2015 Annual Report
Official notice of the 2016 Annual Meeting - page 3
Grand Prize
50 Gallon Heat Pump
Water Heater!!!
Donated by:
Midway Winnelson Supply
Installation donated by:
Brock’s Plumbing
Watt High Lights
June / July 2016 - Volume 71 - Number 1
Your Touchstone Energy® Cooperative
2015
Annual Report
Watt High Lights
Jackson County Rural Electric
Membership Corporation
P.O. Box K
Brownstown, IN 47220-0311
812-358-4458
800-288-4458 (toll free)
812-358-5719 (FAX only)
E-Mail - [email protected]
Office Hours
7:30 AM to 4:30 PM (EDT)
Monday through Friday
* * * * *
Board of Directors
President John Trinkle - district 3
Vice-President Earl Pottschmidt - district 8
Secretary-Treasurer Jerry Kelley - district 5
John Hackman - district 1
Walter Hunter - district 2
Paul Elliott - district 4
Mark Trisler - district 6
Curtis Wischmeier - district 7
John Miller - district 9
* * * * *
Watt High Lights - (USPS 669-580)
is published monthly for $3.00 per year
(electric rates include subscription) by
Jackson County Rural Electric
Membership Corporation, a consumer
owned utility, 274 E. Base Road, Brownstown, Indiana 47220. Periodicals
postage paid at Brownstown, Indiana.
POSTMASTER: Send address changes
to Watt High Lights, P.O. Box K,
Brownstown, Indiana 47220.
Cover photo -50 gallon heat pump
water heater, which will be our grand
prize at the 2016 Annual Meeting.
Page 2
Report of the
General Manager
General Manager Mark McKinney
Not only does this issue of the Watt High Lights contain information about the annual
meeting, and the director elections, it also gives you the opportunity to see how your
electric cooperative performed financially in 2015.
In 2015, your electric cooperative sold more than 459 million kilowatt-hours. Even
though kilowatt-hour sales for 2015 were almost 6.0% less than in 2014, year-end
margins remained good. Many factors can be attributed to changes in annual kilowatthour sales from one year to the next, but weather patterns have the most significant
effect. Even with the numerous unknown regulatory and environmental challenges, the
average price per kilowatt-hour (kWh) only increased 1.67% during 2015.
Several of you may remember the days when you had to read your meter each month.
In 2015, we completed the final deployment phase of the TWACS automated metering
infrastructure (AMI) project. These meters utilize powerline-carrier technology to provide
two-way communications to and from the meter for not only meter readings, but voltage
readings, interval usage data, outage detection, and many more functions.
The AMI project also allows us to offer our Prepaid Metering option to our members.
Prepaid Metering remains a popular option, especially for our new members. With the
traditional monthly-billed electric service, you pay for your electric usage after it has
been used. With Prepaid Metering, you pay for your electricity in advance of its usage,
avoiding any unexpected high bills. You also can pay toward your electric usage when it
is more convenient for you and your budget.
Last year we retired capital credit for the years 1969 through 1977. Since we began
retiring capital credits in 2014, almost $3.0 million dollars in capital credits refunds have
been issued to current and former member-owners. This is one of the many ways we
are different from investor owned or municipal electric utilities. Be sure to look in future
editions of the Watt High Lights or on our website for information regarding capital credits
retirements.
While our focus is to provide the advantages of electricity services to our members,
we also view ourselves as a community solutions provider. Today, a broadband internet
connection is viewed by many as a necessity. A necessity that as many of you know is
lacking within our service territory. Inside this edition of the Watt High Lights, you will
also find a survey regarding broadband internet. We are looking for your input regarding
the services you currently have, do not have, or would like to have, in order to help us
in making decisions as to what role Jackson County REMC should play in getting a
broadband internet connection to its members. Please take a few minutes to complete
this important survey and bring it to the annual meeting, or mail it to our office.
Finally, Jackson County REMC will remain committed to serving you our memberowners and will continue with our mission to deliver the advantages of electricity to
our members reliably, economically, and responsibly. On behalf of the directors and
employees of Jackson County REMC, I invite you to join us on July 21st at the Jackson
County Fairgrounds for the 2016 annual meeting.
