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Watt High LightsJune / July 2016 - Volume 71 - Number 1

2015 Annual ReportOfficial notice of the 2016 Annual Meeting - page 3

Grand Prize50 Gallon Heat Pump

Water Heater!!!Donated by:Midway Winnelson SupplyInstallation donated by:Brock’s Plumbing

Your Touchstone Energy® Cooperative

2015 Annual Report June-July 2016

2015Annual Report

Watt High Lights Jackson County Rural Electric

Membership Corporation P.O. Box K

Brownstown, IN 47220-0311 812-358-4458

800-288-4458 (toll free) 812-358-5719 (FAX only)

E-Mail - [email protected] Hours

7:30 AM to 4:30 PM (EDT)Monday through Friday

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Board of DirectorsPresident John Trinkle - district 3

Vice-President Earl Pottschmidt - district 8Secretary-Treasurer Jerry Kelley - district 5

John Hackman - district 1Walter Hunter - district 2

Paul Elliott - district 4Mark Trisler - district 6

Curtis Wischmeier - district 7John Miller - district 9

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Watt High Lights - (USPS 669-580) is published monthly for $3.00 per year (electric rates include subscription) by Jackson County Rural Electric Membership Corporation, a consumer owned utility, 274 E. Base Road, Brown-stown, Indiana 47220. Periodicals postage paid at Brownstown, Indiana. POSTMASTER: Send address changes to Watt High Lights, P.O. Box K, Brownstown, Indiana 47220.

Cover photo -50 gallon heat pump water heater, which will be our grand prize at the 2016 Annual Meeting.

Report of theGeneral Manager

General Manager Mark McKinney

Not only does this issue of the Watt High Lights contain information about the annual meeting, and the director elections, it also gives you the opportunity to see how your electric cooperative performed financially in 2015.

In 2015, your electric cooperative sold more than 459 million kilowatt-hours. Even though kilowatt-hour sales for 2015 were almost 6.0% less than in 2014, year-end margins remained good. Many factors can be attributed to changes in annual kilowatt-hour sales from one year to the next, but weather patterns have the most significant effect. Even with the numerous unknown regulatory and environmental challenges, the average price per kilowatt-hour (kWh) only increased 1.67% during 2015.

Several of you may remember the days when you had to read your meter each month. In 2015, we completed the final deployment phase of the TWACS automated metering infrastructure (AMI) project. These meters utilize powerline-carrier technology to provide two-way communications to and from the meter for not only meter readings, but voltage readings, interval usage data, outage detection, and many more functions.

The AMI project also allows us to offer our Prepaid Metering option to our members. Prepaid Metering remains a popular option, especially for our new members. With the traditional monthly-billed electric service, you pay for your electric usage after it has been used. With Prepaid Metering, you pay for your electricity in advance of its usage, avoiding any unexpected high bills. You also can pay toward your electric usage when it is more convenient for you and your budget.

Last year we retired capital credit for the years 1969 through 1977. Since we began retiring capital credits in 2014, almost $3.0 million dollars in capital credits refunds have been issued to current and former member-owners. This is one of the many ways we are different from investor owned or municipal electric utilities. Be sure to look in future editions of the Watt High Lights or on our website for information regarding capital credits retirements.

While our focus is to provide the advantages of electricity services to our members, we also view ourselves as a community solutions provider. Today, a broadband internet connection is viewed by many as a necessity. A necessity that as many of you know is lacking within our service territory. Inside this edition of the Watt High Lights, you will also find a survey regarding broadband internet. We are looking for your input regarding the services you currently have, do not have, or would like to have, in order to help us in making decisions as to what role Jackson County REMC should play in getting a broadband internet connection to its members. Please take a few minutes to complete this important survey and bring it to the annual meeting, or mail it to our office.

Finally, Jackson County REMC will remain committed to serving you our member-owners and will continue with our mission to deliver the advantages of electricity to our members reliably, economically, and responsibly. On behalf of the directors and employees of Jackson County REMC, I invite you to join us on July 21st at the Jackson County Fairgrounds for the 2016 annual meeting.

