Annual Report 2024
Kankakee Valley Rural Electric Membership Corporation (REMC) headquartered in Wanatah, Indiana, is a member-consumer owned cooperative that provides electric power to portions of Starke, LaPorte, Porter, Lake, St. Joseph, Pulaski and Marshall counties in Northwest Indiana.
Over 21,000 households and businesses receive power from Kankakee Valley REMC in 2024. The cooperative employs 55 people to serve its residential, commercial and industrial accounts.
Scott Sears Chief Executive Officer
Responsive and ready: A LETTER TO OUR MEMBERS
If you were to go back and read the “Letter to the Members” in past annual reports, you would discover they focused more on looking ahead rather than looking back. That is because our leadership team recognizes the world is changing faster than ever, and we need to make sure our cooperative is prepared for what’s ahead — specifically, what the demand for energy will look like in the not-so-distant future.
This year, we took a big step towards the future of energy when we switched to time-of-use rates. This move came in response to years of hearing our members’ requests for ways they could take more control over their energy bills. Our power supplier already charges us for electricity based on the time of day it’s used. We felt it was only fair to give our members a choice in how they use their power based on what it costs at different times — running your dishwasher or clothes dryer when everyone’s asleep results in real savings. Of course, we couldn’t offer this control without past improvements like installing the new metering system. Each improvement we make prepares us for the next.
We’ve also continued our focus on improving the reliability of our service. While it’s impossible to predict when and where lightning or a high windstorm might cause an outage, we’ve been working to improve our infrastructure. For example, in the
Junior Board of Directors
last year, we completely rebuilt 22.8 miles of power lines to improve reliability.
Your co-op also trimmed trees and other vegetation along 390 miles of power lines. We flipped the switch on the new Yellow River substation to improve service to the Knox area and are preparing plans to add another substation near Hanna in 2027. Steps like these improve reliability and prepare us for increased electrical demand in the future.
If you read the monthly publication Indiana Connection or follow us on social media, you will probably find that we listen to our membership, address your concerns, and focus on improvements to enhance our ability to deliver safe and reliable electricity. That is what being an electric co-op is all about: serving you, your friends, and neighbors.
Dave Janney Board President Kankakee Valley REMC
Scott Sears Chief Executive Officer Kankakee
Local high school juniors selected to serve on the Junior Board of Directors get the opportunity to gain valuable experience in leadership, teamwork and decision-making while learning about the community. The 8-month program allows the students to work together to complete their own community service project, meet for monthly sessions and even visit the Statehouse and meet with area legislators. Successful completion of the program earns them a college scholarship.
Valley REMC
• Brooke Bos
• Kerslynn Collins
• Londyn Connelly
• Allison Dillman
• Kaylee Egolf
• Ava Fasshauer
• Kaleb Gorski
• Karsten Gulab
• Aurora Henrichs
• Kenneth Hurni
• Lupita Osornio
• Audrey Rakowski
• Briella Woods
Secretary-Treasurer Report
Kankakee Valley REMC continues to focus on costefficient provision of reliable electric service in this always challenging environment. As expected, most of our cooperative's assets are the member owned utility plants necessary for providing service to our membership. As of year-end, the cooperative owned just shy of $115 million worth of assets, and over 90% were the utility plant needed to serve the membership. Cash has stayed consistent with the prior year, and the balance sheet remains strong. Rate pressure is always a priority, and your cooperative continues to utilize borrowing from Rural Utility Services to continue the plant investments needed while spreading the costs over the years the plant will be in use for our members.
In the current year, total revenue collected was just over $44 million. The majority of this was to purchase the power needed to distribute to our members. Administrative and operational expenses stayed consistent with prior years as the cooperative focused on efficiency. Net margins were higher due to allocations from our cooperative partner, which are also owned by the membership. The balance sheet remains strong for your cooperative, and the focus on reliable service efficiently provided is still a top priority.