2015 Annual Report
June-July 2016
~ Official Notice ~
78th Annual Meeting of
Jackson County REMC members
Thursday, July 21, 2016
This notice is being given as required by the bylaws of the cooperative and in response to a call
by John Trinkle, President of the Board of Directors. The 78th annual meeting of Jackson
County REMC members will be held on Thursday, July 21, 2016, at the Jackson County
Fairgrounds on State Road 250 southeast of Brownstown.
Registration will begin promptly at 5:30 p.m. The business meeting will be called to order at 7:30
p.m. Please note that all times are Eastern Daylight Saving Times. The meeting is being held
for the following purposes:
 To elect three directors, one each from districts: one, four and seven, to three-year terms.
The candidates are introduced on pages 5 of this issue of “Watt High Lights.”
 To hear reports given by General Manager Mark McKinney, President John Trinkle and
Secretary-Treasurer Jerry Kelley.
 To provide REMC members and their families the opportunity to relax together and enjoy
family entertainment.
Sincerely,
Jerry Kelley
Secretary-Treasurer
Slight decrease in retail rates for the 3rd quarter 2016
Jackson County REMC will adjust its retail metered rates based upon a pending decrease in the cost of purchased
electricity that is being charged by Jackson’s power supplier, Hoosier Energy, Inc.
The $0.57 per 1,000 kWh decrease in the power cost adjustment stems from an upcoming July 1, 2016 quarterly
adjustment in Hoosier’s power cost tracker due to the varying costs for energy fuels, market power purchases, and other
highly fluctuating expenses.
Effective July 1, 2016, the power cost adjustment will change from $0.009842 per kWh to $0.009275 per kWh, decreasing a
typical bill of 1,000 kWh from $127.40 to $126.83, or .45%. These rates will remain in effect through September 30, 2016.
June-July 2016
2015 Annual Report
Page 3
Nominations made for 2016 election
Directors for districts 1, 4 & 7 to be elected
Directors to represent districts 1, 4 and 7 will be elected to three year terms during the business session of the 2016 Annual
Meeting. All members of Jackson County Rural Electric may register and vote at the Annual Meeting, which is scheduled for
Thursday, July 21, at the Jackson County Fairgrounds. Two incumbent directors are running unopposed. Two members have
been nominated for District Seven. Per the cooperative’s bylaws, nominations will not be accepted from the floor during the
Annual Meeting. The 2016 director candidates are introduced to you on the next page. Registration will begin at 5:30 p.m.
and end at approximately 7:45 p.m., when the election is conducted. Descriptions of the districts involved in this year’s election and the nominating committees preparing the slates of candidates are shown below:
District One: Includes our service area in Carr, Driftwood and Grassy Fork Townships and Brownstown Township southeast of White River, all in Jackson County; and in Monroe and Gibson Townships in Washington County. Nominating committee members are Brett Peters (chairperson), Kevin Benter and Mark Tape.
District Four: Includes our service area in Franklin, Jackson, Pierce and Polk Townships and Washington Township east
of Indiana Highway 135, all in Washington County; and Monroe and Wood Townships in Clark County. Nominating committee
members are Merwin Fisher (chairperson), James Soliday and Frank McCarty.
District Seven: Includes our service area in Jackson, Redding, Vernon and Washington Townships in Jackson County.
Nominating committee members are Josh Vaughn (chairperson), Bart Stuckwisch and Shawn Acton.
9
7
NORTH
VERNON
*
FREETOWN
*
BEDFORD
*
8
2
*
6
SEYMOUR
*
BROWNSTOWN
*
7
LEESVILLE
1
CROTHERSVILLE
*
AUSTIN
*
1
3
*
SCOTTSBURG
5
*
4
SALEM
*
PEKIN
Page 4
2015 Annual Report
June-July 2016
District One director nominees
John Hackman
John Hackman is unopposed for the election as REMC director since 2010 representing District
One. He is completing his second term on the board. Before his election as director he served
on the REMC election and credentials committee for several years.
Mr. Hackman is a graduate of Brownstown Central High School. He is a full-time grain farmer
and a lifelong resident of Jackson County. He and wife Tammi reside in the Wegan neighborhood
of Grassy Fork Township. They have four children and two grandchildren. The Hackman’s are
members of Trinity Lutheran Church at Vallonia, where Mr. Hackman serves as elder and sings in the choir.
District Four director nominees
Paul Elliott
Paul Elliott has served as District Four director since 2007 and is completing his third term as a
director. He is unopposed in this year’s election.
