Page 2 December Board report

Page 3 Youth Day 2008

Page 4 Nominating Committee to meet March 6

Page 5 What is expected of a director

Page 6 News & Notes

Volume 59, #2

February 2008

Have you picked up your free compact fl uorescent light bulbs (CFL) from us yet? If not, you can get your three free bulbs and see plenty more at participating stores during our February Fluorescent Fridays! Since you’ll also get a $5 Certifi cate for additional fl uorescent bulbs, you can purchase a variety of CFLs at each site. We’ll also answer questions you may have on energy-effi cient lighting, and any other energy questions, for that matter! CFLs, are an easy way to start saving money every month on your electric bill. Th ey use 75 percent less energy than incandescent bulbs, and last several times longer! A typical CFL will save you about $30 over its lifetime. While our free bulbs are “plain old” replacements for 60 and 75-watt incandescents, you can also fi nd CFLs in decorative globe shapes, candelabra bulbs, refl ector style and even in assorted colors. Th ere’s a CFL to fi t almost every need, although a few locations are probably not recommended for fl uorescent lights (such as a light that’s turned on and off many times a day).

Visit with us onFebruary Fluorescent Fridays

Ken McKelvey of Pawnee (R) picked up his free CFL light bulbs from Dana Smith, Director of Public and Member Relations, and looked over the lighting display of assorted CFL bulbs.

Friday, Feb. 8Ace Hardware,1713 SpresserTaylorville10 a.m. – 2 p.m.

Friday, Feb. 15Ace Hardware1200 N. MainChatham2 p.m. – 6 p.m.

Friday, Feb. 22Rural King1234 HudsonLitchfi eld10 a.m. – 2 p.m.

Friday, Feb. 29True Value Hardware144 E. DeanVirden10 a.m. – 2 p.m.

February Fluorescent Fridays locations

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Resume of MinutesRegular Board Report December 20, 2007

Th e regular monthly meeting of the Board of Directors of Rural Electric Convenience Cooperative Co. was held at the cooperative headquarters at 6 p.m. on Dec.20, with all members present. Also present were President/CEO David Stuva; Director of Member and Public Relations, Dana Smith; Manager of Operations and Maintenance, Lou DeLaby; Manager of Offi ce Services, Dean Fuchs; Aaron Johnson and Patrick Bormann representing the Rural Development Utilities Program; Norman Conrad, General Counsel for the Association of Illinois Electric Cooperatives; and Attorney Jerry Tice. * Th e minutes of the Nov. 26 regular Board meeting and Dec. 18 special Board meeting were approved as presented. * CEO Stuva and Aaron Johnson, General Field Representative for the Northern Regional Division of the Rural Development Utilities Program (RDUP), reviewed the co-op’s RDUP Loan Application in conjunction with the 2008-2011 Work Plan and the 10-year fi nancial forecast. * CEO Stuva introduced Norman Conrad, General Counsel for the Association of Illinois Electric Cooperatives. Conrad reviewed a proposed net metering policy developed by the state’s cooperatives and the recent legislation requiring net metering by investor owned utilities. * CEO Stuva, Attorney Tice and Conrad discussed the need to record all existing easements with the appropriate county offi ces to protect the rights of the co-op in maintaining the electric lines. Th e directors agreed with the recommendation to fi le all old easements for recording with the land deeds. * Th e AIEC Report was given by Chairman Ayers with a review of the AIEC Dec. 20 board meeting. * Director White provided the Prairie Power Report with a review of the proposed wholesale power contract for 2009 through 2018. CEO Stuva stated that he has notifi ed PPI of RECC’s commitment for the contracted capacity. * Jerry Tice gave the Attorney’s Report noting the progress on a new franchise agreement with the city of Taylorville.

President/CEO’s Report CEO Stuva reviewed the following reports which had either been mailed or distributed to all directors and attorney: Member and Public Relations, Job Training and Safety, Meters and Outages, Operations and Maintenance, Engineering and Construction, Cash Disbursements Summary, and Check Listing. Th e Board accepted the reports. Financial and statistical reports for November were reviewed and accepted. CEO Stuva also: * Reported that the co-op has used its short-term line of credit to pay for some reconstruction work done for storm repair, which will be reimbursed in 2008 by FEMA funds. * Reviewed topics to be covered at the Board Strategic Planning meeting in January. * Reviewed arrangements for some staff and directors to visit wind turbines and other renewable energy projects in Iowa in January.* Reviewed plans for upcoming meetings.

