A newsletter for members ofProviding energy for life.Tri-County Electric Cooperative

December 2015

Have you ever wondered how the rates you pay for electric service are establishes? The revenue derived from the rates paid by the members for electric service funds the operation of the electric cooperative.

It is the responsibility of the board of directors and management to examine rates periodically to be sure that they are just, reasonable and allow the cooperative to fulfill its obligations to the members and the cooperative’s lenders. At this time, Tri-County Electric Cooperative is beginning the process of a cost-of-service study to accomplish this. Over the next few months, we will explain the different parts of the rate study process.

Rates studies are complicated. In a sense, they are an attempt to predict the future, or at least the answers to a few questions. What revenue will be required to fund the operation of the cooperative for the foreseeable future, what is the fairest way to collect that revenue through rates? What external factors will affect the cooperative’s financial picture? What will the weather be like in the coming years?

While we may never accurately predict the weather in the future, an attempt can be made to predict the other variables that affect rates. Tri-County Electric has released a request for proposal for this project to assist us with our cost-of-service and rate study. We want to make sure the successful bidder includes all the needed information and documentation that Tri-County needs to make the appropriate decision for the membership.

This study has several stages. First, we will use existing data to determine what revenue is required to operate the cooperative in the future. Next, the cost-of-service study is conducted to assign the costs to provide electric service to the member classes using traditional ratemaking principles. Then rates will be designed to meet the cost recovery obligations, to cover the revenue fairly from each member class, and to meet any other strategy or goals identified by the board in the rate study process.

When the rate study is completed, it will be reviewed by the board and management in detail. You show confidence in your board of directors when you cast a vote for their election to the position. The board takes its responsibility to set fair rates very seriously. After all, they are members of the cooperative and pay the same rates.

We will keep you informed as the cost-of-service and rate study progresses in the following months.

Missouri’s net metering act requires retail electric suppliers to make net metering available to customers who have their own electric generation units that meet certain criteria, one of which is that the unit is powered by renewable energy resources. Net metering is where the customer gets credit for the electricity he/she generates in lieu of electricity supplied by the electric utility. Net metering provides the best of both worlds for consumers who choose to invest in renewable energy technology: they have the security of grid connection, but are also compensated for the excess power they produce that’s fed into the grid. Tri-County Electric Cooperative has a net-metering agreement for interconnection of a distributed generation source. Our policy, agreement and application reflect the standards set by the Net-Metering and Easy Connect Act (ECA). Net metering is available to customers on a first-come, first-served basis until the total rated generating capacity of the net-metering systems equals 5 percent of the utility’s single-hour peak load during the previous year. Simple interconnection procedures that standardize interconnection for all Missourians are necessary to promote the use of renewable energy in Missouri. The ECA makes it easier and more cost-effective for Missourians to connect small renewable energy systems to the grid. Tri-County Electric Cooperative supports sound renewable energy. We just ask that our members do their homework before spending thousands of dollars to add solar, wind or any type of renewable energy source to their home. For more information, please contact the cooperative at 660-457-3733.

Tri-County Electric Cooperative begins cost-of-service study:

Net metering:What co-op members should know

Here are some tips from the Consumer Protection Agency and the Consumer Energy Center for keeping safe during the holidays:1. Sweep out your chimney — about 40 percent of home heating fire incidents are due to chimney fires2. Install smoke alarms3. Never use lighted candles on a tree or near other evergreens or flammable materials4. Before firing up the fireplace, remove all greens, boughs, paper and decorations from the area, and use a fire screen when the fireplace is lighted5. Only use lights that have been tested for safety; look for a label from an independent testing lab6. Check out lights, plugs and sockets before placement7. Never use electric lights on a metallic tree8. Turn off lights on trees and other decorations when you go to sleep or leave the house9. For outdoors, use only lights marked for outdoor use; use insulated staples or plastic attachments to hold in place10. A metal tree can become charged with electricity from faulty lights; to avoid this possibility, use colored spotlights above or beside a tree but never fastened to it11. Use no more than three traditional strands per extension cord — replace traditional lights with light-emitting diode lights, and you won’t have to worry about overloads12. Keep “bubbly” lights away from small children

12 tips for holiday safety

Give a gift that saves The holidays are the time of big gift purchases. If you’re looking for home electronics, including TVs and DVD players, remember Energy Star-qualified models typically use 40 percent less energy than other models. Likewise for office equipment. Look for the Energy Star label on computers, printers, scanners, etc. Your gift could save the recipient hundreds of energy dollars in its lifetime.