Mr. Elliott was born and raised in Washington County. He and wife Kathryn have one son,
and the family resides in Franklin Township near the community of South Boston. They are
members of Canton United Methodist Church. Mr. Elliott is a graduate of East Washington High
School. He earned bachelor, master and doctoral degrees in engineering from Purdue University. He is a licensed engineer and is owner of ASET Services, an engineering and consulting service for sports floors. He
is also a farmer, involved in cattle, hay and grain production.
District Seven director nominees
Curtis Wischmeier
Curtis Wischmeier is completing his first three-year term on the board of directors.
Mr. Wischmeier is a lifelong resident of Jackson County. He and wife Mary Ellen reside in the
Sauers neighborhood in Washington Township. They have three grown children and seven
grandchildren. They are members of St. John Lutheran Church at Sauers where Mr. Wischmeier has served on several boards and committees. Mr. Wischmeier is a graduate of Seymour
High School. He is a full-time farmer who maintains a cow-calf herd and raises grain and hay
crops. He is a member Jackson County Plan Commission, Jackson County Farm Bureau, Inc.
Joseph Franke
Joseph Franke has also accepted nomination as a director to represent District Seven.
Mr. Franke is a lifelong resident of Jackson County. He and wife Sandra reside in the Chestnut Ridge neighborhood of Washington Township with their three children. He is a graduate of
Seymour High School and Purdue University. Mr. Franke operates the family’s grain and cattle
farm and works for Mark Dennis & Company CPA as a seasonal tax preparer. Mr. Franke is a
member of Jackson County Farm Bureau, Inc. and Zion Lutheran Church where he has served
on numerous boards and committees.
June-July 2016
2015 Annual Report
Page 5
Broadband Survey:
We want to hear from YOU!
As many services become increasingly dependent upon having a reliable broadband internet connection, many rural
residents are often left without the ability to utilize these services strictly due to their physical location. Your REMC
wants to see our members’ quality of life not be limited due to their desire to live in rural areas. We have been
proactively encouraging internet providers to consider expanding their broadband offerings to the unserved areas in our
service territory. You can help us by letting us know your thoughts and desires about getting broadband service to your
home or business. Just answer the questions below and bring this form to the Annual Meeting on July 21. You can also
return the form by e-mail ([email protected]), fax (812-358-5719), by mail (PO Box K, Brownstown IN 47220-0311)
or by dropping it by our office.
1 – What Internet service do you currently use? ___ Wireless ___ Cell phone ___ DSL
___ I don’t have Internet service.
___ Dial-up
2 – What current upload & download speeds do you have? _____ Mbps upload
_____ Mbps download
3 – How do you use your Internet service? (Please check all that apply.)
___ Shopping
___ Downloading music or videos
___ Reading e-mail
___ Sharing photos and videos
___ School or studies
___ Other
4 – How satisfied are you with your current Internet service?
___ Very
___ It’s okay
___ Dissatisfied
5 – What devices do you use for your Internet service?
___ Desktop computer ___ Laptop computer ___ Tablet/iPad
___ Very Dissatisfied
___ Smart phone
___ Other
6 – How interested would you be in having high speed broadband Internet service in your home?
___ Very
___ Maybe
___ Not at all interested
7 – Would you be interested in having high speed broadband Internet service provided by your REMC or a company
approved by your REMC?
___ Very
___ Maybe
___ Not at all interested
8 – What monthly fee would you be willing to pay for high speed broadband Internet service?
___ $60.00
___ $75.00
___ $90.00
___ $100.00
___ $120.00+
9 – Do you think the quality of Internet service should be the same for rural residents as it is for people living in cities,
towns and suburbs?
___ Yes
___ No
___ Maybe
10 – Do you think the government should play a role in helping extend high-speed broadband Internet service to the
rural areas of the US?
___ Yes
___ No
___ Maybe
11 – What services would you be interested in with broadband service? (Check all that apply.)
___ Internet
___ Telephone
___ Television ___ Other (please list)
Member Name _____________________________________________
Account number ________________
Service Address ___________________________________________________________________________________
Pagefeel
6 free to Include any additional comments
2015
Annual Report
Please
or information.
June-July 2016
Entertainment set for
the Annual Meeting!
Musical entertainment at 5:45 p.m.
Children’s entertainment at 7:30 p.m.
