The Energy Cooperative Times, Issue 4 2023

Times T H E E N E R G Y C O O P E R AT I V E

ISSUE 4 2023

IN THIS ISSUE PRESIDENT'S MESSAGE

PG. 3

CAPITAL CREDITS

PG. 6

SNAPSHOT OF OUR SYSTEM

PG. 17

IN THIS ISSUE

1500 Granville Road P.O. Box 4970 Newark, Ohio 43058 1-740-344-2102 myenergycoop.com

PRESIDENT'S MESSAGE

PG. 3

HOLIDAY SAFETY & FIRES

PG. 4

CAPITAL CREDITS

PG. 6

DIRECTOR'S CORNER

PG. 7

OPERATION ROUND UP

PG. 8

FOOTBALL & ONLINE SAFETY

PG. 10

ENERGY SAVING TIPS

PG. 11

COOPERATIVE PRINCIPLE #7

PG. 12

ELECTRIC UPDATES

PG. 14

NATURAL GAS UPDATES

PG. 15

RATE STRUCTURE & DESIGN

PG. 16

SNAPSHOT OF OUR SYSTEM

PG. 17

Todd Ware President & CEO Heather Juzenas Vice President of Marketing & Member Services Natasha Short Marketing & Communications Manager Cierra Strawser Marketing & Communications Specialist

The Energy Cooperative Times is the official publication of The Energy Cooperative.

This magazine is a communication link between The Energy Cooperative and its members.

PRESIDENT'S MESSAGE

By Todd Ware, President & Chief Executive Officer As a cooperative, there are various financial models and goals that we look at in different time frames.

Each year, we do an annual budget. About every four years, we do a cost-ofservice study, and on an as-needed basis, we do a ten-year forecast. Each model provides us with a different perspective on our financial picture.

Todd Ware They all focus on ensuring we generate enough revenue to operate our business on both a day-to-day basis (operating expenses) and capital basis (long-term reliability). Over the last several months, we have been working on a new ten-year forecast to update loan documents with our bank.

The results of the forecast show that our revenues need to catch up with increasing prices. We also see this in our results for 2023, as we are lagging on all our financial metrics. As you know, inflation has been at record-high levels over the past four years, peaking at 7% in 2021 and 6.5% in 2022. We have tried to absorb these costs, knowing you are experiencing this in other aspects of your life.

This has become difficult as items specific to our industry have increased in price over the last four years. In the chart below, you can see many of the large ticket items we use to bring you safe and reliable energy have increased by more than 50%. At the same time, our distribution rates have only increased by 1%.

We have reached a point where The Energy Cooperative can no longer absorb the increased costs, and there will be a rate adjustment on January 1, 2024.

ELECTRIC MEMBERS

The monthly facility fee adjusts from $30 to $34 for residential members. The adjustment represents about a 2.5% increase in your bill on a year-over-year basis. Each commercial class will see an increase in their monthly charge that will see an adjustment of about 3%. There will be no change to the distribution energy charge.

NATURAL GAS MEMBERS

The monthly facility fee for residential members adjusts from $24 to $26.50 per month. The adjustment represents about a 3.6% increase in your bill on a year-over-year basis. Each commercial class will see an increase in their monthly charge that will be an adjustment of about 3%. There will be no change to the distribution energy charge.

More details about the commercial rate class changes can be viewed at myenergycoop.com/rates.

COOPERATIVE DIFFERENCE

Recent member surveys tell us that price, service and reliability are the most important to our members. We work hard to control our expenses. We do not like applying rate adjustments; however, these changes are necessary. The Energy Cooperative Directors and employees are committed to providing you with a good value for our service. After all, we are a cooperative.

We exist for our members, not to make a profit for shareholders. That’s the cooperative difference.

3 Chart: Inflation over the last four years comparing every day household items and our industry supplies

H O L I D AY S A F E T Y & F I R E S

By Connie Hogue, Vice President of Human Resources & Safety Do you worry about fires in your home during the holiday season? You are not alone. In the winter months, there is an increase of unintentional deaths as the result of a home fire.

Fires can start quickly and spread faster than most people realize. They can occur at any time, in the blink of an eye – whether you are baking festive Connie Hogue cookies, cooking your favorite meals, decorating your house with twinkling lights or burning candles.

There are five extinguishers that safely put out five distinct types of fires: 1. Class A fire extinguishers: safe to use on fires that are burning paper and wood 2. Class B fire extinguishers: safe to use on flammable liquids like grease, gasoline and oil 3. Class C fire extinguishers: safe to use on electrical fires 4. Class D fire extinguishers: safe to use on metals such as magnesium and titanium 5. Class K fire extinguishers: safe to use on fires that start in the kitchen when using grease, cooking fat and oil

FIRE PREVENTION TACTICS

The good news is you have the capability to take preventative measures to stop fires from starting in the first place.

