DIRECTOR ELECTION INFORMATION BEGINS ON PAGE 16b Since 1940 Wisconsin ENERGY Cooperative March 2017 News March 21, 2017
Notice of 80 th Annual Meeting The 80 th Annual Meeting of the members of the Eau Claire Energy Cooperative will be held at The Florian Gardens at 2340 Lorch Avenue, Eau Claire, on Tuesday evening, March 21, 2017. Doors open at 5 p.m. The business meeting will begin promptly at 6 p.m. to transact the following and any business as may properly come before the meeting or any adjournments thereof: Doors Open at 5 p.m. with Business Meeting at 6 p.m. Annual Meeting Agenda Welcome Introduction of Guests, Youth Ambassadors, Scholarship Winners and Member Advisory Council National Anthem Bernadette Recheck and Greta Schlafer Pledge of Allegiance Determination of Quorum Minutes of 79 h Annual Meeting Ballot Explanation Appointment of Tellers Introduction of Candidates Collection of Ballots Unfinished Business New Business Featured Speaker: Robert Palmberg, Vice President Generation, Dairyland Power Concern for Community Award Question Box & Membership Q&A Adjournment Prizes Doors Open/Registration Begins...5 p.m. Annual Business Meeting...6 p.m. Dinner to Follow Meeting Table of Contents District Director map...page 15 Board Chair and CEO combined report...page 16 Director Candidate Photos & Biographies...Page 16b Mission Statement...Page 16e Nominating Committee... Page 16f Rules for the Annual Meeting... Page 16f Rules for Corporate Voting... Page 16f Financial Statements...Page 16h Minutes of 79 th Annual Meeting... Inside back cover 80 th Annual Meeting March 21, 2017 The Florian Gardens, Eau Claire Doors Open 5 p.m. Business Meeting 6 p.m. Dinner to follow The Florian Gardens is located off Hwy. 93 south of I-94. The dinner is free to Eau Claire Energy Cooperative members. The cost to non-members is $20 each. www.ecec.com
Your Touchstone Energy Partner Eau Claire Energy Cooperative Director Districts District 2: Robert J. Gadwill District 1: Thomas W. Schwartz District 3: Michael J. Schummer District 4: Judith A. Anibas, Secretary-Treasurer ANNUAL REPORT District 5: John R. Bilderback District 6: David O. Myren District 7: Andrew H. Bourget, Vice Chair District 8: Jeffrey S. Frieburg District 9: Clarence L. Boettcher, Chair of the Board & Cooperative Vice President www.ecec.com March 2017 15
Lynn E. Thompson, President & CEO Imagine the daily routine of not having the convenience of electricity to do the grueling chores and carry on the farm business to make a living every day for the family. The day started by lighting a kerosene lantern to fire up the wood stove to warm the house before carrying that lantern out to the barn to begin milking and feeding the animals. Milking was done by hand, and the milk was carted in cans to be water cooled in tanks or a spring house. The cooling water was either pumped by hand, windmill, or a finicky gas engine. It was a laborious process. Barns were cleaned by hand, silos were hand pitched, and the silage hand delivered to the cattle. During the winter many creeks and water tanks had to have the ice chopped open on a daily basis in order to water the livestock. As spring approached many farmers ordered or hatched eggs for the season s chicken flock. Those young chicks had to be kept warm with oil-heated brooders. With no power ventilation all livestock buildings relied on the natural air flow, and in the summer herds crowded under shade trees, catching what breezes they could. Just as farmers spent much of their days toiling outside without the electric hired man, their wives and children worked FROM KEROSENE LANTERNS TO MEMBERSOLAR 80 years of lighting the way to a better life Clarence L. Boettcher, Board Chair during daylight to get household chores done, without most conveniences we accept as essential today. Cooking was done over a wood-fired stove, sometimes in a summer kitchen. Foods were refrigerated in an ice box cooled by ice cut from local lakes, usually in February. Clothes were washed by hand in large tubs of water heated up over a wood fire. Any sewing had to be done by hand or on a foot-powered sewing machine, if the woman of the house was so lucky as to enjoy that convenience. Foods had to be preserved by canning, packing in salt, or drying because there were no deep freezers. Summer brought endurance of heat and humidity without the luxury of fans, for air conditioning was still in the future. With the arrival of electric power, local farmers soon became connected to the rest of the world when they got their first radios, enabling them to listen to the news and market reports just like their city cousins. Central station electricity not only turned on the light for farmers, it energized all aspects of rural living. As we reflect on rural living without electricity, it is easy to see why the National Academy of Engineering has named electrification as the single greatest engineering achievement of 16 Wisconsin Energy Cooperative News