Business meeting at 7:30 p.m.
We’re looking forward to presenting two great family entertainment acts at the 2016 Annual Meeting on Thursday, July
21. Musical entertainment by the Ross Country Jamboree will be on the pavilion stage from 5:45 p.m. until the start of the
business meeting. A special children’s show, featuring magician Allan Head, will begin at 7:30 at the music stage in front of
the Antiques Building. Parents may want to bring blankets for children to sit on in front of the stage.
Registration gifts -- and more!
Registration gifts
Members registering at the 2016 Annual Meeting will receive a commemorative cast iron skillet as a “thank you” for taking part in this
important event of their cooperative. Anyone that became a member between now and our last annual meeting will receive a bonus
gift. Each new member that attends the meeting will receive a registration gift AND
an energy efficiency kit!
Power line safety demonstration
A special power line safety demonstration will be presented by REMC employees at
5:30 and 6:15 p.m. near the registration building. Jackson County REMC linemen
will be using Hoosier Energy’s safety display to teach safety practices for both adults
and children.
Free ice cream!
Our traditional treat of free hand-dipped ice cream cones will be served from 5:30 to
7:30 p.m. from the Immanuel Lutheran food stand located next to the pavilion.
Food stand open
The congregation of St. John Lutheran Church will again sell sandwiches and drinks
through the start of the business meeting at the Sauers food stand.
Annual Meeting grand door prize - 50 Gallon Heat Pump Water Heater
Several door prizes will be awarded following the completion of the business meeting. The grand prize this year will be a 50 gallon heat
pump water heater donated by Midway Winnelson Supply. Installation is donated by Brock’s Plumbing. You must be registered at the
annual meeting and you must be present at the drawing to win. The grand prize heat pump water heater must be installed in a home of
one of our members. Several gifts and gift cards donated by some of our area vendors will also be given away.
Special displays in the registration building
There will be several displays to browse during the evening, including the Energy Wall from Hoosier Energy and information from The
Lighting Store.
Beat the Peak! Sign-up at the annual meeting
and receive a chance to win a $50.00 bill credit!
Members can earn special electric bill credits by enrolling in the REMC’s Beat the Peak! energy management program at
the annual meeting. A device will then be installed on your water heater and air conditioning system to help our wholesale
power supplier Hoosier Energy during peak power generation situations. Beat the Peak! also helps keep REMC electric
rates steady by reducing the peak demands on which rates are based. Learn more about the Beat the Peak! program by
visiting with us at the 2016 annual meeting or by visiting our website
www.jacksonremc.com.
June-July 2016
2015 Annual Report
Page 7
2015 FINANCIAL REPORT
Condensed Statement of Income and Expenses
Income:
Electric Energy Sales
Other Electric Income
Total Electric Income
2015
$ 54,352,138
873,738
$55,225,876
2014
$ 54,609,191
921,440
$55,530,631
2005
$ 34,251,451
622,369
$34,873,820
Costs of Service:
Wholesale Power Purchased
Operations & Maintenance
Consumer Accounting & Member Services
Administrative & General
Depreciation
Taxes
Interest
Other Deductions
Total Costs of Service
$ 39,188,590
4,507,717
2,014,581
2,080,197
4,616,093
1,156,291
20,634
34,311
$53,618,414
$ 40,915,877
4,406,065
2,105,233
2,067,008
2,928,564
1,150,417
27,379
16,355
$53,616,898
$ 21,908,611
3,922,686
1,143,568
1,289,609
2,213,919
893,538
147,931
34,985
$31,554,847
$1,607,462
$ 1,913,733
$ 3,318,973
42,064
1,898,903
56,344
$ 3,604,773
46,142
2,052,914
60,440
$ 4,073,229
319,418
195,000
53,562
$ 3,886,953
Margins:
Operating Margins (Income less Costs)
Non-operating Margins
Interest Income
Power Supply Capital Credits
Other Non-operating Margins
Total Margins (Patronage Capital)
Condensed Statement of Assets and Liabilities
Assets:
Total Utility Plant
Accumulated Depreciation
Net Utility Plant
12/31/2015
$ 104,413,868
-27,632,350
$ 76,781,518
12/31/2014
$ 102,553,004
-25,038,254
$ 77,514,750
12/31/2005
$ 81,403,453
-16,390,491
$65,012,962
Working Funds
Materials & Supplies
Accounts Receivable
Other Current Assets
Total Current Assets
$ 7,517,294
1,236,887
5,643,343
61,209
$ 14,458,733
$ 5,795,021
1,143,550
7,375,869
52,552
$ 14,366,992
$ 4,341,545
770,482
5,482,243
61,333
$ 10,655,603
Investment in Associated Organizations
Other Assets and Deferred Debits
Total Assets
$ 16,510,699
0
$107,750,950
$ 14,590,705
0
$106,472,447
494,041
0
$76,162,606
$
8,553,978
136,833
3,119,984
1,900,852
$ 13,711,647
$
8,177,705
226,921
3,615,144
1,789,110
$ 13,808,880
$ 4,565,562
1,680,865
347,308
1,295,182
$ 7,888,917
$
$
$ 583,108
67,690,581
$68,273,689
$76,162,606
Liabilities & Deferred Credits:
Current Liabilities
Long Term Debt
Accumulated Provision for Pensions and Benefits
Customer Advances for Construction
Total Liabilities & Deferred Credits
Equity:
Membership Fees
Patronage Capital and Other Equities
Total Equity
Total Liabilities & Equity
Page 8
584,925
93,454,378
$ 94,039,303
$107,750,950
2015 Annual Report
584,327
92,079,240
$ 92,663,567
$106,472,447
$
June-July 2016
Summary of 2015 Statistics
kWh Purchased
kWh Sold
Percent Line Loss
Average Cost per kWh Purchased
Average Selling Price per kWh Sold
Average kWh Usage per Meter per Month
Average Bill per Meter per Month
2015
482,336,424
459,326,197
4.8%
$0.081
$0.118
1,576
$185.97
2014
510,278,836
486,268,994
4.7%
$0.080
$0.112
1,670
$187.04
2005
504,791,554
482,006,190
4.5%
$0.043
$0.071
1,679
$119.30
Additions to Utility Plant During Year
New Services Built
Services Retired
Hours Interruption Per Meter During Year
$4,144,314
164
135
3.8
$4,349,178
172
378
1.8
$4,791,295
416
194
2.2
24,281
9,127
9,315
2,587
334
8.3
$4,300
$6
24,266
9,150
9,353
2,579
331
8.3
$4,226
$9
23,926
8,462
9,210
2,634
266
8.3
$3,402
$70
Total Metered Services (Average for Year)
Total Electric Heat Services
Total Security Lights
Miles Overhead Distribution Line
Miles Underground Distribution Line
Metered Services per Mile of Line
Investment per Metered Service
Long Term Debt per Metered Service
2015 FINANCIAL NOTES
Operating results
 In 2015, overall accrued margins of $3,604,773 included $1,953,072 of non-cash capital credits from Hoosier Energy, Inc. and
other cooperative business partners.
 2015 kWh sales of 459,326,197 was 5.6 percent lower than 2014 kWh sales of 486,268,994.
Financing of capital expenditures
 The $4.1 million of 2015 investment in utility plant was financed from current year operations and cash on hand. No new loan
funds were required.
Rates
 The base retail rates charged by Jackson County REMC did not change through 2015. However, the power cost tracker from
our power supplier Hoosier Energy, Inc. did result in an average 1.67% increase per kWh.
Capital Credits
The Board of Directors authorized the retirement of Capital Credits allocated for the years 1969 through 1977. In November
2015 we retired $2,836,765. As of December 31, 2015, $1,316,954 of this had been refunded, and $1,519,811 remained to be
claimed.
Audit of Records
 The records of the corporation have been audited through June 30, 2015 by Monroe Shine & Co., Inc., Certified Public
Accountants. The annual audit for the twelve months ending June 30, 2016 will soon be underway.
June-July 2016
2015 Annual Report
Page 9
Minutes of the 2015 Annual Meeting
Held on Thursday, July 23, 2015 - to be approved at the July 21, 2016 meeting
Please take time to read these minutes before the 2016 Annual Meeting on July 21. In recent years, to save time, the minutes have
not been read during the business session and have been accepted as printed. It is hoped that this can be done again this year.
Questions, comments or corrections should be presented to General Manager Mark McKinney prior to the meeting.
The 77th Annual Meeting of the members
of the Jackson County Rural Electric
Membership Corporation was held at the
Jackson County Fairgrounds, State Road 250
in Brownstown, Indiana on Thursday, July 23,
2015.
