POWER CONNECTION | VOLUME 14 | ISSUE 11

Stearns Electric Association is YOUR electric Cooperative. As a member-owner, you may receive cash back in the form of a capital credit check. This year, $1,049,996.48 in capital credits will be refunded back to members in early December. If you purchased electricity from Stearns Electric Association during 1986, 1987, 1988, 1989, 1990 and/or 2009-2013 you may receive a capital credit check. Capital credit amounts less than $5 are held until additional capital credits are retired. Checks can be expected to arrive in the mail during the last week of November or first week of December. This year’s average capital credit check is $40.

As a not-for-profit cooperative, Stearns Electric Association is not like other

utilities—you, as a consumer and a member, own a portion of the business. And one benefit of that membership involves the allocation of excess revenue, called margins, in the form of capital credits.

Electric co-ops operate at cost— collecting enough revenue to run and expand the business but unlike investor-owned electric utilities which are designed to make a profit for shareholders. Stearns Electric Association assigns any money collected above the cost of operations to its members in the form of “Capital Credits.”

When Stearns Electric has money left over, it’s allocated back to you and other members as capital credits. When the co-op’s financial position permits, the co-op retires, or pays, a portion of these capital credits to its members. Allocating and retiring excess revenue

NEWS & INFORMATION FROM STEARNS ELECTRIC ASSOCIATION

CONNECTIONPOWER

p3 DIRECTORNOMINATIONS p5 REDHEAD

CREAMERY p6 HOLIDAY LEDS

OPERATION AT COST IS THE COOPERATIVE DIFFERENCE

NOVEMBER 2014

OVER $1 MILLIONcapital credits returned

to members helps distinguish cooperatives. We’re proud to support our communities by putting money back into the local economy—and into the pockets of those we serve. It makes our business model special.

You work hard year-round and so do we - to keep energy costs down and service levels up. Capital Credit payments are quantifiable proof that as a member of Stearns Electric Association you are an owner of a successful, effective organization. To date, we have distributed more than $25 million in Capital Credits to our members!

If you have questions regarding capital credits, please contact our Melrose office at 320-256-4241 or toll free at 800-962-0655.

2 Power Connection | November 2014

For decades, coal-fueled power plants have followed a traditional, tried-and-true design: coal is mined and then combusted to produce steam, which is used to generate electricity.

When Stearns Electric Association’s wholesale power supplier, Great RiverEnergy, planned Spiritwood Station, the cooperative discovered improvements at every step in the process. When the plant begins producing electricity for the regional grid this month, it will set a new standard for efficiency and environmental performance.

Located near Jamestown, N.D., Spiritwood Station is a combined heat and power plant. That simply means that in addition to generating electricity, energy is used for other purposes. At Spiritwood Station, that energy - in the form of heat or “process steam” - will power an adjacent malting facility as well as an ethanol biorefinery scheduled to open in 2015.

Like all combined heat and power plants, the success of Spiritwood Station depended on firmly established “steam hosts,” which are industrial facilities that use thermal energy from the power plant in place of natural gas or another fuel. The numbers don’t lie. Most conventional coal-fueled power plants are 30 to 35 percent efficient. Spiritwood Station will be approximately 60 percent efficient.

President Barack Obama recognized the efficiency potential of combined heat and power in 2012 when he signed an Executive Order to expand

In the coming year, Spiritwood Station will become the most modern powerplant in the region while recognizing the economic benefits from coal-firedelectricity generation without sacrificing environmental performance or reliability.

its use, calling for the deployment of 40 additional gigawatts of capacity in the United States by 2020.

In addition, Spiritwood Station uses DryFineT coal. This process uses waste heat from Coal Creek Station to dry lignite coal in order to raise its heating value, which boosts efficiency and reduces emissions. DryFineT coalarrives at Spiritwood Station in covered railcars designed to preventmoisture from re-entering the coal. The combination of DryFineT coal andstate-of-the-art emission controls makes Spiritwood Station one of thecleanest coal-based power plants in the world.

Combined heat and power facilities benefit everyone involved. At Spiritwood, Great River Energy will collect revenue by selling steam to partners. Those businesses will, in turn, receive the energy they need to operate. The plant will also be an economical resource to supply electricity to Stearns Electric Association and Great River Energy’s 27 other member-owner cooperatives.