the 20th Century. Every day, with the flick of a finger, every single one of us taps into vast sources of energy. Coal, natural gas, oil, wind, hydro, landfill gas, and the radiance of the sun itself are all transformed into electricity needed to power our daily lives, i.e., computers, tablets, smart phones, CFLs, LEDs, and more. Our wholesale power supplier, Dairyland Power Cooperative, has evolved to provide reliable energy 24/7. From the construction of the Flambeau hydroelectric dam in 1948 to the coal plants in the 1960s and 1970s, Dairyland has met our members needs of providing safe, reliable energy. Significant investments have been made in these plants to make them among the cleanest burning coal plants in the country. We are committed to bringing you a cleaner, more reliable energy future. In fact, Rob Palmberg, vice president of generation at Dairyland, will be the guest speaker at our annual meeting. He will update the membership on Dairyland s power generation plans. Your cooperative, in partnership with Dairyland Power Cooperative, is truly leading the way on clean renewable energy. Just as Dairyland strives to meet the needs of our entire system, Eau Claire Energy Cooperative brought an innovative energy source to you. It s our MemberSolar array, which completed its first full year of operations in 2016. This project offers you the choice of how you purchase your energy needs. To date, 156 members have subscribed to this clean, local energy source at a locked-in rate through December 31, 2035. We are proud to be one of the first in the state to offer community solar. And, it is the largest of its kind in the state of Wisconsin. Innovation is part of our culture at Eau Claire Energy Cooperative. In 2017, we begin a multi-year effort to bring you benefits of the smart grid, allowing you more control in how you use energy. You can always get more involved with your cooperative by participating in the Member Advisory Council, which is a volunteer group giving you the opportunity to offer your opinions regarding upcoming projects. Not many cooperatives offer this type of member engagement. A group of these members will be at our annual meeting, available to answer your questions. As we complete 80 years, your cooperative celebrates its past and has a laser focus on the future. As an organization, we pledge to: ANNUAL REPORT Commit to employee and public safety Meet your needs through a professional staff of service-oriented employees. Encourage the wise use of resources in socially and environmentally accepted manners Maintain the highest ethical standards of trust and respect Prosper as a financially sound business On behalf of your board and all Eau Claire Energy Cooperative employees, we are proud to serve you, the member. www.ecec.com March 2017 16a
MEMBERS VOTE IN DIRECTOR ELECTION Become actively engaged in your cooperative One advantage of being a member of a cooperative, including Eau Claire Energy Cooperative, is that each member has a voice in the annual board of directors election. In December the Nominating Committee selected at least one candidate for each of three director districts. Every member is allowed to vote for all district positions. The opportunity for you to vote for your board members comes up Tuesday, March 21, 2017, at the 80th Annual Meeting at The Florian Gardens in Eau Claire. The candidates photos and biographies are included here. If you are unable to attend the meeting, you can vote by absentee ballot. The information regarding absentee ballots was included in earlier issues of this magazine, and with your energy bills. You can also obtain information on our website at www.ecec.com. The deadline to request your absentee ballot is noon on March 2, 2017. Your completed absentee ballots are due in our office by 4 p.m. March 21, 2017. According to Cooperative Principle #2, Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote). DISTRICT 5 DIRECTOR CANDIDATES Brunswick and Drammen, Eau Claire County; Rock Creek, Dunn County; Albany, Pepin County; Naples, Buffalo County, except service area in District 2 Loren Anderson W5815 Langdell Road Eau Claire, WI 54701 Occupation: Retired Educator/ Farmer/Small Business Owner Education and Work Experience: I graduated from an electric lineworker training program at Southwest Minnesota Vocational Technical School, earned undergraduate credits at UW-Stout, and worked as an electrical lineworker. I was an Electric Power Distribution Program instructor at Chippewa Valley Technical College for 34 years, and served as the Program Chair for several years. I have been a presenter at numerous electrical training seminars in Wisconsin, and have served on the Wisconsin State Lineworker Apprenticeship Committee. In 1976, my wife and I purchased a small farm in Eau Claire County, which grew to about a 600-acre production agricultural operation until recent retirement. I was co-owner/ operator and president of a successful local small business for several years. Comments: I grew up on a farm with roots in a rural community. I have lived in the Eau Claire area for 46 years and been a member of Eau Claire Energy Coop for 45 years. I volunteer at the Eau Claire Community Table and have participated in the Feeding America and Feed My People programs. My wife and I have two children, a daughter and family living near Fall Creek, and a son and wife in Ann Arbor, Michigan. Summary: After 40 years working in the electrical industry, I am still fascinated that electricity can be generated, transmitted, transformed several times, and delivered to the consumer, all at the same instant a switch is turned on. I am pleased to be considered for the Eau Claire Energy Coop Board of Directors. With a varied background in electrical, small business, and production agriculture, I welcome the opportunity to contribute to Eau Claire Energy s existing safe, successful, and reliable electrical energy distribution. 16b Wisconsin Energy Cooperative News