• • • • •

Keep your kitchen tools away from hot stovetops.

Water real Christmas trees daily. A dry tree creates a higher fire risk and causes an unwanted mess.

Place candles and menorah's on a non-flammable surface.

Remove your festive stockings from your fireplace before you light it. If you leave them hanging, sparks can fly and catch the stockings on fire.

Eliminate clutter in your home. Home décor, books, clothing, boxes and other knickknacks will add fuel to a fire causing flames to spread quicker if a fire occurs.

In the case a fire starts in your home, follow this simple protocol: ACT. • • •

If a fire occurs, act fast. Do not try to save your valuables, photos, gifts or important documents. Find an exit close to you that is clear from fire debris, smoke and burning ash. Once you are safely outdoors, several feet away from the fire, call 9-1-1 then make sure everyone is accounted for.

Take into account these additional fire safety tips: •

•

Understand Chemical Safety – Store your chemicals in a safe area in your home depending on what the hazard warning labels state on the back of the chemical container.

Use Fire Extinguishers – It is vital that you have the proper fire extinguisher in designated spots throughout your home. They should be in good condition, and you should consider conducting monthly inspections.

Always remember – all your possessions and other assets can be replaced; yourself, your family and friends cannot.

FIRE EXTINGUISHERS

It is important that you always have a fire extinguisher nearby. You must use the correct one depending on the situation. If you use the wrong type, it can cause the fire to become more dangerous and destructive. myenergycoop.com

Assess the situation Choose the best action Take action

4

ATIVE GY COOPERATIVE

THE ENERGY COOPERATIVE

PITAL CREDITS APITAL CREDITS CAPITAL CAPITAL CREDITS CREDITS

ARE CAPITAL CREDITS? THE ENERGY COOPERATIVE THE ENERGY COOPERATIVE

do not have customers or shareholders. Cooperative’s have members. After we pay our bills and d funds into our system, we allocate excess revenue to members. Margins are allocated to pital credits.

CAPITAL CREDI = WHAT ARE CAPITAL CREDITS? = CAPITAL CREDITS? T AREWHAT CAPITAL CREDITS? ARE CAPITAL CREDITS? $

$

$

MARGINS

Cooperative’s do not have customers or shareholders. Cooperative’s have members. After we pay our bills

$ and e or shareholders.

Cooperative’s havewe members.

After we pay to our bills e’scustomers do notand have customers orfunds shareholders.

Cooperative’s have members.

After we pay our bills and reinvest needed into our system, allocate excess revenue members. arebills allocated Cooperative’s do not have customers or shareholders.

Cooperative’s have members.

After Margins we pay our and o our funds system, weour allocate excess revenue totomembers.

Margins are allocated to eded into system, we excess revenue to members.

Margins are allocated to members as capital credits. reinvest needed funds into allocate our system, we allocate excess revenue to members.

Margins are allocated to CAPITAL CREDITS TO MEMBERS BILL BILL ss.capital credits. members as capital credits.

-

$

$

WHAT ARE CAPITAL CREDITS?

- - - =-

-

= =

Cooperative’s do not have customers or shareholders. Cooperative’s have members. After we pa MARGINS $ =MARGINS MARGINS $ needed $funds$into our $ = system, = reinvest we $allocate excess revenue to members. Margins are allo $ members as capital credits. $ $

-

$BILL BILL

BILL BILL

-

CAPITAL CREDITS TO MEMBERS

$ $ CAPITAL MEMBERS CREDITS TO MEMBERS BILL BILLCREDITS TO CAPITAL

==

$640, 243 BILL BILL

MARGINS

$

CAPITAL CREDITS TO MEMBE

CEIVE MY CAPITAL CREDITS? In 2023 HOW DO I RECEIVE MY CAPITAL CREDITS? distributed in two ways.

Current members’ capital in capital credits will be paid to members.

HOW DO I RECEIVE MY CAPITAL CREDITS?

$640, 243 $640,243

Capital are distributed two no ways.

Current electric In 2023, In 2023 toward theircredits bill. Former members,inwho longer Capitalcapital credits are distributed in two ways.

Current their members’ capital bill. in capital creditscredits will be paid members’ credits are applied toward electric in capital willtobemembers. paid to members. credits cancredits beMY applied, willtoward receive a check the who no longer Y CAPITAL CREDITS? RECEIVE CAPITAL CREDITS? are applied their bill.

Former in members, Former electric members, who no longer have a bill where 2023a check in the In 2023 have a bill where credits can be applied, willIn receive two credits ways. mail.

Current members’ capital are distributed two ways. Current members’ capital caninbe applied, will receive a check in the credits mail. inwill in capital be paid to members. capital credits will be paid to members.

HOW DO I RECEIVE MY CAPITAL CREDITS?

