February 2016 - Vol 11 Issue 1

Co-op Hotline

Volume: 11, Issue 1 Southeastern IN REMC Member Newsletter February 2016

Office Hours Mixed Member Messages!

7:30 AM to 4:30 PM (EST) By: Bryan K. Mathews, General Manager
Monday through Friday
Do reliable rates, with safe reliable electric service, really matter to you?
Contact Information
Depending upon which report you read, you can come up time out of your busy schedule and check for common air
Local calls: 812-689-4111 with multiple conclusions to what your electric rates will be leaks? Adding insulation comes next, in terms of cost savings.
Toll free: 800-737-4111 in 5 to 10 years. As far reaching that your electric rates will Rounding out the top three money saving improvements is
FAX only: 812-689-6987 be less than what you are paying today to the sky is the limit. new energy efficient appliances and mechanical systems.
To make a payment: 1-888-999-0762
Call Before You Dig: 800-382-5544
E-mail: [email protected]
Website: www.seiremc.com

Board of Directors Cooperative speaking, your rates should remain stable for Members can also save $30 a year by allowing your coop to
2016 pending no extreme weather pattern and no sudden install a demand response unit on your electric water heater,
Vince Moster - District 1 changes in your personal use of electric energy. enabling your cooperative to avoid peak demands that helps
Brad Bentle - District 2 reduce costs for you as well as all members. If you have a
David Smith - District 3 At a recent conference that I attended, I heard discussion that central air conditioner, have it hooked up as well, for an
Carolyn Armstrong - District 4 our government’s golden carrot will be to promote energy additional $30 savings. Currently we have a little over 1,000
Melissa Menchhofer - District 5 efficient products that might reduce our individual energy members using the demand response units.
Mike Thieman - District 6 consumption by 31%. From my personal experience over
Darrell Smith - District 7 the last 2 years, I had to purchase a new energy efficient heat Whether or not the Clean Power Plan survives the legal chal-
Bonnie Boggs - District 8 pump and a star rated refrigerator because my old equipment lenges, our 2016 goal is to continue offering rebate incentives
Chris Schmaltz - District 9 decided to stop working. I have seen my energy consump- to promote energy efficiency. An NRECA survey found that
tion decrease but not even close to 31%. I am thinking 82 percent of distribution coops have an energy savings pro-
facebook.com/SEINREMC maybe closer to 3%. gram, which suggests, coops have been on board for years, to
save member’s money, just not on board to reduce energy use
twitter.com/SEIREMC With that said, your coop continues to promote energy at all cost.
efficiency measures as a way for you our member to save
Publishing Information money for years. These efforts continue as we strive to Another NRECA survey asked member-owners of America’s
reduce upward pressure on members’ electric bills, either electric cooperatives to identify the most important factor
Co-op Hotline is published from weather patterns, government regulations or day to day regarding their electric service. Fifty-four percent of respon-
bimonthly for the members business activities. dents said that reliability was most important. Thirty percent
of Southeastern Indiana Rural said cost.
Electric Membership Corporation, Rebates for newly installed geothermal heat pumps, energy
a consumer owned utility, 712 efficient water heaters, heat pumps, electric heating/cooling Now this is the mixed message portion that your cooperative
South Buckeye Street, Osgood, system check-ups, and attic insulation added up to $150,850 is trying to gain a better understanding about. We have 3%
Indiana 47037. Periodicals postage in 2015. These dollars were rebated directly back to our of our members using a demand response unit to beat the
members. peak and have a smaller percentage of members investing
paid at Seymour, IN in energy efficient appliances, or scheduling home energy
Members have the potential to significantly reduce their audits.
energy bills by investing in specific home improvements.
If thirty percent of America’s electric cooperative members
According to energy.gov, caulking and weather stripping can say cost is important why does your cooperative only have
run between $3 and 30 per window/door. Average savings 3% of its members using the programs in place to control
range from 5 to 10 percent of your energy bill. Why not take cost?

