Page 1

MAY 2016

VOL. 17 NO. 1

Energy Rx Wall Drug Looks for Prescription for Savings P8-9






68th Annual Meeting Program April 21, 2016

(USPS No. 018-912)


68th Annual Meeting Agenda April 21, 2016 Registration Begins ........................................ 5:30 p.m. Drawing for Early Attendance Prize .................... 7 p.m. Call to Order............................ President Marion Schultz Invocation .................................... Donovan Young Man Determination of Quorum Introduction of Directors ......................President Schultz

2016 Annual Meeting Featured Speaker

Rushmore CEO to Speak at Meeting

Vic Simmons was born and raised in eastern South Dakota. Vic has worked on many different projects in over 30 years with Rushmore Electric Power Cooperative and nearly 40 years in the utility industry. He has Introduction of Guests been the CEO and general manager Manager’s Report ....................................Wayne Sterkel for Rushmore for the last 16 years. Vic and Barb have raised three Washington, D.C., Youth Tour ............. Miranda O’Bryan daughters and are currently spoilScholarship Presentation ing the five grandchildren as much Youth Excursion Winners .......... President Marion Schultz as possible. When he’s not keeping the power flowing in western Guest Speaker ...........................................Vic Simmons, South Dakota, Vic enjoys hunting, Rushmore Electric Power Cooperative camping and a little wild ride on his Election of Directors .................... Ann Arnoldy, Attorney motorcycle. Old Business

REPORTS: Secretary ................................. Donovan Young Man Proof of Mailing of Notice of Meeting Minutes of Previous Meeting Treasurer’s Report ................................ Dean O’Neill

New Business Report of Election Adjournment Drawing for Prizes and Grand Prizes All Prize Winners Must Be Present 2 May 2016 • COOPERATIVE CONNECTIONS

BOARD OF DIRECTORS Marion Schultz – President Ellis Rae Hicks – Vice President Donovan Young Man – Secretary Dean O’Neill – Treasurer Directors: Clarence Allen – Melvin Cummings – Brent Ireland – Aage (Melvin) Jorgensen – Troy Kuxhaus – Wade Risse – Tom Schlack – Jerry Sharp – Connie Whirlwind Horse MANAGEMENT STAFF Wayne Sterkel – General Manager Sherry Bakley – Staff Assistant Josh Fanning – Member Services Advisor Anna Haynes – Office Manager Mike Pisha – Line Superintendent OFFICE PERSONNEL Ronda Rosane – Bookkeeper Stacey Robinson – Secretary Amy Pisha – Clerk Tracie Hahn – Clerk Terri Gregg – Billing Clerk Kasi Harris – Billing Clerk Lisa Jensen – Cashier/Receptionist Jessica Cook – Cashier/Receptionist OPERATIONS PERSONNEL Line Forman – Landon Stout Journeyman Linemen – Dane Claussen, Aaron Risse, Shane Mulloy and Ryan Pettit Apprentice Linemen – Jordon Bakley, Lonny Lesmeister and Jordon Young Glenn Smith – Maintenance Man Earl Adair – Warehouse Man

This institution is an equal opportunity provider and employer. This publication is mailed the 15th of the month prior to the issue date. Layout is at least three weeks prior to mailing. LACREEK ELECTRIC COOPERATIVE CONNECTIONS is published monthly by Lacreek Electric Association, Inc., PO Box 220, Martin, SD 57551 for its members. Families subscribe to Lacreek Electric Cooperative Connections as part of their electric cooperative membership. Subscription information: Electric cooperative members devote 50 cents from their monthly electric payments for a subscription. Nonmember subscriptions are available for $12 annually. Periodicals Postage Paid at Martin, SD and at additional mailing offices. POSTMASTER: Send address changes to: Lacreek Electric Cooperative Connections, PO Box 220, Martin, SD 57551; telephone (605) 685-6581; fax (605) 685-6957



Seven Members Seek Lacreek Director Seats Members attending the 2016 Lacreek Electric Association annual meeting will elect directors to represent Zones 1, 3, 4, 5 and 8 for three-year terms. The following individuals have filed

Zone 1 – City of Martin

Ellis Rae Hicks – Ellis Rae graduated from Bennett County High School and spent three-and-a-half years in the Air Force. He has farmed and ranched since returning from the Air Force. He and his wife, Dorothy, operated a clothing business from 1962 to 1996. They have one son, Scott, a daughter-in-law, Anita, four grandchildren and three great grandEllis Rae Hicks children. Ellis Rae has served on Lacreek’s board of directors since 1989. He has been a continuous member of the American Legion Post 240 since 1954 and he has served as post commander and also as post adjutant. He has served on the Martin City Council at various times, a total of 14 years, and as mayor for part of one term. He was a member of the Martin Volunteer Fire Department for 19 years. He is a member of Our Redeemers Lutheran Church in Martin. Tee Tetrault – Tee graduated from Bennett County High School in 2005, from there he went onto Glendive Community College where he received an associate’s degree majoring in ag business in May of 2007. Tee was an employee at Lacreek Electric from May 2007 until March 2016. He and his wife, Tabitha, along with their three children – Trey, Tee Tetrault Tayce and Tatum – reside in Martin, S.D. His hobbies include spending time with family and friends, roping, as well as hunting and fishing.

petitions to run for these positions. The following are brief biographical information on each of the candidates.

Zone 4 – East Oglala Lakota County

Connie Whirlwind Horse

Zone 5 – Jackson County

Aage (Melvin) Jorgensen – Aage graduated from Kadoka High School and studied at the University of South Dakota and the School of Mines and Technology. He worked for the Boeing Company as a quality control inspector for 10 years, mostly on the Minuteman Project. He returned to the home place in 1972 where he was engaged in ranching and farming for 39 years. His family consists of wife, Marilyn, two sons – Brad and Scott – and four daughters – Annette Aage Jorgensen and Yvonne Jorgensen, Penny Stout, Becky Keegan – and 14 grandchildren. He has served on the Jackson County FSA County Committee, the Kadoka Presbyterian Church Elders, the Jackson County Extension Board, and two terms on the Jackson County School Board. He has served on the Lacreek Electric Board of Directors since 2014.