~ Official Notice ~78th Annual Meeting of

Jackson County REMC membersThursday, July 21, 2016

This notice is being given as required by the bylaws of the cooperative and in response to a call by John Trinkle, President of the Board of Directors. The 78th annual meeting of Jackson County REMC members will be held on Thursday, July 21, 2016, at the Jackson County Fairgrounds on State Road 250 southeast of Brownstown.

Registration will begin promptly at 5:30 p.m. The business meeting will be called to order at 7:30 p.m. Please note that all times are Eastern Daylight Saving Times. The meeting is being held for the following purposes:

To elect three directors, one each from districts: one, four and seven, to three-year terms. The candidates are introduced on pages 5 of this issue of “Watt High Lights.”

To hear reports given by General Manager Mark McKinney, President John Trinkle and Secretary-Treasurer Jerry Kelley.

To provide REMC members and their families the opportunity to relax together and enjoy family entertainment. Sincerely,

Jerry Kelley Secretary-Treasurer

2015 Annual ReportJune-July 2016

Slight decrease in retail rates for the 3rd quarter 2016Jackson County REMC will adjust its retail metered rates based upon a pending decrease in the cost of purchased electricity that is being charged by Jackson’s power supplier, Hoosier Energy, Inc.

The $0.57 per 1,000 kWh decrease in the power cost adjustment stems from an upcoming July 1, 2016 quarterly adjustment in Hoosier’s power cost tracker due to the varying costs for energy fuels, market power purchases, and other highly fluctuating expenses.

Effective July 1, 2016, the power cost adjustment will change from $0.009842 per kWh to $0.009275 per kWh, decreasing a typical bill of 1,000 kWh from $127.40 to $126.83, or .45%. These rates will remain in effect through September 30, 2016.

Nominations made for 2016 electionDirectors for districts 1, 4 & 7 to be elected

Directors to represent districts 1, 4 and 7 will be elected to three year terms during the business session of the 2016 Annual Meeting. All members of Jackson County Rural Electric may register and vote at the Annual Meeting, which is scheduled for Thursday, July 21, at the Jackson County Fairgrounds. Two incumbent directors are running unopposed. Two members have been nominated for District Seven. Per the cooperative’s bylaws, nominations will not be accepted from the floor during the Annual Meeting. The 2016 director candidates are introduced to you on the next page. Registration will begin at 5:30 p.m. and end at approximately 7:45 p.m., when the election is conducted. Descriptions of the districts involved in this year’s elec-tion and the nominating committees preparing the slates of candidates are shown below:

District One: Includes our service area in Carr, Driftwood and Grassy Fork Townships and Brownstown Township south-east of White River, all in Jackson County; and in Monroe and Gibson Townships in Washington County. Nominating commit-tee members are Brett Peters (chairperson), Kevin Benter and Mark Tape.

District Four: Includes our service area in Franklin, Jackson, Pierce and Polk Townships and Washington Township east of Indiana Highway 135, all in Washington County; and Monroe and Wood Townships in Clark County. Nominating committee members are Merwin Fisher (chairperson), James Soliday and Frank McCarty.

District Seven: Includes our service area in Jackson, Redding, Vernon and Washington Townships in Jackson County. Nominating committee members are Josh Vaughn (chairperson), Bart Stuckwisch and Shawn Acton.


BROWNSTOWN

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BEDFORD

SEYMOUR

NORTHVERNON

AUSTIN

SALEM

FREETOWN

*SCOTTSBURG

*PEKIN

*LEESVILLE

*CROTHERSVILLE

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9

4

8

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District One director nomineesJohn HackmanJohn Hackman is unopposed for the election as REMC director since 2010 representing District One. He is completing his second term on the board. Before his election as director he served on the REMC election and credentials committee for several years.

Mr. Hackman is a graduate of Brownstown Central High School. He is a full-time grain farmer and a lifelong resident of Jackson County. He and wife Tammi reside in the Wegan neighborhood of Grassy Fork Township. They have four children and two grandchildren. The Hackman’s are

members of Trinity Lutheran Church at Vallonia, where Mr. Hackman serves as elder and sings in the choir.

District Four director nomineesPaul ElliottPaul Elliott has served as District Four director since 2007 and is completing his third term as a director. He is unopposed in this year’s election.