Co-op Hotline, February 2016 - Page 1

2016 Annual Meeting - Executive Report

Dear Cooperative Members:

Please plan to attend your 77th annual meeting on March provide the best balance between reliability, affordability
19, 2016 at Jac-Cen-Del High School. You will have the and environmental concerns.
privilege and opportunity to elect three directors.
In addition to the 1070MW Merom Generating Station
As we did last year, voting for directors and and more than 1000MW output from three natural gas
entertainment will take place prior to the start of the stations, Hoosier Energy voluntarily determined to have
business meeting. Voting for directors will take place in 10% of total generation coming from renewables by 2025.
the JCD multipurpose room near the cafeteria from 11 The current renewable resources include landfill methane,
am to 1:15 pm. Please note, only members with voting hydro, wind and the current construction of ten-one
ballots will be allowed in the restricted voting area. Energy megawatt solar arrays in member system territories.
efficiency kits will be available in the multipurpose room
as well. Coal provided 100% of our generation assets in 2000.
Today, it represents about one half of our capacity.
The 2016 Annual Meeting theme is “Commitment to Generation diversification efforts will continue but there
Cooperative Purpose.” Southeastern Indiana REMC has are significant obstacles in keeping our rates low. In fact,
been providing communities a better place to live for 77 after spending $562 million since 2002 on environmental
years. Many challenges and opportunities affect all of us compliance and reducing air emissions by 91%, Hoosier
and we want to continue to support our Communities Energy was still forced to retire the Frank E. Ratts
with a purpose. Generating Station in 2015 long before the end of its useful
life. Now Hoosier Energy and its members have $86M in
As we discuss the Clean Power Plan that the stranded costs for an asset that can no longer be used.
Environmental Protection Agency published October
2015, let us look back to the 1970’s when the government Hoosier Energy is also our energy partner – helping
because of the oil crisis, required power plants to burn coal us take steps at our homes, farms and businesses to
instead of natural gas or petroleum based fuels. Ironically, use electricity more efficiently. Southeastern REMC
our government has now declared war on those same coal offers a roster of energy-saving incentives to help
burning power plants in an effort to shut them down. lower energy bills. (Ranging from efficient heating
and cooling equipment rebates to lighting upgrades.)
The Clean Power Plan rule requires a 39% reduction in Visit TeamUpToSave.com to see the current lineup of
carbon emissions for Indiana from 2005 levels. Through savings opportunities available at your local cooperative,
this action, the EPA has exceeded its authority under the Southeastern will continue to provide home energy audits
Clean Air Act and has not taken into account the cost and promote technology to enable you to find ways to be
burdens and lack of viable technology needed to comply more energy efficient.
with this rule.
Our Board of director’s stays committed to a 25 year
As the most manufacturing-intensive state, with more return cycle of patronage or capital credits. Patronage is
than 80% of its electricity produced by coal and more than being returned this March for the year 1991 in the amount
28,000 Hoosiers employed in the coal industry – Indiana of $1.2 million. Your cooperative has refunded over 16
will be gravely impacted. This is why our REMC along million through the years.
with our energy provider, continues to work diligently
with both NRECA, the national organization for rural We are committed to offering optional rates that
cooperatives, and the State of Indiana in filing litigation to allow our members to change usage patterns, to utilize
challenge the rule and its unachievable timeline. technology for scheduling and monitoring thermostats
and receiving day-ahead notifications via their smart
The clean, reliable electricity Hoosier Energy provides device. The new Time of Use/Critical Peak Rate will be
is something we all depend on – and expect – at the flip available later this year. Possibly members on a fixed
of a switch. Hoosier Energy recognizes that each form income that stay home a majority of the time may want to
of generation has its pros and cons and works best when consider this rate option.
taken together. Its “all-of-the-above” strategy includes coal,
natural gas and renewable energy sources that are used to In the technology area, we continue to utilize “Smart