12 days of energy savingsGet in the energy-saving spirit this holiday, with these 12 tips from the U.S. Department of Energy: Day 12: drive your way to fuel savingsWhether you are driving across town to do errands or across the country to visit family, fuel costs can add up over the holidays. One way to reduce fuel consumption is to empty the car after all your driving trips — an extra 100 pounds in your vehicle could increase gas costs by up to 8 cents a gallon. Day 11: plug holiday decorations into power stripsFrom holiday lights to those Christmas carols you listen to on repeat, the holidays can take a toll on your home’s energy consumption. Even when you aren’t using lights and electronics, they still draw small amounts of energy — averaging $100 a year — for American households. Plug your electronics into a power strip, and turn it off to reduce your energy bills. Day 10: install a timerWhen decking your house in holiday lights, use timer controls to lower energy consumption and save money. The controls allow you to turn lights on and off at specific times, while staying in the holiday spirit. Day 9: use LEDsThis holiday, light up your home with light-emitting diode lights. In addition to being sturdier and more resistant to breakage, LED holiday lights last longer and consume 70 percent less energy than conventional incandescent light strands. It only costs about 27 cents to light a 6-foot tree for 12 hours a day for 40 days with LEDs compared to $10 for incandescent lights. Day 8: save energy in the kitchenBetween holiday baking and meal preparation, your oven is probably working overtime. Cooking alone accounts for 4.5 percent of your home’s energy use, and when factoring in other kitchen appliances, your kitchen’s energy use can be as high as 15 percent. Take simple actions such as using the right-sized pots on stove burners to save about $36 annually for an electric range or $18 for gas, and using the oven light to check on a dish’s progress to prevent heat loss instead of opening the door, to entertain in style without raising your energy bill. Day 7: purchase rechargeable batteries and an Energy Star battery chargerIf you are buying gifts that require batteries, consider purchasing rechargeable batteries, which are more cost effective than disposable batteries, as well as an Energy Star battery charger. In the U.S. alone, more energy-efficient battery chargers could save families more than $170 million annually. Day 6: buy Energy Star electronicsAre computers, TVs or other electronics on your wish list this holiday season? Be sure to ask for Energy Star home electronics for instant energy savings. For example, depending on use, an Energy Star computer can save 30 to 65 percent more energy compared to a computer without this designation. Day 5: take advantage of sunlightUse sunlight to your advantage this winter. Open curtains during the day to allow sunlight to naturally warm your home; close them at night to reduce the chill from cold windows. Day 4: prepare your windows for winterBefore you curl up on the couch in front of the window this holiday season, take steps to reduce heat loss. Weatherizing your windows can reduce drafts, and installing storm windows can cut heat loss through your windows by 25 to 50 percent. Day 3: maintain your fireplaceIt isn’t the holidays without a crackling fire, but don’t let your energy bills go up with the smoke. Proper chimney maintenance — like sealing your fireplace damper, caulking around your hearth and installing tempered glass doors and a heat-air exchange system to blow warmed air back into the room — will help keep warm air in your house and cold air out. Day 2: install a programmable thermostatDon’t pay for warm air that you aren’t using. By installing and setting a programmable thermostat, you can save money on your energy bills. Lowering your thermostat 10 to15 degrees for 8 hours can save up to 15 percent a year on heating bills. If you are traveling this holiday, be sure to program your thermostat for energy savings while you are away. Day 1: get a home energy auditThis holiday, give the gift of energy savings by purchasing a professional home energy audit for someone. A home energy audit helps you pinpoint where your home is losing energy — and what you can do to save money — by checking for air leaks, inspecting insulation, surveying heating and cooling equipment and more. By making upgrades to your home following a home energy audit, you could save 5 to 30 percent on your energy bills.

Deck the halls with energy efficiencyA little bling is perfectly acceptable for the holidays. Now, you can have your bling and be efficient, too. Here are some tips from the U.S. Department of Energy’s Energy Savers and from Lowe’s: Buy LED lights — Light-emitting diode holiday lights have been around long enough to have been “adopted” by many consumers. Here’s why:1. They use 70 percent less energy than traditional lights2. They’re brighter, friendly to the environment and safer because they don’t produce much heat3. They last 10 times longer than traditional lights4. They contain no filaments or glass to break5. You can connect up to 24 strands of LEDs end to end without overloading a wall socket — be sure to check your total connected wattage and don’t overload your circuit 6. LEDs come with three-year warranties Get rebates – LED light strings may cost more than traditional strings, but the Energy Star website at http://www.energystar.gov/products/certified-products/detail/decorative-light-strings?fuseaction=find_a_product.showProductGroup&pgw_code=DS offers guidance on finding coupons and rebates for LED lights. Limit hourly use — You don’t have to light up the neighborhood all night long. Set a timer to turn lights on when it gets dark and off when you go to bed. Running lights for eight hours or less will save money. Use other kinds of decorations — The holidays aren’t all about lights. Be creative and consider alternatives to lighted decorations. Unplug the lights — Unplug them during the day and when you’re not at home. Look for solar — New lighting displays now come with solar-powered options. Less is more — Maybe you don’t need a zillion lights this year and can cut back.

