2016 March Orange County REMC News

NEWS FROM YOUR COOPERATI www.myremc.coop CONTACT US OFFICE

812-865-2229 TOLL FREE 888-337-5900 BILL PAYMENTS 855-865-2229 CONTACT US BY EMAIL

orangecoremc@myremc.coop GENERAL MANAGER/CEO

Matthew C. Deaton OFFICE HOURS

7 a.m.–5 p.m., Monday-Friday STREET ADDRESS

7133 N. State Road 337 Orleans, IN 47452 MAILING ADDRESS

P.O. Box 208, Orleans, IN 47452 EMERGENCY POWER OUTAGES

To report service interruptions, call: 812-865-2229 or 888-337-5900, day or night. Please have the phone number associated with your account ready when reporting outages. Please limit after hours calls to emergencies and outage situations.

BOARD OF DIRECTORS

Eugene Roberts, DISTRICT 1 Randy Roberts, DISTRICT 2 Danny Easterday, DISTRICT 3 Rodney Hager, DISTRICT 4 Ben Lindsey, DISTRICT 5 Brian Hawkins, DISTRICT 6 George Key, DISTRICT 7 REMC KEY STAFF

Marty Frank, OPERATIONS MANAGER Marcy Bennett, OFFICE MANAGER Larry Pinnick, MATERIALS MANAGER Michael Roberts, STAKING ENGINEER Misty Tincher, ACCOUNTANT Billy Chastain, STAKING ENGINEER AIDE Mark Belcher, MARKETING/MEMBER SERVICES

Security lighting is an effective defense in protecting home owners.

Security lights are available for only $9.82 per month from Orange County REMC. Other sizes are available for commercial applications. Contact our office for more details or visit www.myremc.coop.

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Always be in beta Your Cooperative’s management and directors often talk about planning for system growth, system integrity and long-term system reliability, as well as planning for the future in other ways.

In order to further develop MATTHEW C. our strategic plan, Orange DEATON County REMC has retained Alpha Engineering, Indianapolis, to perform an electric cost of service study as a part of its ongoing efforts to maintain fiscal responsibility and ensure fair rates for our electric utility members. Our rate-making goals are to establish a fair allocation of costs to all members and equalize the rate of return among all member rate classes.

We will have three clear data points when the cost of service study is complete.

First, we will have analyzed all rate classes including our residential, intermediate, and large power rates. Again, this study will specifically seek to ensure rate classes are paying their fair share without subsidizing other rate classes.

Secondly, a revenue requirement analysis will compare overall revenues of Orange County REMC to our expenses. This helps determine the overall adjustment necessary to meet a rate of return. Taken into account within this point are any known cost increases or decreases the cooperative expects within the three- to five-year projection.

Finally, the study will establish equitable allocation of the revenue requirements to the various member classes of service.

The last time a comprehensive cost of service study was performed for Orange County REMC was in 2009. As I look across the rate classes, the makeup of our membership has changed over these past five to six years. Poultry operations are a specific area in which are membership has grown.

Having the most up-to-date information, which includes the data points mentioned above, will allow for informed decisionmaking in the future.

ELECTRIC CONSUMER • MARCH 2016 • ElectricConsumer.org

While the cost of service study does look at both the revenue and expense side of the business equation, I wanted to take a moment to discuss efforts your cooperative has taken to manage the business expenses in both 2015 and already in 2016.

The final financial report for 2015 reflected savings in every expense category in which we can immediately control. Maintenance and operation expenses were down 5.8 percent compared to budget. Consumer, sales and administrative and general expenses, as well as total operation and maintenance expenses, were all down by an average of 7.86 percent compared to budget.

These significant savings did not happen by chance, but by our linemen and our office personnel identifying and executing cost savings projects and implementing more efficient business process. Already in 2016, a more efficient means of banking and executing our financial requirements has been identified and executed that will result in additional savings over what we saw in 2015.

The staff is committed to not only looking for process efficiencies and cost savings last year or this year but to look at them on an on-going basis. I am working to instill the mindset to “always be in beta” which refers to when a company releases its newest version of a software. Typically, they run this new version in beta to work out the “bugs” before releasing it to the public.

During this time, the precise workings of the software are heavily scrutinized to ensure proper function. The time spent in beta is a time of heightened awareness with an open mind to make the changes necessary, so the final product will be the best it can possibly be. If Orange County REMC’s mindset is to “always be in beta”, we can do the job incumbent on us, which is to ensure the cooperative operates as efficiently as possible, through a willingness and awareness to bring positive change to our membership as necessary. …

MATTHEW C. DEATON is the general manager/ CEO of Orange County REMC.