Zone 3 – West Bennett County

Troy Kuxhaus – He has been a lifelong resident of Bennett County. He was born in 1969, graduated high school at Bennett County in 1987 and graduated from Western Dakota Technical Institute in 1989 as a certified welder. In 1990, he married Amie, also a local resident, and they have two children – Keven and Colin. They reside on the family farm west Troy Kuxhaus of Martin that he owns and operates. He is the third generation Kuxhaus to run the family farm. Troy has served on Lacreek Electric’s board since 2013. He served on the FSA board for nine years. He is a member of the Batesland Volunteer Fire Department. Hobbies include friends and family ventures of hunting, fishing and vacations.

Connie Whirlwind Horse – Connie attended school at Holy Rosary Mission (now Red Cloud) and then attended one year of college at Black Hills State. She and her late husband, Louis, ranched near Kyle for many years. She is the mother of nine children and continues to run the ranch. She has served on the Oglala Lakota County Commission and serves on the Medicine Root District Enrollment Committee, is currently the chairperson of the Kyle Senior Citizens Program and serves on the Pejuta Huta Oyanke Development Corporation Board. Connie has served on Lacreek’s board since 1994.

Neal Livermont

Neal Livermont – Neal is the son of Butch and Judy Livermont. He grew up on, and continues to operate, the Livermont Ranch southeast of Interior. Neal is married to Dana and together they share four daughters. Neal was a member of the band Country Rush for 20 years before retiring in 2014. He currently serves on the board of the Jackson County FSA, the Oglala Lakota Livestock and Land Owner Association and the Interior Roping Club.

Zone 8 – At Large

Wade Risse

Wade Risse – Wade was born and raised in Bennett County. He graduated from Bennett County High School in 1986. In 1994, he married his wife, Bonnie, and they have four children. Wade has served on the Bennett County Fair Board, St. Martin’s Knights of Columbus Council and the Sons of American Legion for a number of years. He ranches with his family, raising black Angus cattle for the Risse Half Box V Ranch. He also announces rodeos, cattle shows and is a voice of the BC Warrior football. Wade has served on Lacreek Electric’s board since 2013. COOPERATIVE CONNECTIONS

• May 2016




D.I.Y. Electrical Safety Each year, thousands of people in the United States are critically injured and electrocuted as a result of electrical fires, accidents or electrocution in their own homes. The current economic downturn has inspired more homeowners to tackle do-it-yourself projects than ever before. Faced with declining home values and aging properties, homeowners may choose not to pay for the services of a licensed electrician. However, most do not have the training or experience needed to safely perform home electrical work, increasing the risk of immediate injuries and electrocutions and potentially introducing new dangers into the home. Working with electricity requires thorough planning and extreme care and cutting corners can be a costly mistake.

D.i.Y. Facts and statistics • There are an estimated average of 70 electrocution fatalities associated with consumer products per year. • The most recent data from the U.S. Consumer Product Safety Commission shows that there are nearly 400 electrocutions in the United States each year. • Approximately 15 percent of electrocutions are related to consumer products. Wiring hazards, including damaged or exposed wiring and household wiring, accounted for nearly 14 percent of these deaths. • An estimated 360,900 residential building fires are reported to United States fire departments each year and caused an estimated 2,495 deaths, 13,250 injuries and $7 billion in property losses. The leading cause of the largest fires was electrical malfunction. • There are about 37,000 nail-gun injuries each year; a 200 percent increase since 1991. • Electrical failure accounted for 89 percent of electrical fires in residential buildings from 2003-2005. D.i.Y. safety tips ESFI strongly recommends hiring a qualified, licensed electrician to perform any electrical work in your home. However, if you do decide to do-it-yourself, consider the following safety tips before undertaking any home electrical project: • Make an effort to learn about your home electrical system so that you can safely navigate and maintain it. • Never attempt a project that is beyond your skill level. Knowing when to call a professional may help prevent electrical fires, injuries and fatalities. • Always turn off the power to the circuit that you plan to work on by switching off the circuit breaker in the main service panel. • Be sure to unplug any appliance before working on it. • Test the wires before you touch them to make sure that the power has been turned off. • Never touch plumbing or gas pipes when performing a do-it-yourself electrical project. Source: 4 May 2016 • Cooperative ConneCtions

Kids’ Corner Safety Poster “take care when using electricity – it has the power to kill!” Evelyn Fritz, 10 years old Evelyn is the daughter of Jamie and Kristi Fritz, New Effington, S.D. They are members of Traverse Electric, Wheaton, Minn.

Kids, send your drawing with an electrical safety tip to your local electric cooperative (address found on Page 3). If your poster is published, you’ll receive a prize. All entries must include your name, age, mailing address and the names of your parents. Colored drawings are encouraged.



Comforting Casseroles Mexican spoon Bread Casserole 1-1/2 lbs. ground beef 1 large onion, chopped 1/4 c. chopped green pepper 1 clove garlic, minced 1 cup tomato sauce 1 can corn, undrained 1-1/2 tsp. salt 2 to 3 tsp. chili powder

1/2 c. sliced ripe olives Cornbread Topping: 1-1/2 cups milk 1 cup cornmeal 1/2 tsp. salt 3/4 cup shredded Cheddar cheese 2 eggs, beaten

Brown first 4 ingredients in a large skillet until onion is tender; drain. Stir in tomato sauce, corn, salt, chili powder and olives; heat to boiling. Reduce heat and simmer uncovered while preparing cornbread topping. For topping: Mix milk, cornmeal and salt in saucepan. Cook and stir over medium heat until mixture boils. Remove from heat and stir in Cheddar cheese and beaten eggs. Turn hot meat mixture into 2-1/2-quart dish and pour cornbread mixture on top. Bake uncovered at 375°F. for about 40 minutes.