Page 2 - Co-op Hotline, February 2016

Executive Report Continued

Hub” which provides you much greater access to your make a difference by letting our lights shine in 2016 by
account information. Currently we have 7,300 Members participating in this great program that reaches out to our
using “Smart Hub”. Once you sign up for “Smart Hub”, you seven county communities.
will have access to PDF bill statements, daily and hourly
energy use information with temperature correlation, For public safety, we have available to us a full scale
outage information, and you can conveniently make high-low voltage electrical safety demonstration platform
payments. If you sign up for paperless billing you also will suitable for use at schools, fire departments or other large
be included in a random quarterly drawing for a chance to events.
win a Kindle Fire.
We are continuing to concentrate on pole replacements,
Don’t forget our commitment to outage restoration. If protective device maintenance, right of way (tree
you have computer or smart phone access you can visit trimming/removal) maintenance and replacement of older
our website (www.seiremc.com) and view our interactive underground primary cable in certain subdivisions.
outage map. This map is continually updated with the
number of members experiencing an electric outage by zip We continued our commitment to community by sending
code within our service area. You can quickly determine six sixth graders to the Touchstone Energy Camp, and
the extent of electric outages occurring on your system in three students to Youth Tour. Support for the 4-H animal
real time, which will give you an indication of the severity auctions in the counties we serve was also continued.
of interruptions caused by storms or vehicle accidents, etc. Corporate support of the Relay for Life, Polar Plunge
and the breast cancer screening (mobile mammogram
We recognize that the cost of electricity is continuing program) through St. Elizabeth Hospital was continued.
to rise. If you would like to save money on your electric
bill, please consider participating in our “load control Our Board and staff remain focused on the key issues
switch program” which addresses our critical peak load identified through strategic planning. The issues identified
requirements during the hottest or coldest time periods were: Coop Career Attractiveness, Communications, Line
and reduces your bill by up to $60.00 per year. We want to Loss, Technology Deployment, and Workforce Duties
help you reduce your electric bill. Evaluation.

The popular “generator program” is being continued Financially your cooperative had a good year mainly due
which is tied to our demand-side management program to the absence of major storm events, with the exception
and also provides members the security of automatic of a couple of days in July that cost a little over $70,000.
switchover to the LP or natural gas fired 22 kW generator In 2015 our kWh sales decreased 5.4 percent due to
during an electric interruption. This cost effective mild weather patterns and hopefully energy efficiency.
program has been extremely popular with many members. Our distribution system improvements and new service
extensions in 2015 totaled $6.7 million versus $5.7 million
Your Board approved the four year engineering work plan the previous year. New services connected in 2015 totaled
last year and we will continue to upgrade your electric 175 versus 200 in 2014, 191 in 2013, 197 in 2012, and
system by completing several projects recommended in 170 in 2011. The economic downturn is still affecting
our RUS approved four year engineering work plan. applications for new service.

One of the seven cooperative principles is “Concern for The combined efforts of your nine-member board of
Community,” and one way your REMC demonstrates its directors, 67 full time employees, various contractors, and
support for this principle is by allowing members to be a consultants resulted in another successful year.
part of the Operation RoundUp© program. This program
has been used by coops for more than 20 years and allows We appreciate your support in allowing us to serve you.
you to support much needed projects within our service
territory. The purpose of Operation RoundUp© is to Respectfully,
collect and distribute funds for charitable purposes within
the Southeastern Indiana REMC area. The money comes Brad Bentle, President, Board of Directors
from our members who have allowed us to round up
their electric bills to the nearest dollar every month. For Bryan K. Mathews, General Manager
most, this donation is less than $6 per year. We truly can

Co-op Hotline, February 2016 - Page 3

Southeastern Your “Official Notice” Each
Indiana REMC will be mailed along with registered
March billing statements. member will
77th Annual
Meeting Please bring the notice with you receive:
to the meeting! You will need it to
“Commitment register, vote and enter the door prize $15 bill credit
to Cooperative
drawing. for each account
Purpose”
Voting 1 Energy Kit
March 19 Free Ice-Cream
As in previous years, voting will take place in the multi-
Jac-Cen-Del purpose room prior to the start of the business meeting.
High School Director Districts up for election are 4, 5 and 9.

4586 N US Hwy 421 Director Candidates
Osgood, IN 47037
District 4 - Carolyn Armstrong
District 5 - Melissa Menchhofer and Ralph Miller
District 9 - Chris Schmaltz and Maureen Sheets

Registration Local 4-H club
will once again
11:00 a.m. be selling food

Business Meeting and drinks.

