Co-op Hotline - August 2015 Issue_Neat

Co-op Hotline

Volume: 10, Issue 4 Southeastern IN REMC Member Newsletter August 2015

Office Hours Member rate increase beginning September 1

7:30 AM to 4:30 PM (EST) by: Bryan K. Mathews, General Manager
Monday through Friday
Over the last few years, we all have Your board of directors closely monitors our costs
Contact Information no ced increases in the prices we and has made the decision to approve the recom-
pay for goods and services. Southeastern Indiana menda on made by the rate consultant. Before
Local calls: 812-689-4111 REMC is not immune from price increases on the making this tough decision, an updated cost of
Toll free: 800-737-4111 things essen al to operate your coopera ve. An service study and a 10 year financial forecast were
FAX only: 812-689-6987 increase in your facility charge, energy charge, and evaluated.
To make a payment: 1-888-999-0762 security light charge will go into effect for electric
Call Before You Dig: 800-382-5544 usage beginning September 1, 2015. As a not-for-profit electric coopera ve, we design
E-mail: [email protected] our rates to reflect the costs of providing electric
Website: www.seiremc.com The monthly “Facility Charge” is what helps finance service to you our members. This increase to
what is necessary to provide electricity to each member-owners reflects our actual cost of doing
Board of Directors service loca on, whether any electricity is used or business. While electricity is s ll a great value
not. The Facility Charge helps pay for: compared to other commodi es, we strive to keep
Vince Moster - District 1 electricity safe, reliable, and affordable for our
Brad Bentle - District 2  Trucks, wire, poles, meters, and other member-owners. We hope that you will under-
David Smith - District 3 equipment needed to build and maintain stand the need for this increase, and we thank you
Carolyn Armstrong - District 4 the electric distribu on system, for being our valued member.
Melissa Menchhofer - District 5
Mike Thieman - District 6  Labor to build, maintain, and repair the We also encourage each member to review the
Darrell Smith - District 7 distribu on system, to clear and maintain rate op ons available to you. For example, if you
Bonnie Boggs - District 8 the 3,200 miles of right-of-way, and other allow your electric coopera ve to install a demand
Chris Schmaltz - District 9 day to day business func ons, and response unit on your electric water heater and/
or your central air-condi oning unit, enabling us
facebook.com/SEINREMC  Costs incurred for property taxes, insur- to control during high demand, we will give you
ance, interest etc. credit on your electric bill, which may offset your
twitter.com/SEIREMC total rate increase. Also, as a reminder we are s ll
Even if we do not sell a single kilowa -hour (kWh), asking members to consider signing up for the Pilot
Publishing Information we s ll have the expense of maintaining the elec- rate.
tric facili es and opera ng the coopera ve.
Co-op Hotline is published Please visit our website at www.seiremc.com for
bimonthly for the members The rate change for members who have secu- addi onal informa on about rate tariffs and energy
of Southeastern Indiana Rural rity lights, more closely reflect the actual cost of saving ps to help you manage your electric bill.
Electric Membership Corporation, providing the security light service and the slight
a consumer owned utility, 712 increase in energy is more reflec ve of our mem-
South Buckeye Street, Osgood, ber’s usage pa erns. The overall rate increase for
Indiana 47037. Periodicals postage an average residen al member is around 2.5%

paid at Seymour, IN

Co-op Hotline, August 2015 - Page 1

Where does your energy dollar go?

To help you understand what resources are used when you pay your electric bill, we have elected to show your dollar bill and how it is used at
your local coop.

Our rates are based on two main components – the actual cost of the wholesale power we purchase from Hoosier Energy, which is also a
cooperative, and the costs needed to get that power to each member served. As you can see in the figure below, 70 cents was needed to cover
the first rate component, the cost of purchased power from Hoosier Energy.

That leaves us with 30 cents to cover the second rate component, pay for all of the expenses necessary to provide safe and reliable electric
service to approximately 26,700 member accounts, over 3,200 miles of power line, in parts of 7 counties. Each expense category is broken out
for you to see what is included in the second rate component.