Chicken Crescent almondine Hot Dish 1/2 cup chopped onion 1/2 cup sour cream Topping: 1 (8 oz.) can crescent rolls 2/3 cup shredded Cheddar cheese 1/2 cup slivered almonds 3 T. melted butter

Combine the first 8 ingredients in saucepan. Cook until hot and bubbly; pour into ungreased 9x13-inch pan. Separate rolls into long rectangles and place over chicken mixture. Combine remaining ingredients and spread over dough. Bake at 350°F. for 20 to 25 minutes. Nancy Noess, Mitchell

Chicken noodle Hot Dish 1 can each chicken noodle, cream of chicken and cream of celery soups 1 lb. ground beef, browned

1 lb. lean ground beef 1 large onion, chopped 1 large green pepper, chopped 1 small head cabbage chopped 1 cup reduced sodium beef broth

1 (10 oz.) can diced tomatoes and green chilies 1 (8 oz.) can pizza sauce 1 cup cooked brown rice 1/2 cup shredded reduced-fat Cheddar cheese

In a Dutch oven, cook beef, onion and green pepper over medium heat until meat is no longer pink; drain. Stir in the cabbage, broth, tomatoes and pizza sauce. Bring mixture to a boil. Reduce heat; cover and simmer for 20 to 25 minutes or until cabbage is tender; stirring occasionally. Stir in rice; heat through. Remove from heat. Sprinkle with cheese. Cover and let stand until cheese is melted. Makes 6 servings Nutritional Facts Per Serving: Calories 140, Total Fat 7g, Cholesterol 10mg, Sodium 330mg, Carbohydrates 13g, Dietary Fiber 2g, Protein 7g (3.8g from dairy), Calcium 15% Daily Value Pictured, Cooperative Connections

turkey and Dressing Casserole

Carolyn K. Wickert, Baltic

3 cups cooked and cubed chicken 1 can cream of chicken soup 1 (8 oz.) can sliced water chestnuts, drained 1 (4 oz.) can mushrooms, stems and pieces 2/3 cup Hellman’s mayonnaise 1/2 cup chopped celery

inside-out Cabbage rolls

1 onion, chopped 1 T. soy sauce 2 cups water 1 cup uncooked rice

4 cups cubed cooked turkey or chicken 3 T. chicken broth 1 box stuffing mix, prepared 1 (4 oz.) can sliced mushrooms

1 (10 oz.) can cream of mushroom soup 1 (10 oz.) can golden mushroom soup

Place cubed meat in a greased 9x13-inch baking dish. Moisten with chicken broth. Top with prepared stuffing mix. Add canned mushrooms, if desired. Mix soups and spread over casserole. Cover with greased foil and bake at 350°F. for 45 to 60 minutes. Can be prepared and frozen; adjust baking time. Charlotte Hoverstadt, Webster

tuna Biscuit Casserole 1 can Cheddar cheese soup 1/2 soup can milk 1 can tuna, drained if using oil-packed

1 T. grated onion 1 T. parsley flakes, optional 1 pkg. or tube (10) refrigerated biscuits

Please send your favorite dairy, dessert and salad recipes to your local electric cooperative (address found on Page 3). Each recipe printed will be entered into a drawing for a prize in June 2016. All entries must include your name, mailing address, telephone number and cooperative name.

Mix soup and milk until smooth. Add tuna and break in chunks, then add onion and parsley flakes. Heat just to boiling. Put biscuits in ungreased pan (9x9 or 11x2 inch.) Pour heated mixture over top of biscuits. Bake uncovered at 350°F. for 25 minutes or until biscuits pop up through the Combine all ingredients in baking dish. Bake at 350°F. for 1 hour. sauce and are well browned. Michele Hoffer, Brandon

Elfrieda Postma, Sioux Falls

Cooperative ConneCtions • May 2016 5




upgrade your system. The Highway 18 road project from the Gordon Junction to Pine Ridge, rebuilt 11.5 miles of transmission line from the Gordon Junction to Wolf Creek School, buried 5.5 miles of distribution line from the Shannon Substation to Wolfe Creek School and moved some single-phase lines to account for the widening of a highway. Additional ongoing projects at this time are: the transformer at the Shannon Substation, which reached its maximum capacity about two years ago, was replaced along with circuit switches on the high side. In addition, 14.5 miles of line between Potato Creek and Kyle is in the process of being built to complete the three-phase tie line between Wanblee and Kyle. These projects should be completed this spring. With this tie line a new 115 KV tap and substation is in the works to get rid of some old sub-transmission line to better serve our members from Kyle, Wanblee, Norris and the Parmelee areas. Besides these projects, our line crew has been busy with new line builds, upgrading services for FEMA trailers and changing out reject poles from our pole inspection program to keeping quality power to you our members. Last year we added online account services. This allows you to check your balance, see your billed and daily kWh/KW usage and pay your bill from the convenience of your own home. It is also accessible through your mobile device with the SmartHub App. This is the final feature to complete our Payment Card Industry Data Security Standard compliance. If you wish to pay with your credit/debit card, you need to either do this online, call 855-385-9980 for the automated secure payments or stop in our office and use our card reader to make your payment. In addition, there has been a change in the way delinquent charges are processed. Previously, 10 percent of your current bill was charged if your payment was not received by the 20th of each month. Now it is a $12.50 late charge and a 1.5 percent interest rate is added to any balance into the next billing. The office continues to look at new ways to improve your ability to monitor and manage your electrical services at your convenience. The board, management and employees are dedicated to work each day to provide you with safe, reliable and affordable electricity to your homes, farms and businesses. Thank you for your support. E

We would like to welcome our members to the 68th Lacreek Electric annual meeting. As always, our goal at Lacreek Electric Association, Inc., is to serve our members as best we can in today’s environmental/technology-driven world and to be able to provide our members with safe, affordable and reliable energy. Marion Schultz We feel strongly that our Board President responsibility to the membership is to continually improve our community’s energy infrastructure and implement new technologies as we strive to maximize the efficiency of our operation. Through the planning and foresight of your board of directors and management, a tremendous amount of hard work from your employees and the support of you, the Wayne Sterkel members, Lacreek showed opGeneral Manager erating margins of $410,944, non-operating margins of $322,859 and G&T margins of $284,859. Even though the peak demand was down 9 percent, the kilowatt hours (kWh) was down 1 percent, the revenue was down 2.3 percent and the operations and maintenance down 2.4 percent, your cooperative had a strong financial year end. Since 2013, we were able to hold rates steady; however, we had to raise our rates this year by 4.0 percent overall because the wholesale rates increased by 6.5 percent as of Jan. 1 of 2016. We continue to work hard to provide you with safe, reliable and affordable electricity through long-term investments and sound business practices. Our reliability and affordability appears to be under attack by the Environmental Protection Agency (EPA), who finalized its rules in 2015, regulating greenhouse gas emissions from power plants, referred to as the Clean Power Plan. The EPA’s rules are requiring the states to come up with plans that will implement the Clean Power Plan. Cost increases and reliability concerns are caused by the retirement of existing coal-fired generation plants prior to the end of their remaining useful life and investment in other generation resources such as wind, solar and gas to meet the EPA’s Clean Power Plan. We continue to work to minimize any effects of the EPA’s ruling. Lacreek completed several large projects this last year to


Lacreek Electric Association Annual Report 2015

2015 Lacreek Annual Report




Board of


Elected by You to Serve You: Lacreek Electric’s Board of Directors Lacreek Electric Association’s board of directors is comprised of 13 members who serve for three-year terms.

