President's Message
By Todd Ware, President & Chief Executive Officer
Every year during our Director Elections, we request and gather your questions about the cooperative that you would like us to answer. We receive quite a few, including common themes reflecting what is on your mind for that year. As I worked through what we received this year, I realized how many great questions we've been asked over the years! It occurred to me that sharing the answer with more than just the member who asked could be valuable to you.
Below are some of our members' most commonly asked questions with answers.
What makes up the monthly bill for our members?
Natural gas bill consists of two components:
- Gas Cost (GCR): GCR is a direct pass-through of the purchase price of gas, including transmission pipeline charges to deliver gas to our system.
- Distribution: These are charges for our costs to maintain, improve and operate the system to deliver gas from the interstate pipeline interconnect to your home. This includes the infrastructure rider, which provides for the replacement of aging infrastructure.
Electric bill consists of three components:
- Generation: This cost has increased slightly over the past few years and is a complete pass-through from Buckeye Power.
- Transmission: AEP transmission lines deliver the power to our system. This cost has increased significantly over the past several years and is a direct pass-through from what AEP charges us. We have no control over those costs.
- Distribution: These are charges for our costs to maintain, improve and operate the system that delivers the electric from our interconnections with the transmission grid to your home.
How does the cooperative determine member rates?
We use several methods to determine how and when we make rate changes for our members. Below are some examples of what we do to ensure we are charging all of our members appropriately:
- The first and most effective process is a cost-of-service study. This is completed by an outside party, who looks at all expenses and revenues for a certain test year (usually the year prior to when we do the study). They look at the overall rate structure and each consumer class to ensure that each class pays the appropriate portion of the costs. As you might expect, this process is costly, so we only do one every four years.
- The other method completed each year is an MDSC review after the initial budget. We review the modified debt service coverage ratio (MDSC) to ensure it meets our bank's minimum requirement to avoid defaulting on our mortgage. If this shows we need additional rate changes, we review it with the board to make other changes.
How are cooperatives regulated?
Cooperatives are not regulated in Ohio because they are specifically excluded from regulation via the Ohio Revised Code. After all, we are owned by our members. The regulating body of a cooperative is the Board of Directors, which the members elect. When retail choice was introduced in Ohio many years ago, cooperatives were excluded from this law because the cooperatives owned their generation in Ohio, which is to serve their members. Members still reap significant benefits from this generation today via Buckeye Power's daily generation baseload and its constant price.
Why do Directors run unopposed in some elections?
Why do Directors run unopposed in some elections? The cooperative works hard to fulfill the seven cooperative principles daily. Principle #2 reflects that a cooperative is run through democratic member control. Therefore, the members have control over who is elected to the Board of Directors via nominations and ballot votes every year. Next time you receive a ballot with one Director running in a district, remember that means there were no other nominees - your nomination and vote matter!
I hope some of the answers to these commonly asked questions helped you learn more about your cooperative and educate you on why or how we do what we do!
Right-Of-Way Clearing
By Josh Filler, Vice President & Chief Operating Officer - Electric Operations
The Energy Cooperative continues to diligently clear and trim the power line right-of-ways. Tree-related outages remain at the top of the list for causes of outages. Over the years, we have made strides in reducing outages due to trees. Still, we are confident we can continue to reduce those by taking a proactive and more robust approach to keeping the lines clear of trees and eliminating trees identified as a hazard to the facilities.
Right-of-Way (ROW)
Right-of-Way is the term we use to describe the area we construct, maintain, replace and repair power lines, including underground and overhead facilities. The right-of-way provides us the ability to maintain clearance of trees and other obstructions that could hinder power line installation, maintenance or operation. This clearance can reduce outages and outage restoration times and provide easier access should there be an outage, saving us valuable time, energy, and resources.
The process of right-of-way clearing involves cutting, mowing, and spraying a minimum of fifteen feet from all sides of a single-phase electric line and a minimum of twenty feet from a three-phase electric line. Right-of-ways often pass through wooded areas.
Our right-of-way team works to keep those lines free of obstructions by clearing tree branches and removing debris, ensuring our members have safe, secure and reliable electric service.
Advantages
Right-of-way clearing can have its advantages. Clear right-of-ways reduce tree-related outages and provide easier access to cooperative personnel during outages and system maintenance. The Energy Cooperative uses herbicides to eliminate unwanted shrubs and trees from right-of-way. Our team applies precise amounts from a distance that will not interfere with your gardens or flowerbeds. It also allows for what was once an unmaintained area to become maintained slowly and can become a habitat for wildlife, such as butterflies, birds and deer.