$640,$640, 243 243

$640, 243

Capital credits areInassigned bill. Former who nomembers, longer who no longer plied toward members, their bill. Former 2023 annually to each applied, receive a check inreceive thecredits ere creditswill can be applied, will a check in the in two ways. Current members’ member and are paid in accordance the to mem Capital are distributed capital Capital credits are assignedannually to inannually capital credits willwith be paid Capital credits are assigned toeach each

OR mbers

ur bill

credits are applied toward their bill. Former members, whoCooperative noand longer member are paidbylaws. in accordance with the member are paid in The accordance with the have a bill where credits can be applied, will receive Cooperative aand check in the bylaws. following years' capital mail. credits will be paid in 2023: Cooperative bylaws.

The following years' capital The following years’ capital credits OR CHECK NUMBER

CHECK NUMBER

PAY

CHECK DATE

CHECK DATE

AMOUNT HERE

**** AMOUNT HERE **** AMOUNT HERE

Capital credits are assigned annually to eachannually to each Capital credits are assigned will bewith paid in 2023: with the credits willare be paid inaccordance 2023: member and aremember paid in and accordance the paid in 1980, 1982 *100% of the year will be paid at this time Capital credits are assigned annuall Former members mailed to Cooperative bylaws.

The following capital Cooperative bylaws.

The years' capital 2002years' *12.8%following of the year will bethe paidyear at this time *100% of paid at this time you as a check member and will arebepaid accordance credits will be paid in 2023: credits will be paid in 2023: 1980, 1982 *100% of the year will be paid atinthis time

TO THE First Last Name ORDER OF

PAY

Address Here Anywhere MO 88888-8888

**** AMOUNT HERE ****

OR Current members

TO THE First Last Name CHECK NUMBER ORDER OF

Address Here Anywhere MO 88888-8888

CHECK NUMBER

1980 2002 *12.8% of the year will be paid at this time 1982 OR1982 *100% 1980, year will be paid at year this time 1980,of the 1982 *100% of the will be paid at this time HOW IS THE CAPITAL CREDIT DETERMINED? 2002 AMOUNT *12.8% of 2002 the year will be paid at year this time *12.8% of the will be paid at this time 2002 CHECK DATE

AMOUNT HERE

applied to your bill**** AMOUNT HERE ****

PAY

**** AMOUNT HERE ****

TO THE First Last Name ORDER OF

OR

Address Here Anywhere MO 88888-8888

PAY

TO THE First Last Name ORDER OF

CHECK DATE

AMOUNT HERE

CHECK NUMBER

Former members mailed to you as a check Address Here Anywhere MO 88888-8888

members Former members mailed to members mailed to Former to your bill Current you as a check you as a check Former members members

applied to your bill

CHECK DATE

PAY

AMOUNT HERE

Cooperative bylaws. The following y

*100% of the year be paid at this time credits will bewill paid in 2023:

**** AMOUNT HERE ****

TO THE First Last Name ORDER OF

Address Here Anywhere MO 88888-8888

Current members members mailed to mailed as a check Formeryou applied to your bill as a check

*100% oftime the year *12.8% of1980, the year 1982 will be paid at this

2002 *12.8% of the year will be pa

Capital credits represent the A RESIDENTIAL MEMBER A COMMERCIAL MEMBER HE CAPITAL CREDIT AMOUNT DETERMINED? assigned share of the kilowatts kilowatts HOW IS THE CAPITAL CREDIT AMOUNT DETERMINED? a year a year uses Cooperative's margins based

PITAL CREDIT AMOUNT DETERMINED? THE CAPITAL CREDIT AMOUNT DETERMINED? andmargins and Capital credits represent the assigned share of the Cooperative’s on the amount of kilowatt uses

$$$$$ $$ HOW IS THE recieves CAPITAL CREDIT AMOUNTrecieves DETERMINED? based on the amount of kilowatt hours used for that year.

hours used for that year.

IN CAPITAL CREDITS

IN CAPITAL CREDITS

esent the AARESIDENTIAL RESIDENTIAL MEMBER A COMMERCIAL MEMBER AACOMMERCIAL represent the A RESIDENTIAL MEMBER MEMBER COMMERCIAL MEMBER RESIDENTIAL MEMBER AMEMBER COMMERCIAL MEMBER Capital credits representkilowatts the MEMBERS A RESIDENTIAL MEMBER kilowatts kilowatts A kilowatts COMME THE ENERGY COOPERATIVE'S ehe of the kilowatts kilowatts uses uses uses a year year uses auses year a yearusesa year uses uses uses assigned share of the aayear kilowatts gins based margins based haveand donated more than a year uses and and and Cooperative's margins killowatts a yearbased killowatts a year and and of kilowatt lowatt andrecieves and recieves recieves recieves recieves recieves on the amount of kilowatt recieves recieves and receives and receives We’re here $$$$$ to help! For questions about capital that year. $$ year.