Southeastern Indiana REMC Expenses

Your electric cooperative purchases wholesale power from Hoosier Energy. The top expense, 70
percent, for your cooperative is for the cost of power purchased from Hoosier Energy.

Sources: SEI REMC, Image: ©www.dollarphotoclub.com Fixed Cost - Misc. (1%)
Cost of Power Purchased (70%) Depreciation Taxes (2%)
Operating Margin (3%)
(6%) Fixed Cost - Interest (4%)

Wages and Benefits

(7%)

Right-of-Way
Maintenance (5%)

Since 70% of your bill is made up of purchased power, we have also included another dollar bill that depicts the Wholesale power expenses.
Take a look at the figure below to help you gain a better understanding of where the energy dollar goes.

Wholesale power expenses

Your electric cooperative purchases wholesale power from Hoosier Energy. The top three expenses
totaling 67 percent of costs include coal/fuel oil, fixed costs such as interest payments, taxes/
insurance, and power purchased on the energy market.

Source: Hoosier Energy, Image: ©www.dollarphotoclub.com

Coal & fuel oil Purchased power Employee Environmental
(24%) (20%) costs (10%) commodities (2%)

Page 2 - Co-op Hotline, August 2015 Fixed costs (23%) Operation & Natural gas (3%)
MISO (3%)

maintenance Operating margin

(11%) (4%)

New Rates:

Schedule A-5 Non-Commercial C-5 Large Power – High Load Factor

Facili es Charge: Facili es Charge: $85.00 per month
Single-phase
Mul -phase $25.00 per month Demand Charge (June through August):
$45.00 per month All kW of Billing Demand

$13.60 per kW

Energy Charges (June through August): $.13210 per kWh Demand Charge (All other months): $11.60 per kW
First 300 kWh $.11190 per kWh All kW of Billing Demand
Next 700 kWh $.11190 per kWh
Over 1,000 kWh

Energy Charges (December through February): Energy Charges: $.06475 per kWh
First 300 kWh All kWh of Billing Demand
Next 700 kWh
Over 1,000 kWh $.13210 per kWh
$.11190 per kWh
$.09690 per kWh

Energy Charges (All Other Months): C-5 Large Power – Low load Factor
First 300 kWh
Next 700 kWh $.13210 per kWh Facili es Charge: $85.00 per month
Over 1,000 kWh $.11190 per kWh
$.08590 per kWh Demand Charge (June through August):
All kW of Billing Demand
$6.60 per kW

B-5 Demand Charge (All other months): $5.60 per kW
All kW of Billing Demand

Facili es Charges: $29.00 per month Energy Charges: $.08965 per kWh
Single-phase $45.00 per month First 150 kWh per kW of Billing Demand $.07215 per kWh
Mul -phase Next 150 kWh per kW of Billing Demand $.08915 per kWh
Over 300 kWh per kW of Billing Demand
Energy Charge (June through August):
First 300 kWh $.13210 per kWh
Next 700 kWh $.11190 per kWh
Over 1,000 kWh $.11190 per kWh

Energy Charges (December through February): SL – Security LighƟng
First 300 kWh
Next 700 kWh $.13210 per kWh 43 Wa LED & 48 Wa LED* $8.00 per month
Over 1,000 kWh $.11190 per kWh per month
$.09690 per kWh 175 Wa Mercury Vapor Bulb $8.50 per month
per month
400 Wa Mercury Vapor Bulb $12.25 per month
per month
100 Wa High Pressure Sodium $8.50 per month
per month
Energy Charges (All Other Months): 250 Wa High Pressure Sodium (direc onal) $12.25 per month
First 300 kWh $20.55 per month
Next 700 kWh $.13210 per kWh 250 Wa Metal Halide or Mercury Vapor $12.25
Over 1,000 kWh $.11190 per kWh
$.08590 per kWh 350 Wa Metal Halide (direc onal)* $15.00

400 Wa High Pressure Sodium (direc onal) $15.75

400 Wa Metal Halide or Mercury Vapor $15.75

1000 Wa Metal Halide or Mercury Vapor (direc onal)*

BD-5 * New installa ons and all replacements.

