The Energy Cooperative Times, Issue 2 2024

PRESIDENT'S MESSAGE

By Todd Ware, President & Chief Executive Officer

As we continue to navigate through 2024, I have concerns about the future of our country's electric industry. The Energy Cooperative generates electricity through our generation cooperative, Buckeye Power, which consists of twenty-four electric cooperatives in Ohio. As a member of the Buckeye Power board, we have worked diligently to prepare for future cooperative members' needs while providing reliable and clean power. More than fifteen years ago, a billion dollars was spent on our Cardinal Power Plant to make it one of the cleanest coal generators in the world.

The United States' electric grid is divided into regional territories. As the map below shows, Buckeye Power is part of the PJM region. This regional transmission organization (RTO) coordinates, controls and monitors a multistate electric grid and is regulated by the Federal Energy Regulatory Commission (FERC).

Late in 2023, FERC released its winter reliability report. For winter 2023-24, the report stated that the PJM territory was at risk of insufficient power generation to meet electricity demand during an extreme weather event. Currently, this winter will finish as one of the warmest on record. However, this has nothing to do with the real issue: our PJM territory is subject to generation shortages during extreme weather.

Buckeye Power has planned and prepared enough generation for our cooperative members in Ohio, but because of the government required RTO, we cannot control other generating facilities in our PJM market.

Ohio alone has gone from twenty-one coal generation plants to four. These facilities provide steady, reliable baseload electricity, regardless of whether the sun shines or the wind blows. With the closing of such baseload electric generation facilities across the nation, we now have greater concern for the reliability of our electric supply.

Another concern is the wave of encouragement in electric car usage, which is increasing demand and complicating the issue. The electric industry is complex but also very straightforward. If we continue to produce less base-generation electricity, relying instead on intermittent resources, and grow in our need for power, we will easily exceed our ability to supply what is needed. Demand shortages will be noticed during extreme weather conditions when demand increases.

Some areas of the nation have already seen this play out. Around Christmas in 2022, parts of the southeast RTO had rolling blackouts. The extreme cold of winter storm Elliott forced the region to shut off power to areas in its service territory. The Energy Cooperative (TEC) has been collaborating with legislators over the past few years to express our concerns about the direction of this dangerous situation. Locally, TEC is creating a plan to reduce consumption if the PJM market reaches a dangerously low supply level.

As a member, your opinions must be heard. One great way to do that is through VCP, Voices for Cooperative Power. You can share your opinions and concerns online at voicesforcooperativepower.com, or you can reach out to your local legislators directly. Your input is necessary and can make a significant difference in shaping the future of our electric industry.

Winter 2023-24 reliability risk area summary from the North American Electric Reliability Corporation

Todd Ware

RESTORING OUTAGES

By Josh Filler, Vice President & Chief Operating Officer - Electric Operations

As I sit here on March 15, 2024, we are wrapping up restoration efforts on the second tornado-related outage event in three weeks. It is unprecedented for us and presents challenges to our team, both in coordinating those kinds of restoration efforts and physically repairing damaged facilities from the storm. As spring storms hit our system, it is a good time to share what our restoration process looks like in both small and large outage events.

OUTAGE AWARENESS

Let’s first start with how we become aware of outages. We have several sources of information that feed into what we call our Outage Management System (OMS). The information comes from meters reporting they have lost power, from members calling in an outage or submitting the outage in the Smarthub app, and from the general public or emergency services groups (Sheriff's and Fire Department, EMS or State Highway Patrol). All that information feeds into our OMS system and predicts where the outage has occurred. We also have predictions to isolate the device on our system with damage or a fault. We use this data to direct our line crews to a specific location.

ON-CALL CREWS

The Energy Cooperative always has a crew on call for outages and emergencies. For day-to-day outages that occur, our electric control center calls the on-call crew to respond to that outage. Our crews arrive on-site anywhere from 30-60 minutes from the time they get the call. This depends where the outage is on the system and if they have other outages to respond to first.

Upon arriving, the crew assesses the line for damage and repair, as necessary. Depending on the extent of the damage, this could take minutes to hours. The outage could be as simple as a tree limb falling and bouncing off the line, to broken poles, downed wires and trees needing removed. Therefore, total outage times can range from 30-60 minutes to several hours.