When falling trees and/or branches bring down power lines, it creates an unsafe condition. Always assume downed power lines are energized and dangerous. Consider any object touching lines energized as well. If you see a downed power line or other electrical hazards, call 911. Then call us at 888-535-5732 or 740-344-2102 to report it.
Energy Saving Tips
By Heather Juzenas, Vice President of Marketing & Member Services
Ohio's heat and humidity have been relatively high this summer compared to the mild summers we experienced in 2022 and 2023. You may have noticed the need to turn on your air conditioning on many of those hot summer days.
The amount of money it takes to cool your entire home can be quite costly. The reason behind cooling costs and why they make up a sizable portion of your electric bill all comes down to the following:
- How often you run your AC unit
- The temperature setting on your thermostat during the day and at night
- The use of ceiling fans and other cooling devices
- If your air ventilation system is clogged and filled with dust or other debris
Here are some of our best tips to reduce your energy use and save money on your next bill.
Hit the OFF Button
An empty house wastes plenty of energy. Turn off lights and other devices when you are the last person to leave a room or the house for the day. Simple upgrades, like LED lights, can help. They use up to 75% less energy than conventional incandescent lights.
Program Your Thermostat
Adjusting the thermostat to match your family's school and work schedule can save a lot of energy. Why waste energy keeping an empty house comfortable? ENERGY STAR®-certified smart thermostats optimize savings and convenience by automatically adjusting temperatures based on your schedule.
Plug Smarter
Electronic devices — such as TVs, game consoles and chargers — continue to draw power even when no one is home to use them. Advanced power strips and smart plugs provide a simple energy-saving solution. They automatically cut power to devices when they are not in use.
Draw Out the Heat
Close window treatments when you leave for the day. This action helps block solar heat that gets trapped inside your home. Otherwise, your air conditioning system works harder, even at a higher, energy-saving setting.
Keep Your Eye on the Thermostat
Placing heat sources, such as lamps, computers or TVs, near your thermostat can result in false temperature readings, increased energy use and inconsistent cooling. Make sure your thermostat is installed in an area clear of obstructions, electronic devices, direct sunlight and drafts. Ensuring your thermostat is free from these types of interferences optimizes energy efficiency, improves indoor comfort and reduces wear and tear on your cooling system.
There are many reasons for high energy bills. Practicing and implementing the saving tips listed above can help alleviate the amount of money you pay next month. If you have questions, call us at 740-344-2102. You can also visit, www.myenergycoop.com/save-energy.
Our member services team can assist you with high bill concerns and would be happy to review your energy use.
Horizontal Drilling
By Dan McVey, Vice President & Chief Operating Officer — Gas Operations
Horizontal drilling has revolutionized the oil and gas industry, and its impact is significant in eastern Ohio. This advanced technique, combined with hydraulic fracturing (fracking), has unlocked vast reserves of natural gas and oil from shale formations, particularly the Utica Shale and Marcellus Shale. These shale formations are located thousands of feet beneath the surface stretching across much of eastern Ohio, extending into Pennsylvania and West Virginia. Horizontal drilling has enabled energy companies to access these deep resources that were previously uneconomical to produce with traditional vertical drilling.
In Ohio, production has been concentrated in 18 eastern counties, but it has been the strongest in a handful of counties near the Ohio River − Belmont, Harrison, Jefferson, Monroe, Carroll, Guernsey, Columbiana and Noble.
How It Works
Horizontal drilling involves drilling a vertical wellbore to a desired depth and then turning the drill bit horizontally to penetrate the shale rock layer. This method allows for greater wellbore exposure to the reservoir rock, significantly enhancing the extraction efficiency. This technique has been instrumental in tapping into the Utica Shale, a rich source of natural gas, oil, and natural gas liquids (NGLs) in eastern Ohio.
Economic Benefits
The boom in horizontal drilling has brought substantial economic benefits to eastern Ohio. Local economies have experienced a surge in job creation, from direct employment in drilling operations to indirect jobs in supporting industries like transportation, manufacturing, and hospitality. The influx of energy companies has also led to increased demand for local services and infrastructure improvements.
Landowners in eastern Ohio have benefited from leasing agreements and royalties, providing them with a steady income stream. Additionally, local governments have seen increased tax revenues, which have been used to fund public services, schools, and community projects. This economic uplift has been particularly significant in rural areas previously struggling with economic stagnation.