Mr. Elliott was born and raised in Washington County. He and wife Kathryn have one son, and the family resides in Franklin Township near the community of South Boston. They are members of Canton United Methodist Church. Mr. Elliott is a graduate of East Washington High School. He earned bachelor, master and doctoral degrees in engineering from Purdue Univer-

sity. He is a licensed engineer and is owner of ASET Services, an engineering and consulting service for sports floors. He is also a farmer, involved in cattle, hay and grain production.

District Seven director nomineesCurtis WischmeierCurtis Wischmeier is completing his first three-year term on the board of directors.

Mr. Wischmeier is a lifelong resident of Jackson County. He and wife Mary Ellen reside in the Sauers neighborhood in Washington Township. They have three grown children and seven grandchildren. They are members of St. John Lutheran Church at Sauers where Mr. Wisch-meier has served on several boards and committees. Mr. Wischmeier is a graduate of Seymour High School. He is a full-time farmer who maintains a cow-calf herd and raises grain and hay

crops. He is a member Jackson County Plan Commission, Jackson County Farm Bureau, Inc.

Joseph FrankeJoseph Franke has also accepted nomination as a director to represent District Seven.

Mr. Franke is a lifelong resident of Jackson County. He and wife Sandra reside in the Chest-nut Ridge neighborhood of Washington Township with their three children. He is a graduate of Seymour High School and Purdue University. Mr. Franke operates the family’s grain and cattle farm and works for Mark Dennis & Company CPA as a seasonal tax preparer. Mr. Franke is a member of Jackson County Farm Bureau, Inc. and Zion Lutheran Church where he has served

on numerous boards and committees.



Broadband Survey: We want to hear from YOU!

As many services become increasingly dependent upon having a reliable broadband internet connection, many rural residents are often left without the ability to utilize these services strictly due to their physical location. Your REMC wants to see our members’ quality of life not be limited due to their desire to live in rural areas. We have been proactively encouraging internet providers to consider expanding their broadband offerings to the unserved areas in our service territory. You can help us by letting us know your thoughts and desires about getting broadband service to your home or business. Just answer the questions below and bring this form to the Annual Meeting on July 21. You can also return the form by e-mail ([email protected]), fax (812-358-5719), by mail (PO Box K, Brownstown IN 47220-0311) or by dropping it by our office. 1 – What Internet service do you currently use? ___ Wireless ___ Cell phone ___ DSL ___ Dial-up

___ I don’t have Internet service. 2 – What current upload & download speeds do you have? _____ Mbps upload _____ Mbps download 3 – How do you use your Internet service? (Please check all that apply.)

___ Shopping ___ Downloading music or videos ___ School or studies ___ Reading e-mail ___ Sharing photos and videos ___ Other

4 – How satisfied are you with your current Internet service?

___ Very ___ It’s okay ___ Dissatisfied ___ Very Dissatisfied 5 – What devices do you use for your Internet service?

___ Desktop computer ___ Laptop computer ___ Tablet/iPad ___ Smart phone ___ Other 6 – How interested would you be in having high speed broadband Internet service in your home?

___ Very ___ Maybe ___ Not at all interested 7 – Would you be interested in having high speed broadband Internet service provided by your REMC or a company approved by your REMC?

___ Very ___ Maybe ___ Not at all interested 8 – What monthly fee would you be willing to pay for high speed broadband Internet service?

___ $60.00 ___ $75.00 ___ $90.00 ___ $100.00 ___ $120.00+ 9 – Do you think the quality of Internet service should be the same for rural residents as it is for people living in cities, towns and suburbs?

___ Yes ___ No ___ Maybe 10 – Do you think the government should play a role in helping extend high-speed broadband Internet service to the rural areas of the US?

___ Yes ___ No ___ Maybe 11 – What services would you be interested in with broadband service? (Check all that apply.) ___ Internet ___ Telephone ___ Television ___ Other (please list) Member Name _____________________________________________ Account number ________________ Service Address ___________________________________________________________________________________ Please feel free to Include any additional comments or information.


Entertainment set for the Annual Meeting!Musical entertainment at 5:45 p.m.