When an outage occurs, it is not as simple as having a lineman "reset" a breaker or "close in" a switch. An outage is caused by a fault on the system. Devices, such as fuses, reclosers and breakers operate and open the line to clear the fault. This is done to minimize any damage to the system and protect the public by de-energizing the line. Our crews need to assess what has happened and resolve the issue before those devices can be closed or a fuse can be re-fused, and power restored.

LARGER OUTAGES

When it comes to larger outage events, like the ones we had in February and the middle of March, it becomes a more coordinated effort. In larger outages, we call in multiple line crews and additional employees help with damage assessment and respond to downed wire calls. We pull in our forestry crews to assist our line crews in clearing out trees before lines can be repaired and restored. The first few hours of a major storm event, we are assessing the damage in the field. This helps determine what kind of resources and materials we might need and helps us determine if we need to call on assistance from contract crews or call for mutual aid, which is assistance from other cooperatives.

RESTORAL METHOD

From a coordination standpoint, we restore the most members first and work our way down to the smaller outages. This typically results in us focusing on facilities in the following order: transmission, substations, feeders, single phase lines and ultimately members’ individual services. For multi-day outage events, we have to begin thinking about crews’ rest time, lodging, meals, fuel, and a multitude of other factors that begin to affect the operations when outages span multiple days.

We never want to see outages, but we cannot control mother nature. In conjunction with the cooperative’s communications team, we try our best to keep you informed of what we see and what kind of outage times to expect.

Our team appreciates your patience during power outages. You can be assured that we will always restore power as quickly and safely as possible.

Josh Filler

Thank

You

to our crews for restoring power

to over 6,500 members between two different tornado-related events!

MEMBER SERVICE MESSAGE

By Heather Juzenas, Vice President of Marketing & Member Services

A solar panel sales representative recently knocked on the door of my Pataskala home. He was making his way around our neighborhood to “help people save money on their electric bill." My husband answered the door, but I stepped outside after hearing a bit of their conversation. I told him solar panels would not eliminate our electric bill and asked him not to make this claim to our neighbors, who are also members of The Energy Cooperative.

Our member services team typically hears from members after they install solar panels, wondering why they still have an electric bill. Solar panels can shave money off your monthly bill, but they do not eliminate it (especially in the winter months).

We encourage members to give us a call BEFORE they make an investment in solar panels.

Our electrical engineers can help you appropriately size your system by looking at your home’s energy use. They can also give you an idea of the cost savings you will see once the panels are up and running. We provide this service free of charge.

Will I still have an electric bill?

Yes. We currently have more than 350 members operating solar generation at their home or business. During the month of February, our net-metering members averaged an electric bill of $250.00/month. This average payment was calculated after the solar generation credit was applied. According to the National Weather Service, this past February was the third warmest we have seen in the Columbus, Ohio area since 2000. The average temperature for our area was 40.5 degrees Fahrenheit. Even though it was warmer than average, Ohio just does not see the amount of sunlight during the winter months to cover electric use for an entire month.

Should I get a battery-backed system?

Your solar panel system produces energy on sunny days. It will not collect sunlight at night and on cloudy days. That means you will continue to need electricity from your cooperative during these times.

Battery-backed or grid-independent systems use on-site energy storage to store excess energy that is generated during the day. The batteries store energy for use at night or when the sun is not producing enough power. Choosing this option adds significant cost and maintenance to your system, but the technology is improving, and the costs are beginning to decrease.

Can the contractor provide up-to-date documentation?

It may seem obvious, but be sure to request proof and documentation of the contractor’s licensing, permitting and other credentials. Comb through company reviews and check the contractor’s status with the Better Business Bureau. Do your homework on the front end before signing a contract.

Who will maintain the solar panels?

Determining who is responsible for maintaining the solar panels will depend on who owns the system. If you lease the system from a solar installer, it may be their responsibility. Periodically, solar panels need to be cleaned as dirt and debris can impact panel productivity. Parts may also need to be replaced, so it is important to know who will take on these responsibilities. We have members who purchased solar panels from a company that is now out of business. They are responsible for all repairs and maintenance of their aging solar panels.