Joseph L. Becker W4895 County Road W Eleva, WI 54738 Member of ECEC for 28 years my day job and begin milking a dairy herd full time from 1999 2012. I then transitioned to raising livestock, both beef and Holstein heifers, and crop production of hay, soybeans and corn. During the past several years I have also begun to grow and develop another business of custom operating silage round bale harvesting for other farmers. Occupation: Crop & Livestock Farming Current Board Positions: Supervisor Town of Drammen (2012-present) Multiple Offices Prince of Peace Church (1997 present) Experience: I have owned and operated a farm since I took over from my father when he passed away in 1995. After several years of running the farm part time and working a full-time position in maintenance at 3M, I decided to leave Charlene M. Warner W6150 County Road ZZ Mondovi, WI 54755 Member of ECEC for three years Occupation: Semi-retired Realtor Comments: Cooperatives are an essential part of the energy industry because the service the cooperative provides is essential to everyone s livelihood. I truly believe that the cooperative being owned by the patrons ensures all of us that we are receiving the highest quality service at an affordable rate. My experience owning my business has taught me important life lessons and to use good common sense. I think those attributes along with my fresh perspective will be a good combination to bring to our Eau Claire Energy Board of Directors where I look forward to serving my district to the fullest of my abilities. Experience: I grew up on a farm outside of Whitehall, Wis., where as youngster I joined 4-H, another organization that exemplifies cooperative values. I spent my youth in 4-H and eventually became the leader which was one of the most rewarding times of my life. My college experiences prepared me for the world of business. My real estate career, coupled with financing experiences, has made me champion of exceptional customer service and lifelong learning. I have had the opportunity to travel and experience life and business in many parts of our country. ANNUAL REPORT Current Board Positions: Ladies Holiday Luncheon, Philanthropic Small Group of Mondovi (Member, 2013 present; Chair, 2015-present), Mondovi Garden Club (Chairman of Public Relations, 2013 present Past Board Positions: Director, Long Realty Company in Tuscan, Arizona (2004 2008), Vice President, Century 21 Affiliated Madison, WI (1992 1995), Fox Cities Realtor Association (Director, 1979 1983; Secretary 1980), Wisconsin Realtor Association (Governor, 1979 1982), Nelson & Nelson Ltd (Vice President, 1977 1981), Dane County Advocates for Battered Women (Director, 1994 1997), Speakers Bureau (1992 1996) Comments: During the energy crisis of the 70s I became committed to conserving energy. When my brother-in law took a huge electric jolt atop a pole and lived to tell about it, I became consumed with the safety issues of our energy grid. When ECEC developed the largest Wisconsin solar field I knew that I wanted to become a contributing member of the cooperative. I believe that cooperatives are the backbone of the electric industry. My common sense approach makes me uniquely qualified to represent District 5. I have the time; energy and understanding of the issues facing the energy world to do this job and ask for your support. www.ecec.com March 2017 16c
DISTRICT 1 DIRECTOR CANDIDATE Seymour, West of County Road UN, Eau Claire County; Hallie and Lafayette, Chippewa County, except land in District 2 and the Village of Lake Hallie Thomas Schwartz 1684 113th Street Chippewa Falls, WI 54729 Member of ECEC for 45 years Occupation: Retired Current and Past Board Positions: Eau Claire Energy Cooperative Director District #1, 2014 present; Eau Claire Energy Cooperative Member Advisory Council, 2010 2014; St. Olaf Men s Club, Secretary, 2008 present; St. Olaf Pastoral Council (Assistant to Pastor), 2009 2015; Compensation Coordinator of Menard, Inc., 2007 2011; Accounting/Auditing Manager of Menard, Inc., 2001 2006; MCT Properties LLC, Manager, 1991 present; Division Controller of Menard, Inc., 1973 2001; School Board President of St. Olaf/Sacred Heart School, 1984 1986; School Board Treasurer of St. Olaf/Sacred Heart School, 1979 1983 Other Relevant Experience: My experience with Menard, Inc. included working with electric utility companies to ensure accurate billing rates for Menard Stores energy use. I am an active participant of my parish and my neighborhood. I participate in the Knights of Columbus and Sojourner House, volunteering monthly. Comments: Cooperatives have and will continue to play an important role in today s economy. Urban sprawl brings new customers to our service areas. Cooperatives must maintain a proactive approach to accommodate their needs. Our members look to the coop to keep up with ever-changing technical trends. Directors need foresight to perceive future needs as well as the knowledge and dedication to accomplish these goals. I have the work experience and the personal experience to foresee roadblocks within projects, I analyze and manage them, and I see projects through to completion in a timely manner. When I was hired at Menard Inc., there were five retail stores; when I left, there were 265 retail stores. My part in this expansion was to prepare accurate and timely financial reporting, to write company policies and procedures, to oversee store operations by physically visiting each location, to manage the store auditing teams, and to oversee incentive compensation for management employees. I was known as a go-to manager to get projects done, and I maintain that same work ethic. Feel free to contact me at biztj@att.net or 715-834-1784. Thank you in advance for your support. BYLAW CHANGE The following section has been added to Article I - Membership, Section 16 of the Eau Claire Energy Cooperative Bylaws effective September 28, 2016. Arbitration If a controversy or claim arises out of, or relates to, the Governing Documents, the Cooperative s Provision of a Cooperative Service, the Cooperative exercise its rights under these bylaws or the terms of membership, or a Member s Use of a Cooperative Service, the parties shall first try to settle the dispute through negotiation. If the dispute is not settled by negoitation, and if requested by the Cooperative or the Member, then the Cooperative