Children’s entertainment at 7:30 p.m.Business meeting at 7:30 p.m.

We’re looking forward to presenting two great family entertainment acts at the 2016 Annual Meeting on Thursday, July 21. Musical entertainment by the Ross Country Jamboree will be on the pavilion stage from 5:45 p.m. until the start of the business meeting. A special children’s show, featuring magician Allan Head, will begin at 7:30 at the music stage in front of the Antiques Building. Parents may want to bring blankets for children to sit on in front of the stage.

Registration gifts -- and more!Registration gifts Members registering at the 2016 Annual Meeting will receive a commemorative cast iron skillet as a “thank you” for taking part in this important event of their cooperative. Anyone that became a member between now and our last annual meeting will receive a bonus gift. Each new member that attends the meeting will receive a registration gift AND an energy efficiency kit!

Power line safety demonstrationA special power line safety demonstration will be presented by REMC employees at 5:30 and 6:15 p.m. near the registration building. Jackson County REMC linemen will be using Hoosier Energy’s safety display to teach safety practices for both adults and children.

Free ice cream!Our traditional treat of free hand-dipped ice cream cones will be served from 5:30 to 7:30 p.m. from the Immanuel Lutheran food stand located next to the pavilion.

Food stand openThe congregation of St. John Lutheran Church will again sell sandwiches and drinks through the start of the business meeting at the Sauers food stand.

Annual Meeting grand door prize - 50 Gallon Heat Pump Water Heater Several door prizes will be awarded following the completion of the business meeting. The grand prize this year will be a 50 gallon heat pump water heater donated by Midway Winnelson Supply. Installation is donated by Brock’s Plumbing. You must be registered at the annual meeting and you must be present at the drawing to win. The grand prize heat pump water heater must be installed in a home of one of our members. Several gifts and gift cards donated by some of our area vendors will also be given away.

Special displays in the registration buildingThere will be several displays to browse during the evening, including the Energy Wall from Hoosier Energy and information from The Lighting Store.

Beat the Peak! Sign-up at the annual meetingand receive a chance to win a $50.00 bill credit!

Members can earn special electric bill credits by enrolling in the REMC’s Beat the Peak! energy management program at the annual meeting. A device will then be installed on your water heater and air conditioning system to help our wholesale power supplier Hoosier Energy during peak power generation situations. Beat the Peak! also helps keep REMC electric rates steady by reducing the peak demands on which rates are based. Learn more about the Beat the Peak! program by visiting with us at the 2016 annual meeting or by visiting our websitewww.jacksonremc.com.

2015 FINANCIAL REPORTCondensed Statement of Income and Expenses

Income:Electric Energy SalesOther Electric Income Total Electric Income

Costs of Service:Wholesale Power PurchasedOperations & MaintenanceConsumer Accounting & Member ServicesAdministrative & GeneralDepreciationTaxesInterestOther Deductions Total Costs of Service

Margins:Operating Margins (Income less Costs)Non-operating Margins Interest Income Power Supply Capital Credits Other Non-operating Margins Total Margins (Patronage Capital)

Assets:Total Utility PlantAccumulated Depreciation Net Utility Plant

Working FundsMaterials & SuppliesAccounts ReceivableOther Current Assets Total Current Assets

Investment in Associated OrganizationsOther Assets and Deferred Debits Total Assets

Liabilities & Deferred Credits:Current LiabilitiesLong Term DebtAccumulated Provision for Pensions and BenefitsCustomer Advances for Construction Total Liabilities & Deferred CreditsEquity:Membership FeesPatronage Capital and Other Equities Total Equity Total Liabilities & Equity