Environmental and Regulatory Challenges
Despite the economic advantages, horizontal drilling and fracking have raised environmental concerns. The process involves injecting a mixture of water, sand, and chemicals at high pressure to fracture the shale rock and release the hydrocarbons. This has led to worries about groundwater contamination, air quality issues and wastewater disposal.
In response to these concerns, Ohio has implemented stringent regulations to ensure safe drilling practices. The Ohio Department of Natural Resources (ODNR) oversees the permitting process, monitors drilling activities, and enforces environmental standards. Companies are required to disclose the chemicals used in fracking, adhere to well construction standards, and manage wastewater through approved methods such as recycling or deep well injection.
Future Prospects
Eastern Ohio continues to be dominated by natural gas production, where 2.2 trillion cubic feet of gas was produced last year. Although, with improved drilling techniques, oil production is also starting to surge. Oil production in Ohio hit a record 27.8 million barrels last year, up over 40% from 2022. Ohio has become one of the top 10 oil producers in the country. It was already one of the biggest producers of natural gas.
The future of horizontal drilling in eastern Ohio appears promising. Oil and gas production in the Utica area is still in the early stages and could go on for decades. As energy companies continue to refine their techniques and improve efficiency, the region is expected to remain a significant player in the natural gas and oil markets. The number of horizontal oil and gas wells producing in Ohio now tops 3,100. Total investment has been estimated at over $100 billion dollars.
Thank you for attending Kids Day!
Save the date for next year - June 22, 2025.
Treasurer's Report
By John Klauder, District 6 Director, CCD, BLC, DCG
For the year ending December 31, 2023, the Board of Directors engaged bhm cpa group, inc. to perform an audit of the cooperatives’ books and records. The bhm group has extensive experience auditing both utilities and cooperatives. On March 21, 2024, bhm issued the audit report for the year ended December 31, 2023. The audit report contained an unmodified opinion, which in accounting terms is a clean opinion from the auditor.
In 2023, total revenues for the cooperatives were approximately $130.5 million. Total operating expenses for the year were $127.7 million of which $63 million was for purchased energy. Patronage capital received from other cooperatives was $3.1 million. The net margin for the consolidated group was $6 million.
Consolidated comprehensive income for 2023 was $5.5 million. Comprehensive income is calculated by adding net margin and unrealized gains/losses on post-retirement benefit plans. Comprehensive income by entity for the year are as follows:
- Licking Rural Electric - $2,985,000
- National Gas & Oil - $2,309,000
- NGO Transmission - $409,000
- NGO Development - ($593,000)
- NGO Propane - $430,000
As of December 31, 2023, your cooperative had total assets of $372 million, which includes $298 million in net plant assets. The cooperatives invested $27.9 million in new plant assets throughout the year. The company had $42 million of patronage capital in other cooperatives, including Buckeye Power and Cooperative Finance Corporation (CFC). Included in total assets was over $2 million in cash and short-term investments. Total liabilities were $285 million as of year-end.
The cooperative has equity of $86.6 million as of December 31, 2023. Equity as a percentage of assets for the combined entities has grown to 23.3 percent.
The Energy Cooperative serves approximately 71,300 meters. During 2023, we paid out approximately $8.5 million in taxes. The cooperative retired $830,000 in patronage capital credits to estates and $640,000 in general retirements to electric members.
Attention Natural Gas Members
In accordance with Federal Pipeline Safety Regulations 49 CFR, Part 192.16, The Energy Cooperative is required to inform members that the member shall be responsible for their gas service lines.
What You Need to Know
The member is responsible for the maintenance and repair of all gas piping from the gas meter to all gas appliances.
The member is responsible for the repair/replacement of the gas service line located on the member’s property from the buried curb valve to the inlet of the gas meter. Buried gas piping that is not maintained may be subject to the potential hazards of corrosion and leakage.
For your safety, all buried pipe should be periodically inspected for leaks. If the buried piping is metallic, it should also be periodically inspected for corrosion.
If an unsafe condition is found, the gas piping will need to be promptly repaired.
When digging near buried gas piping, the piping should be located in advance and the excavation done by hand. As a reminder, any time you are excavating, OHIO811 should be called by simply dialing 811 or 1-800-362-2764 at least 48 hours prior to digging. OHIO811 will notify various utility companies to locate utilities lines in the area.