Board Action Th e Board acted on the following: * Approved the application for, or reinstatement of, membership and electric service for 19 persons. * Approved Resolutions to adopt the Ten-Year Financial Forecast and to apply for an RDUP loan of $7 million for the next Four-Year Construction Work Plan. * Approved work orders totaling $794,012.15 to be submitted to RDUP for loan funds. * Approved new policies for Net Metering and Interconnection of small renewable energy systems owned by RECC members. * Approved amendments in the Wholesale Power Contract with PPI, and commitments to the new power supply capacity. * Set a meeting date of March 6 at 6:30 p.m. for the 2008 Nominating Committee. * Named delegates to the NRECA National Meeting and associated organization meetings to be held in February. * Changed upcoming Board meeting dates for February and March, to March 3 and March 31. Th e meeting adjourned at 10:50 p.m.

Rural Electric Convenience Cooperative3973 W. State Route 104

P.O. Box 19

Auburn, IL 62615

217/438-6197

Fax: 217/438-3212

e-mail: recc@recc.coop

Board Of DirectorsJimmy L. AyersChairman

Lee W. Marten,Vice Chairman

John A. Beatty,Secretary-Treasurer

Cassie L. EigenmannAsst. Sec.-Treasurer

Thomas “Ted” DowsonMel RepscherErv ShoresDavid E. WhiteChris Wilcox

President/CEODavid Stuva

Rural Hilights (USPS 473-140) is published monthly for $3 per year by Rural Electric Convenience Cooperative Co. Publication Office, P.O. Box 19, Auburn, IL 62615. Periodical postage paid at Auburn, IL and at additional mailing offices. Postmaster: Send address changes to Rural Hilights, P.O. Box 19, Auburn, IL 62615.

Dana Smith, editor

Board report

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Rural Electric Youth Day set for April 9

High school juniors, now is the time to apply for great trips to Springfi eld and Washington, D.C.! Rural Electric Convenience Cooperative is sponsoring area students again this year for the popular Rural Electric Youth Day in Springfi eld and a chance to win a free trip to Washington. Up to 10 students will be sponsored by RECC at the Illinois Youth Day program on Wednesday, April 9, touring the Capitol, the new Abraham Lincoln Museum and other historic sites, and meeting with their state legislators. Two of those students will be selected to attend the Youth To Washington trip, June 13-20, with about 1,000 young people from around the country. RECC sponsors these trips to encourage students to learn more about our government’s operation and about electric cooperatives. Any junior attending a high school in RECC’s service area is eligible for these expense-paid programs. Application request forms have been sent to our local schools,

or the coupon below can be returned to our offi ce. We will mail a full application kit and background information directly to the student. Th e application includes a summary of the student’s school and civic activities and accomplishments, and a brief essay question pertaining to the rural electric program. Applications must be returned to RECC by March 25, and the ten students selected for the Illinois Youth Day program will be notifi ed by March 31 so that they can arrange their school schedules around the trip. Transportation will be provided from Auburn to Springfi eld and back. After the day’s activities on April 9, the students will have individual interviews to select two winners for the trip to Washington, D.C. Th ey will be judged on their application information, personal poise and confi dence, and demonstrated understanding of the rural electric program. Th e two winners will travel by bus from Springfi eld to Washington this summer, in one of

the best-recognized youth programs in the nation’s capital. Even if a student is not chosen to be sponsored by RECC on the Youth To Washington tour, he or she may attend as a self-sponsored participant to share in this fantastic experience. At an expected cost of just $1,100, including transportation, hotels, tours and meals, several Illinois students take advantage of this opportunity each year. Tell your child, grandchild, neighbor or friend about these two super programs sponsored by your electric cooperative, and encourage them to apply. Th ey can send in the request coupon below, call our offi ce at 800-245-7322 to ask for an application packet, or e-mail a request to recc@recc.coop. Don’t let them miss this chance to meet new friends, learn about our government and co-ops, and have fun!

Tear off here and return to RECC, or call for an application form. Completed applications are due by March 25.