IVE Rate Schedule (for January, February and March 2016) Rate Schedule for Standard Service Standard Service Consumer Charge Standard Service Energy Charge Wholesale Power Cost Tracker Total bill x Indiana sales tax 7%

2016 Director Election Timeline Incumbents whose terms expire: District 2: Randy Roberts District 4: Rodney Hager District 7: George Key

k Petitions of nominations due by April 20 k Nominations by the board (absent incumbents seeking re-elections or petitioners) by April 20 k Full slate of candidates posted and mailed by May 13 k All candidate biographies published in the May or June issue of the Electric Consumer k Election at annual meeting on June 3

Example for 1,200 kwh Standard Service Standard Service Consumer Charge $26.00 1,200 kWh @ $0.1124 $134.88 Wholesale Power Cost Tracker @ $0.0028465 $3.42 Total $164.30 Indiana sales tax $11.50 Total bill $175.80

Rate Schedule for Time of Use Service Time of Use Consumer Charge $30.90 Energy Charge On-Peak $0.1671 (On-Peak: 7 a.m. to 11 a.m. and 4 p.m. to 9 p.m. Monday-Friday, EST)

Energy Charge Off-Peak Wholesale Power Cost Tracker Total bill x Indiana sales tax 7%

$0.0691 $0.0028465

Example for Time of Use, 300 kwh On-Peak and 900 kwh Off-Peak Time of Use Consumer Charge $30.90 Energy Charge On-Peak 300 kwh @ $0.1671 $50.13 Energy Charge Off-Peak 900 kwh @ $0.0691 $62.19 Wholesale Power Cost Tracker @ $0.0028465 $3.42 Total $146.64 Indiana sales tax $10.26 Total bill $156.90

Rate Schedule for Security Lighting Security Lighting: 100 W HPS $9.82 Security Lighting: 40 W LED $9.82

Visa, MasterCard and Discover cards accepted

Orange County REMC lineman Robert White demonstrates contact with power lines during a safety presentation for employees from Smithville Fiber who visited the facility on Feb. 4.

Jeffrey and Marcy Bennett Orange County REMC’s Jeffrey Bennett has been a journeyman lineman for 25 years. His wife, Marcy, is the office manager at the REMC and has worked for the co-op for 18 years. Their family includes four children, Tim, Heather, Danielle and Chase, along with four grandchildren, Keisha, Kody, Ali and Eli. The Bennetts attend Work of God Church in Mitchell and enjoy motorcycle riding.

$26.00 $0.1124 $0.0028465

Operations manager Marty Frank (left) talks with Smithville Fiber employees about possible situations they might encounter on the job.

ElectricConsumer.org • MARCH 2016 • ELECTRIC CONSUMER 5

Orange County REMC News

Heat pumps 101

Learn the basics before you build a home or upgrade your HVAC system Think of the name “heat pump.” It likely conjures all sorts of images to mind, none of which reflect the fact that these systems operate using the second law of thermodynamics. Yes, I hear the groans, but stick with me; it isn’t going to be that bad, and you may learn something new!

There are two basic types of heat pump MARK technology — air source and ground source, BELCHER also called geothermal. In an air source heat pump, the equipment uses the outside air to provide the means for heating and cooling your home. A ground source or geothermal heat pump uses good old Mother Earth’s dirt.

Because geothermal heat pump operation is a little easier to describe, I will start there. Once you get a short distance below the surface, around a depth of four feet, the temperature of the ground stays a reasonably constant 50 to 55 F year-round. Have you ever gone into a cave or toured a cavern? In the summer, it is nice and cool. In the winter, it seems cozy and warm. What you sense is the difference between the outside temperature and that of the cavern below ground.

Geothermal heat pumps use this temperature difference to heat and cool. These systems need some sort of heat exchanger installed underground, either vertically or horizontally, and filled with a fluid. The equipment at the house itself resembles a typical HVAC system. It uses pumps and compressors to move the fluid through pipes inside the house and in the ground where it picks up or gives off heat, depending upon the need. The process is rather simple, using a fluid to move (or pump) heat from one place to another.

Air source heat pumps may seem harder to grasp. How can such a system cool my home when the outside air is so hot? Or, heat it when it is so cold? Again, the mechanics of the system take advantage of very small differences in temperature using the proper compressor and refrigerant mix.

Just like its ground source cousin, the air source heat pump moves heat from one spot to another. The difference is that the medium to exchange heat is the outside air, rather than the ground. Both air source and ground source heat pumps use refrigerant to capture the heat and carry it to where it is exchanged — either in the ground or using the outside air.