and the Member shall try in good faith to settle the dispute by mediation by a neutral third person acceptable by both parties, who has no power to impose a decision if all of the parties do not agree to settle the dispute, but helps the parties reach an agreement by focusing on the key issues in a case, exchanging information between the parties and exploring options for settlement. If the dispute is not settled after mediation, the controversy or claim shall be resolved by the arbitration administered pursuant to Chapter 788, Wisconsin Statues and the judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction. Controversies and claims must be settled through individual arbitration, and not through collective or class action arbitration. This section does not apply matters which qualify for the jurisdiction of small claims court (Chapter 799, Wisconsin Statues) or to controversies over the acquisition of right-of-way or the right of the Cooperative to construct, operate, inspect, repair, maintain, relocate, improve, reconstruct, and replace its facilities within any of its rights-of-way. 16d Wisconsin Energy Cooperative News
DISTRICT 8 DIRECTOR CANDIDATE Lincoln, Clear Creek, Otter Creek, and Washington, South of Walnut Rd, South of Easterly extension of Walnut Rd to Mathwig Rd, and South of Mathwig Rd, Eau Claire County; Sumner & Unity, Trempealeau County Jeff Freiburg 51170 Oak Ridge Rd Osseo, WI 54758 Member: 14 years Occupation: Physical Therapist, Mayo Clinic-Osseo Past Board Positions: Westconsin Credit Union, Director 2000 2003 Current Board Positions: ECEC Director, 2004 present; Osseo Area Economic Development Corporation (OAEDC) Treasurer, 2008 present Experience: OAEDC member, 2004 present; Physical Therapist at Mayo Clinic at Osseo, 2007 present; Osseo City Council, 2015 present. Comments: Over the past 13 years as an ECEC director I have worked to gain relevant experience and unique knowledge to serve the cooperative and its members. This includes earning the Credentialed Cooperative Director and Board Leadership certifications through the National Rural Electrical Cooperative Association. I am currently working toward Gold certification with additional training. My employment and involvement in community activities provides ample opportunities to make contact with ECEC members where they can share their ideas and concerns. This combination of accessibility and community involvement allows me to maintain and nurture connections between ECEC and many of its members. Forming political alliances with our legislators is a key role for cooperative directors. I have participated in face-to-face meetings with area legislators to explain electric co-op issues and inform them how legislation and regulation affecting electric coops can impact members. Cooperatives continue to lead the industry in providing safe, reliable, and affordable electricity. ECEC is no exception. I support ECEC s investment in technologies that improve service, create efficiencies, improve system reliability, and enhance safety as well as prepare for future technologies and renewable energy sources. I support sensible legislation and regulation that protects our environment as long as it is equitably paid for by all stake-holders and not solely by the rate-payers. Given my experience, knowledge, and vision, I feel qualified and competent in addressing the future challenges and opportunities facing ECEC. It would be my privilege to continue to serve as an ECEC director. ANNUAL REPORT Purpose: To provide energy and related services in a safe and reliable manner. Vision: To be recognized in the community as providing excellent energy and reliable services that are of the highest value to our members. Value: Understand, believe, and practice ALL PEOPLE ARE IMPORTANT. People working together achieve more. MISSION STATEMENT Our Pledge is to: Commit to employee and public safety. Meet the member s needs through a staff of honest, well trained, professional, motivated, and service-oriented employees. Encourage the wise use of resources in a socially and environmentally acceptable manner. Maintain the highest ethical standards of trust and respect. Prosper as a financially sound business. www.ecec.com March 2017 16e
NOMINATING COMMITTEE The Nominating Committee is charged with the task of reviewing director election candidates this year for Director Districts 1, 5, and 8 as presented on pages 16b-16e. The Nominating Committee includes Eau Claire Energy Cooperative members Noble Larson, Matt Gabler, and Patrick Casey. We appreciate the time they take from their personal time to become engaged in our director election process. It s one of the Cooperative Principles. Addressing Democratic Member Control, Cooperative Principle #2 states that, Cooperatives are democratic organization controlled by their members, who actively participate in setting policies and making decisions. The elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner. RULES FOR THE ANNUAL MEETING 1.) The meeting will be conducted in accordance with Roberts Rules of Order. 2.) Any speaker must be recognized by the chair before speaking. 3.) Only members will be recognized by the chair; each member must give his or her name. 4.) No resolution on policy affecting Eau Claire Energy Cooperative may be submitted by any member unless written copies have been submitted to the Board of Directors at least 30 days in advance of the meeting so as to permit review by the Board of Directors and its recommendation to the meeting as to approval or rejection. 5.) Members are to limit their questions and comments to three minutes, with any rebuttal limited to two minutes. 6.) Members will be limited to one question. If time allows, members may ask additional questions. 