Marion Schultz

Board President Zone 4, 2015-2018

Lacreek Electric Association Director Zones

Ellis Rae Hicks

Board Vice President Zone 1, 2013-2016

Donovan Young Man

Dean O’Neill

Clarence Allen

Melvin Cummings

Brent Ireland

Board Secretary Zone 9, 2015-2018

Board Treasurer Zone 6, 2014-2017

Director Zone 1, 2014-2017

Director Zone 9, 2014-2017

Director Zone 2, 2015-2018

Troy Kuxhaus

Director Zone 3, 2013-2016

Wade Risse

Director Zone 8, 2013-2016

Tom Schlack

Director Zone 7, 2015-2018

Jerry Sharp

Director Zone 5, 2014-2017

Aage (Melvin) Jorgensen

Director Zone 5, 2014-2016

Connie Whirlwind Horse

Director Zone 4, 2013-2016


• May 2016


A Prescription for Energy Savings Wall Drug Turns to Co-ops for Tips to Save


By Brenda Kleinjan

hen Rick hustead, chaiRman of the Wall Drug Store in Wall, S.D., wanted to look at ways to cut the tourist destination’s energy bill, he knew just who to call: his local Touchstone Energy® Cooperative, West River Electric Association in Wall. Wall Drug has historically been one of WREA’s largest using members, and easily the largest user in the eastern half of the co-op’s territory which extends from Rapid City to the Badlands and north into southern Meade County. “We’re thrilled in Wall, S.D., to have WREA here, to have a major power company headquartered in a town of 800 is a big thing. When we have questions about our consumption and bill, we know who we’re talking to,” said Hustead. The Hustead family started The Wall Drug Store in 1931 as a simple pharmacy by Ted and Dorothy Hustead, Rick’s grandparents. “They were slowly going broke in the Depression.


There was a constant drone of tourist cars going West on US16, which was a packed dirt road. Dorothy thought how hot and dusty travelers were,” Rick explained. The Husteads began advertising free ice water and once they could get the customers to stop then they could tempt them with purchasing items in the store and at the old fashioned soda fountain. The plan worked. The attraction, which Hustead notes is America’s No. 1 roadside attraction, which has grown from a single, 24 foot by 50 foot storefront pharmacy to encompass more than a square block, welcoming visitors from across the world to the prairie town year round. The store occupies 78,000 square feet on the street level. Storage areas extend below the store and above on a second story not open to the public. And as a business owner, Hustead looks for ways to make the operation run more efficiently while still

Shining a Light on Energy Savings

Left: West River Electric Association’s Robert Raker, Willy Nohr and Adam Daigle inventory the more than 5,400 light bulbs used at Wall Drug. Right: Under the watchful gaze of one of the denizens of The Wall Drug Mall pedestrian area, Basin Electric Power Cooperative’s Chad Reisenauer uses an infrared camera to look for energy leaks. Opposite Page: WREA’s Veronica Kusser and BEPC’s Reisenauer review the steps for the energy audit with Rick Hustead, Chairman of The Wall Drug Store. Cover: Using a meter, Reisenauer measures the lumens emitted from one of the 3,100 light fixtures at Wall Drug.

giving their guests the best experience possible. (By one estimate, more than two million people will visit Wall Drug each year.) “We want to be continually improving,” said Hustead. “In visiting with Veronica (Kusser) at WREA about our bill, I asked if we could have an energy audit, thinking there must be things we can do to improve our usage and consumption. We had started doing what we could to switch to LED lighting.” Kusser and her co-workers enlisted the assistance of Chad Resienauer, a certified energy manager at Basin Electric Power Coopera-

Home energy use is different for everyone and hinges on several factors, including size of home, members in your household, your location and preferences. Knowing how your energy is divided will help you prioritize your energy saving habits. Source: U.S. Energy Information Administration

tive, in Bismarck, N.D. The group spent a day inventorying and assessing Wall Drug’s energy usage. One thing that was immediately apparent was that Wall Drug has a lot of lights. A lot of lights. More than 5,400 bulbs housed in 3,100 fixtures throughout all levels of the business. Combined, the six different types of bulbs used – if turned on all at once – would account for more than 125 kilowatts of load. So, Hustead’s steps to convert to LED lighting were certainly a good start. Reisenauer’s recommendations included continuing to convert the lights to more efficient bulbs, examining the amount of lumens of light needed for different tasks and sizing the lighting appropriately (in some instances, spaces may be over lit and fixtures can be removed, in other areas more lights may be needed.) While Resinaer’s recommendation are unique to Wall Drug, the basic concepts apply to most all homes and businesses: look for the things that use the most energy and see how they can become more efficient. For appliances, make sure that gaskets are tight and filters are clean and consider upgrading the appliance to an EnergyStar® model. Often times, the energy saved can cover the costs of the upgrade in a short timeframe.

Traditional lighting can amount to 11 percent of your monthly energy use. Energy saving light bulbs can slice lighting costs by 75 percent. • Replace outdoor lighting with its equivalant outdoorrated LED bulb. LEDs work well in cold weather. • Use fixtures with electronic ballasts and T-8, 32 Watt fluorescent lamps. • Use outdoor security lights with a photocell and/or a motion sensor. • Turn off unnecessary lighting. A lumen is a unit used for the measurement of visible light. A traditional 60 Watt light bulb produces 800 lumens. See the chart below to see how many Watts other bulbs use to produce the same amount of light.