1:00 p.m. Grand Prize:

Kids Program John Deere
Riding Mower
1:00 p.m.
Check-in your Nominating Committee Members
children at the
elementary school District 4: Tammy Elbright, Pam McClure, Jamie Bell
District 5: Dave Osborne, Arlene Knudson, Michele Speer
Page 4 - Co-op Hotline, February 2016 District 9: Charlie Baylor, Kay Bean, Ray Baurley

We will not be ANNUAL

printing and mailing MEETING
the Annual Report SPECIAL
Special Guest:
this year. $50
State
Representative All of this information GENERAC
Randy Frye will is now available on CREDIT
give members our website at:
Members attending
a legislative www.seiremc.com. the 2016 Annual
update. Meeting on March
New Safety Procedure
Registration for Children’s Program 19, 2016 can stop by
Entertainment: the Generac booth
As an added security feature, we are
Local country requiring kids to be checked-in and out at and sign-up to
music star, the elementary school for the kid’s activities. receive a $50 Generac

Keith Swinney, Parents and children will be required to credit voucher that
accompanied by be checked-in by an REMC employee and can be redeemed if
Laura Iceburg- have their hands stamped before the child is they install a 22 kW
allowed to enter the elementary school. Generac in 2016.
Parks
After the annual meeting has adjourned Be sure to stop by the
Kids parents will be required to pick-up their Generac booth and
Entertainment: child at the elementary school. talk with our load
control experts on
Back by popular The check-out procedure will require an the benefits of having
demand is Magic REMC employee to verify that the stamps
on the adult and child match before the your home and
Dave with all child is released. No child will be allowed family protected by
kinds of magic to leave with an adult who doesn’t have the Generac 22 kW
tricks to amaze their hand stamped. total home backup
your children.
generator.

Co-op Hotline, February 2016 - Page 5

2016 DIRECTOR CANDIDATES

District 4: Comprised of Center, Hogan and Washington townships in Dearborn County; Randolph township in Ohio
County; and Posey and York townships in Switzerland County.

CAROLYN ARMSTRONG earned a business administration and accounting degree from Miller-Draughn
Business College.
Carolyn is a retired Accounting Manager. from
Smurfit-Stone Container Corporation in Cincinnati, Armstrong has served as a director on the Ohio County Community
Ohio. Foundation Board. She is also a member of the First Baptist Church in Rising
Mrs. Armstrong currently serves as a REMC board Sun.
member and represents the cooperative on the Indiana
Statewide Association of REC’s board of directors. She Carolyn Armstrong and her husband Lynn make their home on State Route
has completed training in board leadership and is a 156, Rising Sun, Indiana. They have two sons and four grandchildren.
credentialed cooperative director.

She is a graduate of Rising Sun High School and

District 5: Comprised of Cass, Pike and Union townships in Ohio County; Caesar Creek township in Dearborn
County; and Brown, Shelby and Otter Creek townships in Ripley County.

MELISSA MENCHHOFER RALPH MILLER

At the annual meeting last March I was elected to Ralph was born in Greensburg, Indiana in 1962 to Chavis
finish the last year of a three year term left vacant by and Bonnie Miller. He has been married for 31-years to
the untimely passing of Harry Althoff. In the past Jennifer (Hunger) Miller and they have two sons – Brent
year I have been busy learning about the cooperative and Patrick. Brent, the oldest, is an Indiana State Trooper
electric business. I’ve completed two of the five and is married to Brandy (Sturgeon) Miller, a registered
classes required to earn the Credentialed Cooperative nurse. They have two children, Clay & Ellie, and they
Director (CCD) Certificate. Last September I reside in Switzerland County. Patrick, the youngest,
attended the National Rural Electric Cooperative is employed by Flatland Farms and is a Volunteer Fire
Association (NRECA) regional meeting in Charlotte, Fighter and First Responder for the Friendship Fire
NC and learned about how other cooperatives across Department. He and his daughter, Maddie, reside in
the nation are dealing with many of the same issues we have here at home, Versailles.
including the new requirements put in place by the EPA. Also in September I
was able to take a tour of the various Hoosier Energy facilities, including the Miller is a 1981 graduate of South Ripley High School. He has been employed
coal-fired Merom Generating Station. In December I attended the annual with Rose Acre Farms, the 2nd largest egg producer in the United States,
meeting of the Indiana Electric Cooperatives and was able to meet with some for 31-years. He has held the positions of Production Manager, Complex
of state elected officials and hear them speak about current issues and where Manager and currently holds the position of Specialty Egg Production
they hope to go in the future. Coordinator.