MANAGERS MESSAGE

Spiritwood StationStarts Up in North Dakota

Sincerely,

Rick Banke, General ManagerStearns Electric Association

Located near Jamestown, ND, Great River Energy’s Spiritwood Station will begin producing electricity in November. This combined heat and power plant will be one of the cleanest coal-based power plants in the world.

Stearns Electric Association | www.stearnselectric.org 3

BOARD MEETING

The regular meeting of the Board of Directors of Stearns Electric Association was held on September 30, 2014 at 10:30 a.m., at Runestone Electric Association in Alexandria, Minnesota.

Manager of Finance and IT Ralph Martin reviewed financial and statistical information. A motion to approve the Financial and Statistical Report, subject to audit, was made by Dennis O’Donnell and seconded by Arlyn Lawrenz. Motion carried. A request for Board authorization of work order 2014-08 to comply with RUS standards was presented to the Board. A motion for approval was made by John Anderson and seconded by Mike Blenkush. Motion carried. The list of cash disbursements was reviewed by the Board.

Manager of Administrative Services Vicky Herkenhoff reviewed her written report with the Board and provided a personnel update. Ms. Herkenhoff also notified the Board that Secure Pay is set to launch October 1st and the updates to the member bill are scheduled to be complete by January/February 2015.

A Resolution was presented to the Board for a general capital credit retirement of $1,050,000. Approximately $600,000 is based on allocations from portions of 1986-1990. The balance of approximately $450,000 is based on a portion of allocations for the years 2009-2013. After some discussion, a motion to approve the Resolution was made by John Anderson and seconded by Arlyn Lawrenz. Motion carried.

Staff Engineer Tim Weir discussed his written report with the Board. The Board was also informed that iPads are nearing completion of being installed in the trucks in the field. This new technology will provide crews with real time outage and vehicle location data. The outage report and safety reports were reviewed as well.

Harlan Jopp, Director on the MREA Board of Directors, provided an update on recent activities at MREA including a brief discussion on the 2015 MREA budget proposal.

Next Meeting: December 23, 2014

MEMBER NOTICE

Director Nominations Will Open on December 8th In Districts 4, 5 and 9As a Stearns Electric Association member, you are a member-owner of the Cooperative. The Cooperative depends on its members to provide leadership and guidance. This is your opportunity to participate in the business decisions of a successful electric utility.

Nominations will open for the 2015 director candidates in Districts 4, 5 and 9 on December 8th. Nominees must meet eligibility requirements as specified in the Stearns Electric Association bylaws. For a full-text version of the bylaws, call 800-448-1737 or visit www.stearnselectric.org.

Each year, three of the Cooperatives nine districts elect a director. The election takes place at the Annual Meeting on March 28, 2015 in Melrose. Ballots will be mailed to all Stearns Electric Association voting members on record in theses districts, two weeks before the Annual Meeting. Ballots will also be available prior to the Annual Meeting.

Members in Districts 4, 5 and 9 who are interested in becoming a nominee are to contact a Nominating Committee member in their district prior to January 20, 2015. Nominating Committee contacts will be avaiable online when nominations open and will be posted in the December edition of the Power Connection.

THE DIRECTOR ROLE: RESPONSIBILITES:• Legal: Ensure the legal right of the cooperative to exist.• Trusteeship: Act in the best interest of the members.• Planning: Develop programs and carry out plans based on ideals that

reflect the thinking of its members, with realistic goals adjusted to the purposes of the cooperative.

• Resources: Assure the availability of basic resources, including personnel, loan funds, wholesale power, and revenue, according to the cooperative’s size and needs.

• Control: Monitor operations to assure compliance with Board policy, budgets, member relations, loan covenants, contractual compliance, and long-range planning.

QUALIFICATIONS:• Be a member of the Cooperative and a resident of the district you wish

to represent,• Not be employed by or have financial interest in a competing

enterprise,• Have the time available to attend a minimum of 12 regular daytime

board meetings and additional meetings and training sessions.

FOR A COMPLETE LIST OF QUALIFICATIONS AND RESPONSIBILITIES, CONTACT A MEMBER OF THE NOMINATING COMMITTEE FOR YOUR DISTRICT.