Incandescent bulb CFL LED


60 60 Watts

13W 7W

Source: Touchstone Energy® Cooperatives 101 Easy Ways to Save Energy and Money For more tips and helpful videos, go to: -save/energy-saving-tips/


Annual Meeting


Lacreek Electric Association Annual Report 2015

67th Annual Meeting of Members • April 23, 2015 The 67th annual meeting of the Members of Lacreek Electric Association, Incorporated, was held at the Bennett County High School Auditorium the evening of April 23, 2015, beginning at 7 p.m. The meeting was called to order by President Marion Schultz, who was recognized for 15 years of service. President Schultz announced that upon registering, a ballot was given to each member to vote for the directors and if they had not cast their vote, they were asked to do so, as voting would cease in approximately 15 minutes. Then he asked all veterans to stand and be recognized. The members were then asked to stand for the song God Bless America. President Schultz called on Secretary Donovan Young Man to give the invocation. Secretary Young Man asked for a moment of silence for the loved ones we have lost this past year, which also includes Butch Livermont and Robert Moreland. President Schultz then reported the determination of a quorum and introduced the board of directors. President Schultz called on Secretary Young Man who read the Proof of Mailing of Notice of the Annual Meeting. Secretary Young Man asked if we could dispense with the reading of the minutes for April 24th, 2014, and referred to the minutes printed in the program. The members agreed, and upon motion duly made, seconded and carried, the 2014 minutes were approved. Secretary Young Man called on Treasurer Dean O’Neill for the treasurer’s report. Treasurer O’Neill gave an overview of the financial statement and stated that the actual full financial report is printed in your program. Treasurer O’Neill asked for a motion and second from the members to approve the treasurer’s report. Motion was made, seconded and carried to approve the treasurer’s report. President Schultz declared the voting ceased and he asked for the Judges (Seymour Young Dog and Sharon Denison); Tellers (Manuela Maldonado and Myron Nelson); Agents (Wanda Sterkel and Tracie Hahn), along with Robert Schaub, Lacreek’s Attorney to join together to count the votes. President Schultz introduced General Manager Wayne Sterkel and recognized him for 35 years of service. Manager Sterkel introduced the guests being: Steve Tomac, Senior Legislative Representative at Basin Electric Power Cooperative; Todd Eliason, Asst. General Manager of Rushmore Electric; Mike 1 0 May 2016 • COOPERATIVE CONNECTIONS

Bowers, Engineering Manager, Rushmore Electric; Michael Riedman, Demonstration Coordinator of Basin Electric; Timothy Grablander, Manager Cherry-Todd Electric and his wife, Terri; JR Reagle, Director, Cherry-Todd Electric; Dick Schneider, Vice President Cherry-Todd Electric; Mike McQuistion, Director West Central, Rose Cottier, Business Manager Rosebud Sioux Tribe, Senator, Jim Bradford and Robert Schaub, Lacreek’s Attorney. He also introduced past directors being Scott Bair and Jim Buckles and retired employees; Kathy Kocourek. Manager Sterkel addressed the membership announcing that Lacreek dedicated the meeting to the late Butch Livermont. Butch was a Board of Director representing zone 5, Jackson County upon his death. He also announced Director Roy Ireland was stepping down after 27-years. He then went on to state we had another good year financially in 2014. There are 4 large projects planned in 2015: Highway 18 road move from Gordon junction to Pine Ridge, 14-miles of 3 phase between Potato Creek and Kyle to tie Kyle substation and Wanblee substation together for reliability and a 23-mile sub-transmission line between Martin Rural and Schwarting switching station and installing a new substation transformer into the Shannon substation which are replacements because of age and capacity to keep the reliability for today as well as tomorrow. From 1992 to 2014 we more than doubled our kwh sales, although solar, wind and other renewables are just going to be in the mix of power delivered to the membership, change is coming, but we still need to invest in the future of poles and wires to keep good reliable low cost energy to the members. Manager Sterkel introduced the employees and recognized Line Superintendent Mike Pisha for 25 years of service and Apprentice Lineman Jesse Byerley for 5 years of service. He also introduced his staff and presented videos that each one of the staff had made addressing the membership. President Schultz announced the winner of this year’s Washington, D.C., Youth Tour is Miranda O’Bryan. Miranda is the daughter of Makayla and Chris O’Bryan. Last year’s winner was Derek Vander May. Derek came forward and gave a report on the Washington, D.C. Youth Tour. President Schultz announced that the two Lacreek Electric scholarship winners are Mikala Marrufo, who is the daughter of Angelo and Quanita Marrufo and Adam Good, who is the son of Jim and Jennifer Good. President Schultz then an-

nounced that the Basin/Lacreek Electric scholarship winner is Sam Ireland. Sam is the son of Brent and Tauna Ireland. Treasurer O’Neill presented each with a certificate. President Schultz announced that each year Lacreek Electric sponsors a South Dakota Rural Electric Youth Excursion and this year’s winners are Jeremy Ring, Mia Twiss and Lara No Braid. Jeremy is the son of Torey and Linda Ring, Mia is the daughter of James and Mona Twiss and Lara is the daughter of Avanelle No Braid. Last year’s winners were Jeryn Robinson and Marcus Harris. Manager Wayne Sterkel then introduced Steve Tomac, Senior Legislative Representative at Basin Electric Power Cooperative. Steve gave a presentation on the growth of Basin, on the present and future where Basin will have the capacity to serve the membership and on the generation and transmission needed for their future membership. President Marion Schultz introduced Robert Schaub, Lacreek’s attorney. Robert introduced the directors that took out petitions being Brent Ireland and Mike Johnson, East Bennett, Zone 2, Marion Schultz, East Oglala Lakota County, Zone 4, incumbent, Thomas Schlack, Cherry County NE, Zone 7, incumbent and Donovan Young Man, West Oglala Lakota County, Zone 9, incumbent. President Schultz announced that Brent Ireland was the winner in East Bennett, Zone 2. Since there were no petitions taken out running against the incumbent directors, they were declared elected for a three-year term. President Schultz called for any old business. There was none. Attorney Robert Schaub was called on to give his legal report. On Mr. Schaub’s suggestion, a motion was made, seconded and carried to approve the actions taken by the Board of Directors of the Association since the last Annual Meeting of the Members. President Schultz called for any new business. There was none. President Schultz announced that any capital credit checks that were not picked up, would be mailed out in a few days and thanked Todd Eliason for the PowerPoint presentation, and Toni Milk and Cindy McMillin for the great meal served. There being no further business to come before the meeting, upon motion duly made and seconded, the meeting was adjourned. The $300 cash grand prize was won by Danielle Two Eagle.

Annual Meeting


Working for You: Lacreek Electric’s Employees Left: Lacreek Electric Association Staff – Pictured are, from left, Anna Haynes, Sherry Bakley, Josh Fanning, Mike Pisha and Wayne Sterkel. Right: LEA Office Crew – Pictured are, back row, from left: Ronda Rosane, Tracie Hahn, Terri Gregg, Stacey Robinson and Kasi Harris. Front row, from left: Amy Pisha, Lisa Jensen and Jessica Cook.