7.) Questions and comments from members will be in order only during the old and new business sessions. DIRECTOR ELECTION TELLERS IMPORTANT PART OF PROCESS Director election tellers are a special component in the director election on the evening of our annual meeting. Eau Claire Energy Cooperative director election tellers are responsible for nominating a teller chairperson who will preside over the tellers. The teller chairperson maintains the key to the area ballot counting room and assures that all absentee ballots remain locked and unopened until it is deemed time to count the ballots. When instructed, the tellers securely collect the ballots from the voting members during the annual meeting. Then they begin counting the ballots when the ballot box has been officially closed. All ballots are counted, sorted, and verified by at least two tellers. It is the teller chairperson s responsibility to deliver the voting results to the secretary of the board for eventual reporting to our members the night of the meeting. We give a special thanks to the following Eau Claire Energy Cooperative members for participating in this democratic process of electing our directors. RULES FOR CORPORATE VOTING In the event your membership is that of a firm, association, corporation, partnership or body politic, it will be necessary for you to attach to your ballot a certificate signed by the secretary of your firm, association, corporation or body politic or in case of a partnership, by the partners, attesting to your authority to vote in their behalf. District 1 Mary Wampole District 3 Jeanne Anderson District 5 Donna Odegard District 6 Wilson Lund District 8 Rhonda Kelly District 2 Larry Anderson District 4 Lila Chamberlain District 7 Ron Horlacher District 9 Jim Odness 16f Wisconsin Energy Cooperative News
2017 incentives are here! Making your home or business more energy efficient can help you in two big ways you save on your energy bill every single month and, you can receive incentive dollars from Eau Claire Energy Cooperative and/or Focus On Energy. Now is the time to act. Schedule a Home Performance Evaluation and work with Eau Claire Energy Cooperative or Focus on Energy representatives to choose the best ways to move forward. The list below will get you started. Incentives available directly through Eau Claire Energy Cooperative: Energy Star Appliances Appliance Recycling Geothermal Heat Pumps Air-Source Heat Pumps and Central Air Conditioners Smart Thermostats Lighting Home Performance (Existing Homes) Touchstone Energy Home Program (New Homes) Water Heaters Commercial & Industrial Agricultural And more For more information go to www.ecec.com or call 715-832-1603. Through our partnership with the Focus on Energy Program you also have access to many of the incentives they offer! Home Performance (Existing Homes) New Homes Residential Rewards Program Lighting Program For more information go to www.focusonenergy.com or call them at 1-800-762-7077. There is also a link to the FOCUS website at www.ecec.com. Don t forget to check out Federal Tax Credits that may be available. More information can be found at www.energystar.gov. 2017 Incentives are here! Renewable Energy Solar Electric Geothermal Heat Pumps Commercial & Industrial And more OVER $1 MILLION RETURNED TO MEMBERS! Every year we communicate to our members the advantages of establishing energy efficiency measures at our member homes and businesses. Those measures could be as easy as replacing old light bulbs with more efficient bulbs. Or, installing older water heaters and air conditioning units with much more efficient systems. Or, even taking advantage of dual fuel and heat storage rate savings or other load management program. During 2016, Eau Claire Energy Cooperative worked with many members to identify areas of energy efficiency improvements. And, many of you worked with Focus on Energy representatives to identify area for improvements through Home Performance Evaluations on current housing, or on homes to be built. Whatever the reason for making energy efficiency improvements, our members fared very well with incentives by participating in our load management program last year. ECEC Incentives...$210,875.29 Focus on Energy Incentives...$287,121.14 Total...$497,996.43 Even more incentives were paid out to members through special programs through Eau Claire Energy Cooperative and Focus on Energy. These are dollars returned directly to our members upon making their homes and businesses more energy efficient. Water Heater Load Mgt. Credits...$131,967.80 Air Conditioning Load Mgt. Credits...$17,641.34 Dual Fuel & Heat Storage Rate Savings...$423,912.90 Total...$573,522.04 Get started now! More incentives are available for 2017. If you re building a new home or business, talk to your contractor. Get them on board so you can collect incentive dollars. To find out how you can access incentive dollars and, at the same time, make your new or current home or business more energy efficient, check out our website at www.ecec.com or call us at 715-832-1603. ANNUAL REPORT www.ecec.com March 2017 16g