Facili es Charge: $50.00 per month TOU-CP $25.00 per month

Demand Charge (June through August): $4.30 per kW A. Base Charge: $0.0735 per kWh
All kW of Billing Demand $3.55 per kW Single-Phase Service $0.2205 per kWh
$0.75 per kWh
Demand Charge (All other months): $.102700 per kWh B. Energy Charge:
All kW of Billing Demand $.095700 per kWh 1. All kWh of Off-Peak Energy
$.091450 per kWh 2. All kWh of On-Peak Energy
Energy Charge: $.087450 per kWh 3. All kWh of Cri cal Peak Energy
First 50 kWh per kW of Billing Demand
Next 100 kWh per kW of Billing Demand
Next 150 kWh per kW of Billing Demand
Over 300 kWh per kW of Billing Demand

Co-op Hotline, August 2015 - Page 3

Belterra Casino Resort Barry Lauber, Director of Office Services for Southeastern Indiana REMC presents a rebate
check to Sue Ascanio, Vice President and General Manager of the Belterra Casino Resort
takes advantage of energy and the Director of Facilities, Tom Sanders.

saving lighting initiative The recent renovation of hotel rooms at Belterra Casino Resort included an energy saving
lighting initiative that replaced over 1,700 incandescent bulbs with more efficient LED
Belterra Casino Resort is a riverboat casino owned and equivalents. Additionally, a majority of the 608 hotel rooms were outfitted with energy
operated by Pinnacle Entertainment Inc., located on the saving digital thermostats. The thermostats provide the guest with improved control
Ohio River in Switzerland County Indiana near Florence. of room temperature, while the smart features work behind the scenes to turn room air
conditioners on and off automatically as hotel occupancy changes.
As a “key account” member of Southeastern Indiana,
Belterra Casino Resort was eligible for rebates through
the Hoosier Energy/REMC Marketing Program for
their energy saving lighting initiative that replaced
1,700 incandescent bulbs with efficient LED equivalents.
According to Sue Ascanio, Vice President and General
Manager of the Belterra Casino Resort, and her Director
of Facilities, Tom Sanders, the rooms also received new
carpet, furniture, wall paper, artwork, and energy saving
digital thermostats along with the LED lighting. This
state-of-the-art luxury hotel provides guests with a warm,
comfortable environment while saving money through
their energy efficient efforts. It’s a win-win for both the
guest and the hotel.

Belterra Casino Resort has many amenities and
attractions including meeting space, 18 hole Tom Fazio
designed golf course, full service spa, fine dining, casual
buffet and restaurants, shopping, concerts, and a wide
array of slots and table games. If you want a luxury
experience at an affordable price, Belterra Casino Resort is
the place to go.

Southeastern Indiana REMC Incentive Program

Electric Water Heaters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50 to $400
All Electric Heat Pump and or Duel Fuel, Central Air. . . . . $150 to $750
Geothermal Heat Pump . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500
HVAC systems for traditional or Modular homes. . . . . . . . $300 to $1,500
HVAC systems for mobile homes - Manufactured housing $800 to $1,500
Electric Heating System Checkup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50
Refrigerator Roundup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50
Professionally installed Duct Sealing. . . . . . . . . . . . . . . . . . . $250 to $500
Professionally installed Attic Insulation . . . . . . . . . . . . . . . . $250 to $500

Page 4 - Co-op Hotline, August 2015

The best kind of audit

Energy audits are the key to increasing energy efficiency.