Christina Schoenherr, Human Resources
Specialist, introduced Maisy Reilford who
sang the National Anthem. The Ross County
Jamboree provided the evening’s musical
entertainment prior to the convening of the
Annual Meeting. Director Walter Hunter gave
the invocation.
President John Trinkle then called the
meeting to order at 7:42 p.m. local time and
requested Jerry Kelley, Secretary/Treasurer,
to provide the proof of quorum. Mr. Kelley
reported that 721 members had registered.
This figure substantially exceeded the
required quorum of 399.
Secretary/Treasurer Kelley stated that
written notice of the Annual Meeting had been
mailed to each member of the Cooperative
on July 1, 2015 as required by the Bylaws.
This notice was published on Page 3 of
the June/July 2015 issue of the “Watt High
Lights” membership newsletter. A “Certificate
of Mailing of Notice of Annual Meeting
to Members” was filed by the Secretary/
Treasurer and is attached to the minutes
of this meeting as Exhibit “A”. President
Trinkle declared a quorum present and notice
properly issued and officially opened the
meeting.
Mr. Kelley presented a summary of the
minutes of the Annual Meeting of July 17,
2014 as published on Pages 10 and 11
of the June/July 2015 edition of the “Watt
High Lights”. President Trinkle asked for a
motion approving the minutes as distributed
by publication. Upon motion duly made and
seconded by a voice vote, the minutes of
the 2014 Annual Meeting were approved as
published without formal reading.
Page 10
The Secretary/Treasurer presented the
Treasurer’s Report for the year ending
December 31, 2014. Mr. Kelley stated that
this Financial Report was published on Pages
8 and 9 of the June/July 2015 issue of the
“Watt High Lights”. Mr. Kelley opened the
floor for questions or comments regarding the
2014 Financial Report as published. As there
were no questions or comments from the
members, upon motion duly made, seconded
and passed, the detailed reading of the 2014
Financial Report was waived, and the report
was approved as published. President Trinkle
ordered the Secretary to attach a copy of the
2014 Financial Report to the minutes of this
meeting as Exhibit “B”.
President Trinkle (representing District 3)
introduced those directors serving current
terms: John Hackman (District 1); Paul Elliott
(District 4); Mark Trisler (District 6); Curtis
Wischmeier (District 7); and John Miller
(District 9). The Attorney for the Cooperative,
Andrew Wright of Salem, Indiana, was also
introduced.
President Trinkle then conducted the
election of directors. President Trinkle said
that the Nominating Committees appointed
by the Board of Directors were: District
2 – Duane D. Martin (Chairman), Jeffery
Anderson and Donald Apple; District 5 –
James G. Broady (Chairman), Billy Comer
and Bryan Richey; and District 8 – Andy
Fountain (Chairman), Brian Thompson and
David Horton.
President Trinkle announced that these
committees had nominated the following
candidates: District 2 – Walter Hunter
and William Neil Hayes; District 5 – Jerry
Kelley; and District 8 – Earl Pottschmidt and
David A. Hall. The report of the Nominating
Committees is attached as Exhibit “C” to
these minutes. No nominations by petition
were filed. Notice of these nominations was
published on Pages 4 and 5 of the June/
July 2015 issue of the “Watt High Lights”.
President Trinkle thanked the Nominating
2015 Annual Report
Committees for their efforts.
The members of the Election and
Credentials Committee who had been
appointed by the Board of Directors were
introduced. These members were: Denver
Hackman (Jackson County); Todd Thomas
(Lawrence County); Phil Walker (Jackson
County); Courtney Kruse (Jackson County);
and Jean Day (Washington County). This
committee supervises the election of directors
during the Annual Meeting. President Trinkle
expressed his appreciation to the Committee
for these efforts.
President Trinkle declared the registration
of members for the Annual Meeting closed.
Members present were then requested to fill
out the ballots received at registration. The
Election and Credentials Committee then
collected the ballots from members present in
the meeting pavilion and from the two ballot
boxes that were located in the registration
area in Exhibit Building No. 3.
While the ballots were being collected,
President Trinkle expressed appreciation
to the Jackson County Fair Board for again
providing the premises of the fairgrounds for
the Annual Meeting.