I’m a graduate of South Ripley High School and Purdue University. We Miller is a former South Ripley School Board member of 8-years where
live near Dabney and my husband, Tom, and I have two children. Keith, a he held the positions of President, Vice-President, and served on several
graduate of the University of Northwestern Ohio, works with us full time on committees. He was also appointed by the SEI Board of directors to fill a
our farm and Jessie, a student at Trine University, works with us too as she position for several months until elections were held to fill that position.
can. We have attended Hopewell Baptist Church near Holton for 23 years Miller currently serves on the Chamber of Commerce board of directors of
and I am currently serving as treasurer. We were involved in 4-H when our Jennings County.
children were younger and Tom currently serves on the 4-H Extension Board.
Miller is a 31-year member of the Saint Paul’s Lutheran Church in Olean,
where he has held the positions on the Church Council of President, Vice-
President, Elder, and as a member on several committees.

Miller’s hobbies include hunting, fishing and spending time with family and
friends.

District 9: Comprised of Jackson, Johnson, Franklin, Center, Delaware and Washington townships in Ripley County.

CHRIS SCHMALTZ MAUREEN J. SHEETS

Chris operates a grain and cattle farm in Milan, IN. Maureen is a self-employed Certified Public
Accountant.
Mr. Schmaltz is a current REMC board member. He
has completed training in board leadership and is a Ms. Sheets currently serves on the Ripley County
credentialed cooperative director. He is also a director Planning Commission and Board of Zoning Appeals.
for the Farmer’s Mutual Aid Society and an active In addition to being a self-employed CPA, she has
member of the FARM club. taught various accounting and business courses as an
Adjunct Instructor for Ivy Tech Community College.
Schmaltz is a member of the St. John’s Lutheran Church
in Farmers Retreat. Sheets has a Bachelor of Science Degree from
the University of Cincinnati in Accounting and
Mr. Schmaltz and his wife Mary make their home on Administrative Management, and a MBA from Indiana Wesleyan University.
East County Road 50 South Milan, Indiana. They have two children.
Maureen Sheets makes her home at North State Road 129 Milan, Indiana.
Page 6 - Co-op Hotline, February 2016