IN CAPITAL CREDITS IN CAPITAL CREDITS IN CAPITAL CREDITS IN CAPITAL CREDITS hours used for that year.

IN CAPITAL CREDITS IN CAPITAL CREDITS credits,credits please visit myenergycoop.com or call INinCAPITAL CREDITS IN CAPITAL in capital credits capital

$$

$$

$4 MILLION OPERATION ROUND UP to

$$$$$$$

$$$$$ $$$$$

$$

member services at 1-740-344-2102.

The member-funded program provides assistance to community nonprofits and funds college scholarships. If you'd like to donate your capital credits, please let us know.

PERATIVE'S MEMBERS ERGY COOPERATIVE'S MEMBERS THE ENERGY COOPERATIVE'S MEMBERS QUESTIONS ABOUT CAPITAL CREDITS?

GY COOPERATIVE'S MEMBERS d more than have donated more than Contact us at 740-344-2102 to speak with one of our member service

ore than

representatives or visit myenergycoop.com/contact-us.

We’re here to help! For questions abou We’re here to help!

For questions about We’re here to help!

Forcapital questions about capital

DIRECTOR'S CORNER

By Joanne Little, CCD, BL, DGC, District 8

ITS

ay our bills and ocated to

ERS

3

Joanne Little

AS A MEMBER, WHAT CAN YOU EXPECT?

Sharing excess revenue with our members is a core cooperative principle.

Cooperative Principle #3 states that members will contribute equitably and democratically to control the capital of the Cooperative. Surpluses are allocated to the benefit of members in proportion to their transactions with the cooperative.

In June 2023, The Energy Cooperative Board of Directors approved retiring (paying out) of capital credits to electric members. The Board of Directors has chosen a hybrid method of retiring capital credits based on the allocated margins in the electric members' equity. Therefore, The Energy Cooperative will pay electric members the remaining amount of 1980, all of 1982, and a portion of 2002. Active members will see a credit on their electric bills in October, and inactive members will receive a check.

Your Board of Directors and management are pleased we can once again retire (payout) capital credits!

WHAT ARE CAPITAL CREDITS?

Margins are allocated to members based on the energy they purchased during the year. The federal tax law provides cooperatives with preferences and exemptions, such as tax-exempt status. This exemption requires us to run our cooperative "at cost," not charging more than what it costs us to bring our members safe and reliable energy. Every cooperative board decides how and when to retire (pay) capital credits to its members.

mbers.

WHY THE DELAY?

The Energy Cooperative retired (paid out) capital credits last year for the first time since 1999. Why? The Energy Cooperative's equity position fell below 20% in 2001. ly to each According to our mortgage, we could not pay capital e with the credits until the equity reached 20%. years' capital

G E T T O K N OW YO U R D I R E C T O R

WHAT IS THE PROCESS?

Graduate of Utica High School, Columbus Business University and Central Ohio Technical College

The Board of Directors considers the following factors will be paid atwhen this time determining how capital credits will be retired: aid at this time • Amount to be retired: Balancing the risk of harming the financial position by paying capital credits with the desire to return the credits to the electric members.

• Age of capital credits: Must balance the desire to retire old capital credits with also including newer members.

• Timing: Critical points when capital credits are retired (paid), the amount being retired, and ERCIAL MEMBER how to communicate this to our members. kilowatts

$$$$

Retired as the Treasurer of JohnstownMonroe, Newark City and Olentangy Schools and also worked at C-TEC and Licking County Education Service Center Served as an Interim Treasurer and Financial Consultant for many Central Ohio school districts

a year

Married her husband, Harry, in 1969 and have three children and eleven grandchildren

Retiring (paying out) capital credits are determined annually after the board of directors L CREDITS considers the above-mentioned factors.

ut capital

7

74 0 - 3 4 4 - 2 1 0 2

Thank You

Operation Round Up Members!

The Operation Round Up Foundation awarded $115,519 to the following community organizations in June: Abbott Home for foundation repairs Bishop Fenwick School to purchase shades Dresden Swim Team for a swim timer Fredericktown Community Fire Department to purchase dry/wet suits Highwater Church for carpet Hospice of Knox County to purchase monitors and fans Interchurch Social Service of Knox County to purchase a walk-in cooler Knox County Career Center for a training house Ohio Hospice of Central Ohio for mobile car units Pataskala Public Library to purchase windows Shane Center for Therapeutic Horsemanship for savvy feeders Franklin Local Schools for a chicken coop St. Vincent de Paul Thrift Store to purchase a point-of-sale system College Township for LED lights and switches Richland Fair to purchase wash racks Village of Philo for windows Centerburg Baseball for fence repair Morrow County Park District to purchase trail gravel National Trail Fire Department for a bunk room New Hope Lutheran to purchase school supplies Harbor Community Center for building insulation

myenergycoop.com

8

Because of the generosity of our members rounding up their bills to the next whole dollar amount each month, The Energy Cooperative's Operation Round Up Foundation has donated more than $4.1 million to community organizations.