4 Power Connection | November 2014

BACK TO THE BASICS PART 1

CO-OPS: WE COME IN ALL SHAPES AND SIZES

WHAT IS A CO-OP, EXACTLY?

When you hear the word “co-op,” what comes to mind? We hope you think of your friends here at Stearns Electric, but maybe you think of a local farmers’ co-op or a credit union. You might be surprised to learn that co-ops, or cooperatives, can be found in many industries—and they offer a variety of services, each designed to serve their members in the best way possible.

A cooperative is a not-for-profit organization owned by its members. Across the globe, cooperatives remain steadfast, annually generating more than $500 billion in revenue and providing more than 2 million jobs.

As a member of Stearns Electric you have a voice - in other words, you’re not just a customer. Each year in late March or early April, you have the

categories and services, including agriculture and forestry; consumer and retail; banking and credit unions; health and wellness; and utilities, to name a few.

Here are a few other national co-ops you might recognize.

• Welch’s Grape Juice: More than 1,000 family-farmer owners make up the Welch’s Grape Juice family, and they are located throughout the U.S. and Canada.

• Best Western: Owned by independent operators of more than 4,000 hotels in 80 countries, Best Western is one of the world’s largest hotel chains.

• Ace Hardware: More than 4,600 Ace Hardware stores are independently owned and operated by local entrepreneurs.

• Sunkist: This not-for-profit company’s membership is comprised of numerous growers located throughout California and Arizona.

• Blue Diamond Almonds: This 102 year-old cooperative is owned by half of the California’s almond growers who produce over 80 percent of the world almond supply.

The list of cooperatives goes on and on, and as you can see, we come in all shapes and sizes.

At Stearns Electric our mission is to provide you with safe, reliable, and affordable electricity. For more information about the services we offer, visit www.stearnselectric.org.

right to vote for the association’s board of directors.

Stearns Electric is committed to strengthening our community by supporting economic development by offering competitive rates, energy efficiency grants, and rural economic development loans. As our service area grows, our distribution system grows, which makes it easy to see why strengthening the local economy makes sound business sense.

In addition, we are involved in various local projects through programs like Operation Round Up, and support the community by offering energy education programs.

CO-OPS OFFER A VARIETY OF SERVICES So what other kinds of co-ops are out there? Co-ops fall under a variety of

Stearns Electric Association | www.stearnselectric.org 5

WANT TO SAVE ENERGY AND MONEY?

WE HAVE AN APP FOR THAT!

The TogetherWeSave.com—Save Energy, Save Money app, the newest addition to our Together We Save energy efficiency campaign portfolio, lets you see how much money you could pocket each month by switching from traditional incandescent lightbulbs to compact fluorescent lamps or light-emitting diodes.

In addition, you can use the app to evaluate energy guzzlers in your home—for example, what does it cost to run a dishwasher for an hour? Kilowatt-hour rates specific to Stearns Electric Association needed for the calculations are available in the app by entering your ZIP code and selecting our name.

In addition, the app delivers handy pop-up “Tip of the Day” reminders on ways to make your home more energy efficient and displays important Stearns Electric Association alerts and updates. The free app is available for Apple iPhones and iPads at the iTunes store and for Android smartphones at Play.Google.com; search for: Together We Save.

ENERGY EFFICIENCY TIP OF THE MONTH

REDHEAD CREAMERYHOSTS SPECIAL GUESTS

As a high school senior, Alise Sjostrom was part of a 4-H dairy trip to a farmstead creamery in southern Wisconsin. Seeing milk being piped under the road from the dairy directly into the cheese plant sparked a fire in Alise to learn about farmstead cheese and one day return to the farm to create a new value added business.

Alise’s dream came true with the opening of Redhead Creamery on her family farm near Brooten. Redhead Creamery is named for the flaming red locks Sjostrom and her three sisters have in common. Four partners own the Creamery including Alise, her husband Lucas and Alise’s parents Linda and Jerry Jennissen.

To receive the farmstead label cheese must be made from milk produced from a specific farm with creameries located on the farm or in close proximity to maintain freshness. Farmstead cheeses are usually made in small batches with many steps by hand. Farmstead cheeses are also known for their unique flavor profiles based on the feed the animals receive and the climate in which the cheeses are made and aged.