Heat pumps are very efficient, much more so than traditional heating and cooling systems. Let’s use a heat pump with a COP (coefficient of performance) of 3.0 as an example: For every unit of energy used, the system produces three units of heating /cooling. Geothermal systems have COPs of 5.0 and higher. This is because of the more constant ground temperature, and because of this, a geothermal pump can operate in nearly any climate and work well with both baseboard hot water and forced air systems.

It’s not a bunch of hocus pocus — just that law of thermodynamics.

Heat pumps, properly applied, can make a world of difference to your monthly bill as well as to your comfort. Talk to the energy experts at Orange County REMC, and find out if a heat pump is the ticket for your heating and cooling needs. If you’re in the market to purchase one, we offer financing for qualified members. …

MARK BELCHER is the marketing/member services manager for Orange County REMC.

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ELECTRIC CONSUMER • MARCH 2016 • ElectricConsumer.org

Know the risks before firing up your generator

E

lectricity is such a necessity that some people — especially those who rely on electricity for life-sustaining devices — keep a portable generator on hand in case the power goes out.

Generators are useful as a backup power source during emergencies or as the primary power source where electricity is not available.

Though they serve an important purpose, generators can also be dangerous and deadly. The energy experts at your electric cooperative warn you to be careful before firing up your generator.

“Anytime you use a generator, you’re putting yourself at risk,” said Marty Frank, operations manager. “You can get shocked — or even electrocuted — from improper use of power or accidentally energizing other electrical systems.

Frank said the first thing you should do when you purchase a generator is to read its instruction manual.

“Because there are so many hazards associated with a generator, you need to make sure you know what you’re dealing with,” Frank said.

One of the most important rules of generator use: You must never attach a generator directly to your home’s electrical system unless a qualified electrician has installed the generator with a transfer switch.

If you ignore this advice, your generator can energize wiring systems that are far from your home (this is called “backfeed”), which means utility workers and others could be electrocuted because of your carelessness. You could also damage utility equipment, your appliances and your generator.

“When plugging your appliances directly into the generator, only use the cords supplied by the manufacturer or grounded, threepronged extension cords,” Frank warned. “Don’t overload the generator. If it overheats, it becomes a fire hazard.”

Remember to use ground fault circuit interrupters and make sure the generator is properly grounded and that the grounding connections are tight.

A major risk from using a generator is carbon monoxide (CO) poisoning.

“Carbon monoxide is exhausted from generators whenever they are used, and because CO is odorless and colorless, it can affect you without your knowledge,” Frank said. “That’s why you should never use a generator indoors.”

Place your generator outdoors, making sure its exhaust fumes will not enter your home. When choosing a location for your generator, look for a dry, wellventilated area and make sure it is protected from direct exposure to rain and snow.

If you are exposed to CO and experience symptoms like dizziness, headaches, nausea or tiredness, immediately get fresh air and seek medical attention. …

Generator dos and don’ts k

Don’t use a generator indoors or in an attached garage. Generators are internal combustion engines that emit carbon monoxide, an odorless, colorless poisonous gas that can lead to death.

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Do place your generator outside where exhaust fumes will not enter enclosed spaces. Make sure it is in a well-ventilated dry area away from rain and snow.

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Do install a battery-operated carbon monoxide detector in your house so you know if carbon monoxide levels are dangerous.

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Don’t connect your generator directly to your home’s wiring. If you do, it can “backfeed” into the power lines connected to your home and could kill linemen who may be working to repair outages many miles away.

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Do connect heavy-duty, outdoor-rated power cords to the generator. Then, connect appliances to the power cord, being careful to ensure they are in the wattage range the generator can supply.

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Don’t overload the generator. Only use it to power a limited number of appliances or equipment.

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Do make sure your generator is properly grounded to avoid electrical shocks.

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Don’t store gasoline for generators indoors or in a garage if there’s a water heater or other fuelburning appliance there.

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Do shut off the generator before refueling it.

As well, turn off all equipment powered by the generator before shutting it off.

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Do have a fully charged fire extinguisher near the generator, just in case.

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Don’t touch a generator if you are wet or standing on a wet surface.

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Do keep children away from generators.

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Don’t leave a running generator unattended. Turn it off before you go to sleep or leave the house.

SOURCES: CALIFORNIA ENERGY COMMISSION, FLORIDA POWER AND LIGHT

SOURCES: OSHA, BRIGGS AND STRATTON, CALIFORNIA ENERGY COMMISSION

ElectricConsumer.org • MARCH 2016 • ELECTRIC CONSUMER 29