What if The Energy Coopeartive manages and maintains the solar panels?

We operate a large solar array at our office in Utica, Ohio. This program, called OurSolar, has been around since 2016. We lease panels to electric members who want solar energy without the cost. One panel produces around 410 kilowatt hours per year. The fixed rate for the OurSolar program is $0.099875 per kWh for the term of the member’s agreement. This offsets part of the variable Generation and Transmission component of the member’s bill based on the amount of electric produced from the member’s solar panels. Interested? Give us a call at 740-344-2102 or send us a message at www.myenergycoop.com/contact-us

Heather Juzenas

Coming Soon...

An updated bill design!

Easily locate the important information you care about most.

>> All of the information you need is on the front of the bill! See all the details on the back.

>> Current and past bills are readily available in SmartHub to be viewed anytime from anywhere.

NATURAL GAS IS RELIABLE

The natural gas system's physical characteristics provide stability to the energy system.

Pipeline infrastructure is underground, looped and shielded from many major disruptive events

Much of the gas delivery system runs on its own supply

The ability to store gas further strengthens the self-reliant attributes of the gas system

Energy you can depend on.

Nearly 189 million Americans and 5.6 million businesses use natural gas because it is affordable, reliable, safe and essential to improving our environment.

Delivery of natural gas continues to provide safe and reliable service to customers with few interruptions in 2024.

During Winter Storm

Heather in January 2024, U.S. natural gas consumption set a two-day record from January 14 through 15.

Only 1 in 650 customers are expected to experience a planned or unplanned natural gas outage in any given year.

AGA'S 2024 PLAYBOOK

By Dan McVey, Vice President & Chief Operating Officer — Gas Operations

Natural gas is a cornerstone of our current energy infrastructure, providing energy for homes, businesses and industries worldwide. Within this complex network are multiple benefits that span across safety, affordability, reliability, environmental sustainability and innovation. Understanding and embracing these advantages is central to shaping our energy future.

SAFETY FIRST

One of the foremost advantages of natural gas is the commitment to safety. With rigorous regulations, advanced technology, and comprehensive training, the gas industry ensures that every step of the process, from extraction to distribution, adheres to the highest safety standards. Through continuous monitoring, maintenance and swift response practices, the industry mitigates risks, safeguards communities, and protects the environment from potential hazards, underscoring the commitment to public safety.

AFFORDABILITY AND ACCESSIBILITY

Natural gas remains one of the most affordable and accessible energy sources available today. Its abundant supply and efficient distribution infrastructure make it an economically viable option for households, businesses, and industries alike. The affordability of natural gas translates into lower utility bills for consumers, fostering economic stability and improving our quality of life. Moreover, its accessibility ensures energy security, especially in regions where other sources may be limited or unreliable, providing communities with a reliable energy source to meet their needs.

RELIABILITY OF SUPPLY

Energy reliability is paramount. Natural gas systems have a proven track record for resiliency and dependability. Unlike intermittent renewable sources, natural gas provides a steady and consistent energy supply, capable of meeting both baseline and peak demand requirements.

This reliability is particularly crucial in supporting critical infrastructure, such as hospitals, emergency services, and essential industries, ensuring uninterrupted operations during adverse conditions or natural disasters. As a flexible energy source, gas complements renewable energy sources, offering a reliable backup and facilitating the transition to a more sustainable energy mix.

ENVIRONMENTAL SUSTAINABILITY

Traditional perceptions may paint gas as a contributor to emission concerns. However, through modernization of pipeline infrastructure, emissions from the natural gas distribution system have declined 70% since 1990. Now, local distribution systems like The Energy Cooperative release as little as 0.1% of the natural gas they deliver. Conservation and technological advancements will continue to make gas a cleaner and more sustainable energy option. Through innovations like carbon capture and storage (CCS), integration of hydrogen into the gas network and renewable natural gas (RNG), the gas industry continues to look for ways to reduce its carbon footprint and greenhouse gas emissions.