Request for Application – 2008 Rural Electric Youth Day/Youth To Washington Tour

Student's Name ___________________________________________________ Phone No. _________________

High School Attended _________________________________________________________________________

Parent Name _________________________________________________________________________________

Address _____________________________________________________________________________________

City _____________________________________________________________ Zip Code ____________________

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Th e board of directors has selected nine co-op members to serve on the Nominating Committee, which will meet on March 6 at 6 p.m. at the co-op’s offi ce in Auburn. Th e committee will select candidates for Director

elections in three districts, to be held at the RECC Annual Meeting on June 12, 2008 at Lincolnwood High School in Raymond. Director positions up for election to three-year terms this

year are District 4 (incumbent Ervin Shores of Virden), District 5 (incumbent John Beatty of Auburn), and District 6 (incumbent Melvin Repscher of Taylorville).

Nominating Committee to meet March 6 in Auburn

Your chance to participate in your cooperative’s business is coming on Th ursday, June 12, when the annual meeting of the membership is held at Lincolnwood High School in Raymond. Besides the director elections, you’ll hear about the co-op’s programs, including conservation and renewable energy promotion, our large wind turbine project in Farmersville, future power costs and more. It will also be your last chance to pick up your free CFL light bulbs, if you haven’t gotten them yet! As usual, we’ll start with a great pork chop meal at 5 p.m., with the business meeting at 7 p.m. We hope to see you at this year’s annual meeting!

Plan to attend your annual meeting!

Members serving on the Nominating Committee are:

District 4 District 5 District 6Robert Evans21760 Th omasville Rd.Virden, IL

Galen Bailey12896 Union School Rd.Auburn, IL

Kenneth Nation795 E. 1350 North Rd.Taylorville, IL

Gary Mortimer21691 Th omasville Rd.Virden, IL

Herschel Caruthers12870 Caruthers Rd.Waverly, IL

Murl Tryon528 E. 1100 North Rd.Morrisonville, IL

Greg Reichert1116 Montgomery Rd.Virden, IL

Fred Reichert16560 Hunley Rd.Auburn, IL

Fred Vangeison1152 N. 700 East Rd.Morrisonville, IL

5

Your board of directors is chosen through elections each year at the annual meeting. Each of the nine directors is elected for a three-year term and may be re-elected. Majority vote at the annual meeting decides who is elected. Terms are staggered; three directors are elected one year, three directors the next year and three the third year. Before each annual meeting of members, a nine-member nominating committee is appointed. Th e committee consists of three members from each district where a vacancy on the board of directors is to be fi lled. Th is committee meets and prepares a list of nominees before the annual meeting. Nominations may also be made from the fl oor or by petition.

Following is a list of the minimum requirements:

• Directors must receive electric service, from Rural Electric Convenience Cooperative, at their primary residence. Th ey pay the same rates for electric service and follow the same policies as all other members. Th ey are not eligible to serve on the board if they have any confl icting business interest.

• Your board of directors meets regularly on the fourth Monday of each month at the headquarters in Auburn. Directors must attend all regular monthly board meetings, usually beginning at 6 or 7 p.m. and adjourning three to four hours later.

• Directors must attend all special board meetings, committee meetings and Rural Electric Convenience

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What is expected of a director?Cooperative’s annual meeting. Directors should also attempt to attend one National Rural Electric Cooperative Association (NRECA) meeting or director’s conference every year.

• Other meetings directors attend include one and two day educational seminars. Directors are encouraged to complete their NRECA Credentialed Cooperative Director’s Certifi cate during their fi rst term (three years).

• Directors receive a $150 per diem ($200 if director has completed Credentialed Cooperative Director training). Th ey receive the IRS mileage allowance for attendance of cooperative meetings and expenses when traveling on cooperative business.

• Directors spend 23 – 35 days each year representing Rural Electric Convenience Cooperative.

• A director is expected to read and be familiar with information and fi nancial reports from the Cooperative, or other state and national associations.

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• A director represents all members of Rural Electric Convenience Cooperative, not a geographic region.

• A director should work in harmony with the whole board. A director must also have the self-confi dence and communication skills to express their opinion or disagreement with other directors.

• Directors are encouraged to join NRECA’s political action committee, Action Committee for Rural Electrifi cation (ACRE). Regular membership is $25 per year and century club membership is $100 per year.

• Th is board establishes the basic business policies, the same as the board of directors of any other corporation. Th e board employs a President/CEO, who is responsible for all the operational details.

• Additional details are provided in Rural Electric Convenience Cooperative’s bylaws.

