions:

  • Avoid clicking on any links
  • Do not respond
  • Report the email
  • Block the sender

When you stay informed on the tactics and understand the warning signs of fraud, you will be able to protect yourself against scammers and prevent them from accessing your most valuable information. If someone contacts you, pretending to be an employee of The Energy Cooperative, please call us at 740-344-2102, or email us at feedback@theenergycoop.com.

ELECTRIC VEHICLES

By Josh Filler, Vice President & Chief Operating Officer - Electric Operations

It is not clear right now what the future of electric vehicles will be. Still, auto manufacturers have invested much of their resources into rolling out electric vehicles (EVs) within their fleets. They are transitioning many or all their new vehicles to electric-only models over the next 10 years. Some states are also passing mandates and orders requiring all new vehicles to be zero-emission by some time in the next decade or two. Whether you own an electric vehicle or are considering one, there are some things to consider.

INFRASTRUCTURE

Electric vehicle adoption could significantly impact the electric grid if adoption increases faster than we anticipate. Providing our members with information about EVs connected to The Energy Cooperative’s system can help members understand the impact and make more informed decisions. It also allows us to plan for infrastructure upgrades. All electric utilities, including us, are planning to ensure that the electric infrastructure is in place to meet the future electric vehicle charging needs – without jeopardizing the ability to keep reliable power flowing to our local homes and businesses. As your local energy provider, we are best suited to advise and help our members and local businesses plan for the future of EVs.

CHARGING YOUR VEHICLE

Electric vehicles and their charging systems come in many forms. EVs can come with a standard 110-volt compatible (Level 1) charging unit which can be plugged into any standard household outlet. This is a slower charging method, and an eight-hour overnight charge will enable travel of around 36-40 miles a day. If you typically drive longer distances or are in a hurry, a Level 2 charger may make more sense for you and takes about half the time. Level 2 chargers are typically 240- volt in residential applications and can provide about 180 miles of range over an eight-hour charging period. A licensed electrician should install a Level 2 charger. If you are wondering if an electric vehicle can meet your daily driving needs, there are some things to consider. If you are like most Americans and drive on average thirty miles a day, an electric vehicle can meet your daily needs. However, EVs require a shift in mindset regarding daily charging, charging during traveling, and environmental considerations. Most people with an internal combustion engine are used to filling their gas tank on a weekly basis, whereas with an electric vehicle, you likely will need to be charging every day. From a utility perspective, charging is best done at night when the electric grid is less stressed.

Long-distance travel can be more challenging than driving a conventional internal combustion engine vehicle. You will have to plan your trip to ensure you are adequately charged or time-charging based on the location of charging stations. This concern will gradually diminish as the electric vehicle charging infrastructure continues to expand and grow. In our climate, cold weather can impact the range of an electric vehicle. Unlike internal combustion engines, where the heat mostly comes from the engine, an electric vehicle must produce cabin heat and manage the battery temperature with energy from the battery itself, which can reduce battery range.

If you are considering purchasing or have already purchased an electric vehicle, please let us know so we can better serve you. As more Energy Cooperative members buy EVs, it is helpful to know where they are located in our area to ensure we have the necessary infrastructure in place to meet charging needs and provide reliable power to our local homes and businesses. Also, The Energy Cooperative offers an electric vehicle charger rebate that members can apply for. The rebate covers $250 for Level 2 chargers. There are a variety of tax credits, rebates and other incentives available for electric vehicle purchases. Visit www.afdc.energy.gov/laws/electric-vehicles-fortaxf-credit to learn more about federal incentives available through the Clean Vehicle Credit program.

The Energy Cooperative is here as a resource if you have any questions. Give us a call at 740-344-2102 or visit our website at www.myenergycoop.com.

HALLOWEEN SAFETY TIPS

By Connie Hogue, Vice President of Human Resources & Safety

Kids love the magic of Halloween, but costumes and traffic safety are essential for trick-or-treaters. Whether your Halloween plans are for adults or kids, there is plenty to consider before choosing a costume, putting on makeup, and eating a bag full of treats. These tips can help make the holiday safe and happy for everyone.

COSTUME SAFETY TIPS

  • Wear bright and reflective costumes and be sure to choose one that will not cause safety hazards; all costumes, wigs, and accessories should be fire-resistant.
  • Make sure that shoes fit well and that costumes are short enough to prevent tripping.
  • If children are allowed out after dark, add reflective tape to costumes and trick-or-treat bags for greater visibility, and give them glow sticks.
  • Hats should fit properly to prevent them from sliding over the eyes and blocking vision.
  • Opt for nontoxic Halloween makeup over masks, which can obscure vision; always test makeup in a small area first to see if any irritation develops.
  • Do not use decorative contact lenses without an eye exam and a prescription from an eye care professional. While the packaging for decorative lenses may claim "one size fits all", wearing these lenses without a prescription is dangerous. It can cause serious eye problems that can lead to permanent vision loss.
  • Avoid using sharp or long swords, canes or sticks as costume accessories. They can easily hurt your child if they stumble, trip or fall.