The Operation Round Up Foundation awarded $56,052 to the following community organizations in August: 4H Camp Ohio for kitchen vents Learning 4 Life Farm to purchase automatic watering equipment Pathways of Central Ohio for a generator Salvation Army of Newark to purchase coats and gift cards Thorn Twp Fire Department for a thermal imaging camera Roseville Fire Department to purchase portable scene lights Licking County Alcoholism Prevention for air conditioner repair Weathervane Playhouse to update technology Hilliard Township for playground equipment Larry Miller Intermediate School to purchase stools Village of Hanover for crosswalk lights Head Start through LCHD for play space equipment Hebron New Life Church to purchase an AED

Do you know an organization that could benefit from an Operation Round Up grant?

Scan the QR code with your smartphone or visit myenergycoop.com/roundup.

FOOTBALL & ONLINE SAFETY

By Scott Stitts, Vice President & Chief Information Officer TIPS TO STAY SAFE ONLINE

October is a month packed full of fantastic activities, like bonfires, hayrides, apple picking, corn mazes and (of course) football.

Thanks to the everchanging advancements of technology and streaming devices, watching and cheering on your favorite football team is more convenient than ever.

However, easy access can Scott Stitts cost you – it can threaten your online safety. October is designated as National Cybersecurity Awareness Month (NCSAM).

•

•

•

CYBERSECURITY AWARENESS

The first line of defense against the threat of cyberattacks is to be aware of all the potential threats you may face.

It is beneficial to educate yourself, family members and friends about the latest cybersecurity practices. By doing this, you should have a better understanding about how to recognize the red flags, such as unsolicited emails claiming to offer exclusive football-related content or being told to sign up for a giveaway that seems too good to be true.

•

Create unique and different passwords for each of your online accounts, even your football related platforms. Each password should consist of at least one uppercase and lowercase letter, a number and symbol. The longer and more complex your password is, the more difficult it is for cybercriminals to guess it.

Use two-factor authentication. This adds an extra layer of security to your accounts. The verification code will be sent directly to your phone. If you happen to receive a code but did not try to login to one of your accounts, that means your information is being targeted. A cybercriminal has attempted to steal your valuable information. You need to change your password immediately.

Consistently update your phone’s software – this is another safeguard against any possible cyberattacks.

Only visit official websites with a good reputation when purchasing tickets or merchandise from your favorite football team. Make sure that the website URL begins with https:// and displays a padlock icon, indicating a secure connection.

PROTECT YOUR PERSONAL INFORMATION

Protect your personal information, such as full name, maiden name, birthday, address and financial details is the first step in your gameplan against cybercriminals.

When you put this kind of information on social media, it stays on the internet forever; making you more susceptible to cyberattacks. You should stay away from websites that have an unsecure web domain, which means that they are an unofficial site. Always practice caution when you get an email from an unfamiliar entity. If you accidentally open the message, do not click on any of the links or open any attachments.

As we embrace the new digital age and immerse ourselves in the online football community, staying safe online is of utmost importance. By remaining cautious, alert and following the essential cybersecurity practices, you can protect yourself from cyberthreats and enjoy football season to the fullest. The power to stay safe online is in your hands, not the opponents. Remember, you should remain cautious throughout the year, not just in October.

AVOID PUBLIC WI-FI

You open yourself up to risk whenever you decide to use a public Wi-Fi network. They are notorious for their lack of security. Cybercriminals have the capability to capture your data that is transmitted over these networks. To stop this from happening, try to use a secure and private internet connection whenever there is one available, preferably through a VPN. VPNs are a good defensive move to use since they ensure your information stays safe, hidden and protected.

myenergycoop.com

10

E N E R G Y S AV I N G M Y T H S

By Heather Juzenas, Vice President of Marketing & Member Services Do not be fooled by energy saving myths!

Our members often ask us how they can save money on their monthly bill. Here are five things to keep in mind that may be costing you extra money.

4 KEY FACTORS

That Impact Energy Bills You pay for the energy you use each month, but there are additional factors that impact your energy bills.

Fuel Costs

MYTH #1: Setting the

We purchase electric, natural gas and propane for our members before we deliver it to your home. This cost changes based on energy markets. Electric members see this costs as Generation and Transmission fees on the back of their bill. Natural Gas members see it as Gas Cost. This monthly charge covers cost fluctuations without having to continually restructure rates.

thermostat higher or lower will heat or cool a Heather Juzenas room faster.

Most furnaces and air conditioners work at the same speed, no matter what the thermostat setting. Unless you have a variable speed blower, more energy may be wasted as the system continues to run to reach the higher or lower set point.