Lacreek Electric Association, Inc. Mission Statement

To provide our service territory with safe and reliable service at the lowest possible cost, while advancing the quality of life by staying abreast of the latest technology available in our industry.

Above: LEA Outside Crew – Pictured are, back row, from left: Ryan Pettit, Earl Adair, Lonny Lesmeister, Jesse Byerley, Jordan Young, Landon Stout and Ken Graham. Front row, from left: Dane Claussen, Glenn Smith, Aaron Risse, Shane Mulloy and Jordon Bakley.

Smart Hub Is Here! We are excited to announce that online account services is here. Online account services, known as “SmartHub” is the latest technology designed to assist you, our members to manage your electric accounts 24 hours a day. Did you forget to pay your bill or do you prefer to save the time, effort and postage each month? Are you out of town or is the weather bad and don’t want to drive to deliver your payment? Access your account through SmartHub to pay with your credit/debit card or directly from your checking account. You can access SmartHub by visiting Lacreek Electric’s Website at, or by downloading the FREE app on your mobile device through the Apple App Store (iPhone or iPad) or Google Play Marketplace (Android phone or tablet). COOPERATIVE CONNECTIONS

• May 2016


Hot Water on the Grid Can Your Hot Water Be a Battery?


ost people think of theiR WateR heateR as

By Thomas Kirk and Brian Sloboda

Advanced community storage strategies employ electric water heaters to help electric co-ops to beat peak prices and save members money. (Illustration by NRECA)

a device designed solely for heating bath water or helping to wash a sink full of dishes. But electric water heaters can provide some of the most rapidly responding, flexible, scalable and cost-effective energy storage available. By adding bidirectional control to electric resistance water heaters, GIWHs enable a utility or third-party aggregator to quickly and repeatedly turn the devices off and on. Bidirectional control is a much more powerful tool than standard direct load control, which only allows devices to be turned off, because it effectively turns the water heater into a battery. Traditional batteries supply power when generation is low and absorb power when generation is high. In this way, they help modulate the supply of electricity to follow the load. GIWHs can’t supply electricity, but they provide exactly the same functionality by reversing this equation: They can modulate the load in order to follow generation. In times of overgeneration, fleets of water heaters can be switched on to absorb excess power, and in times of undergeneration, they can be switched off to shed load and redistribute the existing electricity on the grid. Thus, aggregated GIWHs can act as virtual power plants to quickly and effectively control the amount of power on the grid. Moreover, these fleets are completely scalable and can perform this functionality within seconds.

Benefits To The Utility GIWHs enable the utility or aggregator to shift loads, perform demand response, conserve revenue via the arbitrage of wholesale electricity, generate revenue via ancillary services, and keep the grid stabilized during unexpected events. Load shifting and traditional demand response. In addition to traditional demand response, which sheds loads in times of peak demand, GIWHs


can be used to shift loads and perform intelligent load control. Pre- or postcharging of GIWHs around peak times and smaller spikes throughout the day can smooth the load curve while maintaining customers’ supply of hot water. Instead of simply shedding the peak load, the energy consumption is redistributed to times of lesser demand Arbitrage of wholesale electricity. Electricity

providers can charge GIWHs when the price of energy is low and discharge them when the price is high, saving utilities and their customers money. This strategy can be especially useful for cooperatives and municipal utilities, where the savings can easily be passed along directly to customers. Revenue from ancillary services. Utilities can also use GIWHs for frequency regulation or other services. Frequency regulation – or just regulation – is the second-by-second matching of generation to the load. Depending on the market, there can be significant revenue potential from regulation. Furthermore, the need for regulation will only increase as more intermittent renewables are added to the grid. Solar and wind power, for example, inherently fluctuate with the availability of sun and wind, causing generation to spike and dip unexpectedly. Regulation is required to smooth these fluctuations and keep generation matched to the load. Not many resources are flexible enough to provide this service, but energy storage can do it very well. The monetary value of frequency regulation depends on the transmission organization that monitors and controls the delivery of high-voltage electricity on the grid. Regional transmission organizations (RTOs) cover large interstate areas, and independent system operators (ISOs) cover smaller geographical areas. Heat pump water heaters (HPWHs) can’t provide frequency regulation nearly as well as electric resistance water heaters can. Although they’re a great energy-efficiency technology and are gaining in market share due to efforts by the DOE and Energy Star, HPWHs can’t be cycled off and on nearly as quickly as electric resistance water heaters can. They also don’t draw as much power as electric resistance water heaters. As such, the revenue potential from regulating HPWHs is only one-eighth the revenue of electric resistance water heaters. Grid stabilization. Perhaps one of the most valuable services that GIWHs provide is the ability to respond to grid stabilization events within seconds. If a transformer trips or another unexpected event occurs, GIWHs allow the utility or aggregator to shed or increase load within seconds. Additional benefits and implications. Not all locations on the grid are created equal. GIWHs are more valuable to distribution-constrained areas than to areas with excess distribution resources because they can reduce peak demand, potentially allowing the utility to defer distribution upgrades. For territories that have plentiful renewable energy resources, utilities or aggregators can consider a renewable storage water heater (RSWH). RSWH systems use a dedicated auxiliary thermal storage tank (or tanks) to capture low-cost or no-cost excess renewable electricity. The auxiliary tank sits next to the original hot water tank and supplies the renewably generated hot water when it’s available. The tank uses a mixing valve to dilute the hot water to reduce temperatures to standard domestic hot water (DHW) levels before delivering the water to the customer.

What’s Happening With GIWHs Now? Great River Energy, a generation and transmission company in Minnesota, currently controls tens of thousands of large-capacity water heaters for arbitrage benefits to its customers. The co-op charges the GIWHs at night, when the wholesale market price for electricity is low, saving its customers money while providing the same amenity. Dairyland Power Cooperative, another generation and transmission company in Wisconsin, also has a large fleet of water heaters it uses for arbitrage.