By Tracy Warren

If you read the Co-op Hotline on a regular basis, Nationwide, 560 electric co-ops – more than half – offer
then you have probably seen our tips for saving energy. energy efficiency audits to their residential members.
Educating members is one of our Seven Cooperative Nearly 400 co-ops offer energy audits for farmers and
Principles, and at Southeastern Indiana REMC, we believe ranchers, and 469 co-ops offer commercial and industrial
in arming you with information that can help you save on members energy audits.
your electric bill.
Some residential members have been able to shave
Across the country, federal and state policymakers are hundreds of dollars off their bill over the course of a year
considering ways make homes, farms and businesses more by changing their habits, making improvements and
energy efficient. Electric co-ops agree wholeheartedly with upgrading appliances.
the goal, and we all benefit from being smarter about how
we use electricity. The types of efficiency improvements recommended
will vary depending on region, the building (or buildings)
Electric co-ops also know that all efficiency programs and specific conditions. For example, a cool roof will save
are not created equal. An effective program must be on cooling in warmer climates but will cost consumers
tailored to the needs of the community – and the in northern climes more in heating. Some regions lack
individual. installers for certain kinds of equipment. The advice for
members living in a classic old farmhouse will differ from
At Southeastern Indiana REMC, we believe energy advice given to members living in a geodesic dome.
audits are key to increasing efficiency. To reduce energy
consumption, consumers first need to know how much Energy audits are effective because they lead to specific,
energy they use and why. In this case, knowledge is – detailed recommendations suitable to the member’s
literally – power. circumstances. While the recommendations vary, every
audit shares the same goal: finding cost-effective ways to
Our energy experts will come to your home and find help members save energy.
the places where heated or cooled air is escaping, even
crawling into the crawl space to look for duct leaks. We Tracy Warren writes on consumer and cooperative affairs for the National Rural Electric
will find the inefficient appliances, like grandma’s old Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus
icebox still chugging away in the garage. We will talk to consumer-owned, not-for-profit electric cooperatives.
families about costly “energy habits,” such as standing in
front of the refrigerator door mulling options or leaving
the X-box console on 24/7.

GENERAC

Be prepared for CALL FOR
unexpected power DETAILS
outages. Purchase
a 22 kW total home
backup generator.

$4,700.51

Co-op Hotline, August 2015 - Page 5

A change for the better

By Anne Prince

It’s the little things Filters are available in a variety of types and efficiencies,
rated by a Minimum Efficiency Reporting Value (MERV).
When it comes to energy efficiency in the home, MERV, a method developed by the American Society of
sometimes small changes can make a big impact. A small, Heating, Refrigerating and Air-Conditioning Engineers,
unglamorous task like changing the filters on your HVAC tests filter effectiveness. The higher the MERV number,
system makes your unit run more efficiently – keeping the higher the filter’s effectiveness at keeping dust out of
your house cooler in the summer and warmer in the your system. While most types of filters must be replaced,
winter. It also saves money. And the savings gained from some filters are reusable. And don’t forget about the winter
having your system run more efficiently can be applied months. Your heating system needs to work as efficiently
to more fun or entertaining pursuits that your family can as possible to keep you warm (and your loved one feeling
enjoy together. snuggly), and a clean air filter helps it do just that.

The lowdown on dirt Heating and cooling professionals recommend turning
your system off before changing the air filter. Make sure
As you move around your home, you drive dust into the that the arrow on the filter – which indicates the direction
air from carpets, furniture and drapes. Regardless of where of the airflow – is pointing toward the blower motor.
it comes from, dust and dirt trapped in a system’s air filter When you’ve made the change, turn your system back on.
leads to several problems, including:
A teachable moment
• Reduced air flow in the home and up to 15 percent
higher operating costs Beyond saving money and improving the air quality in
your home, changing your air filter is a great opportunity
• Costly duct cleaning or replacement to teach your family more about energy efficiency.
Consider getting everyone involved, and the entire family
• Lowered system efficiency will learn how simple changes can make a big difference.

Making the switch Anne Prince writes on consumer and cooperative affairs for the National Rural Electric
Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus
Now, that you know the facts, it’s time to get busy consumer-owned, not-for-profit electric cooperatives.
changing or cleaning the air filter in your heating/cooling
system. Many HVAC professionals recommend that
you clean or change the filter on your air conditioner or
furnace monthly. It’s simple and easy, and in many cases, it
only takes a few minutes.