DRIVING INNOVATION FORWARD

Innovation lies at the heart of the natural gas evolution, driving efficiency improvements, enhancing safety measures, and unlocking new opportunities. From advanced drilling techniques to smart metering systems, technological innovations continue to enhance every aspect of the natural gas industry. By fostering a culture of innovation, the natural gas industry remains at the forefront of energy transformation.

As we move towards a more sustainable future, embracing the advantages of natural gas is essential for meeting our energy needs.

Dan McVey

National Safe Digging Month

Homeowners and professional excavators can call OHIO811 or can easily enter their dig notification requests on their mobile devices by using i-dig and e-dig! Plus, use Positive Response to see how each utility company has responded to your dig notice or use the near ticket feature to find out if there are excavations taking place near your current location.

TAX SEASON & SECURITY

By Scott Stitts, Vice President & Chief Information Officer

PHISHING SCAMS

To keep your personal and professional data safe, you need to increase your cybersecurity, especially during tax season. There are people who use this time as an opportunity to prey on unsuspecting taxpayers. Their goal is to steal your financial and confidential information to commit fraud and steal your identity. These people are called cybercriminals

PREVENTING THREATS & PHISHING

Change your passwords and make them difficult to guess. Updating your passwords regularly, and using uppercase letters, lowercase letters, numbers, and symbols make it more challenging for scammers to hack into your personal and social media accounts.

Keep your computer and software up to date. Older software and operating systems are more prone to cyber-attacks. Whenever a software update becomes available, install it as soon as possible. Updates not only provide new features, but they increase security, too.

Billions of phishing scams are sent out by cybercriminals every day – and that is just from email alone. Phishing scams are deceptive attempts to gain sensitive information, such as usernames, passwords, credit card details, and banking information by pretending to be a trustworthy source. To avoid falling victim to a cyber-attack, never click on links or download attachments from suspicious emails or messages, and do not respond to them.

If you receive a suspicious message through email, text or one of your social media channels, saying that you owe money, or you are getting a hefty tax return, it is bait used by cybercriminals to try and lure you in and phish your information. Block the entity who sent the fake message and then report them to the IRS. To do this, visit, www.irs.gov/privacy-disclosure/report-phishing.

Use a secure online tax preparation and filing service. Reputable tax preparation services use encryption to protect sensitive data, such as social security numbers, tax identification numbers, and bank account information, from unauthorized access. It is crucial to research and verify the legitimacy of any tax service you plan to use. Scammers often create fake tax preparation websites to try and trick taxpayers.

PROTECTING YOURSELF

Cybercriminals are starting to master the art of manipulation. Their messages to unsuspecting victims have become increasingly elaborate and convincing. It is important to note that the IRS does not initiate contact with taxpayers through email, text messages or social media, to request personal or financial information. To learn more, visit www.irs.gov

Protecting your financial information during tax season is crucial. Scammers are always looking for new and creative ways to steal your information, and tax season is no exception. By being cautious of phishing scams, keeping your software up-to-date, and using verified tax preparation services, you can protect yourself and your confidential information from cybercriminals before they attempt to send you tax-related cyber threats.

Scott Stitts

UTILITY INSURANCE

By Pat McGonagle, Vice President & Chief Financial Officer

CAUSES FOR INCREASE

In recent years, the landscape of utility insurance in the United States has experienced a significant upheaval, marked by escalating premiums and large settlements in legal cases. From electric to natural gas and propane utilities, the industry faces mounting financial pressures, driving up costs for providers and consumers alike.

One of the primary drivers behind the surge in insurance costs is the increasing frequency and severity of natural disasters and extreme weather events. Hurricanes, wildfires, floods and other events have become more frequent and intense, posing heightened risks to utility infrastructure. As a result, insurance companies have adjusted their risk assessments, leading to higher premiums to offset potential losses.

Electric utilities, in particular, have been grappling with rising insurance expenses. The vulnerability of power lines, transformers, and substations to weather-related damage makes them prime targets for insurance claims. Moreover, the growing reliance on renewable energy sources such as wind and solar introduces new complexities and risks into the equation. While these sources offer environmental benefits, they also require specialized insurance coverage due to their unique characteristics and potential liabilities.