Community Storage Gives Co-ops Flexibility By Cathy Cash – Energy storage—the holy grail of the electric power industry—that will save consumers money and give electric cooperatives new flexibility might be as close as your water heater. So says new research from The Brattle Group, a global economic consulting firm. NRECA, the Natural Resources Defense Council (NRDC), Great River Energy, and the Peak Load Management Alliance commissioned the study, “The Hidden Battery,” to launch a “community storage” initiative to aggregate battery-like features of appliances. Electric water heaters rank third-largest in residential electricity consumption, behind space cooling and lighting, according to the research released in February. “The magnitude of this relatively untapped resource is significant.” Advanced community storage strategies can equip electric co-ops to beat peak prices and save their members as much as $200 a year – enough to pay for a gridenabled water heater within five winters, says the study. Further, these water heaters can interact with the electric grid to help with balancing and frequency response. Great River Energy controls more than 110,000 residential water heaters that can store more than 1 gigawatt-hour of electricity. Between 11 p.m. and 7 a.m., 65,000 electric thermal water heaters mass enough hot water for an entire day; 45,000 water heaters are used to shave peak demand. “We believe there’s a battery hidden in basements all across our service territory,” says Gary Connett, director of member services at the Maple Grove, Minn., G&T. Community storage also is an important tool for meeting Minnesota’s “25 percent by 2025” renewable energy standard that is resulting in more variable generation resources. “When the wind is blowing or the sun is shining, large-capacity water heaters can be enabled to make immediate use of that energy to heat water to high temperatures,” Connett says. “Water heaters can be shut down when renewables are scarce and wholesale costs are high.” NRECA worked closely with NRDC in 2015 to achieve federal law that preserves the production of large gridenabled water heaters that 250 electric co-ops already rely on for energy savings programs. Editor’s Note: South Dakota electric cooperatives, especially those in eastern South Dakota and western Minnesota, have a long history of using energy savings from water heating. Contact your local electric cooperative for more information. COOPERATIVE CONNECTIONS • May 2016 13



Statement of Operations

Balance Sheet

Year Ending December 2014

As of December 2015

Lacreek Electric Association Annual Report 2015


2014 2014

ELECTRIC PLANT: $52,401,263 In Service $729,188 Under Construction Total Electric Plant $53,130,451 ($21,516,917) Less Accumulated Depreciation Electric Plant – Net $31,613,534 OTHER PROPERTY AND INVESTMENTS: Investments in associated organizations $5,353,959 $120,726 Other Investments Total Other Property $5,474,685 and Investments CURRENT ASSETS: Cash and cash equivalents $1,418,461 Temporary Cash investments $500,000 Account receivable, less allowance $1,531,696 for uncollectible accounts Material and Supplies $1,560,766 Prepayments $61,740 $3,486 Interest receivable Total current assets $5,076,149 Deferred Debits




EQUITIES and LIABILITIES: EQUITIES Patronage capital Other Equities Total Equities LONG-TERM DEBT, LESS CURRENT MATURITIES CURRENT LIABILITIES: Current maturities long-term debt Accounts payable Customer deposits Taxes accrued Other current liabilities Total Current Liabilities DEFERRED CREDITS Customers’ energy payments Electric revenue deferral Total Deferred Credits


2014 2014

2015 2015 $53,209,615 $2,567,378 $55,776,993 ($22,363,526) $33,413,467

OPERATING REVENUES: Electric Other Total Operating Revenues Other Electric Revenue $672,928 Street and Highway Lighting $95,181 Public Authorities $433,052


$12,339,951 $623,814 $12,963,765

$11,987,239 $672,928 $12,660,167

Seasonal $606,924

$5,649,406 $122,077 Irrigation $703,733 $5,771,483 Large Commercial

Residential Sales $6,835,633


$444,873 $0 $3,250,556

Small Commercial $976,833

OPERATING EXPENSES: Cost of Power Transmission Distribution – Operations $1,535,442 Distribution – Maintenance $58,636 Customer Accounts $2,635 Customer Service and Information $5,292,142 Administrative and General Depreciation $674,815 Taxes $45,151,907 Interest on Long-term Debt Other Deductions

2015 2015

$15,670,355 $1,972,603 $17,642,958

$16,184,607 $2,205,398 $18,390,005



$1,019,000 $875,568 $487,082 $253,524 $263,006 $2,898,180

$1,061,000 $1,098,036 $492,907 $240,467 $282,231 $3,174,641

$97,007 $550,000 $647,007

$97,406 $550,000 $647,406



Total Operating Expenses

$7,096,376 60,071 452,017 718,244 491,630 111,484 1,073,868 1,367,128 181,103 980,756 14,926 $12,547,603

Operating Margin $695,803 Depreciation $1,598,015 Operation, Maintenance and Other $2,786,745

NON-OPERATING MARGIN Merchandising, less costs and expenses Gain on disposal of assets Other Cooperative Capital Credits Interest Income NET MARGIN

$6,657,063 59,544 365,585 657,251 498,958 99,453 1,099,992 1,598,015 179,430 1,027,969 5,963 $12,249,223

Interest on Long-Term Debt $1,027,969 Taxes $179,430

Cost of Power $6,657,063

Operating Margin Before Capital Credits $416,162 Generation and Transmission Capital Credits 305,005 NET OPERATING MARGIN $721,167

Total Non-operating Margin



$12,268 17,508 95,149 152,648 277,573

$410,944 284,859 $695,803 $18,142 6,057 77,912 220,778 322,889

$998,740 $1,018,692


Report Official Notice of Lacreek Electric Association’s 68th Annual Meeting April 21, 2016 Bennett County High School Auditorium, Martin, S.D.

Explanation of 2015 Dollars Spent Hydro 16.65%

Basin Electric 83.35%

[blend of coal, hydro, nuclear, natural gas and renewables (wind and waste heat) sources]

Cost of Power – This is paid to Rushmore Electric Power Cooperative, our power supplier, who receives 83.35 percent from Basin Electric (which consists of a blend of coal, hydro, nuclear, natural gas, renewables (wind and waste heat) and 16.65 percent hydropower. TAXES – This includes real estate taxes and 2 percent gross revenue taxes in South Dakota and personal property taxes in Nebraska. INTEREST – Monies paid to Rural Utilities Service and Cooperative Finance Corporation for interest on our loans. DEPRECIATION – The value of the property of the cooperative is set up to decrease annually over a set period of time. MARGINS – Revenue over and above the cost of operation. Margins are assigned to the members in the form of patronage capital or capital credits. OPERATIONS, MAINTENANCE and OTHER – Includes the cost of maintaining 3,155 miles of line, more than 3,652 security lights, billing approximately 6,657 meters a month, plus insurance, transmission expense, sales expense, customer service expense and other costs required to operate the cooperative.