Energy-efficiency resolutions for 2016Here are five efficiency ideas that if implemented will save you energy dollars: Fix leaky ducts — If you’ve never checked the ducts in your house, chances are they are leaking expensive conditioned air, as much as 30 percent! Properly sealed ducts will help your furnace work less and your rooms feel more comfortable. Replace an old appliance — Honestly, that 20-year-old refrigerator or even 10-year-old furnace or air conditioner can’t compare with today’s far more efficient appliances. Pick one to replace, look for an Energy Star-qualified model and see how much money it saves on your utility bill. Schedule a home energy audit — An audit, by a qualified professional, will find all kinds of improvements to make to your home’s energy “envelope.” You’ll have a list of changes to make over time to save energy dollars. Check with your electric cooperative on what it offers. Install a programmable thermostat — These inexpensive devices, when properly installed, can help you reach a constant, steady temperature in your home. You can program it to bump up the heat before you get home and automatically lower it when you go to bed. Add insulation — If you do a home energy audit, chances are it will recommend more insulation in your attic. Insulation is one of the best and most cost effective investments you can make in snugging-up your home.

From the Manager’s desk:

October 2015 Board Report

What would life be like without electric co-ops?

In the holiday movie classic, “It’s a Wonderful Life” the lead character, George Bailey (played by Jimmy Stewart), wishes he had never been born due to financial troubles he is experiencing. Through

the help of an Angel, he sees how many lives would have been negatively affected if he didn’t exist. George comes to realize that, even with his problems, he has a wonderful life with great friends and family. So what do you think life would be like if community leaders had not founded Tri-County Electric Cooperative 76 years ago? Living in the U.S. in 2015, it is nearly impossible to imagine life without electricity. So many of our modern conveniences that improve the quality of our lives are dependent on electricity as the “fuel” to make them work. From the alarm clock that wakes us up, to the refrigerator that keeps our morning milk cold and fresh. From the HVAC unit that keeps us cool in the summer and warm in the winter, to the vacuum that lets us clean more efficiently and all those kitchen appliances that save us time and physical energy. Of course, so much of our entertainment, whether it comes from the TV, radio or computer, depends on the kilowatt-hours that your electric co-op provides. Just think, there would be no smartphones or cell phones if there were no electricity. Businesses of all kinds rely on electricity to produce and sell the products we need. So, it is no wonder that many electric co-ops feel that, while our primary product is electricity, we are really in the quality of life business. As we celebrate the season that reminds us to be thankful for all that we have, it is important to remember the 1.3 billion people in the world that still live without reliable electric service. That is equal to about four times the U.S. population! Many of the things we take for granted living in the U.S. are much harder and more time consuming for people in developing countries around the world. We are proud members of the National Rural Electric Cooperative Association (NRECA) that is working through their affiliate, NRECA International, and the NRECA International Foundation to help bring power to people in developing countries like Haiti and Liberia. (http://www.nreca.coop/it-starts-with-power/) We are thankful that our community ancestors right here had the vision and foresight to do for ourselves what needed to be done, gathering our friends and neighbors to form our electric co-op. As the electric business of the 21st century continues to evolve, you can count on Tri-County Electric Cooperative to meet all of your electric energy needs. More importantly, we are here to help improve the quality of your wonderful life.

At the October meeting of the Board of Directors’ of Tri-County Electric Cooperative, the board reviewed the following items:• The board reviewed and approved the proposed agenda.• The board reviewed and approved the regular board meeting minutes (9/28/15).• The board approved new memberships.• The board reviewed and approved write-offs for July.• The board reviewed and discussed 2015 annual meeting.• The board reviewed and discussed capital credits and member rebate.• The board reviewed Board Policy M-008 Temporary Disconnection of a Service.• The board received a safety report and a member services report. The cooperative has had 0 vehicle accidents, 0 recordable accidents, 0 near misses, 0 lost time accidents for the month. The cooperative worked 3,472.5 hours for the month and 31,324.5 for 2015.• The board received a member services report.• The board received a report of operations.• The board reviewed financial reports.• The board reviewed expenditures in detail.• The board held an executive session.• The board heard director reports on AMEC and NEP.• The next board meeting has been set for November 23, 2015.