The natural gas sector faces similar challenges, compounded by concerns over pipeline safety and the environmental impact of methane emissions. Even with best safety practices, incidents such as pipeline explosions and leaks can result in detrimental consequences, including property damage and injuries. In response, insurance providers have tightened their underwriting standards and raised premiums to reflect the heightened risks associated with gas distribution infrastructure.

Propane utilities, though less prevalent than electric and natural gas providers, are not immune to the insurance cost surge. Propane storage facilities, distribution networks, and delivery vehicles are all subject to insurance requirements, adding another layer of expense to the industry. Moreover, the flammability of propane presents inherent risks that insurers must account for in their pricing models.

Recent legal settlements have further exacerbated the financial strain on utility insurance providers. High-profile cases involving property damage, personal injury, and environmental contamination have resulted in multimillion-dollar payouts, sending shockwaves through the industry. For example, a major natural gas utility faced significant financial repercussions following fires and pipeline explosions attributed to its system assets, leading to a substantial settlement to compensate affected parties. Similarly, electric utilities have been embroiled in litigation over weather related accidents, with courts awarding substantial damages to victims and their families.

EXPLORING STRATEGIES

To cope with the escalating costs of insurance, your cooperative continues to explore various strategies to mitigate risks and minimize financial exposure. This includes investing in infrastructure upgrades and implementing stringent safety protocols to identify and address vulnerabilities proactively. Additionally, we are exploring alternative risk transfer mechanisms, such as captive insurance arrangements and self-insurance, to gain greater control over our risk management strategies.

Despite these efforts, the outlook for utility insurance remains uncertain. The interplay of evolving regulatory requirements, technological advancements, and climate-related challenges will continue to shape the insurance landscape for electric, natural gas, and propane utilities in the years to come. As the cooperative grapples with these complexities, one thing remains clear: the rising cost of insurance is a pressing concern that demands proactive and collaborative solutions to safeguard the reliability and sustainability of essential cooperative services for you, our members.

Pat McGonagle

Operation Round Up Members!

Thank You

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 $4.5 million to community organizations.

The Operation Round Up Foundation awarded $20,782 to the following community organizations in February 2024:

CENTRAL CHRISTIAN CHURCH FOOD PANTRY for a storage barn

SHANE CENTER FOR THERAPEUTIC HORSEMANSHIP to buy savvy feeders & laptops

LICKING TOWNSHIP FIRE for gas leak detectors

MAIN MARKET & BEYOND, INC. to upgrade park electric

licking county humane society to purchase laptop, projector & screen craftsmen for kids for power feeder and sanders

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

WAYS TO CAST YOUR BALLOT

Survey & Ballot Systems conducts the elections.

Online voting runs April 3, 2024 at 9 a.m. to May 6, 2024 at 4 p.m. EST.

Do not mail your ballot if you vote online.

If you have any issues voting online, email support@directvote.net or call 952-974-2339.

DIRECTOR'S CORNER

By Don Hawk, District 1, CCD, BLC, DGC

Most recently, my fellow board members and I attended the Ohio Electric Cooperatives Winter Conference to stay updated on our ever-changing industry.

With that said, I want to share some thoughts about today and future electric generation concerns.

We are rapidly approaching challenging times regarding having adequate electric generation to meet all our demands. Baseload generation was discussed at the conference, and the importance of maintaining a mix of all forms was stressed. I could not agree more! The mixed forms referenced above include coal, natural gas, nuclear and hydropower. Combining the use of each form can represent a 24-hour supply of power to meet all the demands of industry and family life. Additional generation forms available include solar and wind power, and they can meet additional demand. But also recognizing the true reality that if the wind does not blow or the sun sets at night, that supply goes completely away. This is referred to as intermittent supply. It’s important we all understand the "demand versus supply" in electric generation.

As for solar, I would like to share additional concerns about the vast amounts of acreage being converted from producing food to solar. The landowner has a right to choose what the land is used for, but there are appropriate places for solar energy to be utilized. My concern revolves around using productive farm land. Our country's food supply is its strength; we must maintain vast productive acreage for food security. There are several new possibilities for future electric generation, and we need to look to the future with an open mind.