June-July 20162015 Annual Report

Condensed Statement of Assets and Liabilities

2015$ 54,352,138

873,738 $55,225,876

$ 39,188,590 4,507,717 2,014,581 2,080,197 4,616,093 1,156,291

20,634 34,311

$53,618,414

$1,607,462

42,064 1,898,903 56,344

$ 3,604,773

12/31/2015$ 104,413,868 -27,632,350$ 76,781,518

$ 7,517,294 1,236,887 5,643,343

61,209 $ 14,458,733

$ 16,510,699 0

$107,750,950

$ 8,553,978 136,833

3,119,984 1,900,852 $ 13,711,647

$ 584,925 93,454,378

$ 94,039,303 $107,750,950

2014$ 54,609,191

921,440 $55,530,631

$ 40,915,877 4,406,065 2,105,233 2,067,008 2,928,564 1,150,417

27,379 16,355

$53,616,898

$ 1,913,733

46,142 2,052,914

60,440 $ 4,073,229

2005$ 34,251,451

622,369 $34,873,820

$ 21,908,611 3,922,686 1,143,568 1,289,609 2,213,919

893,538 147,931

34,985 $31,554,847

$ 3,318,973

319,418 195,000 53,562

$ 3,886,953

12/31/2014$ 102,553,004 -25,038,254$ 77,514,750

$ 5,795,021 1,143,550 7,375,869

52,552 $ 14,366,992

$ 14,590,705 0

$106,472,447

$ 8,177,705 226,921

3,615,144 1,789,110

$ 13,808,880

$ 584,327 92,079,240 $ 92,663,567 $106,472,447

12/31/2005$ 81,403,453 -16,390,491$65,012,962

$ 4,341,545 770,482

5,482,243 61,333

$ 10,655,603

$ 494,041 0$76,162,606

$ 4,565,562 1,680,865

347,308 1,295,182

$ 7,888,917

$ 583,108 67,690,581

$68,273,689 $76,162,606

June-July 2016 2015 Annual Report

2015 FINANCIAL NOTES Operating results In 2015, overall accrued margins of $3,604,773 included $1,953,072 of non-cash capital credits from Hoosier Energy, Inc. and

other cooperative business partners. 2015 kWh sales of 459,326,197 was 5.6 percent lower than 2014 kWh sales of 486,268,994.

Financing of capital expenditures The $4.1 million of 2015 investment in utility plant was financed from current year operations and cash on hand. No new loan

funds were required.

Rates The base retail rates charged by Jackson County REMC did not change through 2015. However, the power cost tracker from

our power supplier Hoosier Energy, Inc. did result in an average 1.67% increase per kWh.

Capital Credits The Board of Directors authorized the retirement of Capital Credits allocated for the years 1969 through 1977. In November

2015 we retired $2,836,765. As of December 31, 2015, $1,316,954 of this had been refunded, and $1,519,811 remained to be claimed.

Audit of Records The records of the corporation have been audited through June 30, 2015 by Monroe Shine & Co., Inc., Certified Public

Accountants. The annual audit for the twelve months ending June 30, 2016 will soon be underway.

2014510,278,836 486,268,994

4.7%$0.080 $0.112 1,670

$187.04

$4,349,178 172 378 1.8

24,266 9,150 9,353 2,579

331 8.3

$4,226 $9

kWh PurchasedkWh SoldPercent Line LossAverage Cost per kWh PurchasedAverage Selling Price per kWh SoldAverage kWh Usage per Meter per MonthAverage Bill per Meter per Month

Additions to Utility Plant During YearNew Services BuiltServices RetiredHours Interruption Per Meter During Year

Total Metered Services (Average for Year)Total Electric Heat ServicesTotal Security LightsMiles Overhead Distribution LineMiles Underground Distribution LineMetered Services per Mile of LineInvestment per Metered ServiceLong Term Debt per Metered Service

Summary of 2015 Statistics 2005

504,791,554 482,006,190

4.5%$0.043 $0.071

1,679 $119.30

$4,791,295 416 194 2.2

23,926 8,462 9,210 2,634

266 8.3

$3,402 $70

2015482,336,424 459,326,197

4.8%$0.081 $0.118 1,576

$185.97

$4,144,314 164 135 3.8

24,281 9,127 9,315 2,587

334 8.3

$4,300 $6


Minutes of the 2015 Annual MeetingHeld on Thursday, July 23, 2015 - to be approved at the July 21, 2016 meeting

Please take time to read these minutes before the 2016 Annual Meeting on July 21. In recent years, to save time, the minutes have not been read during the business session and have been accepted as printed. It is hoped that this can be done again this year. Questions, comments or corrections should be presented to General Manager Mark McKinney prior to the meeting.

