DECEMBER 2020
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WFEC Renewables Report
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Operation Round Up report
A supplement to the Oklahoma Living
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Christmas Cranberry Salad
Lig ght Post
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PUBLISHED FOR MEMBERS OF KIAMICHI ELECTRIC COOPERATIVE
S TAT E O F YO U R C O O P E R AT I V E WITH CEO BRETT ORME
Hey, Kiamichi Electric Members. 2020 has been a very trying year to say the least. COVID-19 has had a substantial effect on all of us. I am very disappointed it was necessary to postpone this year’s annual meeting. I always enjoy the opportunity to meet with you, our members face to face and hear what is important to you. With the current status of the health risk to members and employees as well as CDC guidelines postponing seemed the safest option available. We were also not able to secure our normal venue due to the pandemic which caused other logistical concerns. I would like to update you on the state of your cooperative. The first item I would like to address in the State of Your Cooperative is your cooperative’s financial health. Kiamichi is in good financial health. Your year-end revenue was $40.4 million which was up approximately 5% from the previous year. Your net margins were $1.66 million at fiscal year-end. Kiamichi’s lenders require us to maintain margins on an annual basis, but these are ultimately returned to you, the members of the cooperative. CAPITAL CREDITS AND FINANCIAL AUDIT
Your Board voted to return just over $1 million in margins in 2020. This makes the 10th straight year that the board has voted to return at least 1 years’ worth of margins back to our members. This puts Kiamichi Electric Cooperative 4.5 years ahead of schedule for returning these margins to the membership. Your Board also voted to return these margins early this year to try and help in a small way by getting the money back in the pockets of the members during these difficult times.
KEC has returned a total of $14.9 million in capital credit retirements since inception in 1945. Returning these margins as capital credits to you our members is what makes electric cooperatives different! These are not returned as profits for shareholders but to you the members. Every year the KEC Board of Trustees contracts with an independent external auditor to audit Kiamichi Electric’s financials. This is done through a competitive bidding process. The audit ending calendar year 2019 had a clean audit opinion and there were no material misstatements. The audited financials were published in the Light Post that was sent out to all members. The financial statements can also be viewed on the website at www.kiamichielectric.org FUTURE OF KEC RATES
Something important to all of us and that is electric rates: In 2019 Kiamichi Electric’s average residential rate was 11.2 cents which was below the state average for co-ops of 11.55 cents, ranking KEC at number 15 out of 27 cooperatives in the state. KEC is planning to do a cost of service study in 2021 to evaluate the adequacy of our current rates as well as the cost recovery from all member classes. There will be some upward pressure on rates in 2021. We are still benefitting from low fuel costs but loss of load in some sectors has the potential of driving up our wholesale cost of purchased power. This expense accounts for 60% of KEC’s total costs. KEC did restructure rates in 2017, but this was revenue neutral to the cooperative. The last rate increase KEC had was in 2014. A cost of service study that is conducted by an
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Holiday Hours Kiamichi Electric Cooperative will be closed Dec. 23-24 for Christmas. To report a service problem during this time, please call 800-888-2731, or report your trouble using KEC’s customer service portal.
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State of Your Cooperative, continued independent third-party consultant forecasts KEC’s rate requirements going forward in 2021. KEC AND RENEWABLES Kiamichi Electric Cooperative 944 SW Highway 2 PO Box 340 Wilburton, Oklahoma 74578 tele: (918) 465-2338 toll free: (800) 888-2731 FAX: (918) 465-2950 www.kiamichielectric.org email: support@kiamichielectric.org HOURS OF OPERATION Monday-Friday 8 am to 5 pm 24-HOUR OUTAGE HOTLINE (800) 888-2731 BOARD OF TRUSTEES Don Parr, President DISTRICT 5 Mark Ichord, Vice President DISTRICT 6 Ron Pelanconi, Treasurer DISTRICT 3 Russell Shaw DISTRICT 1 Amy Miller DISTRICT 2 David Ray DISTRICT 4
Kiamichi has been implementing a balanced blend of renewable energy and an array of fossil fuel generation to help stabilize rates. Over 40% of KEC’s power is currently coming from renewable energy primarily wind and solar and is projected to be over 50% soon. Kiamichi will do everything we can to keep rates as low as possible while still providing a safe and reliable power system to you our members. KEC’S RESPONSE TO COVID
Kiamichi Electric has taken several measures to ensure the safety of employees and members as well as try and assist with the financial burden on our members throughout this pandemic. We are mostly back to normal operations at this point. All employees are back to normal duties. Our lobby is open, but we are encouraging social distancing. We are having no all employee meetings and have limited travel. Training and meetings are being done virtually to the extent possible. KEC is encouraging masks when you cannot social distance and we are limiting building access to non-employees. During the onset of this pandemic to help our members KEC: • Waived late fees • Postponed disconnects for non-pay • Made arrangements for bills due • Directed members to resources for payment assistance • KEC has applied for eligible assistance to help with member rates • Retired Capital Credits early • Implemented several employee precautions
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Larry Culwell DISTRICT 7
Something that you the members can be very proud of and deserve all the credit for is Operation Round Up (ORU). Through your generosity, great things are being done through the ORU program as well as through the cooperative directly. A total of almost $100,000 has been given to very worthy causes in 2020. Some of these causes are: • • • • • • •
Scholarships for kids Coats for kids Community grants Nutrition programs Assistance in implementing telemed Salvation Army As well as other worthy organizations.