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News & NotesNews & Notes

RECC’s dusk-to-dawn security light rental program helps deter theft and vandalism, and provides safety for you around your home or business. One small monthly payment covers maintenance and energy, with no installation fee on existing meter poles or transformer poles. A 100-watt high-pressure sodium light is only $7 a month, and larger sizes are also available. Contact Martin Hinton at RECC to request a rental light at your property!

RECC members taking advantage of the pharmacy discounts off ered through their Co-op Connections cards saved $1,163 in November and December 2007. Th e Group Number code on the Connections cards allows us to track the usage each month, so we can see the value our members are getting! For the two-month period, the cards were used 105 times at 19 diff erent pharmacies in our area. (No statistics are recorded on individual sales.) Th e $1,163 represents an average 21 percent

savings on member prescriptions. Most area pharmacies accept the Co-op Connections discount plan, but not every purchase receives a discount. Purchases covered by insurance plans already receive a lower price, and other discounts may preclude the Co-op

Connections discount. Ask your pharmacist to check on the best pricing plan for any prescription you have.

Net Metering and Interconnection Policies adopted

On Dec. 20, 2007, RECC’s Board of Directors approved new Interconnection and Net Metering Policies for small renewable energy systems owned by members. Wind or solar photovoltaic systems with capacity of 10 KW or less can be tied into a member’s wiring system with a special meter that registers energy going either to or from the member. If the renewable system is making more electricity than what is being used, the excess will fl ow back into RECC’s lines and the member will be credited. When they are using more power than generated, they will use up the credited energy. Th is avoids the need for a storage device to assure that the owner can get the full advantage of all energy generated each month. Th e member will pay for the special meter, and is required to have an approved disconnect that can remove the generator from the electrical system. For more information on the new policies, contact RECC at (800-245-7322.

Light up your night

Members saving on prescriptions

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MEMBER RESPONSE PAGE

Electric heating equipment rebatesAn electric heat rebate form must be completed. Minimum system sizes apply.

• Geothermal System – $500/home

• Air Source Heat Pumps – $500/home (with electric back-up)

• Air Source Heat Pumps – $200/home (with gas back-up)

_______Peak Switch

_______Dual Meter Heating Rate

_______Security Light Rental

_______Convectair Heaters

_______New Home Energy Guidelines

_______Surge Suppressor Lease

_______Co-op Power Plus™ Visa

_______DTN Wireless Internet

_______Marathon Lifetime-Warranty Water Heaters

_______Long Distance Saving Rates

_______AT&T Wireless Cellular Phone Savings

Please send me information on services from RECC:

Member Name Account No.

Mailing Address

Town Phone

Rural Electric Convenience Cooperative

P.O. Box 19, Auburn IL 62615

Telephone: (800) 245-7322 (RECC) or (217) 438-6197 • www.recc.coop

Normal office hours 8 a.m. to 4:30 p.m.

_______Clothes Dryer, Electric Replacement – $25

_______Clothes Dryer, New Home or Gas Conversion – $25

_______Electric Range, Electric Replacement – $25

_______Electric Range, New Home or Gas Conversion – $25

_______Water Heater, Standard Warranty – $200 (less than 10-yr waranty)

_______Water Heater, Life–long Warranty – $250 (10-yr or longer warranty)

Th is water heater is for: _______New Home _______Gas Conversion

_______Electric Replacement

Please include a copy of your sales receipt for your new electric equipment, purchased and installed within the past 12 months.

Electric equipment rebate request

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P.O. Box 19Auburn, IL 62615

We’d like to thank our members for helping us score an “84” in the recent American Customer Satisfaction Index (ACSI). Your feedback puts Rural Electric Convenience Cooperative a full 12 points higher than the utility industry average. Even though ACSI recognizes “customer” satisfaction, RECC members are in fact “owners.” Th at’s an important distinction. And it’s why we strive to provide a level of service that’s second to none. Naturally, we’re honored. But we won’t let it go to our head. We’ll remain the dependable source of electricity our members never have to think about. Unless, of course, they’re being surveyed by the ACSI.

(Pictured from left: RECC Linemen Craig Costello, Bill Hart and Dave Flynn.)

*ACSI member ratings using the ACSI customer satisfaction survey questions in August 2007 are compared to the ACSI ratings of

residential customers of the U.S. largest investor-owned energy utilities.

Everyone likes getting a good report card

Everyone likes getting a good report card