I want to thank all the members of The Energy Cooperative for allowing me to represent you as your director; it is an honor and a privilege.

Don Hawk

When you see these signs...

SLOWDOWN!

WORK ZONE SAFETY

By Connie Hogue, Vice President of Human Resources & Safety

Whenever you are driving down the road, and you approach the black and orange construction signs that say, “Road Work Ahead,” “One Lane Road Ahead,” “Utility Work Ahead,” “Workers Ahead,” and “Flagger Ahead,” –what is the first thing you should do? Slow down!

Yes, it may be frustrating to come across work zones occasionally on your commute—especially if you are running late for something, but road construction and maintenance workers need to make crucial updates and changes to help make the roadways more efficient.

Maintenance workers oversee the safety and reliability of our roadways by repairing hazardous conditions, but they cannot do their jobs without your cooperation.

NATIONAL WORK ZONE AWARENESS WEEK

April 15-19 is National Work Zone Awareness Week, and even though they are the days specifically chosen to acknowledge and be more mindful of work zones, you should always keep them in mind whenever you get in your car.

According to the National Safety Council, 954 people were killed and 42,151 people were injured in work zone related crashes in 2021.

The casualties took place in:

• Construction zones (468)

• Work zones of unknown types (403)

• Maintenance zones (66)

• Utility zones (17)

The deaths mostly consisted of drivers, but included pedestrians, passengers, bicyclists and road maintenance workers, as well. The number of deaths and injuries needs to be reduced significantly. If everyone were more aware of work zones and passed them with caution, the number of fatalities would be zero.

PASSING A WORK ZONE

Slow down. Reducing your speed in work zones allows you to have better control over your vehicle and you can stop your vehicle quickly, if needed.

Avoid any distractions. Pay attention to your surroundings – including the people, vehicles and potential hazards around you and the area under construction.

Always make eye contact with the operator or flagger. Before you drive near a work zone, make sure the crew is prepared for you to pass.

Follow the designated safety signs. If a sign says “slow,” go slow. If a sign says “stop,” stop – these signs are not suggestions. They provide quick, easy-to-follow guidance to ensure everyone’s safety.

Stay inside of the traffic cones. Do not drive in and out of the cones or knock them over. Follow the route that is mapped out specifically for their safety and yours.

Watch out for the crew members operating the machinery. They only have a small and narrow area to work in, and depending on the job they may need to step outside of their traffic cones.

MOVE OVER AND SLOW DOWN

The Move Over Law is a lifesaving law that requires drivers to move over and slow down for any stationary vehicle with flashing lights on the side of the road. The law applies to vehicles with flashing lights of any color, including law enforcement officers, emergency responders, road construction, maintenance vehicles, utility crews and tow trucks.

When a vehicle with flashing lights is stopped on or next to a roadway, drivers approaching the vehicle should: change into a lane not immediately adjacent to the vehicle, or slow down to a reasonable speed if you are unable to safely make a lane change.

By making these simple, yet necessary adjustments, you can help substantially reduce the number of accidents, injuries, and deaths from happening in and around work zones.

Remember to always Move Over, Slow Down and pay attention for every flashing light, every time. It just may save a life.

Connie Hogue

JOIN US FOR KIDS DAY!

SUNDAY, JUNE 23rd 12-3 p.m.

The Works & Canal Market District in Downtown Newark

Join us for a fun-filled family day! This event is free and open only to members of The Energy Cooperative and their families. Please bring a copy of your bill or show it in SmartHub for family admission!

STORM SAFETY FILL-IN-THE-BLANK

Spring is a wonderful season, but it can bring powerful storms. Read the clues below, then use the word bank to complete the storm safety tips.

1. Keep a handy in case of a power outage.

2. Be watchful for signs of a thunderstorm, including dark skies, flashes of or strong winds.

3. If a ____________________ is issued, seek shelter in a centrally-located room in your home, a basement or storm cellar.

4. If you’re outside and hear , go indoors immediately.

5. Practice a tornado with your family once a year.

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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

SAFETY

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.