Service Costs

MYTH #2: Leaving lights on uses less energy than turning them on and off.

In most cases, the small surge of power needed to turn a light on is much less than the power that is wasted by leaving it on when it is not needed.

Your bill includes a facility fee to cover the co-op’s ongoing investments in poles, wire, meters, system maintenance and additional costs necessary to bring energy to your home. The facility fee is charged every month you have electric, natural gas or propane available at your home. The cost helps us ensure your service is reliable, safe and ready when you want to use it.

MYTH #3: Closing off vents will reduce heating and cooling costs.

Closing vents is not a good way to save on energy costs.

Heating and cooling systems are designed to distribute air evenly; closing vents throws the system off balance.

This wastes energy because air pressure builds up and causes duct leaks.

Weather The greater the difference between the indoor and outdoor temperatures, the more energy it takes to heat and cool your home (even when your thermostat stays the same).

When temperatures soar or dip, your cooling or heating equipment must run longer and at maximum capacity, which can greatly increase your energy use. Extreme temperatures can also affect energy market prices. When the need for energy increases due to extreme heat or cold, the price typically rises.

MYTH #4: Leaving a ceiling fan on will cool a room.

Ceiling fans circulate air, making your skin feel cooler.

This allows you to save energy by raising the thermostat.

However, fans do not cool the air. Leaving them on in empty rooms wastes energy.

MYTH #5: Hand washing dishes is cheaper than using a dishwasher, It is common for people to believe that dishwashers use more water and energy than hand washing dishes. In fact, washing a typical load of dishes in a dishwasher uses 37% less water. Also, using an ENERGY STAR®certified dishwasher, rather than hand washing, can cut your annual energy costs by more than $40, according to ENERGY STAR®.

Energy Consumption This is the amount of energy you use each month to power your home’s cooling/ heating system, appliances, lighting, electronics and more. You have control over how much energy you use, which can ultimately help manage your monthly costs.

Separating home energy myths from reality can save you money and keep your family comfortable year-round.

11

74 0 - 3 4 4 - 2 1 0 2

C O O P E R AT I V E P R I N C I P L E # 7 On Sunday, June 25th, we held our Kids Day event in downtown Newark.

This event was free to our members and featured carriage rides, delicious food, bounce houses, games, crafts, free historic jail tours and more!

concern for community We had a great time being day sponsors at both the Hartford and Muskingum County Fairs in August. Our employees were able to connect with members in the community while giving away a few fun items.

E L E C T R I C U P DAT E S

By Josh Filler, Vice President & Chief Operating Officer - Electric Operations Utilities are a very heavy infrastructure and capitalintensive business. With that, you are likely seeing many projects underway in our territory. Over the last few years, we have worked to target aging infrastructure and improve reliability through the building or rebuilding of new electric infrastructure.

of 69,000 Volt transmission line. We have rebuilt twelve miles and built seven new miles of transmission line.

In early 2024, we will begin rebuilding the nine-mile transmission line that feeds our Jelloway Substation in Northern Knox County. With this project, as well as AEP’s improvements in Coshocton County, our members in the Jelloway and Loudonville substation areas should see an improvement in their reliability from transmission caused outages.

Josh Filler

Over the last five years, the electric division has invested nearly $58 million dollars into our system from projects such as aging infrastructure, rebuilding of substations, new automated metering infrastructure, transmission line builds and supporting new services on the system. All of these projects support increased reliability and ultimately strengthen our ability to serve members.

I would like to take the opportunity to share some of the ongoing and upcoming projects that support this effort and that you may see going on in your area.

BROADBAND MOVES INTO OUR SYSTEM

There has been a significant increase in pole attachment requests from third parties like Charter (Spectrum) over the past 18 months. They are working on a large effort to bring high-speed internet to the more rural areas of our system. Mercury Broadband (Mercury Wireless) will also be working to bring the same high-speed broadband to underserved areas. Over the past few months, we have seen requests for attachments on 7,500 of our poles. That is about 14% of our total poles and is a hefty project. We fully support their efforts and know our members will benefit from better internet access. We expect this effort to continue over the next few years as the providers fulfill their commitments to serve rural areas.

PLEASANT HILL LAKE SUBMARINE CABLE CROSSING

We are undertaking a unique project to replace the submarine cable that crosses Pleasant Hill Lake. This cable serves Mohican Lodge and is also a main line tie between our Jelloway and Loudonville substations. The cable is over 50 years old and is beginning to show signs of its age.

AGING INFRASTRUCTURE

Every year, we commit a significant amount of capital investment to replace infrastructure that is beyond its useful life and showing deterioration. We target areas that are 60-70+ years old and tend to have poor reliability.

We evaluate and identify projects a year in advance and target roughly 20-25 miles of line to rebuild for the upcoming year.

The electric division does not foresee a slow down in infrastructure investment to keep up with member expectations, growth and the ability to provide the best service we can.