The 77th Annual Meeting of the members of the Jackson County Rural Electric Membership Corporation was held at the Jackson County Fairgrounds, State Road 250 in Brownstown, Indiana on Thursday, July 23, 2015.

Christina Schoenherr, Human Resources Specialist, introduced Maisy Reilford who sang the National Anthem. The Ross County Jamboree provided the evening’s musical entertainment prior to the convening of the Annual Meeting. Director Walter Hunter gave the invocation.

President John Trinkle then called the meeting to order at 7:42 p.m. local time and requested Jerry Kelley, Secretary/Treasurer, to provide the proof of quorum. Mr. Kelley reported that 721 members had registered. This figure substantially exceeded the required quorum of 399.

Secretary/Treasurer Kelley stated that written notice of the Annual Meeting had been mailed to each member of the Cooperative on July 1, 2015 as required by the Bylaws. This notice was published on Page 3 of the June/July 2015 issue of the “Watt High Lights” membership newsletter. A “Certificate of Mailing of Notice of Annual Meeting to Members” was filed by the Secretary/Treasurer and is attached to the minutes of this meeting as Exhibit “A”. President Trinkle declared a quorum present and notice properly issued and officially opened the meeting.

Mr. Kelley presented a summary of the minutes of the Annual Meeting of July 17, 2014 as published on Pages 10 and 11 of the June/July 2015 edition of the “Watt High Lights”. President Trinkle asked for a motion approving the minutes as distributed by publication. Upon motion duly made and seconded by a voice vote, the minutes of the 2014 Annual Meeting were approved as published without formal reading.

The Secretary/Treasurer presented the Treasurer’s Report for the year ending December 31, 2014. Mr. Kelley stated that this Financial Report was published on Pages 8 and 9 of the June/July 2015 issue of the “Watt High Lights”. Mr. Kelley opened the floor for questions or comments regarding the 2014 Financial Report as published. As there were no questions or comments from the members, upon motion duly made, seconded and passed, the detailed reading of the 2014 Financial Report was waived, and the report was approved as published. President Trinkle ordered the Secretary to attach a copy of the 2014 Financial Report to the minutes of this meeting as Exhibit “B”.

President Trinkle (representing District 3)

introduced those directors serving current terms: John Hackman (District 1); Paul Elliott (District 4); Mark Trisler (District 6); Curtis Wischmeier (District 7); and John Miller (District 9). The Attorney for the Cooperative, Andrew Wright of Salem, Indiana, was also introduced.

President Trinkle then conducted the election of directors. President Trinkle said that the Nominating Committees appointed by the Board of Directors were: District 2 – Duane D. Martin (Chairman), Jeffery Anderson and Donald Apple; District 5 – James G. Broady (Chairman), Billy Comer and Bryan Richey; and District 8 – Andy Fountain (Chairman), Brian Thompson and David Horton.

President Trinkle announced that these committees had nominated the following candidates: District 2 – Walter Hunter and William Neil Hayes; District 5 – Jerry Kelley; and District 8 – Earl Pottschmidt and David A. Hall. The report of the Nominating Committees is attached as Exhibit “C” to these minutes. No nominations by petition were filed. Notice of these nominations was published on Pages 4 and 5 of the June/July 2015 issue of the “Watt High Lights”. President Trinkle thanked the Nominating

Committees for their efforts.

The members of the Election and Credentials Committee who had been appointed by the Board of Directors were introduced. These members were: Denver Hackman (Jackson County); Todd Thomas (Lawrence County); Phil Walker (Jackson County); Courtney Kruse (Jackson County); and Jean Day (Washington County). This committee supervises the election of directors during the Annual Meeting. President Trinkle expressed his appreciation to the Committee for these efforts.

President Trinkle declared the registration of members for the Annual Meeting closed. Members present were then requested to fill out the ballots received at registration. The Election and Credentials Committee then collected the ballots from members present in the meeting pavilion and from the two ballot boxes that were located in the registration area in Exhibit Building No. 3.

While the ballots were being collected, President Trinkle expressed appreciation to the Jackson County Fair Board for again providing the premises of the fairgrounds for the Annual Meeting.