Growth Comparison 2014 Average Number of Meters Served 6,576 Miles of Line 3,149 kWh Sold 119,480,249 Average Residential Use 1,284 kWh Average Residential Bill $144.44 Electric Revenue $12,963,765 Power Cost $7,096,376 Net Margins $998,738

2015 6,657 3,155 118,316,870 1,241 kWh $141.04 $12,660,167 $6,657,063 $1,018,692

Dear Member, Please plan to attend the 68th annual meeting of members of Lacreek Electric Association, Inc. on Thursday, April 21, 2016, at the Bennett County High School auditorium in Martin. Prizes will be given away, including one $300 and eight $50 grand prizes, and numerous door prizes. The annual meeting will include a meal served at the American Legion dining room. The evening’s events will include: 5:30 to 6:45 p.m. – Dinner served at the American Legion Dining Room 5:30-7 p.m. – Member Registration at Bennett County High School Auditorium 7 p.m. – The business meeting begins

At meeting’s end – Drawing for the $300 and eight $50 Grand Prizes During the meeting, five directors will be elected. The candidates are: Zone 1 ........ Ellis Rae Hicks and Tee Tetrault Zone 3 ..................Troy Kuxhaus, Incumbent Zone 4 . Connie Whirlwind Horse, Incumbent Zone 5 ................ Aage (Melvin) Jorgensen and Neal Livermont Zone 8 ................... Wade Risse, Incumbent Enclosed you will find your voter’s registration card. Please bring your registration card with you to the meeting. Capital credit checks will be handed out to those of you that were in service in 1991 and 1997. Your registration card will be needed to pick up your check and to win prizes. See you there! Respectively yours, Donovan Young Man, Secretary

*NOTE: This is a reprint of the actual Official Notice letter that was sent to each member in April. Please bring your voter’s registration card with you to the annual meeting on April 21. The card was enclosed with the letter.

In Case of An Outage FIRST: Check your fuses or breakers in your home or building in which you do not have power. SECOND: Check meter for display and readings. If the meter is blank, you are probably experiencing an outage and need to call our office immediately. THIRD: If your meter has a display, check your breaker below your meter on the yard pole. FOURTH: Please contact your neighbor to see if they are experiencing a power outage because it would be helpful to know if other members in the area are also out of power. FIFTH: Make sure you have the name the bill is in, the meter number and /or the account number. SIXTH: Call Lacreek Electric at 605-685-6581 or if you are calling long distance dial 1-800-655-9324. We now have a 24 hour answering service. First, you will hear an automated message, “Thank you for calling Lacreek Electric. Your call may be recorded or monitored for quality assurance.” You will then hear the following menu: • If you’re calling to report an electrical outage, press 1. • If you have a billing question, press 2. • If you’re calling to report a meter reading, press 3. • For all other calls, press 0. Office Hours: 7 a.m.-4:30 p.m. MDT • Open over noon hour Closed Saturday, Sunday and holidays COOPERATIVE CONNECTIONS

• May 2016


regional Dateline

Events of Special Note

April 23 RiverRat Marathon, Riverside Park, Yankton, SD 605-660-9483

April 23-24 Quilt Show, Swiftel Center Brookings, SD, 605-690-3246 April 24 Jeff Dunham: Perfectly Unbalanced Tour Rapid City, SD, 800-468-6463 April 30-May 1 Annual Art Show Chamber of Commerce Pierre, SD, 605-567-3562 May 20 11th Annual Custer Stampede Buffalo Art Auction Unveiling Custer, SD, 605-673-2244 May 21 Red Rock Ribfest Rowena, SD, 605-254-6367 May 26 Purses with a Purpose Sioux Falls, SD, 605-271-9703 May 27-October 10 Legends in Light® Laser Light Show, Nightly, Crazy Horse Memorial, Crazy Horse, SD

Photo CoURtESY of KRYSti BUxCEl BaRnES

April 23 Jeff Dunham: Perfectly Unbalanced Tour Sioux Falls, SD, 605-367-7288

May 8 Incredible Metal Art Gallery “Mother’s Day Open House” 1 to 4 p.m., 14 miles south of Kadoka on Hwy. 73 and 3 miles east on Swift Horse Road, Contact Tammy Prang 605-462-6373 May 20 Tesla Road Trip Car Rally Custer, SD, 605-673-2244

To have your event listed on this page, send complete information, including date, event, place and contact to your local electric cooperative. Include your name, address and daytime telephone number. Information must be submitted at least eight weeks prior to your event. Please call ahead to confirm date, time and location of event.

June 1-4 South Dakota Senior Games Rapid City, SD, Contact Kristi Lintz at 605-394-4168

June 4-5 Spring Volksmarch at Crazy Horse Memorial Crazy Horse, SD, 605-673-4681

June 24-25 South Dakota Senior Games Mitchell, SD, Contact Barb Pierkowski at 605-995-8048

June 3 City Wide Rummage and Crazy Days, Sponsored by: Martin Chamber, Martin, SD

June 10-11 Two Rivers Exposition Expo Center, Fort Pierre, SD 605-224-8686

June 3-4 South Dakota Senior Games Sioux Falls, SD, Contact Scott Juhnke at 605-367-8222

June 10-11 South Dakota Senior Games Spearfish, SD, Contact Kris Harwood at 605-722-1430

July 4 “Let’s celebrate an old fashioned 4th of July” Main Street, Martin, SD Contact Joyce Wilson a 605-685-6200

June 3-5 Wheel Jam, Huron, SD 605-353-7354

June 14 Seventh Annual Ag Women’s Day, First Lutheran Church Activity Center, Brookings, SD 605-692-8003 Ext. 2

June 3-5 Black Hills Quilters Guild Quilt Show and Sale Rushmore Plaza Civic Center Rapid City, SD

June 17-19 Crazy Horse Stampede Rodeo and Gift from Mother Earth Crazy Horse, SD

July 22-23 South Dakota Senior Games Brookings, SD, Contact Traci Saugstad at 605-692-4492 August 5-6 South Dakota Senior Games Yankton, SD, Contact Kristi Hauer at 605-665-4685 or Tracy Grotenhuis at 605-668-5238 August 13 South Dakota Senior Games Huron, SD, Contact LaRon Klock at 605-353-8533