PREPARING FOR TRICK-OR-TREATERS

  • Remove tripping hazards to keep your home safe for visiting trick-or-treaters. Clear the porch and front yard of items such as garden hoses, toys and bikes.
  • Check outdoor lights and replace burned-out bulbs.
  • Sweep wet leaves from sidewalks and steps to prevent anyone from slipping on them.
  • Restrain pets so they do not run up and jump on or bite trick-or-treaters.

HALLOWEEN STREET SMART

  • Always accompany young children on their neighborhood rounds. If trick-or-treating does not start until after dark where you live, consider checking with your town or park district for Halloween activities offered earlier in the day. Research shows that evenings from 6 p.m. to 9 p.m. are the riskiest times of day for child pedestrians.
  • If your older children are trick-or-treating alone, plan and review the acceptable route. Agree on when they should return home and get flashlights with batteries for everyone.
  • Talk with kids about the risk of distracted walking. This includes text messaging, talking on or looking at the phone, and listening to music.
  • Cross the street as a group in established crosswalks. Most child pedestrian traffic fatalities occurred in midblock crosswalks rather than at intersections. Ensure kids know not to cross the street between parked cars or near driveways or alleys.
  • Do not assume cars will stop because they have the right-of-way. Motorists may have trouble seeing trick-or-treaters.
  • Stay on well-lit streets and always use the sidewalk. If one is not available, walk at the far edge of the roadway facing traffic. Only go to homes with a porch light and, ideally, a well-lit pathway.

SAFETY TIPS FOR DRIVERS

  • Be alert for trick-or-treaters on Halloween. Slow down and continue to scan the road in areas where they are likely to be or where sight distances are limited.
  • On Halloween, there will be more pedestrians on the roads and in places where they are not expected. Slower speeds save lives.
  • Stay alert for pedestrians who may appear between parked cars or behind shrubbery. Stop and wait for them to pass.
  • Do not look at your phone when you are driving. Your attention needs to always be on your surroundings and the road.

COST OF SERVICE STUDY DESIGN

By Pat McGonagle, Vice President & Chief Financial Officer

The cooperative reviews rate design annually as one of the first steps in the budgeting process for the upcoming fiscal year. Every four years, the cooperative engages an independent third-party firm to prepare a Cost-of-Service Study (COSS) for both Licking Rural Electrification (LRE) and National Gas and Oil Cooperative (NGO). The COSS helps determine each cooperative's revenue requirement, which then helps management with rate design for the upcoming year.

The COSS is one of the most effective analytical tools that the cooperative can rely on for designing rates that equitably assign cost responsibility to each member rate class to the mutual benefit of both the cooperative and its members. The Prime Group was once again engaged to prepare the COSS using standard methodologies established by industry experts, accepted by regulatory commissions, and approved by the courts. Implementing cost-based rates helps ensure that one class of members does not subsidize another class of members.

The three-step process used in the study involves the functional assignment, classification and allocation of all costs based on cost causation. In the first step, costs are assigned to the major functional groups related to providing service. A few of the functional assignments used in the study were purchased power costs, distribution costs and other costs. Functionally assigning all costs permitted TEC to examine our revenue requirement in finer detail and to assign cost responsibility more accurately in the next two steps of the study.

In the second step, the major cost drivers were classified for each group of functionally assigned costs. Identifying the major cost drivers allowed the service characteristics that give rise to the costs to serve as a basis for allocation. Once the costs were functionally assigned, they were classified by the following major cost drivers: energy-related costs, demand-related costs, and customer-related costs.

In the third and final step, the functionally assigned and classified costs were directly allocated to the customer classes based on an allocation factor that is representative of the service characteristic that drives the cooperative’s costs. Energy-related costs were allocated based on the number of kilowatt hours, or ccf used by the customer class, and demand-related costs were allocated based on the appropriate measurement of the maximum demand that the customer class places on the system.

The Cost-of-Service Study prepared by the Prime Group allows the cooperative to understand the impact of its costs more fully and to design rates that properly assign cost responsibility to each member rate class moving forward. This study ultimately provides mutual benefits to both the cooperative and its members as it helps eliminate any subsidies amongst member classes. We will use this current study to help determine if rate adjustments are needed in the future for any of our members.

This magazine is a communication link between The Energy Cooperative and its members.

Todd Ware, President & CEO
Heather Juzenas, Vice President of Marketing & Member Services
Natasha Short, Marketing & Communications Manager
Cierra Strawser, Marketing & Communications Specialist

BUSINESS INFORMATION

The Energy Cooperative’s business hours are Monday through Friday from 7:30 a.m. to 4:30 p.m.

  • Member service: 740-344-2102
  • Electric outages or emergencies: 888-535-5732
  • Natural gas or propane emergency: 740-344-2102

SAFETY REMINDERS

If you see a downed power line or other electrical hazard, call 911 then call our outage line at 888-535-5732. Assume every downed power line is energized and dangerous.

If you smell rotten eggs or suspect a gas leak, leave the area immediately. Call 911 then call us at 740-344-2102.