Page 6 - Co-op Hotline, August 2015

Wake up to safety

On average, Americans spend almost a third of each day Extension cords should only be used on a temporary
sleeping. Our bedrooms should be safe and comfortable basis. If you find yourself using extension cords or power
places to rest. strips, consider having an electrician install additional
outlets. According to the Electrical Safety Foundation In-
The folks at Southeastern Indiana REMC encourage you ternational, every year around 3,300 home fires originate
to make electrical safety a priority in your home’s bed- in extension cords.
rooms by performing routine inspections of lighting fix-
tures, computers, space heaters, TVs and ceiling fans. We encourage our members to not only check lighting
fixtures and cords for safety, but also often-overlooked
Pay close attention to all electronic devices in your bed- devices in their bedrooms such as ceiling fans.
rooms and teach your children to be mindful of their use
of electricity in their bedrooms. Clean ceiling fans periodically, especially around vents,
to prevent build up of dust, which could spark a fire. Also,
Teens often have multiple electronics in their bedrooms, turn off the fan and check that the screws are tight. A
from gaming systems and computers to mobile phone wobbling fan can wear out the motor and become a fire
chargers and hair straighteners. Help your children get hazard.
into the habit of turning off all electronics and lights when
leaving their rooms. Find additional electrical safety tips for bedrooms and
other rooms or your house at http://virtualhome.esfi.org/.
The wiring in your home may be outdated if your home
was built more than 20 years ago and may not be able to Put these tips into practice to wake up to safety each and
safely handle the demands of modern electronic devices. every day.
Consider having a licensed, qualified electrician inspect
your home’s wiring. Sources: Bureau of Labor Statistics, Electrical Safety
Foundation International, briohouse.com, delmarfans.
You can also look into purchasing devices with automatic com, Lasko Products.
shut-off features as an extra safety precaution.

If you have young children or grandchildren, consider WAKING UP
installing tamper resistant receptacles or a similar prod-
uct, such as the Brio Safe Outlet. This innovative new TO A SAFER BEDROOM.
wall unit only delivers electrical current when it senses a
plug. Microelectronics determine if there is a valid need Routine electrical checks will keep your sleeping area safer.
for power.
ELECTRIC SPACE HEATERS
To prevent lighting fixtures from overheating, use correct
bulb wattage. Periodically check the cords of lamps and Place at least three feet from any wall, furniture
other devices; replace electronics with cracked or frayed or fabric. Only use heaters that are certified
cords. Also be sure that cords are not pinched by heavy by an independent testing agency. Plug
furniture, such as beds or dressers, as this can damage heaters directly into the wall outlet – not
the cord’s insulation. Do not nail or staple electrical cords the same outlet that’s being used for
to walls or baseboards. other appliances or electronic items.

On those cold nights when you pull out the portable CEILING FANS AND
space heater to kill the chill, remember to place the LIGHT FIXTURES
heater at least three feet from any wall, furniture or fabric.
Only use heaters that are certified by an independent Clean around the vents
testing agency and that are appropriate for the size and and tighten screws. Make
function of your room. Plug the heater directly into the sure the correct bulb
wall outlet — not the same outlet that’s being used for wattage is used in each
other appliances or electronic items. Since it’s not a good fixture.
idea to sleep with the heater on, be sure to pick a model
with a timer so you can set it to turn off before you go to CORDS OF ELECTRONIC DEVICES
sleep. When you are not using the heater, unplug it —
don’t just turn it off. This includes TVs, computer and mobile
device chargers. Replace if frayed or
cracked. Be sure cords are
not pinched by heavy
bedroom furniture such
as beds or dressers.

Co-op Hotline, August 2015 - Page 7

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

Find out more today! SAVEUONPLTIGOH$TI1N0G Southeastern Indiana
REMC, Inc. has created a
• Paperless Billing Statements new online store to help
• High/Low Voltage Demonstration you select and purchase
• Home Energy Audit energy efficient lights for
• Home Generator Program your home. Visit the site
today to begin saving on
Call: your lighting needs and
1-800-737-4111 reduce your energy use.

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Page 8 - Co-op Hotline, August 2015