Sources and Uses of Cash Margins
THE YEAR ENDING DEC. 31, 2024
Kankakee Valley REMC has included in this report the financial statements from the year ended Dec. 31, 2024. These financial statements are reported to the REMC’s lenders, as well as our members. Kankakee Valley REMC also has an annual audit performed by London Witte Group, LLC, Certified Public Accountants, for the fiscal year ended March 31, 2024. The audit reports are on file at the REMC office and available for inspection within 120 days after the audit period ends.
Statement of Operations
Comparative Balance Sheet
2024 Operating Expenses
MINUTES OF THE ANNUAL MEETING OF MEMBERS OF THE KANKAKEE VALLEY RURAL ELECTRIC MEMBERSHIP CORPORATION, INC.
September 26, 2024
The 2024 Annual Meeting of the membership of the Kankakee Valley Rural Electric Membership Corporation was held at the Porter County Fairgrounds in Valparaiso, Porter County, Indiana, on the 26th day of September 2024. A catered meal was served to the members beginning at 4:30 p.m. CST by REMC employees and board members. Live music was presented on the indoor stage from beginning at 5 p.m. The business meeting was scheduled to begin at 7:30 p.m. CST, pursuant to notice provided to each member of the cooperative. The business meeting included the announcement of board members for a new three-year term and prizes as awarded.
A copy of the proof of mailing of the Notices and Secretary’s Affidavit is appended as EXHIBIT A, at the end of these minutes, and was included in the member program distributed to each member who appeared and registered at the meeting.
The business meeting opened, and the first matter of business was the consideration of the notice of the meeting. The reading of the Notice of the Meeting to Members as provided in Bylaw Art. III Sec. 3, was waived and dispensed after a motion duly made and seconded carried on a unanimous vote. The next item on the agenda was the reading of the minutes of the 2023 Annual Meeting. On motion duly made and seconded, the membership resolved to waive reading of the minutes. Then, on motion duly made and seconded, the minutes of the 2023 Annual Meeting were approved as printed in the program, on vote. A count of the members presents for the meeting showed that a quorum was reached pursuant to Bylaw Art. IV Sec. 4(d). A total of 695 members appeared in person at the Annual Meeting.
During the meeting, Board President Mike Yankauskas highlighted key achievements from the past year, including the return of $1.7 million in capital credits, progress on the fiber loop project, and the vital support of state and federal legislators for cooperative initiatives.
John Cassidy, CEO of Indiana Electric Cooperatives, provided a statelevel industry update, highlighting trends across the utility industry and key policy discussions that their government relations team is working on to assist all cooperative members in the state.
The Junior Board of Directors was acknowledged for the successful completion of the program by being awarded a scholarship.
CEO Scott Sears delivered a cooperative update and introduced the new time-of-use rate structure, set to take effect in March 2025. This change reflects members’ growing interest in greater control over energy use and monthly savings.
Corporate Counsel Tim Krsak advised the membership during the meeting that three director seats up for election at this annual meeting for terms of three years each or until their successor shall be duly elected and qualified. The candidates were selected by obtaining nominations by petition pursuant to the bylaws of the cooperative.
All members had been given instructions to carry out the membership voting. Voting could be accomplished online in advance of the Annual Meeting and in person at the Annual Meeting.
In accordance with Bylaw Art. IV the following candidates were nominated for election by petition in Districts 3 and 5 and At-Large (7).
District 3: Bill Bohling, Chet Hunsley
District 5: Katrina Harper (unopposed)
At-Large (7): David Janney (unopposed)
Because there was only one eligible member running for two (2) of the board seats, in accordance with Bylaw Art. IV, Section IV no vote was held and board candidates for District 5 and the At-Large District were elected by motion made and duly seconded by the members at the Annual Meeting. On motion duly made and seconded, Katrina Harper was duly elected to the position of Director of District 5 for the ensuing three years. On motion duly made and seconded, Dave Janney was duly elected to the position of Director At Large for the ensuing three years.