BALANCE SHEET Assets Years Ended December 31, 2016 and 2015 2016 2015 Plant in Service $62,735,848 $60,329,757 Construction work in progress 429,460 766,474 63,165,308 61,096,231 Less Accumulated depreciation 20,249,659 19,035,999 Net Plant 42,915,649 42,060,232 INVESTMENTS Investments in associated organizations 11,168,370 10,682,526 Other investments 796,183 812,878 Notes receivable 11,698 21,358 Total Investments 11,976,251 11,516,762 CURRENT ASSETS Cash General 170,565 426,357 Temporary cash investments 11,085 955,277 Notes receivable-current portion 10,300 16,000 Accounts receivable 2,404,976 2,276,918 Materials and supplies 519,294 536,156 Other current assets 115,364 114,690 Total current asssets 3,231,584 4,325,398 DEFERRED DEBITS 1,982,727 2,012,610 TOTAL ASSETS $60,106,211 $59,915,002 Equities and Liabilities Years Ended December 31, 2016 and 2015 EQUITIES 2016 2015 Patronage Capital $24,475,810 $23,508,981 Other equities 2,042,419 1,964,508 Total equities 26,518,229 25,473,489 LONG-TERM LIABILITIES 26,692,991 27,259,630 CURRENT LIABILITIES Notes payable - - Current maturities of long-term liabilities 1,562,000 1,518,000 Accounts payable 1,735,593 1,572,232 Consumer deposits 290,000 290,035 Other current liabilities 959,307 1,136,458 Total current liabilities 4,546,900 4,516,725 DEFERRED CREDITS 2,348,091 2,665,158 TOTAL EQUITIES AND LIABILITIES $60,106,211 $59,915,002 16h Wisconsin Energy Cooperative News
STATEMENT OF OPERATIONS Years Ended December 31, 2016 and 2015 2016 2015 OPERATING REVENUES $24,619,892 $24,226,275 OPERATING EXPENSES: Cost of providing services 15,376,407 15,539,740 Distribution-Operations 1,079,360 1,055,103 Distribution-Maintenance 1,109,855 1,151,964 Consumer accounts 621,759 597,851 Customer service and informational 497,457 496,552 Administrative and general 1,285,542 1,115,629 Depreciation 2,028,028 1,974,107 Taxes 293,937 294,391 Other deductions 74,618 8,317 Total operating expense 22,366,963 22,233,654 OPERATING MARGINS BEFORE FIXED CHARGES 2,252,929 1,992,621 FIXED CHARGE Interest on long-term liabilities 1,194,639 1,193,667 OPERATING MARGINS AFTER FIXED CHARGES 1,058,290 798,954 G&T AND OTHER CAPITAL CREDITS 774,044 906,190 NET OPERATING MARGINS 1,832,334 1,705,144 NONOPERATING MARGINS: Interest and dividend income 22,524 25,521 Other nonoperating margins 25,854 14,015 48,378 39,536 ANNUAL REPORT INCOME FROM CONTINUING OPERATIONS $1,880,712 $1,744,680 ADDITIONAL COOPERATIVE DATA 2016 2015 2014 Miles of line constructed during year 8 12 8 Total miles of line in operation 1,685 1,677 1,665 Consumers connected in year 142 126 99 Consumers per mile year end 6.5 6.4 6.4 Total kwh purchased 198,579,846 203,620,502 209,568,694 Total kwh used ECEC 325,437 397,499 412,178 Average cost per kwh purchased 7.74 cents 7.63 cents 7.35 cents Average cost per kwh sold 8.07 cents 7.70 cents 7.62 cents Average revenue per member per month $184.64 $187.91 $185.83 Average kwh sold per member per month 1,451 1,553 1,569 Average revenue per kwh sold 12.72 cents 12.09 cents 11.84 cents www.ecec.com March 2017 17
MEMBERS REDUCE THEIR CARBON FOOTPRINT AND SAVE MONEY, TOO! Pam and Rollie Hicks built their home as an earth-bermed home south of Eau Claire many years ago. Even at that time they were bent on making their home as energy efficient as possible. Originally built with south facing windows to harvest Rollie is eager to learn more about reducing his carbon footprint, by attending classes in the Phillips Science Hall at UW-Eau Claire. MemberSolar helps him do that, and he says it adds value to his home. the passive solar energy, in 2016 they took advantage of solar energy of another kind MemberSolar. That s Eau Claire Energy Cooperative s community solar project with members purchasing subscriptions to lock in their electric rates through December 31, 2035. According to Rollie Hicks, there were a number of reasons for the addition of MemberSolar. They save money on their monthly electric bill through 2035. They continue to lower their carbon footprint. They feel it s the right thing. Rollie and Pam like the idea of being a part of the co-op and immediately warmed to the idea that the (solar) panels are owned by and located at their cooperative. A staunch proponent of the MemberSolar program, he does wonder why others don t participate. Fully satisfied with the program, he says he sleeps better at night knowing his carbon footprint is lessened. Watch the upcoming issues of this magazine which will examine how the Hicks family saves money with MemberSolar and reduces their carbon footprint even more with their electric vehicle. Plus, watch for information from other members, and how they save money on their monthly electric bill with MemberSolar, Home Performance Evaluations and other energy efficiency incentives. WHAT REPLACES EMISSIONS FROM 31,200 HOME BARBECUE GRILLS? Warm weather is just around the corner. Think about this the next time you light up your grill for that delicious chicken or steak dinner. In 2016, Eau Claire Energy Cooperative s MemberSolar project produced enough electricity to offset the greenhouse gas emissions from 31,200 propane cylinders used for home barbecues. Think about when you light up your grills this spring! To go one step further, in the first year of operation, the MemberSolar project, with 2,816 solar panels, has produced 1,086,700 kilowatts of power. That s enough solar power to offset 85,881 gallons of gasoline consumed. Our members are saving money on their electric bills through MemberSolar subscriptions they have purchased. Over 150 ECEC members have taken advantage of this opportunity to buy subscriptions and they are saving money right now. They will continue to save money on their monthly electric bills through December 31, 2035. If you want to take advantage of this opportunity to offset gas emissions and save on your electric bill, now is your opportunity to purchase your subscriptions. Call 715-832-1603 to find out how you can participate. 18 Wisconsin Energy Cooperative News Your Touchstone Energy Partner Lynn E. Thompson, President/CEO Mary Kay Brevig, Editor, Manager of Communications & Public Relations 8214 Hwy 12, P.O. Box 368, Fall Creek, WI 54742-0368 www.ecec.com Office Hours: 7:30 a.m. 4 p.m. Mon Fri Non-emergencies: 715-832-1603 Emergencies & outages: Toll FREE 800-927-5090 24 hours a day, 7 days a week Diggers Hotline: 811 or 1-800-242-8511 Call 3 working days before you dig.