Plumbing and heating contractors can assist in locating, inspecting, and repairing the member’s buried piping. The Federal Department of Transportation (DOT) requires that a DOT-qualified plumbing contractor must be used to repair or replace a member’s buried piping upstream of the meter, including the gas riser attached to the meter set. While this is not required for piping downstream of the meter, The Energy Cooperative strongly recommends a DOT-qualified plumber be used for all buried gas piping.
Director's Corner
By Tom Graham, District 9, CCD, BLC, DGC
The Energy Cooperative Board of Directors strives to represent the interests of our membership and guide the cooperative in ways that benefit its members. We take classes, read articles, meet with legislators, and attend conferences to learn about current trends in energy and the political climate and how these trends may affect our members.
Solar panels are now found on many of our neighborhood rooftops more often than in years past. Comparably, wind turbines are more prevalent in landscapes with more wind. Renewable generation is increasing, but at the end of 2023, wind and solar still accounted for only 18% of the US energy mix.
It is important to note that the demand for electricity is on the rise and is expected to accelerate over the next decade. This is primarily due to the expansion of industries like data centers, robust investment in new and existing manufacturing sectors like semiconductors and batteries, and the increasing deployment of electric vehicles. These factors present both challenges and opportunities for the energy industry.
This is all happening while thermal and fossil fuel generation are declining due to government regulations to curb CO2 emissions. In 2023, electricity generation from fossil fuels was 60%, natural gas was 43%, and coal declined to 16.2%. Nuclear generation, which has zero emissions, accounts for 18.6%. A note worth mentioning is that Congress has approved $60M to support existing nuclear generation and additional funding to research advanced science such as nuclear fusion.
The energy industry is complex, with changing policies and increasing regulations. Amidst these challenges, The Energy Cooperative management and Board of Directors, along with our National and State Cooperative partners, remain committed to providing safe and reliable energy.
Get to Know Your Director
- Tom farms corn, soybean, wheat, hay and raises cattle and hogs in partnership with his family.
- He is a past director of the Ohio Federation of Soil & Water Districts and served on the Ohio Farm Bureau State Young Farmers Committee.
- Tom has an Associate Degree in construction from Texas State Technical College.
Youth Tour
For more than 50 years, high school students from across the nation have gathered in Washington, D.C., for the trip of a lifetime, courtesy of their electric cooperatives, their state association and the National Rural Electric Cooperatives Association. Youth Tour gives students the opportunity to explore our nation’s capital, meet with elected officials who represent their hometowns, get to know other cooperative students from across the country, and learn about the electric coooperative network.
Youth Tour wrapped up on June 21st with over 2,200 Youth Tour delegates this year. Fifty of those represented Ohio's electric cooperatives with two being from our membership.
Thank you to Brylee Ritchie and Lyla Stockberger for representing The Energy Cooperative at Youth Tour!
Brylee Ritchie (right):
"My trip to Washington D.C. was amazing and eye-opening. Being able to see D.C. in a different light and at a different age made it so much easier to understand how it came together to be the place it is today. While there, I made many friendships with people I never would have met without this trip, and I still keep in contact with them. My favorite part of my trip was definitely pin trading with other delegates from different states. Also, I made a lot of amazing moments with my close friends."
Lyla Stockberger (left):
"In Washington D.C., I loved the Library of Congress and all of the artwork displays. I also enjoyed meeting with Senator Brown and people from our representatives’ offices. On this trip, I learned a lot about how energy is produced at Buckeye Power. I also learned about cooperatives and how they operate in a training about cooperatives and by talking to government representatives."
Social Media Safety
By Scott Stitts, Vice President & Chief Information Officer
Be wary of information you decide to share on social media platforms. The more you share online, the easier it becomes for cybercriminals to hack into your accounts—giving them access to your most personal information. Did you know that you are still at risk of being hacked even if your account is set to “private”?
When cybercriminals gain access to your data, they can use it against you by impersonating you. They could trick your friends and family into sending them money. Cybercriminals could post cryptic messages and false information to your profile or your friends and followers—damaging your reputation.
These are just a few examples of why it is imperative that you consistently update your passwords and take preventative measures to ensure that your confidential information is protected. Here are the steps you can take to avoid falling victim to cybercriminals and their harmful schemes.