Attorney Krsak called the members appointed to serve as election inspectors to gather and begin the count of the votes and certify the election. The members appointed to serve as election inspectors were Sherri Bartoli, Richard Arndt, and Brittany Travis.
The election inspectors, aided by KVREMC employees, counted the votes cast for the election for the District 3 position, where Bill Bohling and Chet Hunsley were on the ballot by virtue of their nomination. Ballots were counted and added to the pre-meeting voting and the total results showed: Bohling with 667 votes and Hunsley with 430 votes. Thus, Bohling was duly elected to the board of directors for District 3 for the ensuing three years or until his successor has been elected and qualified. The results of the election to the board for Districts 3 and 5 and the At-Large District were duly certified by the Election Inspectors, and the prevailing candidates are as reported above.
The Certificate of Election Inspectors is available to the memberconsumers upon request at the Kankakee Valley REMC office.
CEO Sears announced prize winners, including anyone whose registration card was selected, regardless of whether or not the member was present at the time of the drawing.
The chairman called for any other business or new business to be brought to the attention of the membership; there being none, the meeting was duly adjourned.
Dave Janney
Board President, Chairman of the Meeting
Bill Bohling
Secretary of the board, Secretary of the meeting
The foregoing proceedings were held September 26, 2024 at the Porter County Expo Center, Valparaiso, IN, Porter County, IN.
Secretary’s Affidavit of Mailing of the Notice of the 2024 Annual Meeting
EXHIBIT A
State of Indiana, County of LaPorte
I, Bill Bohling, being first duly sworn, upon his oath deposes and says: That I am the duly elected and qualified Secretary of the Kankakee Valley Rural Electric Membership Corporation, hereinafter called the Cooperative.
That on the 5th day of August 2024, I had mailed to each member-consumer of the cooperative, to the addresses as they appear on the records of the Cooperative, a notice of the Annual Meeting of the member-consumers to be held on Sept. 26, 2024, by deposing such notice with postage prepaid thereon and addressed as aforesaid in the United States mail. The total number of memberconsumers receiving notice of the Annual Meeting on said date was 17,074.
Subscribed and sworn to Bill Bohling, Secretary, before me this 5th day of April.
Alissa Tucker
Notary Public County of Resident, LaPorte. My commission expires February 2030.
OPERATION ROUND UP YEAR IN REVIEW:
Together, we made a difference
At Kankakee Valley REMC, community isn’t just part of what we do, it’s who we are. As we look back on the year, Operation Round Up is an excellent example of what can happen when people come together to help one another.
Through this program, members choose to round up their electric bills to the next dollar. It might not seem like much, but that small change can add up fast. The money goes into a fund that provides grants to local nonprofits supporting our community residents.
In 2024, thanks to the generosity of our members, Operation Round Up gave back $81,000, supporting everything from food pantries to emergency services to youth programs. That’s a big impact, made possible by many small acts of kindness.
Operation Round Up is a simple way we all live out the cooperative value of Concern for Community.
Grant Recipients
Call A Ride, Inc.
HealthLinc, Inc.
iCaleb & Company
Junior Achievement LaPorte
Junior Achievement Starke County
Kouts Fire Department
Kouts Park Department
LaPorte County Sheriff’s Office
South Central High School
St. Thomas Aquinas Conference of the St. Vincent de Paul Society
Starke County EMS
Starke County Extension Homemakers
Wanatah Public Library
Washington Township Volunteer Fire
Food Pantries
The Christian Community Food Pantry
The Church of Jesus Christ of Valparaiso
Community Services of Starke County
Hebron Country Pantry
Holy Spirit Church
North Judson United Methodist
Church Food Pantry
Pulaski County Human Services
SC Weekend Food Program
St. Vincent de Paul Society
Supplemental United Pantry
Kouts Fire Department