MINUTES OF THE 79 TH ANNUAL MEETING OF THE MEMBERS OF EAU CLAIRE ENERGY COOPERATIVE MARCH 22, 2016 The 79th regular annual meeting of the members of the Eau Claire Energy Cooperative was called to order by the Chair of the Board of Directors, Mr. Clarence Boettcher, at 6:00 p.m. at The Florian Gardens at 2340 Lorch Avenue in Eau Claire, WI on March 22, 2016. WELCOME Mr. Boettcher welcomed the members and special guests to the annual meeting. He reminded the members to wait to complete their ballot until after each director candidate addresses the membership. The membership was introduced to the Board of Directors, as well as CEO Lynn Thompson, Attorney John Hibbard, IT Analyst Rob Weber, and Executive Assistant Monica Obrycki. Guests at the meeting included Dana Kelroy, Editor of the WEC News magazine; Deb Mirasola, Communications Manager at Dairyland Power Cooperative and Adam Wehling, Associate Dean of Agriculture and Energy at Chippewa Valley Technical College. Mr. Boettcher also welcomed legislators including Representative Dana Wachs of the 91st Assembly District and Representative Warren Petryk of the 93rd Assembly District. Mr. Boettcher introduced the recipients of the $500 Federated Youth Foundation scholarships and asked that they stand and be recognized. Mr. Boettcher asked the participants in the Eau Claire Energy Cooperative Youth Ambassadors program to stand and be recognized. Mr. Boettcher also asked the members of the Member Advisory Council to stand and be recognized. PLEDGE OF ALLEGIANCE & ANTHEM Mr. Boettcher introduced Jane Mueller for the singing of the National Anthem. He asked that everyone remain standing while the Youth Ambassadors, Nick and Tim Campbell, led everyone in the Pledge of Allegiance. MEETING AGENDA AND MEETING RULES Mr. Boettcher went through housekeeping items noting that the meeting agenda and rules were published in the March, 2016 issue of the Wisconsin Energy Cooperative News magazine (WEC News), and are also available on tables in the room tonight. He also noted that the Notice of the Annual Meeting was published in the same issue of the WEC News magazine. The Affidavit of Mailing was posted at the registration tables. Mr. Boettcher also stated that member questions will be taken after completing the business portion of this meeting. OFFICER S REPORTS The reports of the Chair, CEO, and Secretary-Treasurer were published in the March, 2016 WEC News magazine and are also available on tables in the room tonight. QUORUM Ms. Judith Anibas, the Secretary-Treasurer, informed Mr. Boettcher that at least 50 members had registered, which constituted a quorum. Mr. Boettcher then declared the meeting open for business. PARLIAMENTARIAN Mr. Boettcher appointed Attorney John Hibbard act as parliamentarian for this meeting. CALL AND NOTICE, AFFIDAVIT OF MAILING, MINUTES A motion was made to dispense with the reading of the Notice of Meeting, the Affidavit of Mailing and the Minutes, and to approve them as published in the 2016 Annual Report. Motion was seconded and carried. VOTING There was an explanation of the ballots and it was requested that the membership wait to vote until all director candidates have an opportunity to speak. Mr. Boettcher thanked the nominating committee, the attorney, and Cooperative staff for operating in accordance with the Bylaws in performing their work in determining the slate of candidates for this year s election. The nominating committee is comprised of one member for each Cooperative district that is up for election. The following individuals served on the nominating committee for this year s election: Jeanne Chromey, Dean Solie, Mike DeGrasse. TELLERS Mr. Boettcher called the roll of the tellers and the following were present: Linda Goss, Marjorie Blaschko, Jeanne Anderson, Lila Chamberlain, Donna Odegard, Frank Neibauer, Ron Horlacher, Rhonda Kelly, and Jim Odness. The tellers had met prior to the meeting and selected Donna Odegard as Chairperson. The tellers were instructed to take charge of the ballot boxes. DIRECTOR CANDIDATES Mr. Boettcher then turned the meeting over to the attorney, Mr. John Hibbard, to introduce each of the Director candidates for Districts 3, 7 and 9, as follows; District #3 Michael Schummer Incumbent; Scott Creaser District #7 Andrew Bourget Incumbent; unopposed District #9 Clarence L. Boettcher Incumbent; Alexander Kostromin, Frederick Poss Mr. Kostromin was not in attendance. Each candidate present was given the opportunity to address the membership for three minutes, which each candidate did. Mr. Hibbard then