TRANSMISSION

Beginning in 2017, we started rebuilding some of our transmission facilities that were built in the 1950’s.

The Energy Cooperative owns and operates 40 miles myenergycoop.com

14

N AT U R A L G A S U P DAT E S

By Dan McVey, Vice President & Chief Operating Officer — Gas Operations The Energy Cooperative strives to provide safe and reliable natural gas service to our members.

As our pipeline system continues to expand in order to provide service to new members, we find it necessary to add new gas supply options to our portfolio.

Many of these projects require extensive excavation and brief service interruptions as we replace pipelines and meters at your home. Excavation can also make a bit of a mess in your yard until clean up and reseeding are completed. Every effort is made to perform clean-up work as quickly and efficiently as possible to limit any inconvenience. To limit the amount of time your service is interrupted, we make every effort to contact you before starting work and reactivating your service the same day.

This fall, we are focusing on a source from TC Energy at our Black Run site near Frazeysburg. TC Energy transports gas through its vast interstate pipeline network from many different sources including lower-cost shale gas produced here in the Appalachian Basin. This new supply source will help improve our system operations in eastern Licking and northern Muskingum counties.

Dan McVey

NATURAL GAS STORAGE

We can store nearly two billion cubic feet of natural gas in storage fields located in Muskingum and Perry counties.

These fields operate by injecting gas by compressor into over 40 individual wells during the summer months with pressures reaching 1,000 PSI when complete. The wells are opened and flow into the pipeline system in the winter months to supplement our gas supply. Every year, we perform inspections on the wells to ensure the piping is corrosion-free and the wells have good deliverability. To look for corrosion, instruments are used to inspect piping and wellheads. If corrosion is found, then replacements are made. To improve deliverability, the wells may be cleaned out or hydraulically fractured to improve gas flow.

PROPANE OPERATIONS

We provide propane service to more than 5,000 members within a twelve-county area. Members of the cooperative consumed over three million gallons of propane last year. Our propane drivers/technicians traveled more than 70,000 miles and made more than 10,000 deliveries in all kinds of weather conditions. This demonstrates our commitment to provide our members with safe and reliable propane service.

GROWTH IN LICKING COUNTY

The activity surrounding Intel requires major upgrades to our pipeline system in western Licking County. We are completing projects to upsize our piping to eight- and twelve-inch to accommodate increased demand in the area. We are well-positioned to handle potential growth resulting from a multitude of different businesses locating in Licking County. This growth will increase member density and gas sales, which ultimately helps improve efficiency and member service.

PIPELINE SYSTEM MAINTENANCE

In addition to building new infrastructure, we continuously replace aging infrastructure to maintain system integrity.

Most of the replacement work is done with polyethylene (PE) plastic pipe to prevent corrosion and provide a much longer asset life.

15

74 0 - 3 4 4 - 2 1 0 2

R AT E S T R U C T U R E & D E S I G N

By Pat McGonagle, Vice President & Chief Financial Officer

Pat McGonagle

Electricity and natural gas are essential utilities that power homes and businesses in our local communities.

Understanding the rate design and the different components of your energy bill helps you manage costs effectively. In this article, I will delve into the key components of our electric and natural gas rates.

• •

•

NATURAL GAS RATES •

All utilities face increasing costs, and we are no exception.

Rapidly growing service territories, inflation, supply chain constraints and general system upgrades put upward pressure on your cooperative’s rate structure. The infrastructure that runs throughout the communities we serve is the heart of a complex delivery system bringing utilities to your home or business. It is critical we maintain, repair and eventually replace this vast delivery network. We do this by making regular improvements to modernize and ensure our electric and natural gas distribution systems are increasingly more resilient. This important work also promotes economic growth for the communities we serve.

• •

•

•

The Energy Cooperative's rates are designed to ensure fixed costs are recovered through a fixed monthly charge, and variable costs are recovered through variable monthly charges. The facilities fee recovers part of the cooperative’s investments in poles, wire, pipelines, meters and other equipment needed to bring energy to your home or business.

Our goal is to share fixed costs equally amongst all our members. The facilities fee must be reviewed and adjusted periodically to ensure large users are not paying a disproportionate share of the fixed charges.

The Energy Cooperative Board of Directors and employees strive to control our expenses to keep rate adjustments to a minimum while still providing safe and reliable service to our members.

ELECTRIC RATES

•

Facilities Fee: Fixed charge for meters, lines or equipment that connect the member to the cooperative’s local delivery system.

Generation Charge: Variable charge based on cost to produce electricity at power plants.

myenergycoop.com

Facilities Fee: Fixed charge for meters, pipes or equipment that connect the member to the cooperative’s local delivery system.

Gas Cost: Variable charge based on the cost to purchase natural gas and transport the product to the cooperative.