Adjust Your Settings
You should check the privacy settings on your social media apps. Even though some sites never blatantly come right out and say that they are collecting your information and are profiting from it, they are—and you can try to prevent it. Apps have default settings that immediately invade your privacy. The following settings that should be turned off to maximize your security:
- Location
- Camera
- Microphone
- Sync Contacts
- Use multi-factor authentication
Multi-factor authentication (MFA), also known as two-step authentication, is a great defense tactic to use against cybercriminals. MFA requests that you prove that you are the one who is logging on to your account, not a hacker pretending to be you.
The MFA process works by you entering your username and password as you normally do, then taking a step further by sending a specific code to your phone or email attached to your profile. This helps keep your account safe, even if your password is leaked.
Change Your Passwords
Your passwords should not be easy to guess and should never include the word “password”. The password for each social media platform should be different than the others: long, creative—and most importantly, strong.
- Long: at least twelve letters/characters in length
- Creative: no reused passwords (if one of your accounts gets hacked, your other accounts would be secure)
- Strong: add upper- and lower-case letters, symbols and other special characters to make it more difficult to guess
It is important to keep your passwords in a secure location. Avoid writing them down or storing them on your phone, laptop or tablet. Consider using a password manager for additional security.
Watch Out for Phishing
Cybercriminals use phishing by creating fake emails, social media accounts, posts and direct messages that trick you into clicking on a link or downloading a destructive file. If you get unexpected inquiries from people/accounts you do not know or follow back, it is likely a fraud. Another way you can tell is that their messaging has poor grammar and typos. Never respond to suspicious accounts. Instead, block them and delete the message.
Be conscious about the information you share and the messages you reply to on Facebook, Instagram, X, Snapchat, YouTube and LinkedIn. Consider how things like sharing your location, having weak passwords, and being oblivious to phishing schemes can negatively affect your online security and safety. Do not give cybercriminals the opportunity to compromise your personal data and affect your reputation.
Back to School Safety
By Connie Hogue, Vice President of Human Resources & Safety
And just like that—another summer break has come and gone, and school will soon be in session. It is time for you and your child to prepare for the school year. Consider and prioritize the most important things for you and your family. Before classes start back up, talk to your child about school safety, specifically how to get to school safely.
Whether you drive your child to school, or they decide to bike, walk or take the bus, make sure they understand the safety measures and precautions they must take for their protection.
Driving Safety Tips
Driving your child to school can give you more peace of mind since you are responsible for getting them to school safely.
- Always wear a seatbelt. It is the law.
- Watch for flashing school zone signs and obey the posted speed limit.
- Remain focused on the road and watch your surroundings.
- Stay at least ten feet in front of or behind the school bus.
Biking Safety Tips
If you cannot drive your child to school, and you live close enough for them to ride their bike, choose the safest route. Practice the path with them until they feel comfortable navigating it on their own.
- Ensure your child always wears a helmet.
- Make sure their bike has reflectors.
- Explain why they need to ride their bike on the right-hand side of the road (going with the flow of traffic).
- Teach them how to follow the signs and rules of the road.
Walking Safety Tips
If you live within walking distance to the school, and your child feels comfortable walking, share traffic safety awareness information with them.
Then, practice walking the designated path with your child. You should walk the route with them for at least a week before they walk it unaccompanied.
- Help your child map out enough time to arrive 10 minutes prior to school starting.
- Teach them to always walk on sidewalks and crosswalks and follow the road signs.
- Explain to your child that they should never interact with strangers or accept rides from anyone, even if it is from someone they know. Unless they have your permission to do so.
School Bus Safety Tips
The bus driver is responsible for safely transporting your child to and from school.
- Make it a habit to be at the bus stop at least five minutes before the bus is scheduled to arrive.
- Tell your child that they must remain seated on the bus until they have reached their destination and the bus has stopped.
- Teach your child to be courteous and not do anything to distract the bus driver.
- Explain that the first ten feet around a school bus is the most dangerous, and they must keep their distance until they are certain the bus driver can see them.
Emergency Plan
Your child arriving at school safely is not your only concern. You and your family should create an emergency plan. Even though your child’s school already has an emergency plan—in case of severe weather, disaster or any other unfortunate circumstances—creating a plan specifically for your family adds an extra level of protection.
The plan should include:
- Updated contact information such as names, phone numbers, email, home and business addresses.
- The designated meeting locations, addresses, and other vital information that will help you and your family.
Do not forget to share the emergency plan and transportation safety tips with your child. Once you have these conversations with your child, they will be ready to take on the new school year.
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.