General Manager Mark McKinney then introduced the special guests for the evening including the following: Jackson County REMC retirees – Don Clodfelter, Jed Wheatley, Brian Wolka, Lowell Wessel and Pete Johnson; Janet Anthony, Bartholomew County REMC; Randy Haymaker, Hoosier Energy; Matt Deaton, Orange County REMC; Jack Norris, Jim Weimer, James A. Jackson, David Stone, Jack Knust and Bill Watkins of Utilities District of Western Indiana REMC; Brian Stavish, Regional Vice President of Cooperative Finance Corporation; Indiana State Representative Eric Koch; and Senator Erin Houchin and her husband, Dustin Houchin.

General Manager McKinney then presented


his annual report. Mr. McKinney noted that the REMC has now been in business for 77 years. He stated that one reason for the continued success of the Cooperative is that it has an elected Board of Directors whose primary focus has been on its members and employees. Another reason for the REMC’s success is that it has always had dedicated employees who work hard to provide the highest possible level of customer service. He cited as an example recent timely efforts to restore power after storm damage. Mr. McKinney noted that the current employees are listed on a handout that each member received at registration. The 67 employees have a total of more than 1,000 years of experience in working with the Cooperative.

Mr. McKinney then noted the continuing challenge of operating under the regulations of the Environmental Protection Agency which seek to regulate greenhouse gas. He remarked that 13% of the coal-fired generated capacity in the United States will be retired by 2020. Hoosier Energy, which supplies the REMC with electricity, has determined to retire a 250-megawatt coal-fired plant due to industry uncertainty and regulatory compliance costs. Natural gas will probably be used to replace this coal-fired generation. Renewable energy resources are also being utilized to provide power. Hoosier Energy adopted a target of obtaining 10% of its energy needs from renewable resources by 2025. These renewable resources of Hoosier Energy include wind power, landfill gas projects and a small solar site. Hoosier Energy projects that 6% of its total power supplied by the end of next year will come from renewable energy sources. The REMC continues to help members with energy efficiency and demand side management to hold down its overall costs. Rebates on various heating and cooling systems are offered. Discounts on energy efficient light bulbs and filters are available. Energy management alternatives are also offered to members with a bill credit incentive. The Cooperative continues to improve its communication as part of its mission to provide safe, reliable and economical electricity. These methods of communication include the “Watt High Lights” newsletter, an Internet website, Facebook page, Twitter account and SmartHub. More than 6,700 members presently utilize SmartHub to manage their electrical usage. As a not-for-profit organization, Mr. McKinney stressed

that the REMC seeks to maximize member satisfaction; not maximize sales.

Christina Schoenherr then introduced the three participants in the 2015 NRECA Youth Leadership Council trip to Washington, D.C. The youth representing the REMC at this annual conference were: Connor Burgess (son of David and Melanie Burgess); Hannah Gallion (daughter of Joey and Beth Gallion); and Adrienne Hoar (daughter of James Hoar and Tracy Jones). Hannah Gallion and Adrienne Hoar were present to share their experiences and impressions of the trip and express their thanks for the opportunity to visit our nation’s capital.

Christina Schoenherr then introduced the winners of the Indiana Electric Cooperatives Electric Consumer Calendar Art Contest. The First Place Winners were: Kindergarten – Oliver Lanam (son of Josh and Lacey Lanam); 2nd Grade – Blaine Wehmiller (son of Nathan and Summer Wehmiller); and 3rd Grade – Kelis East (son of Todd and Tiffany East). Honorable Mention Winner 5th grader Luke Lanam (son of Josh and Lacey Lanam) was also recognized.