Comparative Operating Report September 2014 2015Wholesale Power Costs $517,593 $452,270 Revenue $1,259,888 $1,054,764 Operating Costs $1,018,078 $968,821 Margins $241,810 $85,943 Year to Date Totals 2014 2015Wholesale Power Costs $5,674,456 $4,253,716 Revenue $12,600,145 $10,026,468 Operating Costs $11,648,382 $8,941,228 Margins $951,763 $1,085,240

Tri-County Fee ScheduleLate Payment Fee $5.00Meter Test Fee $30.00Returned Check Fee $30.00Collection Trip Fee $30.00Trip Fee for Member’s Side OutageOffice Hours $60.00After Hours $120.00Reconnect FeeOffice Hours $120.00w/in 12 mos. $120.00After Hours $180.00

Put your energy use on vacation for holiday travelIf you’re going to be away from home for the holidays — or any other occasion for that matter — give your home’s energy use a break as well. Here’s how to give energy a vacation:• Set your programmable thermostat on “hold” or the “vacation” setting• If it is a regular thermostat, set it at a temperature that maintains a safe environment in the house: think about pipes, houseplants, fish/birds/other pets• Unplug computers, TVs, CD/DVD players, cordless phones, battery chargers and any other electronic gizmo that’s using electricity even when it not “in use” • Use timers to operate lights at night• Set the refrigerator to a warmer setting or even empty it completely and unplug it if yours is an extended trip; leave the door open to prevent mildew • Turn the water heater down to the lowest setting; some have “vacation” settings. Don’t forget to turn it back up when you return.• Decide which clocks, heat tapes and security lights you can unplug

Important dates:OFFICE CLOSINGS

December 24-25ChristmasJanuary 1

New Year’s Day

Tri-County Electric CooperativePO Box 159

Lancaster, MO 63548660-457-3733 or

888-457-3734www.tricountyelectric.org

Board of DirectorsPresident-Mark VanDolah

Vice President-Harley HarrelsonSecretary-Dave KochTreasurer-Bill Triplett

Rusty AndersKelley Church

Kenny McNamarJoe Sebolt

Melody Whitacre

General ManagerJane Bahler-Hurt

TO REPORT AN OUTAGECall Toll-Free

888-457-3734Local

660-457-3733Before Calling:• Check your breakers or

fuses• Check to see if your

neighbors have powerWhen calling be sure to have the following:• Your name• Member number • Location • Which account (if you

have multiple accounts)

A newsletter for members ofProviding energy for life.Tri-County Electric Cooperative

Missouri’s Attorney General Chris Koster showed a great deal of courage when he announced on Oct. 9 that he would be joining 19 other states in a lawsuit against the Environmental Protection Agency. The announcement was made during a packed annual meeting of the Association of Missouri Electric Cooperatives. It came not long after employees of the association delivered more than 20,000 signatures on a petition asking Koster to join the lawsuit. Most of these signatures came from electric cooperative members who are concerned that EPA’s latest round of new regulations will lead to crippling increases in their electric bills. After announcing draft rules aimed at reducing emissions of carbon dioxide from power plants, EPA asked for comments from anyone who had a concern. Electric cooperative members nationwide — including more than 315,000 from Missouri — responded, all with a similar theme: “Don’t raise our rates.” Those pleas fell on deaf ears. Not only did EPA officials ignore those who commented, they added salt to the wound by dramatically increasing the reduction target for Missouri’s electric utilities in the final rules. If EPA ignored your comments, Attorney General Koster did not. He carefully considered the issue, and called on the state’s utilities for answers to points he wanted clarified. Chief among these was the impact they felt the new rules would have on ratepayers. Using EPA’s own figures — which many in the industry believe are too low — utiity representatives showed that the new regulations will increase the cost of providing electricity in Missouri by more than $6 billion. In his speech to the electric cooperative leaders, Koster called EPA’s actions the latest in a series of “overreaches.” He spoke of their controversial “Waters of the United States” policies, which he and other state AGs successfuly sued to stop. This overreach, he said, would have placed even the land under his desk in Jefferson City under EPA regulation. There’s no doubt that Koster must have received tremendous pressure from small but vocal groups of people who do not care what happens to electric bills in Missouri. Your electric cooperative appreciates his action on behalf of everyone who pays an electric bill in the state of Missouri. Please join us in thanking him for standing up for us in this struggle to protect rates. You can contact him at:

attorney.general@ago.mo.gov, orMissouri Attorney General’s Office, Supreme Court Building

207 W. High St., P.O. Box 899, Jefferson City, MO 65102

Courageous Koster

Happy Holidays from Tri-County Electric’s

Board and Employees