Redhead Creamery will distribute cheeses nationwide and via mail order as well as at the Creamery on Jer-Lindy Farms near Brooten. On farm tours include viewing windows upstairs so visitors can watch cheese making below. There is a kitchen and tasting room for small gatherings along with a gift shop making Redhead Creamery a destination for guests interested in farmstead cheeses.

In late October Redhead Creamery hosted Senator Amy Klobuchar and Representative Collin Peterson along with guests who have been supportive of the Creamery. Both Klobuchar and Peterson are members of the Agriculture Committees in Congress and have been supporters of value added agricultural programs. Financing sources included owner equity, financing from a local credit union, a Minnesota value added grant and online crowdfunding, and the Creamery received a loan for equipment from Stearns Electric Association’s USDA REDLG revolving loan fund.

To learn more about Redhead Creamery including hours of operation and on-farm tours go to their website at: www.redheadcreamery.com

6 Power Connection | November 2014

YOUTH TOURWASHINGTON D.C.2015

MAKE THE SWITCH TO HOLIDAY LEDs

You don’t need to have the highest power bill in town to have the best holiday lighting display on the block. Before you dust off those old decorative lights, consider whether it’s time for an energy-efficient upgrade.

New LED (light emitting diode) technology offers more reliable and longer-lasting lights that use a fraction of the electricity of traditional bulbs. These high-quality lights can last up to 10 times longer than incandescent strands, are cool to the touch and aren’t sensitive to extreme temperature changes. They’re available in a wide variety of colors, shapes and lengths to fit your decorating style.

WHY ARE LED HOLIDAY LIGHTS BETTER THAN TRADITIONAL BULBS?

• LEDs are now on par with

traditional bulbs. Gone are the days when LED holiday lights were known for a harsh white light or stark colors that created a less-than-magical atmosphere. These days, LEDs come in warm, inviting colors in a variety of light beam patterns and dimming speeds, giving you lots of creative options for decorating.

• LEDs last longer than traditional lights. In fact, they have an operational life span of about 20,000 hours, enough to last for 40 holiday seasons. Also, the lights don’t have glass or filaments, which makes them durable and resistant to breaking. And because LED bulbs are so strong, one individual outage generally

doesn’t darken the whole strand. For those enthusiastic decorators who like to blanket their entire house and yard in holiday lights, LEDs could save hours of painstaking work each year.

• LEDs use less energy, which means less strain on your first winter electric bill. Running LEDs on one 6-ft. Christmas tree for 12 hours per day for 40 days can save 90 percent or more energy when compared to traditional incandescent lights.

• Because they use less energy, LEDs make it safer to connect multiple strands end-to-end without overloading the wall socket. Also, they’re cool to the touch, reducing the risk of fire.

Each year, rural electric cooperatives across the nation sponsor roughly 1,500 students on the Rural Electric Youth Tour to Washington, D.C. The Youth Tour program continues to foster the grassroots spirit of the rural electric cooperatives by demonstrating to high school juniors and seniors how our government works and what the electric cooperative business model is all about.

In 2015 Stearns Electric Association will be sending one high school junior on an all expense paid trip to the Washington D.C. Youth Tour. The selected student will visit with congressional representatives, tour some of the most famous museums in the world and make memories and friends that will last a lifetime. You can learn more about the tour by visiting http://www.nreca.coop/what-we-do/youth-programs.

Watch for more information on how to apply for the 2015 tour in your December Power Connection!

YOU COULD WIN

Stearns Electric Association | www.stearnselectric.org 7

NEWS

CAPITAL CREDIT CHECKS

This year all Capital Credit Checks will be mailed. Members can expect to receive their checks in the last week of November.

OFFICE CLOSED

The Stearns Electric Association offices will be closed on Thursday, November 27 and Friday, November 28.