General Manager Mark McKinney then
introduced the special guests for the
evening including the following: Jackson
County REMC retirees – Don Clodfelter, Jed
Wheatley, Brian Wolka, Lowell Wessel and
Pete Johnson; Janet Anthony, Bartholomew
County REMC; Randy Haymaker, Hoosier
Energy; Matt Deaton, Orange County REMC;
Jack Norris, Jim Weimer, James A. Jackson,
David Stone, Jack Knust and Bill Watkins of
Utilities District of Western Indiana REMC;
Brian Stavish, Regional Vice President of
Cooperative Finance Corporation; Indiana
State Representative Eric Koch; and Senator
Erin Houchin and her husband, Dustin
Houchin.
General Manager McKinney then presented
June-July 2016
his annual report. Mr. McKinney noted that
the REMC has now been in business for 77
years. He stated that one reason for the
continued success of the Cooperative is that
it has an elected Board of Directors whose
primary focus has been on its members and
employees. Another reason for the REMC’s
success is that it has always had dedicated
employees who work hard to provide the
highest possible level of customer service.
He cited as an example recent timely efforts
to restore power after storm damage. Mr.
McKinney noted that the current employees
are listed on a handout that each member
received at registration. The 67 employees
have a total of more than 1,000 years of
experience in working with the Cooperative.
Mr. McKinney then noted the continuing
challenge of operating under the regulations
of the Environmental Protection Agency
which seek to regulate greenhouse gas. He
remarked that 13% of the coal-fired generated
capacity in the United States will be retired
by 2020. Hoosier Energy, which supplies
the REMC with electricity, has determined
to retire a 250-megawatt coal-fired plant
due to industry uncertainty and regulatory
compliance costs. Natural gas will probably
be used to replace this coal-fired generation.
Renewable energy resources are also being
utilized to provide power. Hoosier Energy
adopted a target of obtaining 10% of its
energy needs from renewable resources
by 2025. These renewable resources of
Hoosier Energy include wind power, landfill
gas projects and a small solar site. Hoosier
Energy projects that 6% of its total power
supplied by the end of next year will come
from renewable energy sources. The REMC
continues to help members with energy
efficiency and demand side management
to hold down its overall costs. Rebates
on various heating and cooling systems
are offered. Discounts on energy efficient
light bulbs and filters are available. Energy
management alternatives are also offered
to members with a bill credit incentive.
The Cooperative continues to improve
its communication as part of its mission
to provide safe, reliable and economical
electricity. These methods of communication
include the “Watt High Lights” newsletter,
an Internet website, Facebook page, Twitter
account and SmartHub. More than 6,700
members presently utilize SmartHub to
manage their electrical usage. As a not-forprofit organization, Mr. McKinney stressed
June-July 2016
that the REMC seeks to maximize member
satisfaction; not maximize sales.
Christina Schoenherr then introduced the
three participants in the 2015 NRECA Youth
Leadership Council trip to Washington, D.C.
The youth representing the REMC at this
annual conference were: Connor Burgess
(son of David and Melanie Burgess); Hannah
Gallion (daughter of Joey and Beth Gallion);
and Adrienne Hoar (daughter of James Hoar
and Tracy Jones). Hannah Gallion and
Adrienne Hoar were present to share their
experiences and impressions of the trip and
express their thanks for the opportunity to visit
our nation’s capital.
Christina Schoenherr then introduced the
winners of the Indiana Electric Cooperatives
Electric Consumer Calendar Art Contest.
The First Place Winners were: Kindergarten
– Oliver Lanam (son of Josh and Lacey
Lanam); 2nd Grade – Blaine Wehmiller (son
of Nathan and Summer Wehmiller); and 3rd
Grade – Kelis East (son of Todd and Tiffany
East). Honorable Mention Winner 5th grader
Luke Lanam (son of Josh and Lacey Lanam)
was also recognized.
President Trinkle then gave his annual
report to the membership. Mr. Trinkle
stated that the responsibility of the Board of
Directors is to set policy and not to manage
the details of operation. He informed the
members that the current board has a wide
range of experience and background. The
service of the present board members ranges
from 2 to 40 years. This provides a good mix
of knowledge of the operations of the REMC
with a fresh perspective from the membership.
Mr. Trinkle explained that the REMC is
also a member of Hoosier Energy which
is an electrical generation and distribution
cooperative. The REMC has one of the 18
board positions on the Hoosier Energy board.