Distribution Charge: Variable charge based on cost for the movement of natural gas over the cooperative’s pipeline system to consumer’s homes and businesses.

Infrastructure Replacement Rider: Fixed charge provides funding to upgrade the pipeline infrastructure throughout the service territory to meet and comply with safety standards.

Gross Receipts Tax: A consumption tax charged by the state of Ohio, based upon total charges billed.

Understanding the components of utility rates can go a long way in managing energy costs effectively. You have control over the amount of energy consumed each month.

I encourage you to use the SmartHub app to view your daily (even hourly) energy use. Reviewing your detailed energy use helps identify the times when you use the most energy. Contact us at 740-344-2102 to discuss how you can reduce your overall energy consumption. You can also visit myenergycoop.com/save for easy ways to use less energy and save money on your monthly bill.

Here is a breakdown of all the costs included in your monthly bill. You can also see the cost breakdown on the back of your monthly bill and at myenergycoop.com/rates.

•

Transmission Charge: Variable charge based on the cost to move high voltage electricity to the cooperative’s distribution network.

Distribution Charge: Variable charge based on cost for the movement of electricity over the cooperative’s wire, transformers, substations and other equipment to consumer’s homes and businesses. kWh Tax: A consumption tax charged by the state of Ohio, based upon electric usage.

16

Snapshot of our system Our crews continue to work hard on updating, maintaining and building new infrastructure to make sure we can better serve our members with all the growth happening in our service territory.

17

74 0 - 3 4 4 - 2 1 0 2

N AT U R A L G A S & P R O PA N E SAFETY IF YOU SMELL GAS

ODOR FADE

• Do not operate lights, appliances, telephones or cell phones. Flames or sparks from these sources can trigger an explosion or a fire.

• Leave the area immediately. Get everyone out of the building or area where you suspect a gas leak.

• Shut off the gas. Turn off the main gas supply valve on your propane tank, if it is safe to do so.

To close the valve, turn it to the right (clockwise).

• Report the leak. From a neighbor’s home or far away from the suspected gas leak, call 911 and The Energy Cooperative right away.

• Do not return to the building or area. You should not return to the area until we determine that it is safe to do so.

• Get your system checked. Before you attempt to use any of your propane appliances, we need to check the entire system to ensure it is leak-free.

The natural gas we deliver to you has an odor added to it that smells like rotten eggs. You may not be able to detect the odorant because of a weakened sense of smell or because the odorant is masked by other odors. Odor fade is an unintended reduction in the amount of odor in natural gas and propane that makes it difficult to smell.

• Air, water or rust in a propane tank or cylinder can reduce propane odor concentration.

• If the gas is leaking underground, its passage through soil may reduce the smell.

• The odor may stick to the inside surfaces of gas piping and distribution systems and possibly other materials.

• Since there is a possibility of odor fade or problems with your sense of smell, you should respond immediately to even a faint odor of gas.

• If you are concerned that you or others in your home may have difficulty smelling propane, consider buying propane gas detectors.

APPLIANCE SAFETY • Properly install and maintain connectors. It is important that all appliance connectors are properly inspected, installed and maintained by a qualified service technician.

• Have connectors checked when moving or replacing appliances. Connectors can wear out from too much moving, bending or corrosion. Connectors should be checked by a qualified service technician whenever the appliance is replaced or moved from its location.

• Use only approved appliance connectors. Make sure that all connectors and gas piping/tubing that bring propane to your appliances are installed by a qualified service technician and approved by the American National Standards Institute (ANSI).

• Have older appliance connectors inspected. Over time, some types of appliance connectors can crack or break, resulting in a serious gas leak and the possibility of fire or explosion. If you have an appliance that is more than 20 years old, have a qualified service technician inspect the connectors to be sure they are safe and meet current safety code requirements.

• Do not move an appliance yourself.

Moving an appliance might damage the connector and create a leak.

myenergycoop.com

18

19

PRSRT STD U.S. POSTAGE

1500 GRANVILLE ROAD

PAID

P.O. BOX 4970

COLUMBUS, OH PERMIT NO. 608

NEWARK, OHIO 43058-4970

BUSINESS INFORMATION

SAFETY REMINDERS

The Energy Cooperative’s business hours are Monday through Friday from 7:30 a.m. to 4:30 p.m.

• • •

Member service: 740-344-2102 Electric outages or emergencies: 888-535-5732 Natural gas or propane emergency: 740-344-2102

740-344-2102

If you see a downed power line or other electrical hazard, call 911 then call our outage line at 888-535-5732. Assume every downed power line is energized and dangerous.

If you smell rotten eggs or suspect a gas leak, leave the area immediately. Call 911 then call us at 740-344-2102.

myenergycoop.com

Energy

1500 Granville Rd., PO Box 4970, Newark, OH 43058

FOR WHAT MATTERS MOST