offered the membership the chance to speak on behalf of any candidates for a time period of up to three minutes each, with a maximum time of ten minutes. No members spoke. CLOSE BALLOT BOX The tellers were instructed by Mr. Hibbard to collect all ballots. A motion was made, seconded and carried to close the ballot box at 6:45 p.m., with instructions to the tellers to count absentee ballots after the close of the ballot box. At this time, the attorney turned the meeting back over to the Chair. The Chair requested that the tellers report the voting results to Ms. Anibas as soon as they are available. The results will be reported tonight at the meeting, on our website, on our Facebook page, and in our WEC News magazine. The Chair also stated that the organizational meeting of the Board of Directors is scheduled for March 30, 2016, at the Cooperative headquarters. UNFINISHED BUSINESS Mr. Boettcher reminded the members of the rules of the meeting, which were published in the March 2016 issue of the WEC News magazine as part of the 2016 Annual Report. The rules of the meeting were also available to members in the meeting room tonight. He asked the members if there was any unfinished business. There was none. NEW BUSINESS Mr. Boettcher introduced and recognized the Concern for Community Award recipient, Dan Hanson. Mr. Boettcher stated several projects and organizations that Mr. Hanson volunteered his time for, highlighting the building of the Cleghorn Park. Mr. Boettcher then asked Mr. Thompson to the podium for his Lighting the past, electrifying the future presentation. There were Fun Fact questions at each table and Mr. Thompson answered those questions throughout his presentation. This information included updates on MemberSolar, energy efficiency, and the NRECA Co-op Vote campaign. Mr. Boettcher then asked if there was any new business to come before the membership. Hearing none, he declared the business session closed and turned the floor over to CEO Thompson to hear any questions from the members. QUESTION AND ANSWER SESSION Mr. Thompson then explained that he would answer signed questions that had been deposited in the question box. He also encouraged all members to contact him, or any of the management staff, if they have any questions in the future. There were several written questions and verbal questions from the floor. Mr. Brecka discussed considerations for line replacement locations, specifically addressing the difficulty with installing underground lines in wooded areas. Mr. Thompson answered several questions about efforts in place to provide security, redundancy of the system and protect against cyber security. Other questions were regarding roadside work and safe work practices when traffic lanes are blocked, the federal solar tax credit, the feasibility of wind and hydro power and the impact of the Clean Power Plan. CHAIR S THANK YOU Mr. Boettcher thanked the members, the Cooperative employees, The Florian Gardens staff, the scholarship winners, the Youth Ambassadors, the Member Advisory Council, and the guests in attendance for making the 79th annual meeting of the Cooperative a success. He announced that the 80th annual meeting of the Cooperative would be held in March of 2017 at The Florian Gardens. ADJOURN Mr. Boettcher requested a motion to adjourn the 79th Annual Meeting. That motion was made, seconded and carried, and the meeting adjourned at 7:20 p.m. PRIZES AWARDED The CEO, Lynn Thompson, invited the members to stay for dinner after announcement of the prize winner names. Ten winners received an envelope containing $100.00 in cash. Deb Mirasola of Dairyland Power Cooperative assisted by drawing ticket numbers at random to select the winners. The winning members are listed as follows: Dale Lunderville, John Brouwer, Ron Hoepner, Allen Risler, Lila Chamberlain, Pam Lahr, Janet Weltzin, Robert Janke, Judy Provos and Joanne McHugh. TELLERS REPORT At this time, Mr. Boettcher read the results of the Director election, as reported by the chairperson of the tellers. The following voting results were reported to the membership: District No. 3 Michael Schummer elected with 166 votes over Scott Creaser with 38 votes District No. 7 Andrew Bourget elected with 205 votes District No. 9 Clarence Boettcher elected with 143 votes over Fred Poss with 64 votes and Alexander Kostromin with 5 votes Each of these directors will serve for three (3) years. The original teller report is affixed to these minutes. A signed copy of the teller report is in the 2016 Annual Meeting File. Judith Anibas, Secretary