!SAMEMBEROF3OUTHEASTERN)NDIANA2%-#

9OUMAY DESERVETHECREDIT
HAVEA
CAPITAL
CREDITS
REFUND

WWWSEIREMCCOM

HOW MUCH PATRONAGE (CAPITAL equity range, which generally falls between 40% HOW OFTEN DO MEMBERS RECEIVE
CREDITS) IS BEING REFUNDED IN 2015? to 60%. If cash is available and equity is high CAPITAL CREDITS?
in the range, a capital credit refund to members
Your Board approved refunding capital credits for is an appropriate consideration of our Board in The Southeastern Indiana REMC Board of
the year 1991. The total amount of the patronage controlling our system equity. Directors makes a decision each year, whether
to be refunded is $1.2 million. Based on past or not to refund capital credits. When the
experience we actually refund around 70% of this ARE CAPITAL CREDITS REFUNDED EVERY cooperative is strong enough financially and the
amount or about $853,000 due to not having a YEAR? member equity levels are high enough, the board
valid address for some former members. directs staff to refund some portion of past years’
Each year, the Southeastern Indiana REMC capital credits.
WHAT ARE CAPITAL CREDITS? Board of Directors makes a decision on whether
to refund capital credits based on the financial HOW WILL THE REFUND WORK?
Retained margins left over at the end of a year at a health of the cooperative. During some years the
not-for-profit electric cooperative. Capital credits co-op may experience extreme weather patterns Members currently receiving electric service will
represent the most significant source of equity for which significantly affects kWh sales and margins, see the refund as a separate line item on their
Southeastern Indiana REMC. Since a cooperative’s high growth in the number of new accounts electric bill. Inactive members who no longer
“shareholders” are also the people the co-op serves, added, maintaining an optimal equity level, rate purchase electricity from Southeastern Indiana
capital credits reflect each member’s ownership inadequacy due to inflated costs since the last rate REMC (with capital credits due) will receive a
in the cooperative. This differs from dividends revision or severe storms may result in the need to capital credit check. Due to the expense involved
investor-owned utilities pay shareholders, who spend additional funds to repair lines and restore in processing printed checks, the minimum capital
may or may not be customers of the utility. electric service. These events might lower cash credit check that will be written will be $5.
and member equity, causing the board to defer any
WHERE DOES THE MONEY COME FROM? capital credit refund. For this reason Southeastern WHAT IF I HAVE MOVED?
Indiana REMC’s ability to return margins to
Member-owned, not-for-profit electric utilities like members in the form of capital credits reflects your If you move or no longer have electric service with
Southeastern Indiana REMC set rates to generate cooperative’s strength and financial stability. Southeastern Indiana REMC it is important that
enough money to pay operating costs, make members keep their address current, so that future
payments on any loans, and provide an emergency DO I LOSE MY CAPITAL CREDITS IN THE disbursements can be properly mailed. Capital
reserve. At the end of each calendar year, we YEARS THE CO-OP DECIDES NOT TO MAKE credits are reserved for members even if they move
subtract operating expenses from the total amount REFUNDS? out of the Southeastern Indiana REMC service
of money collected during the year. The balance is area. Southeastern Indiana REMC will make a
called a “margin”. No. All capital credits from every year members diligent effort to send a check to a valid address by
have been served by Southeastern Indiana REMC mail.
HOW ARE MARGINS ALLOCATED? are maintained until such time as the board
refunds them. Prior to this year, Southeastern HOW MANY PEOPLE WILL GET REFUNDS?
Margins are allocated to members as capital credits Indiana REMC refunded all capital credits through
based on their purchases from the cooperative 1990. Roughly 7,000 currently active members will
– how much power the member used. Member receive a bill credit on their primary electric
purchases may also be called patronage. HOW MUCH HAS SOUTHEASTERN account in March for the amount of their capital
INDIANA REMC PAID IN TOTAL CAPITAL credits. Another 5,700 active members (i.e.
WHY DOES MY COOPERATIVE REFUND CREDITS REFUNDS SINCE IT BEGAN IN Beneficiaries) whose refund exceeds $5 will
CAPITAL CREDITS? 1939? receive a check from Southeastern Indiana REMC
sometime during March.
Doing so follows one of our seven cooperative Southeastern Indiana REMC has paid $16,682,789
principles – Members’ Economic Participation in capital credit refunds to current and former MORE INFORMATION
– through rotation of capital. Capital rotation/ members to date.
refund, when determined feasible by the Board, We appreciate the opportunity to serve you and
is also required to meet IRS requirements to thank you for being a member. If you have
maintain our 501 C12 tax status. Capital rotation/ additional questions about capital credits, please
refund is also used as a tool to target our optimum visit www.seiremc.com or call 800-737-4111. 

Co-op Hotline, February 2016 - Page 7

P.O. Box 196 PRST STD
712 South Buckeye Street U.S. POSTAGE
Osgood, IN 47037
PAID
SEYMOUR, IN
PERMIT NO. 198

Statement of Please bring your Annual Meeting “Official Notice”
Nondiscrimination with you to the meeting! You will need it to

This institution is an equal register, vote and enter the door prize drawing.
opportunity provider and

employer.

If you wish to file a Civil
Rights program complaint
of discrimination, complete

the USDA Program
Discrimination Complaint

Form, found online at
http://www.ascr.usda.gov/
complaint_filing_cust.html,
or at any USDA office, or call
(866) 632-9992 to request
the form. You may also write
a letter containing all of the
information requested in the
form. Send your completed
complaint form or letter by
mail to the U.S. Department
of Agriculture, Director,
Office of Adjudication, 1400
Independence Avenue, S.W.,
Washington, D.C. 20250-
9410, by fax (202) 690-7442
or email at program.intake@

usda.gov.

Page 8 - Co-op Hotline, February 2016