President Trinkle then gave his annual report to the membership. Mr. Trinkle stated that the responsibility of the Board of Directors is to set policy and not to manage the details of operation. He informed the members that the current board has a wide range of experience and background. The service of the present board members ranges from 2 to 40 years. This provides a good mix of knowledge of the operations of the REMC with a fresh perspective from the membership. Mr. Trinkle explained that the REMC is also a member of Hoosier Energy which is an electrical generation and distribution cooperative. The REMC has one of the 18 board positions on the Hoosier Energy board. That board also has a good perspective as its members have served anywhere from 1 to 20 years. Mr. Trinkle also stated that the REMC is a member of the Indiana Electric Cooperative Association and has a board member that serves on that statewide organization. Relations with Hoosier Energy remain good. Hoosier Energy recently had to construct new headquarters which was badly needed. Mr. Trinkle asked the membership to review the financial highlights distributed at registration. The REMC’s residential cost for kilowatt hours was below the state average;

its long-term debt has decreased in the last 10 years; and over 73% of its revenues are spent on purchasing power from Hoosier Energy. Mr. Trinkle then explained that another capital credit distribution will be made to the membership next year. The REMC does not make profits but has operating margins. The REMC board decided three years ago to start distributing these operating margins to its members through capital credit distributions. The upcoming capital credit distribution will be for 1969 to 1977. Although the distribution of capital credits reduces the amount of funds available for current operations, it is a hallmark of the Cooperative business model.

President Trinkle then called upon Attorney Wright to report the results of the election of directors. He announced that Walter Hunter had been re-elected for District 2; Jerry Kelley had been re-elected for District 5; and Earl Pottschmidt had been re-elected for District 8. A Certificate of Election was presented to the Secretary and is attached to these minutes as Exhibit “D”.

President Trinkle then asked if there was

any further business to be placed before the membership. As no further business was presented, a motion for adjournment was made, seconded and approved by voice vote.

At the adjournment of the business meeting, Christina Schoenherr presented attendance awards and conducted a drawing for door prizes which had been donated by the vendors of the Cooperative.

______________________________ Jerry Kelley, Secretary/Treasurer

2016 Annual M

eeting Registration

To speed your registration at the Annual Meeting, please clip and bring this form, including the mailing label. Do not sign this form until you are at the registration desk. Thank you.

Signature ______________________________Please wait to sign at registration desk

Registration Information for 2016

Annual MeetingAnnual Meeting registration will begin promptly at 5:30 p.m. and end at 7:45 p.m. (EDT).

Registration will take place in exhibit building #3 of the Jackson County Fairgrounds.

The following steps will help make your registration go smoothly:

1. Clip out the registration form printed to the right.2. Bring your form to the Annual Meeting.3. Sign the form in front of a registration clerk.

When you register you will be given a ballot to vote for the election of directors. You may vote before the business meeting, or you may vote during the business meeting after the nominees have been introduced.

Your name will also be placed in the drawing for door prizes to be held following the business meeting. You must be present at the drawing to claim a prize.

Please note: If the name(s) listed on the registration form on this page are not correct, or if a change is desired, please contact our Billing Department as soon as possible. Only those members whose names appear on our records will be eligible to register. A member may register only once, even though more than one account may be in his or her name. A tenant may not register if an account is in the landlord’s name, nor may a landlord register if an account is in a tenant’s name. Agents for churches, organizations and businesses must certify that they are authorized representatives.

An election and credentials committee of appointed members will

be on hand to resolve any registration problems that may arise.

Plans are in place for 78th Annual Meeting on July 21

Registration 5:30 to 7:45 p.m. Exhibit building #3 will open at 5:30 p.m. sharp for member registration.

Free ice cream! Free hand-dipped ice cream cones will be served from 5:30 to 7:30 p.m.

Power line safety demonstration REMC line employees will present power line safety demonstrations at 5:30 and 6:15 p.m. near the registration building.

Musical entertainment Entertainment from the Ross Coun-try Jamboree Kings of Wing Band will be in the pavilion beginning at 5:45 p.m.

Business session and election of directors The business session of the Annual Meeting will be called to order in the pavilion at 7:30 p.m.

Food stand to be open The St. John Lutheran Church food stand will be selling items for a light supper through the start of the business meeting. For the children Magician Allan Head will provide an hour of fun at the Antique Building stage beginning at 7:30 p.m. You may wish to bring blankets for seating.

Door prize drawing immediately after the business meeting. You must be a registered member, and you must be present at the drawing to win a door prize, so plan to stay and enjoy all of the evening’s events. This year’s grand prize is a 50 gallon heat pump water heater.

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