Thank you for your generosity and helping to support these very worthy causes. Since ORU’s inception in 2000, this organization has donated over $1.5 million throughout KEC’s service territory. I would also like to take this opportunity to thank your employees for a job well done all the time but especially during these very difficult times we have had in 2020. Many of you have also taken the time to submit emails, letters, Facebook posts as well as phone calls expressing appreciation for the work KEC’s employees have done for you. Your kind words are greatly appreciated! You have an exceptional group of employees and I am very thankful for all of them. It takes everyone working together to make Kiamichi Electric Cooperative function daily. I hope everyone is doing well and encourage you to stay safe. If you have any specific questions please do not hesitate to give us a call or message on Facebook or the KEC website. Thank you. 3 View bill & make payments 3 Sign up for auto-pay 3 Go paperless 3 Monitor energy use and savings 3 Report outages 3 Set up text alerts 3 And more!
Brett Orme Executive Vice President-CEO Kiamichi Electric provides reliable and affordable electricity to members in Pushmataha, Leflore, Latimer, Atoka and Pittsburg Counties.
KEC IN OUR COMMUNITIES
Use your smartphone’s camera to scan the QR code and download the mobile app W W W. K I A M I C H I E L E C T R I C . O R G
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KEC Foundation continues providing winter coats to local children For 10 years, you have helped provide much needed winter coats for children in need across our service area. Through the Operation Round Up’s® (ORU) Coats for Kids program, the KEC Foundation donates more than 300 coats each year. “We ask each of the 33 schools in our service territory for the sizes and gender of 10 kids who are in need of winter coats,” said Danny Choat, KEC Foundation president. “We are very grateful to the members who round up their electric bills each month to
help provide this service.” ORU is made possible thanks to the thousands of members who choose to round up their bills each month. If your bill is not rounded up and you would like to sign up, submit the contact form at www. kiamichielectric.org or call us at 918-4652338. ORU assists residents and nonprofit organizations located in our service area in Latimer, Leflore, Pittsburg, northern Atoka and northern Pushmataha Counties. The
KEC Foundation, a board of five volunteers, strives to help individuals, families and community organizations address needs that cannot be met through other resources. Applications — individual and organizational — can be found online at www.kiamichielectric.org or by calling 918465-2338. Contact Todd Minshall at toddm@ kiamichielectric.org or 918-465-2338 if you have questions about ORU or the application process.
Renewables Report
25% Data collected from Western Farmers Electric Cooperative — KEC’s wholesale power provider — reflects generation during August 2020, which shows 25 percent of the power generated by WFEC came from renewable sources.
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operation round up M O N T H LY U P D AT E Operation Round Up® is a voluntary bill roundup program that benefits local communities, organizations ,and needy families. Funding applications are available at Kiamichi Electric, local social services, or online at www.kiamichielectric.org. YEAR-TO-DATE COLLECTIONS 2020: $64,343.64 YEAR-TO-DATE DISBURSEMENTS: $64,344.70 TOTAL COLLECTED SINCE INCEPTION: $1,672,218.50 TOTAL DISBURSEMENTS SINCE INCEPTION:
$1,620,237.02
Christmas Cranberry Salad INGREDIENTS • 1 pound cranberries, finely ground • 2 cups white sugar • 1 (20 ounce) can crushed pineapple, drained
• 1 (16 ounce) package miniature marshmallows • 1 cup chopped pecans • 1 pint whipped cream, beaten stiff
DIRECTIONS Step 1 Mix together the cranberries and sugar; cover and refrigerate overnight.
Energy Efficiency
Tip of the Month Energy bills can increase during winter for a variety of reasons, like houseguests, more time spent at home, and shorter days and longer nights. Small actions, like turning down your thermostat, replacing old bulbs with LEDs and washing clothes in cold water can help you save.
Step 2 The next day, combine the cranberry mixture with the pineapple, marshmallows, pecans and whipped cream. Mix well. Step 3 Pour into a 3 quart dish, cover and refrigerate or freeze until ready to serve. Image and Recipe from AllRecipes.com
Source: Energy.gov
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