That board also has a good perspective
as its members have served anywhere
from 1 to 20 years. Mr. Trinkle also stated
that the REMC is a member of the Indiana
Electric Cooperative Association and has a
board member that serves on that statewide
organization. Relations with Hoosier Energy
remain good. Hoosier Energy recently had to
construct new headquarters which was badly
needed. Mr. Trinkle asked the membership
to review the financial highlights distributed at
registration. The REMC’s residential cost for
kilowatt hours was below the state average;
2015 Annual Report
its long-term debt has decreased in the last 10
years; and over 73% of its revenues are spent
on purchasing power from Hoosier Energy.
Mr. Trinkle then explained that another
capital credit distribution will be made to the
membership next year. The REMC does not
make profits but has operating margins. The
REMC board decided three years ago to start
distributing these operating margins to its
members through capital credit distributions.
The upcoming capital credit distribution will
be for 1969 to 1977. Although the distribution
of capital credits reduces the amount of
funds available for current operations, it is a
hallmark of the Cooperative business model.
President Trinkle then called upon Attorney
Wright to report the results of the election of
directors. He announced that Walter Hunter
had been re-elected for District 2; Jerry Kelley
had been re-elected for District 5; and Earl
Pottschmidt had been re-elected for District 8.
A Certificate of Election was presented to the
Secretary and is attached to these minutes as
Exhibit “D”.
President Trinkle then asked if there was
any further business to be placed before the
membership. As no further business was
presented, a motion for adjournment was
made, seconded and approved by voice vote.
At the adjournment of the business
meeting, Christina Schoenherr presented
attendance awards and conducted a
drawing for door prizes which had been
donated by the vendors of the Cooperative.
______________________________
Jerry Kelley, Secretary/Treasurer
Page 11
The following steps will help make your registration go
smoothly:
1. Clip out the registration form printed
to the right.
2. Bring your form to the Annual Meeting.
3. Sign the form in front of a registration clerk.
When you register you will be given a ballot to vote
for the election of directors. You may vote before the
business meeting, or you may vote during the business
meeting after the nominees have been introduced.
Your name will also be placed in the drawing for door
prizes to be held following the business meeting. You
must be present at the drawing to claim a prize.
Please note: If the name(s) listed on the
registration form on this page are not correct, or if a
change is desired, please contact our Billing
Department as soon as possible. Only those members
whose names appear on our records will be eligible
to register. A member may register only once, even
though more than one account may be in his or her
name. A tenant may not register if an account is in
the landlord’s name, nor may a landlord register if an
account is in a tenant’s name. Agents for churches,
organizations and businesses must certify that they are
authorized representatives.
An election and credentials
committee of appointed members will
be on hand to resolve any
registration problems that may arise.
2016 Annual Meeting Registration
Registration will take place in exhibit building #3 of the
Jackson County Fairgrounds.
To speed your registration at the Annual Meeting, please
clip and bring this form, including the mailing label. Do not
sign this form until you are at the registration desk. Thank
you.
Annual Meeting registration will begin promptly at 5:30
p.m. and end at 7:45 p.m. (EDT).
Signature ______________________________
Please wait to sign at registration desk
Registration
Information for 2016
Annual Meeting
Plans are in place for 78th
Annual Meeting on July 21
Registration 5:30 to 7:45 p.m. Exhibit building #3 will
open at 5:30 p.m. sharp for member registration.
Free ice cream! Free hand-dipped ice cream cones will be
served from 5:30 to 7:30 p.m.
Power line safety demonstration REMC line employees
will present power line safety demonstrations at 5:30 and 6:15 p.m.
near the registration building.
Musical entertainment Entertainment from the Ross Country Jamboree Kings of Wing Band will be in the pavilion beginning
at 5:45 p.m.
Business session and election of directors The
business session of the Annual Meeting will be called to order in
the pavilion at 7:30 p.m.
Food stand to be open The St. John Lutheran Church food
stand will be selling items for a light supper through the start of the
business meeting.
For the children Magician Allan Head will provide an hour of
fun at the Antique Building stage beginning at 7:30 p.m. You may
wish to bring blankets for seating.
Door prize drawing immediately after the
business meeting. You must be a registered member, and
you must be present at the drawing to win a door prize, so plan to
stay and enjoy all of the evening’s events. This year’s grand prize
is a 50 gallon heat pump water heater.