Happy Thanksgiving!

cookingcorner

Roasted Butternut Squash with Green Apples and Candied WalnutsSubmitted by: Jennifer Burrows Schreiber

CONTEST DETAILS: One member per account may submit one recipe per month. Recipes will be saved for future publications. The recipe selected each month will receive a $10 credit on their electric bill. Submit your recipe to agroethe@stearnselectric.org or mail to: Stearns Electric, Cooking Corner, 29643 Frontage Rd., St. Joseph, MN 56374

Ingredients:1½ cups raw walnut halves½ cup brown sugar1 butternut squash, peel, sliced into ¾ inch pieces3 green apples, sliced into ¾ inch pieces2 tbsp maple syrup¼ cup olive oil¼ cup brown sugar¼ tsp sea salt

Directions:To make cadied walnuts mix the walnuts and brown sugar together in a large saucepan and set on a stove-top over medium heat. Cook for about 5 minutes. As the brown sugar melts make sure that all of the nuts get coated and the sugar doesn’t burn. Remove from heat and quickly spread the nuts out a parchment paper lined baking sheet. Allow nuts to cool. Put butternut squash and apple pieces in pan. Whisk together olive oil and maple syrup. Drizzle on butternut squash and apples pieces. Sprinkle with brown sugar. Bake at 375 for 15-20 minutes or until squash is tender. Stirring every 5 minutes. Sprinkle with sea salt. Top with candied walnuts. Enjoy!

STEARNS ELECTRIC ASSOCIATION OFFERS ELECTRIC BILL GIFT CERTIFICATES.

ELECTRIC BILL GIFT CERTIFICATES MAKE GREAT HOLIDAY GIFTS

How to give an electric bill gift certificate:

• Come into our Melrose or St. Joseph office to purchase the gift certificate.• Select the dollar amount of electricity that will be applied to the member’s

account.• You will receive the gift certificate, and the member will see the credit on their

next bill.• Purchase can be made by cash or check.

QUESTIONS? GIVE US A CALL.Melrose office (320) 256-4241 or (800) 962-0655St. Joseph office (320) 363-4630 or (800) 448-1737

YOU COULD WIN

Stearns Electric Association900 Kraft Drive SE, PO Box 40Melrose, MN 56352

(320) 256-4241 (800) 962-0655www.stearnselectric.org

PERIODICALS POSTAGE PAID

The Power Connection (USPS 016053) is published monthly (plus an Annual Report) by Stearns Electric Association, P.O. Box 40, Melrose, MN 56352, Subscription rate: $4 annually.

Periodicals Postage Rate is at Melrose, MN, 56352 and additional mailing offices.

POSTMASTER: Send address changes to The Power Connection, P.O. Box 40, Melrose, MN 56352.

BOARD OF DIRECTORSRANDY ROTHSTEINPresident, District 4HARLAN JOPPVice President, District 3MIKE BLENKUSHSecretary/Treasurer, District 8GREG BLAINEDistrict 1ARLYN LAWRENZDistrict 2JOHN ANDERSONDistrict 5STEVE NOTCHDistrict 6LAWRENCE IVERSONDistrict 7DENNIS O’DONNELLDistrict 9

STAFFRICK BANKEGeneral ManagerDAVE GRUENESDistrict ManagerVICKY HERKENHOFFManager of Administrative ServicesRALPH MARTINManager of Finance and ITTIM WEIRManager of Engineering

EDITORAMANDA GROETHECommunications Specialist

SecurePayINTRODUCING:

Call 855-386-9908, 24 hours a day, 7 days a week to make your payment over the phone.

Using our new automated system puts you in full control of your debit or credit card information.

SecurePay provides additional security from the growing threats of stolen personal information and complies with the Payment Card Industry (PCI) Data Security Standard. These worldwide requirements are designed to help prevent credit card fraud through increased data controls. This change is for your protection.

Our member services team will continue to answer questions or discuss your bill or account over-the-phone, if needed. They will simply transfer you to the automated system to make your secure payment when you are ready. Or you can call SecurePay directly by dialing (855) 386-9908. An automated voice prompt will direct you through a menu to access a secure, automated voice response system to process your payment, check account balances or set-up recurring checking or credit card payments.

If you have questions regarding SecurePay, please contact Stearns Electric Association at (800) 962-0655 or (320) 256-4241.

PLEASE NOTE: To use the automated system, you will need to know your Stearns Electric account number, which is located in the top right section of your Bill Statement.

PAY YOUR BILL BY PHONE fast, easy, and safe